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NMS - Neptune Marine Services

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Baussie said:
Someone made mention of a BP report which were pointing towards NEPSYS becoming the industry weld of choice...
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http://www.ogj.com/display_article/...f-operating-procedures/?dcmp=OGJ.Daily.Update

i have edited this to show the relevant part

BP plans company-wide review of operating procedures

Paula Dittrick
Senior Staff Writer

HOUSTON, Nov. 20 -- BP PLC, as part of its response to a series of accidents, plans next year to review the quality and safety of its operating procedures company-wide.

BP's future plans

Starting Jan. 1, 2008, BP plans to list and review all of its operating procedures. The company also will examine its practices regarding critical safety equipment and maintenance, Broadribb said.

He also is developing methods for measuring the competency of employees in roles critical to safety. Since 2006, the company has audited its operating performance to strengthen internal safety procedures.

At Texas City, the development of employee skills was a low priority with inadequate training, Braodribb said.

"Over the years, the working environment had eroded to one characterized by resistance to change and lacking of trust, motivation, and a sense of purpose," he said.

Consequently, training procedures are being studied company-wide, Broadribb said. Although there is a place for both face-to-face and computer-based training, Broadribb said the company favors face-to-face training.

BP's executives and operational managers receive more advanced and extensive training on process safety than they did in the past.

"Above all else, we've got to listen to our people and their concerns," Broadribb said. "When senior management says something, their actions need to mirror their words…. Whatever you do, you can just change culture a step at a time."
 
mophead said:
Just to let all know that the AGM is up on BRR...as I know alot of neepy fans have been awaiting it!

http://www.brr.com.au/event/NMS/92/32321
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I think the question of management's ability to effectively tie together all the newly acquired companies can now be put to bed. Lange covered that point at length and I'm sure investors couldn't be happier with the way this is progressing.

Very pleasing to hear about the strength of management in all companies now working under the NMS banner.

BP has identified Nepsys as the way of the future for them, with $200m spent per year an repairs. This $200m, as Lange said, is only in the North Sea, and he added that this is one of their smaller regions!!

I know you can't get too excited here on this forum but this presentation, and the confident manner in which it was delivered would certainly give all NMS supporters great hope for a rather profitable future.

I've no doubt that my hard earned is in good hands.
 
Although NMS has acquired different complementary capabilities, which will each provide impetus, and broader scope, nonetheless, the cost / benefit advantage of Nepsys remains the core differentiation for NMS and its primary expansion driver, and so we should not be surprised to see it sought widely, and by the biggest operators.

Without seeing the independent report, the logic seems quite compelling that BP will choose to make NMS the provider of choice in the North Sea. If they choose not to after commissioning an independent evaluation, the reasons will deservedly attract very close scrutiny by NMS holders.

We should be expecting this sort of interest from the blue-chips and wondering about how many and when, and then just how big will NMS need to become to service the demand.

The release of an announcement that they have won BP's North Sea work will rightly have an electrifying effect on the market.
 
son of baglimit said:
my source is formerly from the engineering game, and knows the right questions to ask of lange during the crownies.

but it might be a week before i hear from him, so will have to be patient.

the info may not be new, but it will definitely give better insight into what we can expect next 6 months.
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ive only had a brief rundown of his view of what happened at the AGM, but the level of pure happiness coming from him says we are heading for absolute greatness. the points raised by others on various forums are correct, but the brief update i got tells me they have understated what it all really meant. the board were glowing, but also reserved, not wanting to show how damn pleased they are that everything they have been planning is coming together, and well in advance of expectations. the staff present were all smiles, all happy to mingle and show they are very happy to be working for an organisation going places (the employee options maybe helping too).

the fact they mentioned further acquisitions were likely got me thinking - why go to JPMorgan in NYC, and give a presentation to folk who are unlikely to know them, if they are just to continue to buy up companies valued around $20M (they could raise that locally youd think) - i suspect they are planning something much much bigger - remember how well the SP went after that JPM pres in NYC. maybe its folk getting themselves set for a major capital raising somewhere in the 9 figure region - lange was keen to confirm scale was important when tendering for the big boys projects - "you have to have a balance sheet thats says you dont disappear tomorrow".

some highlights i took from the BRR audio............

lange NOT wanting to ''brag'' about the profitability of survey work (tri-surv) and so placing that division under a diferent name (i was one who thought tri-surv was the most important acq to date, as they enabled NMS to provide that initial step in an 'end to end' capacity)

merging of the 2 aust diving branches (allied & TDS) - im assuming wanting to retain the workforce, so bringing them together to take on major work.

the customer base growing with each acq - new clients being intro'd to the NMS brand.

BP and the $200M spent in the north sea - one of their smaller regions.

the timing of the arrival of the 1st ROV - exactly as mentioned in that ROV forum.

the mcdonalds quote - upsizing of the contracts (as NMS now has balance sheet scale)

and finally something i was alerted too long ago - the 40% ebit margins available in this industry - how many other businesses can offer long term profitability to that level.

no doubt more to come.
 
The AGM audio definately presents the air of excitement that the presentation lacked. And Baggy, your spot on, sounds like your ear to the ground, fly on the wall, infiltrated a few good conversations.

I have to quote Lange.... "Locked and Loaded with BP".

Has to be the quote of the year from him. Now, how that translates onto the NMS forecast earnings is the next big wait.:D
 
Baussie said:
I have to quote Lange.... "Locked and Loaded with BP".
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Does this mean NMS is next cab off the rank for BP's next repair job? And is it only for the North Sea work, which is what was mentioned, or anywhere they have infrastructure? Lange said "it is a safe bet they will come to us". If BP have 200million worth of work in the North Sea, you have to wonder how much they have worldwide. The following BP link shows their global footprint. It looks like the North Sea's 200million is only a small part of BP's global operations and Lange also stated it is one of BP's smaller operations.

http://www.bp.com/multipleimagesection.do?categoryId=23&contentId=7017765

Since there is no contract, are we assuming then that the independent report BP commissioned, which indicated NMS's nepsys weld is the way of the future, has given NMS a chance to gain all BP's work, should they perform well on their first "Locked and Loaded" job?

A workforce from 6 last year to now over 350, to over 500 in january08. But will that be enough, probably not. As mentioned by Son of Baglimit, a huge acquisition could be on the cards and I think most likely. As mentioned on BRR by Ross Kennan "it's still early days", "It's been a rapid growth period, we are on a journey and it wont stop".

One ROV on the way and two more look like being ordered by the end of the year. Demand in Australia is outstripping supply, as Lange says "natural extension of our business". The ROV industry here is worth 300million. Also future infrastructure is going deeper and deeper and ROVs will be in greater demand. See link re future deepwater work.

http://www.offshore-mag.com/display_article/308774/120/ARTCL/none/COMPN/Douglas-Westwood-sees-deepwater-spending-at-$246-billion-in-2012/?dcmp=ENL.OSWR

They can't estimate their future earnings! 1+1 = no idea! I'm happy with the no idea prospect. "the outlook for neptune is incredibly positive", Lange summing up. It looks like the pain in the a55 that Lange mentioned NMS will be is coming closer to fruition. If one operator concludes NEPSYS is the way of the future, what will others conclude??

No doubt NMS SP will be affected by the potential global crisis, but how much? Everything still needs repairing, and oil and gas projects most likely would go ahead. So although shareholders will sell because of fear, it would likely bounce back due to solid earnings and prospects.

And i think it will be a gigantic company, or ginormous, or very very big.

:cool:
 
SophieSweet said:
And i think it will be a gigantic company, or ginormous, or very very big. :cool:
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I'm not sure your supposed to imply something like that outright SophieSweet, best to allude to it with an impeccable post of fundamentals and researched facts....oh wait, you did with the rest of your post. Nice work. :D
 
I know Baussie, I am trying to be careful here, I noted how Mophead copped it for posting a link and saying it was a great read and Jarrahtree copped it because he thought the SP might hit a certain amount and I was called a brownnose by the moderator for joking about SOB becoming a saint. I tread carefully here, no jokes !!:p:

Oh yeah, you copped it too. Maybe these guys should buy some NMS and start smiling!
 
SophieSweet said:
I know Baussie, I am trying to be careful here, I noted how Mophead copped it for posting a link and saying it was a great read and Jarrahtree copped it because he thought the SP might hit a certain amount and I was called a brownnose by the moderator for joking about SOB becoming a saint. I tread carefully here, no jokes !!:p:

Oh yeah, you copped it too. Maybe these guys should buy some NMS and start smiling!
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If people like mophead had followed the rules of the forum to begin with then he wouldn't have been questioned at all.

If someone says the SP will hit a certain amount, without some analysis as to why, then they will be questioned.

We are really getting tired of you guys complaining about the way this forum is moderated.

None of you have to be here. If you don't like it, you can leave and go somewhere else. If you have a question about the way the forum is run, then feel free to discuss it with us privately. Don't spend your time on here making public comments about the job we do.

All further references to the way the mods are running this forum will be deleted.

Have a nice day.
 
Lange mentioned at the AGM that the acqusition of USUS was the entree into the US Market.

What could be the main course? Cal Dive, subsea7

I hope he doesn't bite off more than he can chew. :bite:
 
I don't know about biting off more than he chew, I think he should keep biting and chew like hell. At the end of the day, it is about commercialising the NEPSYS technology and increasing the SP. There seems to be a shortage of qualified personnel , hence their trainee programs and huge wage packages, working for "The GODS of Underwater Welding". I think it's in our best interests to get the NEPSYS weld out there operating 24hours a day 7days a week asap. The eight acquisitions management/owners could see that, and they were and are industry experts with bluechip customers. It's sort of like, if you don't join us, someone else will and the larger they get, the more leverage they have in negotiating new acquisitions. Now I think they are in the box seat, they have a huge workforce, diverse product, offering a service that allows customers to use one operator. So Caldive would be a suitable acquisition, what are they going to do otherwise, use coffer dams, hyperbaric chambers, wet welds, suggest their customers drydock ships and then lose work and see their SP drop and their customer base? If they don't join NMS or gain a license to use NEPSYS, where will they be? On the other hand NMS need a huge workforce quickly. I think alot of relevant companies will be sitting around boardroom tables discussing NMS, and with a little research they will see where Lange is from, Schlumberger, so he is no fool with excellent industry knowledge and contacts.

Now i better read my message!!

Having a nice day!

:D
 
Sophie I am with you all the way we need the workforce so lets buy it.

My only question was is taking on Cal dive too early or should we mop up their smaller competition before they do?
 
Cal Dive (DVR on NYSE) is way too big at the moment - it'd be a $2 billion + bid.

theyve got US, asia, europe bases now - but nothing in the middle east - maybe google around for something under $500M based there.
 
Google 'Dive Solutions' based in Durban. Already an international partner of Neppy (as was USUS) and fills a large gap btwn Perth and Scotland, with closer proximity to the middle east.

I thought for a minute that Lange was referring to Sophie's bet with the McDonald's comment.

Enjoying these posts, keep up the great work folks & avagoodweekend.:)
 
sophie

id reckon if they have secured some long term / ongoing relationship with BP, they will need to ensure that NEPSYS is adaptable to all the various requirements BP will have (as it was adapted for the cocos work for shell, and GOM work too), and so your personal favourite R&D can expect more exposure in the books.
 
Not sure if this is news or not but USUS are doing a presentation at the Underwater Intervention 2008 conference on Tuesday the 29th Jan 08. Interestingly enough right alongside presentations of the use of ROV's

2.NEPSYS - Underwater Permanent Dry Welding Technology

Mike Erinakes and Richard Campbell, U S Underwater Services; Graeme Creedon, Neptune Marine Services, Ltd (Australia)

link

http://www.underwaterintervention.com/UI2008TechnicalProgramSchedule-Tuesday.htm
 
Your right again Son of Baglimit, DVR is way to big, I hadn't looked up their actual size. But you never know in the future and possibly the near future. I think once they get some repeat runs on the board with the likes of Apache and BP, things may change. I dont know about dive solutions South Africa. http://www.divesolutionssa.com/index.htm They have 24 divers and a presence where NMS don't. Maybe NMS are looking for bigger fish now? They have some sort of partnership already, whatever that means? Maybe some are NEPSYS trained. NMS needs staff, but do you buy a company just to get them and their customers or setup shop there yourself, which would be cheaper? And i bet they would join NMS if the opportunity arose, who wouldn't want to join them, with the potential prospects. As whoever their competition is in their region, they would most certainly suck some of the oppositions customer base with NEPSYS and by onselling some of the other services.

Sounda, i think that was already found some time ago, although good to refresh the memory.

Come on BP!! call NMS this week with a big job, bring on those hurricanes, tsunamis and earthquakes- only joking of course. :eek:
 
SophieSweet said:
NMS needs staff, but do you buy a company just to get them and their customers or setup shop there yourself, which would be cheaper?
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Aquisition (at the right price) is a far better option than setting up and competing in the oppositions patch and "buying" their customer base.:2twocents
 
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