Australian (ASX) Stock Market Forum

NMS - Neptune Marine Services

Jump to new
I see it like this.

This business has a very sound strategy - endeavouring to service the resource sector in a highly specialised area. But like all strategies they have to execute. CEOs dont get sacked for bad strategy. They get sakced for bad execution. Part of their execution involves integrating some acquistions - always a tough thing and fraught with danger.

All in all it looks to have alot of the Warren Buffet's about it - sound strategy, solid niche, and until very recently a growing market. Thing that remains to be seen is whether the management can nail it - the other big Buffet factor.

For mine I am staying in at this stage. I think it will be some time before we see any real results that translate to share price. Also, as is always the case, being a speculative play in a volatile market is not a great position.


Let's hope they can keep their head above water (pardon the pun) in the interim.

Jaffa
 
Maybe I am missing something here, revenues for the whole of FY07= $15.5 million. Revenues for the first half of FY08 =$34.7 million, on track to meet company forecasts of between $60 and $70 million, sounds pretty good to me!!
 
Engo,

NMS have not made revenues of 34.7 million for the first half of this financial year. It really surprises me with the amount of people who think that cash flow is the same as revenue. Cash flow is the "amount of cash that has come into the bank" not revenue earned for the period....

For all we know NMS may have recorded 40 million worth of revenue for the six months so far, however the cash for those jobs won't be received until this quarter or maybe the next quarter.

I'm assuming that payment for the jobs that NMS does will be in installments from clients. That is an original deposit possible progress payments depending on the tyoe of job, and then a final payment once the job has bee complete and the customer is happy.

If i see one my person post about the cash for the quarter equalling revenues i will seriously go bananas.lol.....

By the way i take this quarterly cash flow as being rather good. Positive cash flow is building quarter by quarter and with a hopefull increas of jobs that neppy might be performing the cash flows for the next few quarters should keep on increasing...
 
And, of course, cash flow will also include proceeds from cash issues, placements, SPP's etc. from time to time.
 
02:20:02 PM 0.725 260
02:20:02 PM 0.725 172
02:18:03 PM 0.725 182
02:13:44 PM 0.730 100
02:13:43 PM 0.730 4,000
02:13:03 PM 0.725 188
02:08:18 PM 0.725 170
02:05:16 PM 0.730 3,000
02:02:03 PM 0.725 175
01:57:03 PM 0.725 181

Any theories on these piddling little trades. Someones trying to get an average down, but why?? They've been happening alot lately. Is there to be another raising to buy vessels? Or buy MRM??
 
It looks to me like someone standing in the market and picking up small parcels as they appear.;)

Does the company's history suggest a lot of small, odd-lot holders?
 
Wow I am really getting edgey with this "stagnation" at the mo'.:banghead:
I'm not sure if I should accumulate any more as we ain't going nowhere, or so it seems.:cautious:
 
ok........lots of the normal positives, always good to hear.

2 points that got my attention - work in brazil - the 1st time this region has been mentioned, and for those who do their reading, you'll now brazil is becoming very much a major supplier of oil, helping alleviate supply problems from the cowboys lange referred to in november.
also the fact that apache will now contribute over 10% of revenues for the full year, and though lange maintaining forecasts of $78-85m, the recent $8m contract would provide that 10%, plus they have been doing other smaller work for them too, plus work in GOM and asia, as well as other ongoing work.
you could assume that the 08 forecast will be easily exceeded.
 
SOBL said - you could assume that the 08 forecast will be easily exceeded.


Yeah thats the impression I got as well, he seemed more than comfortable in those comments about reaching the 08 forecasts.

The asian comments were great, executing significant levels of operation in the next 12 months there... basically have work all around the globe now!

He says he thinks he is 12 months ahead of where they thought they would be 12 months ago...

Interesting stuff.
 
SophieSweet said:
02:20:02 PM 0.725 260
02:20:02 PM 0.725 172
02:18:03 PM 0.725 182
02:13:44 PM 0.730 100
02:13:43 PM 0.730 4,000
02:13:03 PM 0.725 188
02:08:18 PM 0.725 170
02:05:16 PM 0.730 3,000
02:02:03 PM 0.725 175
01:57:03 PM 0.725 181

Any theories on these piddling little trades. Someones trying to get an average down, but why?? They've been happening alot lately. Is there to be another raising to buy vessels? Or buy MRM??
Click to expand...


It's funny, the small trades aren't there today??

11:07:09 AM 0.725 17,000
11:06:18 AM 0.725 3,000
11:06:18 AM 0.725 5,000
11:06:14 AM 0.720 10,763
11:06:14 AM 0.720 17,237
11:01:54 AM 0.720 50,000
11:00:33 AM 0.720 6,000
10:59:40 AM 0.720 15,000
10:59:40 AM 0.720 9,000
10:59:40 AM 0.720 2,763

And can anyone shed any light on the point in that media release yesterday regarding asx laws/rulings etc?

And maybe, just maybe we hit the bottom?
 
3.5million traded! that's one of NMS's biggest days. 1.7million sold after close. Maybe we have seen the end of someones purge?? Maybe the averaging down was for a big trade?

8-9million of backlogged NEPSYS work. Not so long ago, news like that would have made the SP surge, but not today. And being 12months ahead of where they thought they'd be, only 12months ago?!?!

No doubt it will bounce back and I think "hard", as Neil Carter from Macquarie said. But I can't help but feel really dissapointed about how low it's dropped. If only I'd .......
 
Has Neppy stated that they will pay a dividend in time?

At 70 cents she has to be looking pretty sexy? top up?
 
whats behind the 1.7m cross trade ? and at higher than market price ?

could it be a transfer of the shares accumulated lately by a certain insto ?

i do recall a similar event after the 60c placement/rights issue - in fact there were several of these transfers towards the end of that accumulation phase.
 
oldblue said:
I'm still waiting to buy. ;)

Doesn't look as if it has found the bottom yet so patience is still required.
Click to expand...

Crickey Blue.....your crystal ball is working a real treat.
68 and dropping....I wonder how long this limbo dance is gonna carry on???? :banghead:
 
I was just having my dry toast and marmalade and scouring through my paper and found this little article.


http://www.thisisnorthscotland.co.u...tentPK=19763196&folderPk=85744&pNodeId=150607

ROSS DEEPTECH CROSSES THE LINE TO JOIN NEPTUNE'S SUBSEA EMPIRE

08:50 - 04 February 2008

Last month, north-east Scottish energy engineering company Ross Deeptech was captured by Neptune Marine, an Australian group with designs on the North Sea subsea market, especially IRM (inspection, repair and maintenance) activities.

According to Neptune's CEO, Christian Lange, the changing nature of subsea contracting has left a vacuum in the marketplace that he feels his young company can exploit successfully.

He also believes that a specialist subsea dry welding technique developed by Neptune in Australia will prove attractive.

Lange had been scouting the North Sea for opportunities for about a year and entered negotiations with Ross Deeptech's managing director, Robert Ross, several months ago.

For Ross, the deal provides an excellent opportunity to cash in on a huge personal effort to build the Stonehaven-headquartered company, which has a significant capability in the fabrication of specialist offshore subsea structures and pioneering marine renewables devices.

Neptune listed on the Australian Stock Exchange in 2004. It was formed to invest in and develop an innovative underwater welding technology, then commercialise it.

Lange joined in February, 2006, he says to shake up the business - give it commercial direction - refocus it. The objective was to build a multifaceted subsea engineering business based on offshore oil &gas.

"This entailed from subsea engineering design, supporting EPIC contractors and the like, right through to performing inspection, repair and maintenance works ??? subsea production infrastructure, FPSOs, pipelines ??? the whole gamut," Lange told Energy.

"Six acquisitions have given us a core capability; all are predominantly Western Australian and support the North-west Shelf and Timor Sea sectors.

"Once we had built critical mass in Australia, our goal always was to move our model into the major offshore regions ??? US Gulf, Asia and the North Sea are our three main targets. This is about looking at specific opportunities; it's not about trying to re-create what we do in Perth."

So what is Neptune's key differentiator?

"At the technical level, it's our underwater dry weld technology, plus it's the ability to provide a total solution to customers for IRM without having to outsource to half-a-dozen or more subcontractors. That's our competitive advantage.

"We've had some great success in Perth and our goal is to be successful out of Aberdeen, too, with Ross Deeptech playing a key role."

Lange sees excellent opportunities in keeping mature infrastructure in good health.

"What you're seeing, and have done for 10 years now, is that the majors are selling down fields where primary production has taken been taken care of.

"They get passed to the Apaches of this world, who apply new technologies to extend the lives of producing assets. Meantime, infrastructure, which was only ever designed to last 20-30 years, now needs serious maintenance. And because of a history of cyclical and low-price oil until the last two years or so, that infrastructure really hasn't had a lot of attention ??? North Sea and globally.

"Our role is to fill a vacuum that others have let form. What you have is a situation where high/mid-level companies on the subsea side have seen enormous growth in greenfield development elsewhere, such as West Africa, with the result that much less attention is now being paid to the IRM side in places like the North Sea. That's the void we aim to fill.

"Secondly, what is also lacking is an organisation that can engineer the solutions and then go on and deliver those solutions in the field. Most of the diving companies either provide vessels and diving ??? so they get their income stream from utilisation of that asset. We generate our income from providing engineering services ??? doing all the job design, specifications, project management, the whole box and dice and then delivering it in-field, with the result that we can capture all of that value.

"Of course, a customer may not require an entire integrated operation, so we have just diving services, survey services and so forth."

When asked where Ross Deeptech fitted in, Lange said it would provide both a base and a set of ready-made engineering capabilities.

"It's about having a business that's very similar to ours and provides a footprint here for us to build from based on a very well respected, credible organisation.

"We're also securing a business that will allow us to transfer some of the know-how they have here at Ross Deeptech to our business in Australia."

Lange insisted that the family-style firm built up by Ross would be allowed to prosper with the minimum of meddling.

"It would be remiss of us to assume that we could completely reconfigure the business. For a start, we don't know enough about it because three months of due diligence doesn't tell us enough. So what we will do is use the management talent that Robert Ross has built over time; we will provide working capital to the business to grow; we will ask management how it views the world around here and how it wants to grow.

"We're from Australia. We understand the Australian environment, but I would be remiss if I stepped into Aberdeen and started throwing my weight around and telling people how to operate."



When will this mongrel start going north again?!?!? F%$@!!
 
Well Sophie, I think letters like B and P will probably need to be combined and included in an announcemnt to get things going, cos nothing much else is working right now!?:confused:
 
Whoops....67.5
I really feel for the poor sods that purchased at 1.37 last year....now that would make me nervous...:eek:
Hang in there guys.....
 
Top