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NMS - Neptune Marine Services

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maungatapu said:
Add the 5.3m that came in during the 1st 2 weeks of April to $518k makes it a whole lot better. The expenditure for that $5.3m was probably included in the 31 Mar quarter
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That is an excellent point and one I didn't think of, even with my very avid interest. Then combine that with the fact there is probably alot of one off costs now, due to growth and expansion. So that does look quite healthy to me. And Lange has told us that there is embarrassingly good margins in alot of their work, like the weld, surveying and rovs.
 
Part of the latest pattersons update....

NMS has reported its 3Q cashflow statement and operations update.
Receipts from customers totalled $21.7m ($56.4m year to date). Receipts from customers in the first two weeks of April totalled $5.3m.
Net operating cashflow was $0.5m ($4.9m YTD).
This was impacted by working capital at ($13.0m), with over half of this reflecting startup for the $8m Apache Simpson Pipeline project.Staff costs $7.8m were incurred and this was in line with expectation.
Capex for the quarter was $1.0m ($2.9m YTD), reflecting payments for remotely operated vehicles (ROVs).
$27.8m was paid for the acquisition of Ross Deeptech.
Revenue from operations totalled $24.5m. (or 26.6% of our FY08 forecast). YTD revenue is $56.2m (60% of our FY08 forecast).
Operational highlights included commencement of the Apache Simpson Pipeline project and the award of a $3.4m project for the installation of a disconnectable transfer system onboard a floating, production, storage and offloading (FPSO) vessel using the NEPSYS underwater welding technology in the Gulf of Mexico.
The acquisition of SeaStruct was also completed during the quarter.
Impact - Positive quarterly with no major surprises
The impact cashflow statement is largely positive in our view, with the run-rates of the acquired businesses largely reflecting expectations to date.
While net operating cashflow was only $0.5m, no cash receipts have yet been received from the Apache project, which is due to be completed in June. With over half of working capital related to spending for this project, we are not overly concerned about the low net operating cashflow figure.
Due to vessel scheduling, the NEPSYS job in the GoM previously due to start this week has now been scheduled for June, which at a 50% forecast EBIT margin is critical in meeting our FY08 forecast. This is expected to take approximately two weeks to complete and therefore the pressure is mounting to achieve completion before June 30.
Management's last guidance was for NPAT (excluding share-based payments) of between $12.0m and $14.0m - this still stands. Our forecast remains $13.8m, which is contingent on $6.9m worth of NEPSYS work being completed in the 2H08. We anticipate a more definitive guidance statement at around the end of May.
Our recommendation remains Speculative Buy, with no change to forecasts and our $1.00 price target (9.3x FY08F/09F EV/EBIT). NMS is trading at 11.1x and 7.2x FY08F and FY09F normalised EPS respectively.
 
Is anyone here knowledged up to the point where they could put together a reasonable time line of expected goals etc. for NMS?
 
Sorry Shaun can't help you there, I doubt anyone can, there's to many variables, like the overall market. I'd just say it's gonna go up heaps this year and heaps and heaps next year.

That european patent announcement was a bit strange, considering that Sob had already let us know ages ago, and provided the actual document. And they also put it in the quarterly, on the bottom of the report. I was happy with that. Surely they wouldn't have made an announcement just to satisfy the pestering village idiot that posts elsewhere? or did they?
 
Sweet Sophia. I am that village idiot you refer to in Hot Coper, an idiot who has been in NMS a lot longer than you. Perhaps you might read and digest Pattersons report. In it you will find an report of a job in GOM, that they deemed sufficiently important to make special reference to. Did Lange think we should know, no, just the favoured few got told, no ASX announcement. THAT is where I am coming from, we are ALL entitled to that information which I would have no doubt boosted the SP which is still wallowing some 50% below this financial years high. He has done a good job SO FAR but his pro work is lacking for which I blame the low SP on, not all, but some.
 

Alba,
I'm loathe to respond but will. You think the length of time that you have owned NMS is relevant, why? I also have owned since the float, so what??

The Paterson's report are there on the NMS website for public consumption, and I welcome the extra titbits of information, why don't you?? Any idiot can find the information

Lange has taken the company on an incredibly rapid growth journey so far, and his credentials and others at NMS are sound. They know what they are doing. Macquarie's Neil Carter(small caps manager) even mentions them as one of two favoured stocks out of sixty they hold, after spending aproximately 3 months investigating the merits of investing in them. I fail to understand what it is they should have done in relation to PR, that you constantly harp on about. If you know the information, everyone does.

Send Lange an email if you have some valid input, he is very accommodating, or ring him. I actually have spoke and emailed him some time ago, but think it's better to let him get on with the job of making my investment grow.
 
S.S. Silly reply. Of course I and everyone else welcomes the titbits from Patersons, but you miss the point, it should have come to us from Lange not via them
 
In it you will find an report of a job in GOM, that they deemed sufficiently important to make special reference to.



Which job are you referring to there Alba? The $3.4m GOM job was announced to the market on the 25th of March.
 
Strange - wer'e back to seeing tiny trades of just a couple of hundred bucks again. Apart from the odd big trade most of todays trades are miniscule. Could anyone shed any light? I really am confused
 
They're not all small trades, mine was several thousand to buy back in again.
It looks like todays trading is being brought to us by the number "60.5"
 

The last Paterson report I can find on the NMS website is dated Feb 2008 and deals with the 2Q08 cashflow report. The one Woywoy is quoting from is obviously a later one. Maybe NMS can only put Patersons analyst reports on their website after a certain period has lapsed or NMS is slow to put it on
 
Judging by the ammount of time it took them to announce the Euro Patent, I'd say Neppy is slow off the mark.
 
Can someone please let me know when the next Annual General Meeting or quarterly report is coming due for Neptune?
 
Just been having a browse through the annual financial report 2007. Christian Langes contract expires Feb 2009. Wouldn't like to say what would happen to the SP if he decides not to renew his contract. Be interesting to see if there is any mention of that in the June 2008 report.
 
Hope Neptune isn't getting poison stung by cost pressures.

Their orders should be packed to the hilt like WorleyParsons or Leighton though, so they should be able to fight it (assuming the cashflow and internal workings of the co' are still sound).
 
Here's a link to an article where NMS get a mention.

http://www.smartcompany.com.au/Feat.../The-curious-cool-and-crazy-entrepreneur.html

Here's the text that specifically talks of NMS, i copy and pasted it from about half way down the article.

"So that’s “curious”. What about “cool and crazy”?

Cool means that you’re willing to go on the edge. Cool means that you’re willing to be controversial. Cool means that you’re willing to do something that your competitors are pissed off at you about.

Let me tell you why I use that term. I’ve gone and I’ve given speeches. I get invited to give a lot of corporate speeches, let’s say to trade associations. You have all these competitors sitting in a room in a big hall and they have a three day conference. I’m sure you have them here.

Everyone’s really buddy buddy. They play golf together. They drink beer together. They all understand each other. They all speak the same language. They’re all in the same space. They’re all in the pack.

It’s when you’re doing something where your competitors are royally ticked off at because they know that you’re changing the rules of the game. For example in this last blog that I wrote on my website, harari.com, basically I talk about this company based in Perth called Neptune Marine Services.

Well if you’re a competitor of Neptune Marine Services and you’re providing engineering maintenance and diving services; you do welding you know, on oil rigs for example so you can compete with Neptune. And let’s say you’re all doing pretty much the same thing. One does a little bit, they tweak this, they tweak that. They adjust their price a little here, they add a little service there. You’re all in the same space.

But then suppose Neptune comes up with a new proprietary and patented technology that actually changes the rules in the game. In this case what they do is they have a technology that allows their customers to do dry welding under the water. In effect doing the kind of welding, the spot welding that has the same effect as if you basically dry docked a whole rig or ship. And fundamentally you now can make the service offering that will prevent competitors from coming in and saying ‘well we can do underwater wet welding which lasts only a few weeks at best, or we’ll do it but you’ve got to haul your rig out for a few weeks while we do the dry welding’. That’s changed the rules of the game. Do you think competitors are drinking beer with Neptune? I don’t think so. I think they’d be royally ticked off."
 
I think that article questioning Oren Harari, professor at the Graduate School of Business at the University of San Francisco, really shows what potential lays ahead, once they really get going. Interesting to note that an American intellectual is very positive about NMS's future.

I think a takeover is a definite possibility anytime, regardless of how far they've come with their plans. That welding technology is a pot of gold to any oil or oil service company, and the amount they could get it for now would be nothing in $$ terms to alot of the huge companies in the industry. I bet the cost of the company could virtually be paid off by the income it generates quite soon. And if some huge company bought, I'd imagine nepsys would be going 24hrs a day.

As for Lange and his future, as Maungatapu says, querying what will happen once his contract expires Feb2009. Consider he has over 3,000,000 million options, that have a conversion price of 65c or so. He is already rated in the top50 of WA MDs for income, I think he was about 40th??, and assuming things go well, he should climb that ladder to a much higher position by staying at NMS. 2009 looks like being a very big year for NMS, with Lange saying the magnitude of change will be comparable to the year just passed.
 
shaunm said:
Can someone please let me know when the next Annual General Meeting or quarterly report is coming due for Neptune?
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The next quarterly will be the full year reports, and out by the end of July. The last quarterly was the end of april. The AGM date hasn't been announced, but should be sometime in november. I don't think we should worry about them meeting their projected financial targets though, even as there is delays in some of the Apache work. Lange said they'd already got 4.5million in the first two weeks of this quarterly and that he indicated that this quarterly would be better than the last. Well anyway that was the impression i got.

Oh and it was good to see someone lob in with a 200,000 bid this morning. Maybe it might move north now.
 
Poor ole Neppy....News of another support vessel on the way and, the SP's move is akin to someone trying to swim in treacle.
Sure is a hard row to hoe right now.
 
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