Thai offshore player Mermaid Maritime has seen a dramatic reversal of its financial performance on the back of the strengthening offshore market.
The Singapore-listed company has just posted a first-quarter 2024 profit of $455,000 against a loss of $4.9m seen a year ago.
The company saw revenue for the quarter more than double from a year ago to $88m, however, this was partially offset by an 83.2% increase in costs to $79.4m.
Mermaid attributed the turnaround to growth in its core business sectors of subsea inspection, repair, maintenance and diving works, cable lay projects, transportation and installation, and decommissioning projects.
The company said its total orderbook stood at $735m at the end of March 2024 following its success in securing multiple project awards in South East Asia, the Middle East, North Sea and Sub-Saharan region for both short-term and long-term business throughout FY2026.
Mermaid said the subsea market’s resurgence is fuelled by technological advancements and innovations, which have enhanced efficiency and lowered operational costs, making offshore projects more attractive.
“Additionally, the growing global focus on environmental sustainability and the transition to cleaner energy sources has led to increased investment in offshore wind farms and other renewable energy projects, creating new opportunities within the subsea sector,” it said.
“Moreover, the ongoing geopolitical tensions and volatility in traditional oil and gas markets have spurred diversification efforts, with companies increasingly looking to expand their portfolios into new regions and sectors, including deepwater exploration and production, subsea mining and underwater infrastructure development.”
Mermaid said collaboration between industry players, government agencies and research institutions is driving further growth and innovation in the subsea market.
“Initiatives aimed at standardising practices, improving safety measures and developing cutting-edge technologies are helping to unlock untapped potential and address emerging challenges in this dynamic sector,” it said.
Against this backdrop, Mermaid said it maintains an optimistic outlook on the oil and gas sector over the coming year.
“The benefits from higher energy prices in the near term should continue working to ensure respectable profits in the short and intermediate term,” it said.
Looking ahead, Mermaid said it remains focused on building capacity in the engineering and cable divisions and on the African subsea space.
“The Middle East and Africa subsea market is set for robust growth with a projected CAGR [compound annual growth rate] of 23.4% from 2024 to 2030, while the Asia-Pacific market has a projected CAGR of 18.7%,” Mermaid said.
“Conversely, Europe’s subsea market is forecast to grow at a more moderate rate of 8.7% by 2030. We will continue to capitalise on this expansion by increasing our market share in our target subsea markets,” it added.
