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Mermaid Marine Australia warns of lower first half earnings

Mermaid Marine Australia warns of lower first half earnings
Mermaid Marine Australia (MMA) has warned of lower than expected results for the first half of financial year 2014 due to delays in a number of key offshore projects.

The Australia-based offshore vessels owner said its performance in the first half will be lower than expected as “a number of key projects and drilling operations have commenced or are commencing later than anticipated.”

MMA said it now expects to deliver a full year net profit in line with the last financial year, with slightly over 60% of earnings weighted to the second half.

“Contracted vessel related work previously planned to commence in the first half will now commence from December 2013. Three key scopes of offshore construction work and drilling programmes which were expected to commence in the first half have now been deferred into the second half,” MMA said in a statement.

As a result, activity at the Dampier Supply Base wharf has been approximately 30% below anticipated volumes and vessel utilisation has also been impacted for the year to date.

“Two additional drilling rigs will commence offshore Dampier in December 2013 and project activity is also expected to ramp up in December which will lead to increased demand for both vessel and supply base services in the second half,” the company said.

MMA added that its purpose-built platform supply vessel (PSV), Mermaid Leeuwin, is scheduled for completion in December 2013 and will contribute to second half earnings.

TAGS: Offshore