Mermaid Maritime rated 'outperform' by CIMB

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.44

CIMB in a Mar 27 research report says: "Positive feedback from large offshore construction companies spells brighter prospects for Mermaid’s subsea arm. Strengthened by anew management team,we expect Mermaid to be back in the black, following two years of losses.

"Earnings risks are on the upside, as we have conservatively projected a 68% utilisation rate for FY12 –comparable to the 69% in FY11. We recommend investors buy ahead of a strong 2H. Downside risks are limited with the stock trading at 0.5x CY12 P/BV – the RNAV of its subsea fleet could be even higher than the trading price.

"In addition, CY12 EV/EBITDA of 3x highlights its strong operating cash flow generation and implies a cash payback of three years. No changes to our EPS estimates. Target price of 44 cents. MAINTAIN OUTPERFORM."

Mermaid Maritime - Renewed hopes

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.44

Target S$0.44

Positive feedback from large offshore construction companies spells brighter prospects for Mermaid's subsea arm. Strengthened by a new management team, we expect Mermaid to be back in the black, following two years of losses. Maintain Outperform. No changes to our EPS estimates or target price, still at 0.7x CY12 P/BV (3-year mean). Contract awards of its jack-ups and a stronger 2H could catalyse its share price, we believe.

Source: CIMB Daybreak - 26 March 2012, Full PDF Report

Mermaid Maritime PCL rated 'outperform' by CIMB

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.49

CIMB in an Aug 19 research report says: "We took Mermaid's new CEO, Mr Denis Welch and its investor relations head Mr Howard Woon on a one-day NDR in Singapore. Refreshingly candid, management acknowledged its past mistakes and updated investors on Mermaid's current business operations.

"While investors generally agreed that the current share price provides value, we sense that most are also adopting a "wait-and-see" approach. Nonetheless, the key investment case lies in its current trading price which is below break-up value.

"There are no changes to our earnings estimates or target price of 49 cents, still based on 0.8x CY11 P/BV. Improvements in quarterly results may win investors over while mid-term catalysts could come from contracts for its newbuild jack-ups. MAINTAIN OUTPERFORM.'

Mermaid Maritime Plc upgraded to 'outperform' by CIMB

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.49

CIMB in a July 18 research report says: "We believe that the worst could be over with Mermaid bottoming out in terms of q-o-q earnings. Utilisation for 2QFY11 has climbed to 54% vs. 28% for 2QFY10. Based on an order book of over US$100 million, subsea should achieve above 60% utilisation for 2HFY11.

"We lower our FY2011 net loss forecast by 8% and raise our estimate for FY2013 by 114%. As we believe that losses could be contained, we raise our target price to 49 cents, based on 0.8x CY11 P/BV (previously 41 cents, based on 0.7x CY11 P/BV, its average since 2009).

"As it is trading at 0.6x CY11 P/BV, we believe that downside risks are limited and see its share price supported by value in subsea assets. UPGRADE TO OUTPERFORM."

CIMB ups Mermaid Maritime to outperform, target $0.49

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD

Research House: CIMB

Price Call: BUY

Target Price: 0.49

CIMB Research has upgraded Singapore-listed offshore oil and gas firm Mermaid Maritime Pcl (MMPC.SI) to outperform from neutral and raised its target price to $0.49 from $0.41.

CIMB has cut its fiscal 2011 net loss forecast for Mermaid Maritime by 8% and raised its earnings estimate for 2013 by 114% to take into account higher utilisation rates and improvements in its subsea business.

“Improvements mainly stem from a shift in strategic bidding, which has led the subsea arm to tender much competitively than before,” CIMB said in a report.

The brokerage said it expects Mermaid Maritime to achieve utilisation rate of 67% in the third quarter and 62% in the fourth quarter.

At 9:01a.m., shares of Mermaid Maritime were flat at $0.34 and have fallen about 21% since the start of the year.

Mermaid Maritime Plc upgraded to 'neutral' by CIMB

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD
Research House: CIMB

CIMB in a May 18 research report says: "2Q11 net loss of THB219 million (+16% y-o-y) was smaller than what we were expecting (THB392 million), though larger than consensus. Key variance was improved utilisation in the subsea fleet. 1H11 net loss of THB408 million forms 43% of our FY2011 number.

"Factoring in the better-than-expected 2Q, higher subsea day rates and improved utilisation for MTR-2, we narrow our FY2011 net-loss estimate by 36%, but keep our estimates for FY2012-2013. Our target price remains 41 cents, based on 0.7x CY11 P/BV (average since FY2009). Following our downgrade in our 4Q10 results note, the stock has underperformed the FSSTI by 26%. UPGRADE TO NEUTRAL."

Mermaid - Mermaid Maritime off 4.6%; DBS Vickers cuts FY11 view

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD
Research House: DBS Vickers

Mermaid Maritime (DU4.SG) down 4.6% at $0.415 vs $0.40 intraday low, volume moderate at 1.2 million shares; fall comes after as oil & gas drilling group reports THB456.1 million ($19.9 million) FY loss.

DBS Vickers, which has Hold rating, lowers target to $0.49 from $0.52, says losses larger than expected, despite in-line revenue, due to Subsea division which suffered on back of lower utilisation, day rates, inherently high operating leverage.

Adds, LOIs with Keppel FELS for 2 newbuild jackups likely to be converted to firm orders soon, “however, even if Mermaid were to secure back-to-back charters today, contributions will only kick in from FY13 onwards, providing no support for near to medium term earnings.”



Expects FY11 net loss of THB96 million vs net profit of THB92 million previously. “Despite the weak earnings outlook for FY11, we believe Mermaid’s quality subsea assets should limit downside to current valuations.”

Mermaid - Mermaid Maritime off 4.6%; DBS Vickers cuts FY11 view

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD
Research House: DBS Vickers

Mermaid Maritime (DU4.SG) down 4.6% at $0.415 vs $0.40 intraday low, volume moderate at 1.2 million shares; fall comes after as oil & gas drilling group reports THB456.1 million ($19.9 million) FY loss.

DBS Vickers, which has Hold rating, lowers target to $0.49 from $0.52, says losses larger than expected, despite in-line revenue, due to Subsea division which suffered on back of lower utilisation, day rates, inherently high operating leverage.

Adds, LOIs with Keppel FELS for 2 newbuild jackups likely to be converted to firm orders soon, “however, even if Mermaid were to secure back-to-back charters today, contributions will only kick in from FY13 onwards, providing no support for near to medium term earnings.”



Expects FY11 net loss of THB96 million vs net profit of THB92 million previously. “Despite the weak earnings outlook for FY11, we believe Mermaid’s quality subsea assets should limit downside to current valuations.”

Mermaid - Mermaid Maritime upgraded to Hold by DBS Vickers

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD
Research House: DBS Vickers

DBS Vickers upgrades Mermaid Maritime (DU4.SG) to Hold from Fully Valued, raises target price to $0.52 from $0.32, based on 0.8x FY10 P/B vs P/E methodology previously, says Dow Jones.



DBS Vickers notes stock trades at 59% discount to peers on book basis after recent sell-off driven by bigger-than-expected 2Q10 loss.



“We believe the negatives have been priced in, and investors should not ignore the value in Mermaid’s quality subsea assets,” says the broker.

DBS Vickers adds drilling services provider has fleet of good-quality vessels: “Full ownership of a young and extensive fleet of subsea assets enhances operational flexibility and cost control, while reducing reliance on third-party sub-contractors.”



Shares last +4.4% at $0.47.