NMS - Neptune Marine Services

I have read the half yearly results and was pretty impressed with the numbers. Neppy also expecting strong results during the second half of the year, as stated on pg 2 of the financial accounts. Very suprised to see the stock dive 8% in early trading this morning, I just picked up some more @ bargain prices !! With the continued strength of the oil&gas industry over the next 12 months it can only lead to bigger&better things for Neppy shareholders...

Absolutely DWF, the 1/2 yearly numbers are impressive. Unless market sentiment does a complete turn-around in the next 3-4 months, I wonder if it will not be until the full year results that we see the SP really improve.

I bought in today, 1500 shares, finally (my whole pay check ahah).

Hope this thing becomes WorleyParsons in 10 years .

son of baglimit said:

for those with accounting knowledge, please correct me, but the delayed payments contributing $6.3m to revenues & $3.15m to ebit brings these items up to $38m in revenues & $5m ebit for the half year.

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No it doesn't, because they didn't finish the work during the half year, infact some of it is still on going.

Some, or all of it will be recognised at 30 June depending on how they go. It's worth noting though that vessel availability is likely to be an issue impacting their bottom line going forward so it probably won't be a case of just shifting which half year they recognise the profit, but it could well impact their full year numbers.

Also, I'm surprised Stantons let them get away with showing their IFRS adjustments as they did - it's quite misleading.

doctorj said:

Some, or all of it will be recognised at 30 June depending on how they go. It's worth noting though that vessel availability is likely to be an issue impacting their bottom line going forward so it probably won't be a case of just shifting which half year they recognise the profit, but it could well impact their full year numbers.

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I believe its been pointed out a few times, but vessel availability seems to be an issue. Perhaps a merger between mermaid marine and neptune marine services could deliver value to share holders of both companies. Clearly if you are going to work off-shore vessels are an integral part.

I wondered why NMS would purchase 3 ROV's, they must have work on their books for them. Again these will require vessels to support there work.

I don't think you'll be dissappointed Vishalt, with an estimated year end earnings per share of 0.06-0.07 the P(0.65)/E (0.06-0.07) of around 9 or 10 it is hard to believe the price of NMS at the moment.

doctorj said:

No it doesn't, because they didn't finish the work during the half year, infact some of it is still on going.

Some, or all of it will be recognised at 30 June depending on how they go. It's worth noting though that vessel availability is likely to be an issue impacting their bottom line going forward so it probably won't be a case of just shifting which half year they recognise the profit, but it could well impact their full year numbers.

Also, I'm surprised Stantons let them get away with showing their IFRS adjustments as they did - it's quite misleading.

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thanks doc - but i wasnt asking for the numbers to be reported dec 31 - it was just an exercise to show IF the delays hadnt occurred what their numbers would have looked like - many voiced concern at the cash flow report a few weeks ago, and so to prove that neptune HAD achieved a desirable level of business, i wanted to bring the numbers together.
the question was "was i bringing the correct figures together?"

People, we now have a boat.
Things are progressing well!

Support vessel a natural progression for Neptune
Perth, Western Australia: Leading engineering services company, Neptune Marine
Services (ASX: NMS) has signed a memorandum of understanding with Singaporebased
Trinity Offshore Pte Ltd for the acquisition of the dynamically positioned (DP)
offshore construction support vessel, MRV ROV Supplier.
The 55 metre multi-purpose vessel is a fundamental component in the progression of
Neptune’s business strategy of acquiring services, technologies and expertise that
seamlessly add value to its unique integrated subsea services model.
The timing of the delivery will also correspond with the delivery of Neptune’s first (of
three) work class ROV (remotely operated vehicle) and the acquisition of Perth-based
Sea Struct P/L, a specialist manufacturer, supplier and installer of stabilisation and
erosion control products.
In order that it complies with Australia’s stringent quality standards, the MRV ROV
Supplier will be taken out of service on delivery, subjected to a complete internal and
external refurbishment and converted into a specialist ROV and survey support vessel
with fully classed DP2 capability.
“The vessel will be refurbished to the highest standards to ensure its operation in
Australian waters,” confirmed Neptune’s Managing Director and CEO, Christian Lange.
Mr Lange said the purchase of the MRV ROV Supplier was a natural extension to the
company’s portfolio that would result in improved delivery of its integrated services.
“Every service we provide is off the back of a vessel so it makes commercial sense to
own such an asset,” he explained.
“As owner, Neptune can also assume full administrative and operational control of the
vessel and benefit financially from more favourable margins.”
Once the refurbishments are complete, Mr Lange said the vessel would provide
operators in the Australasian subsea market with support services across the areas of
inspection, emergency repair, maintenance, light construction and surveying utilising the
in house capabilities of Neptune’s subsidiaries.
“Survey support will be provided via Tri-Surv Geomatics and the vessel will also be
permanently fitted with the new build Swift XL 125 HP work class ROV system. This
combination will be a key factor in providing our clients with a quality, reliable and
seamless approach to general construction and survey support activities in both the Asia
Pacific and Australian regions,” he added.
All work will be supervised by Neptune’s ROV and Vessel Manager, Joel Weston.

shaunm said:

The timing of the delivery will also correspond with the delivery of Neptune’s first (of
three) work class ROV (remotely operated vehicle) and the acquisition of Perth-based
Sea Struct P/L, a specialist manufacturer, supplier and installer of stabilisation and
erosion control products.
In order that it complies with Australia’s stringent quality standards, the MRV ROV
Supplier will be taken out of service on delivery, subjected to a complete internal and
external refurbishment and converted into a specialist ROV and survey support vessel
with fully classed DP2 capability.
“The vessel will be refurbished to the highest standards to ensure its operation in
Australian waters,” confirmed Neptune’s Managing Director and CEO, Christian Lange.

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the one question needing to be asked - how long is that refurb going to take ? this will then establish at what time the vessel is of any worth.

anone with that knowledge care to take a stab ?

I can't imagine it will be up and running for much of the current financial year by the time it has been paid for, delivered, refurbished, tested, crew familiarisation, testing, then deployment.

It is great progress though. I wonder how many of the 2004 shareholders imagined the company would be making a HY profit in 2008, employing hundreds, buying ROV's & a ship, and operating in widely distant markets.

The topic I would like to know more about is the share options recently granted. Are there any restrictions on their exercise? For example, can they only be exercised whilst the beneficiary is an employee of NMS.

.
The timing of the delivery will also correspond with the delivery of Neptune’s first (oft hree) work class ROV (remotely operated vehicle) and the acquisition of Perth-based Sea Struct P/L, a specialist manufacturer, supplier and installer of stabilisation and

Going on their anny 1.10.2007 re purchase of Sea Struct which they say not to be completed before Q3 FY 2008 I am a little concerned that this is some way off, any time line for the delivery of the first of three ROV's as above ??
Then add on the fitout etc, sorry no idea. Long time to hold in this mkt. gotta be a chance to buy more cheaply. Disclosure :: I thought they were cheap recently when they moved from above $1 to 79 and I've watched my capital erode, classic short play without stop losses that becomes a long term hold LOL I've had my eye on this one from the 20c days, great story but those who bought in at the most recent placement, MUST be selling or those that missed out are NOT buying, but the volume is there. Anyone savvy with a significant shareholder building ?? What's with this share I just put it down to the current mkt

Thanks for the informed comment ppl. Settles this mugs nerves.....a little.
.

grizzly1 said:

.
The timing of the delivery will also correspond with the delivery of Neptune’s first (oft hree) work class ROV (remotely operated vehicle) and the acquisition of Perth-based Sea Struct P/L, a specialist manufacturer, supplier and installer of stabilisation and

Going on their anny 1.10.2007 re purchase of Sea Struct which they say not to be completed before Q3 FY 2008 I am a little concerned that this is some way off.

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from the most recent audio grabs, sea-struct is still due to be finalised before the END of Q3 2008 (31/3/08), so you can read it that vessel, rov & sea-struct are all delivered this month.

a whisper i heard had sea-struct already finalised, but that has proven incorrect, so far.

find attached the latest patersons report for NMS, utilising info from the half yearly report issued last week.

it retains its spec buy rating but reduces the price target to 89c.

it gives plenty of detail regarding how & why NMS missed earnings targets for H1, and some insight into where they need to concentrate on.

i personally take issue with some of their analysis (i will discuss later), but overall it is great reading.

enjoy.

Porper said:

Pretty nasty day for NMS, increased volume and close near lows.

Just playing around with some time projections and I have 06th March & 23rd April as significant.

Price wise if we break 0.58 the next projection is around 0.52 although apart from Fib there isn't much support around there.Very important where we go from here.If we start to bounce from here I would be looking at a return to the downside around 06th March, if we carry on down now, a bounce up around that date.As for April 23rd, wouldn't have a clue

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As per chart above, looking for a turning point any day now, tomorrow or 06th to be precise.

Expect the least move to around 0.85, probably slightly higher.

The weekly has just crossed from oversold, daily turned bullish, this after a nice 5 wave impulse down.So we would be trading the correction,(a.b,c) pattern.

The stop could be below the recent swing low below 0.54 giving a good R/R at around 3:1.

Of course all depends on the DOW, if that goes dits up, all bets are off.

Wow we just can't seem to break free of the 60 cent ranges can we.
Hope we don't hit 50 something again. I can't help but keep watching, it's like a car crash you can't turn away from.
Testing times people.
What's it gonna take to turn the corner?

The quick answer is TIME shaunm. Patience is a virtue. It's gunna take time for the sp to move in a northerly direction. Like me, many posters are in this stock for the long term ride and you can't expect not to hit a few pot holes along the way. But don't worry cos when we arrive, it will be well worth the ride.

son of baglimit said:

i personally take issue with some of their analysis (i will discuss later), but overall it is great reading.

enjoy.

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and here are the points i have an issue with, or at least how they are presented.

it appears they were trying damn hard to find fault.

pg 1

2nd point......downgraded price target .....due in part to lower comparative peer group ratings.

have you seen the peer listing on pg 4 - who are they ?
all mining & related services & engineering - nothing offshore O&G.....
as lange said in the comsec pres "you aint gonna see a picture of a truck or a mine here - we are offshore O&G."

3rd point.......had the delays not been encountered

delays are inevitable in engineering & alike - its only when contracts are cancelled that warning bells sound.

pg 2

under highlights.

1st & 3rd points......due to nepsys delays - the only reason - needed to be added.

pg 3

3rd point......lower margin tri-surv business

lower margin - at + 40% - damn good margin still - geez.

http://www.neptunems.com/sites/neptunemscomau/assets/public/File/pdf/Top 20 End of Feb 2008.pdf

theres a new top 20 listing - dated 29 feb - and most of the instos have been buying more - many more - either on-market or likely thru the 95c placement.

so much for major holders selling down.

Gday Sir Bagalot. Why would the instos buy at 95c through placement when they can buy on market for nearly half that?

And if I may,... do you think dilution a factor in the price slipping from $1.10 at placement offer to 55c now?

I've read 'current economic climate' as a recurring explanation, yet none of the other stocks I hold have dropped nearly as much as ol' neppy.

avagoodweekend.

I may have it wrong here but I'm fairly certain that the SP remained above or at the 95c during the period of the SPP?

It only dropped away after the SPP closed?

Has no one in here been watching the market trends????
Its not only Neppy thats taking hits....everything is.
Its going to take a strong constitution to stay the course of all this crap which, looks like it has a way to run yet.....sadly mostly down by the looks of the latest US trend.
Hang on guys and gals....its gonna be a rough ride.