- Mermaid Maritime (SGX:DU4)’s 2QFY24 results fell short of our expectations, with revenue and NPAT coming in at US$158.0mln and US$2.8mln respectively.
- With a flat 1Q24 due to their boats being dry docked, 2Q24 results failed to impress as 1HFY24 NPAT only reached 25% of our forecast despite revenue exceeding our estimates by 6%. This significant shortfall was primarily attributed to a 134.9% increase in the cost of rendering services and we understand from Mermaid Maritime that one of their vessels, Hilong 106, incurred considerable cost of carry due to late vessel delivery to Thailand, which dragged total earnings down. Excluding this impact, Mermaid Maritime’s results would likely have met our 1H24 estimates.
Earnings forecast revision
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Downgrade To HOLD
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Nicholas Yon Lim & Tan Securities Research | https://www.limtan.com.sg/ 2024-08-28
Previous report by LIM:
2024-07-03 Mermaid Maritime - Mermaid ~ Seas The Day!.
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