Neptune profit slumps, sees better times ahead
Neptune Marine Services Limited (NMS) reported a post-tax loss of nearly $300,000 for the half year to 31 December 2009, down from a profit of over $12 million in the previous corresponding period. The result came on the back of an 11% fall in revenue for the half to $84m.
Managing director and CEO Christian Lange said it was expecting a better second half, with the company benefiting from an enhanced management team across a range of its business divisions.
Commenting on the result for the last half Mr Lange said the result had been severely impacted by a decline in activity in the US and SE Asia and low utilization rates on the company’s two vessels.
Subsequently, the company said one vessel, the Neptune Trident was leased to Qatar for three years, while Neptune ROV Supporter was operating in Thailand.
“Activity in the US and South East Asia is also improving and we expect a significant increase in profitability in the second half,” Mr Lange added.
To support this activity, Neptune said its workforce had grown 10% in recent months.
Mr Lang also noted the provider of offshore services to the oil and gas industry had gearing at 8% and cash in the bank of $37 million.
“This supports our near term organic growth opportunities and puts us on a solid financial footing,” Mr Lange concluded.
At 1134 AEDT, Neptune Marine Services shares were steady at 40.5c.
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