Mermaid Marine Australia Limited (MRM)
Views and News
Front Row in Developing North West Shelf Oil & Gas Activities
Mermaid Marine Australia offers an excellent opportunity to participate in the development of oil and gas activities on the North West Shelf. Its Dampier Supply Base near Karratha is the closest point to the North West Shelf. A slipway there provides a significant competitive advantage in servicing and maintaining MRM’s fleet.
The Gorgon field and Jansz field will be tied back to Barrow Island, where three LNG trains will support LNG exports and a domestic gas connection to the mainland, meeting an existing pipeline around midway between Dampier and Onslow. Activities in Singapore, Egypt and Angola augment this WA upside.
Recent News Highlights
As at 31/12/2012 : see details at www.mma.com.au (new window? Shift+Click)
| 13/12/2012 Award of Supply Base Contract with Inpex |
| 22/11/2012 2012 AGM, Chairman's Address & MD's Presentation |
| 19/10/2012 Final settlement with all crew of the Trinity II |
| 16/10/2012 Secures FPSO Support Contract with Santos |
| 16/02/2012 Results 1H12: positive; well placed for future work |
| 16/12/2011 Completion of Bis Dampier Supply Base acquisition |
| 24/11/2011 AGM Chairman`s Address and MD`s Presentation |
| 21/11/2011 Acquires Bis Industries` Dampier Supply Base |
Half-yearly Performance & Estimates - MRM
| Year-end March | FY11A | 1H12A | FY12A | 1H13A | FY13A | FY14E | FY15E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 259.5 | 193.1 | 340.8 | 193.8 | 383.0 | 502.0 | 517.0 |
| EBITDA, $m | 87.7 | 55.3 | 106.7 | 63.9 | 129.8 | 141.2 | 140.5 |
| EBIT, $m | 67.3 | 41.2 | 79.8 | 49.9 | 92.3 | 100.7 | 103.8 |
| Report NPAT, $m | 43.2 | 27.7 | 51.1 | 32.5 | 60.3 | ||
| Adj. NPAT, $m | 60.3 | 67.2 | 71.0 | ||||
| Reported EPS, ¢ | 21.00 | 12.00 | 23.00 | 14.00 | 26.00 | ||
| Adjusted EPS, ¢ | 26.00 | 28.90 | 30.00 | ||||
| EPS %FY/Growth | 52% | 10% | 54% | 13% | 11% | 4% | |
| Dividend, ¢ | 9.0 | 5.0 | 11.0 | 5.5 | 12.5 | 14.00 | 15.00 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 31% | 0 | 31% | 33% | 34% | 28.1% | 27.2% |
| NPAT Margin | 15% | 0 | 15% | 17% | 16% | 13.4% | 13.7% |
| ROE, % | 16% | 0 | 16% | 9 | 15% | ||
| EBIT/Interest | 7.4 | 0.0 | 9.8 | 12.0 | 10.82 | ||
| Net Debt / Equity | 0.29 | 0 | 0.32 | 0.31 | 0.30 | ||
| CashFlow/Sh, ¢ | 38.9 | 16.1 | 36.5 | 9.7 | 31.6 | 45.7 | 46.4 |
| Y/E Shares, m | 215.4 | 217.9 | 219.5 | 223.9 | 230.0 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Half-year Performance & Estimates - MRM
| Year-end June | 1H11A | FY11A | 1H12A | FY12A | 1H13A | FY13E | FY14E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 134.5 | 259.5 | 193.1 | 340.8 | 193.8 | 432.0 | 467.0 |
| EBITDA, $m | 41.3 | 87.7 | 55.3 | 106.7 | 63.9 | 122.0 | 133.8 |
| EBIT, $m | 32.2 | 67.3 | 41.2 | 79.8 | 49.9 | 93.1 | 102.7 |
| Report NPAT, $m | 20.4 | 43.2 | 27.7 | 51.1 | 32.5 | ||
| Adj. NPAT, $m | 32.5 | 60.2 | 67.5 | ||||
| Reported EPS, ¢ | 10.00 | 21.00 | 12.00 | 23.00 | 14.00 | ||
| Adjusted EPS, ¢ | 14.00 | 26.70 | 29.80 | ||||
| EPS %FY/Growth | 48% | 52% | 10% | 17% | 16% | 12% | |
| Dividend, ¢ | 4.0 | 9.0 | 5.0 | 11.0 | 5.5 | 12.50 | 14.00 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 34% | 31% | 0 | 31% | 33% | 28.2% | 28.7% |
| NPAT Margin | 20% | 15% | 0 | 15% | 17% | 13.9% | 14.5% |
| ROE, % | 19% | 16% | 0 | 16% | 9% | ||
| EBIT/Interest | 5.7 | 7.4 | 0.0 | 9.8 | 12.0 | ||
| Net Debt / Equity | 0.67 | 0.29 | 0 | 0.32 | 0.31 | ||
| CashFlow/Sh, ¢ | 9.0 | 38.9 | 16.1 | 36.5 | 9.7 | 38.3 | 42.7 |
| Y/E Shares, m | 213.7 | 215.4 | 217.9 | 219.5 | 223.9 |
| Notes |
| EPS Growth compared with the pcp is shown in most columns, except 1H10A and 1H11A which show the first half % of full year EPS. |
Half-yearly Performance & Estimates - MRM
| Year-end June | FY10A | 1H11A | FY11A | 1H12A | FY12A | FY13E | FY14E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 180.5 | 134.5 | 259.5 | 193.1 | 340.8 | 412.0 | 439.0 |
| EBITDA, $m | 65.3 | 41.3 | 87.7 | 55.3 | 106.7 | 117.7 | 127.3 |
| EBIT, $m | 50.8 | 32.2 | 67.3 | 41.2 | 79.8 | 89.7 | 97.8 |
| Report NPAT, $m | 37.9 | 20.4 | 43.2 | 27.7 | 51.1 | ||
| Adj. NPAT, $m | 51.1 | 58.3 | 63.7 | ||||
| Reported EPS, ¢ | 20.00 | 10.00 | 21.00 | 12.00 | 23.00 | ||
| Adjusted EPS, ¢ | 23.00 | 26.60 | 28.70 | ||||
| EPS %FY/Growth | 48% | 5% | 52% | 10% | 16% | 8% | |
| Dividend, ¢ | 8.0 | 4.0 | 9.0 | 5.0 | 11.0 | 12.00 | 13.10 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 34% | 34% | 31% | 28.6% | 31% | 28.6% | 29.0% |
| NPAT Margin | 20% | 20% | 15% | 14.3% | 15% | 14.2% | 14.5% |
| ROE, % | 19% | 19% | 16% | 16% | |||
| EBIT/Interest | 5.7 | 5.7 | 7.4 | 0.00 | 9.77 | ||
| Net Debt / Equity | 0.67 | 0.67 | 0.29 | 0 | 0.32 | ||
| CashFlow/Sh, ¢ | 27.8 | 9.0 | 38.9 | 16.1 | 36.5 | 36.8 | 41.1 |
| Y/E Shares, m | 186.9 | 213.7 | 215.4 | 217.9 | 219.5 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Company Overview
Mermaid Marine Australia provides offshore marine services to oil and gas producers and developers off the coast of Western Australia.
With a fleet of some 30 vessels, MRM provides a range of tug and barge operations, offshore maintenance, dive and survey support, supply operations and FPSO offtake support.
At its main base at Dampier, MRM operates a multi-user facility providing integrated wharf and supply base services for the offshore oil and gas industry.
At Broome, operated in a joint venture with Toll Holdings, the supply base is strategically placed to service the current exploration and future construction and production activities in the gas rich Browse Basin.
Russell Research in the media
Stock Picks for Sunday Herald Sun - 24 March 2013
HOLD Mermaid Marine Australia Limited, MRM, $3.86
North West Shelf oil and gas projects will continue to drive its vessels and shore facilities to leverage its growth and 5 per cent gross dividends.
Stock Picks for The Bull.com.au - 5 November 2012
**HOLD Mermaid Marine, MRM ($3.17) **
MRM is Australia’s largest marine logistics services provider to the offshore oil and gas industry. In the past five years, MRM invested $350 million in its vessel fleet and supply bases at Dampier and Broome near the North West Shelf. With strong finances reflecting steady mid-teens or higher earnings growth, it’s well placed to service multi-billion dollar offshore projects in the years ahead. Expect a franked yield of almost 4 per cent and earnings per share growth of 15 per cent this year.
Stock Picks for Sunday Herald Sun - 18 March 2012
BUY: Mermaid Marine Australia Limited, MRM, $3.16
Its vessels and shore facilities have strong leverage to North West Shelf projects, giving growth and dividends.
Wave Chart
Profile
Mermaid Marine Australia
Rating: ♦
Category: Potent Stock ; Midcaps
Action:
Website: www.mma.com.au
| ASX code: | MRM |
| Closing Price, 30/12/2013: | $ 3.350 |
| Market Capitalisation: | $ 763 million |
| 52 Week High: | $ 4.27 |
| 52 Week Low: | $ 2.98 |
| Sector: | Marine |
| Index: | S&P/ASX 200 Index |
Summary of Fundamentals
| Year-end June | FY12A | FY13A | FY14E | FY15E |
|---|---|---|---|---|
| NPAT, $m | 51.1 | 60.3 | 60.0 | 68.7 |
| Reported EPS, ¢ | 23.00 | 26.00 | ||
| Adjusted EPS, ¢ | 26.50 | 25.80 | 29.00 | |
| EPS Growth, % | 10% | 15% | -3% | 12% |
| P/E Ratio, x | 14.57 | 12.64 | 12.98 | 11.55 |
| Dividend, ¢ | 11.0 | 12.5 | 12.50 | 14.00 |
| Franking, % | 100% | 100% | 100% | 100% |
| Div. Yield, % | 3.28 | 3.73 | 3.73 | 4.18 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 30 December 2013
Other Highlights
| Sector: | Marine |
| Return on Equity, FY13 : | 15% |
| Net Debt to Equity, FY13 : | 30 % |
| EBIT / Interest Cover, FY13 : | 10.82 x |
| Gicscode: | 20303010 |
| First Listed: | 21-Jun-99 |
Business Activities
Mermaid Marine Australia Limited (MRM) is Australia's largest marine services provider to the offshore oil and gas industry. It owns and operates vessels, supply bases and slipway services on the North West Shelf.
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |