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NMS - Neptune Marine Services

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The profit ratios have all gone to hell as expected, however the current ratio is what scares me. Is has sunk below 1x. This is usually forgivable for companies that have predictable earnings, which NMS clearly does not. I have always thought of this stock as being a good long term performer, however given that 39m debt falls due in 2010, NMS is going to have to be very cautious in meeting their short term debt obligations. Hoping they wont have to issue new equity.... at least they are retaining all earnings, but still verve racking for now.
 
Yes, a big disappointment, so I've sold.

The loss on the Pluto contract was clearly not expected by the market and is a concern. NMS has a lot of expensive gear and can't afford to have it standing idle, let alone operating at a loss.

I'll sit and watch NMS for a while.
 
I hate to say it........but looks like (theoretically) good news out of the Gulf of Mexico for NMS IRM this morning.

(Not sure if it was an old one that blew up last night) - But there are so many old rigs out there (particularly in the north sea).
I'm pretty sure that many have gone past their 'design life' of 20-30yrs so hopefully governments will now put huge pressure on the owners to get them looked at.

Unfortunately, it looks like TSE has a lot of the Australian maintenance work, (they have a 3 yr Woodside frame agreement) but NMS do have that global presence.

........Like everyone seems to agree - Just got to get those vessels earning!!
 
surf73 said:
I hate to say it........but looks like (theoretically) good news out of the Gulf of Mexico for NMS IRM this morning.

(Not sure if it was an old one that blew up last night) - But there are so many old rigs out there (particularly in the north sea).
I'm pretty sure that many have gone past their 'design life' of 20-30yrs so hopefully governments will now put huge pressure on the owners to get them looked at.

Unfortunately, it looks like TSE has a lot of the Australian maintenance work, (they have a 3 yr Woodside frame agreement) but NMS do have that global presence.

........Like everyone seems to agree - Just got to get those vessels earning!!
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surf - am i right in assuming that the 2 main vessels, one based in qatar and the other getting a suntan in singapore, are stopping NMS claiming this OZ work as it creates extra costs for NMS to mount a tender for any boat they lease ?

do you think that any government are in the position to make a quick decision, and enforce it, on maintenance of these aging assets ?
 
To be honest - I'm not sure if there is much work from Australia.
From my experience - many projects mobilise from Singapore because the equipment invariably comes out of Asia and sometimes doesn't even touch the Australian mainland on its way to the NW Shelf.
I would have thought that governments would start feeling the pressure to push for more maintenance / accountability - but the explosion from earlier in the week seems to have gone mostly unnoticed. I would bet that the GOM and North Sea must start ramping up considerably on IRM though.
 
surf73 said:
To be honest - I'm not sure if there is much work from Australia.
From my experience - many projects mobilise from Singapore because the equipment invariably comes out of Asia and sometimes doesn't even touch the Australian mainland on its way to the NW Shelf.
I would have thought that governments would start feeling the pressure to push for more maintenance / accountability - but the explosion from earlier in the week seems to have gone mostly unnoticed. I would bet that the GOM and North Sea must start ramping up considerably on IRM though.
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theres certainly a few articles (see the 'other' forum) re:IRM activities ramping up in the UK region. it would be great to know if the ninian south work was still going.
 
up 12% in early trading prior to an announcement. Waiting to see what the news is, but indications may be that it is some good news, possibly a contract won?
 
No new contract, just a response to an article in the AFR today. Will need to find the article, response todaly reads like speculation regarding a takeover or partnership??

Any ideas??
 
"... The latest to be stalked is tiddler Neptune Marine, capitalised at about $106 million and trading on a forward prices-earnings multiple of 9.23 times, dropping to just over 7 times in the following year.

It's understood the underwater welding services provider has received initial approaches from two private equity firms and while the discussions are at an early stage and may amount t omere tyre-kicking, the company is said to be in play.

Compared with its larger peer Mermaid Marine on a P/E of over 13 times for the next two years, Neptune looks fairly cheap, the shares having dived over 60 per cent in the past 12 months.

While management downgraded full year profit guidance in July, it pointed to an improved performance in 2011.

It hasn't been smooth sailing for the likes of Miclyn Express Offshore either, which trades on a forward P/E multiple of about 6 times.

Miclyn services the offshore oil and gas industry in South-East Asia, Australia, the Middle East and the North Sea, and has a fleet of about 115 vessels.

It is a direct competitor to Mermaid Marine, which was offered the opportunity to merge with Miclyn before it was floated
 
skivvy said:
No new contract, just a response to an article in the AFR today. Will need to find the article, response todaly reads like speculation regarding a takeover or partnership??

Any ideas??
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Save the money. The AFR merely reported that NMS had been approached by a private consortium. Even if it were true, they would have to come up with a lot more specifics.
It did lift the NMS sp though ... :D
 
Price held up above support at 25 cents which is encouraging, hopefully a case of where there's smoke there's fire and the rumours will gather momentum leading to a continued rally back up.
Hanging in there........next stop: resistance at 30 cents?
 
pixel said:
Save the money. The AFR merely reported that NMS had been approached by a private consortium. Even if it were true, they would have to come up with a lot more specifics.
It did lift the NMS sp though ... :D
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and continued to hold the SP til end of trade - even the oppies moved up and they expire in 3 months.

speculation is endless - they did pass those partial takeover rules 12 months ago, they are poised to take a nice chunk of the LNG work off WA, they are desperately needing cash to be able to participate in these works.

we shall see.
 
ryan_wheatland said:
oh boy, down 16% today so far. Im guessing everyone is running because of the 15m that must be refinanced to NAB due to the STS acquisition.
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I think it's more likely to be because the company has poured a bit of cold water on recent takeover speculation, as reported in the SMH today.
 
oldblue said:
I think it's more likely to be because the company has poured a bit of cold water on recent takeover speculation, as reported in the SMH today.
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we know lange rejected the initial reports of PE takeover as too conditional etc - oldblue can you pls give a link to 'todays' article ?
 
Yes pretty disappointing price action today, worst of all my sell at 30c was too high in the que and didnt execute on Wednesday or Thursday, so I am still holding and now in the red. I will need to read the release today as well, but am happy to hold on for now.:(
 
All news aside, poor ole Neppy has become a dog.
Sorta wish I'd unloaded at 30c.....Oh well, maybe next time.....should only take a year or so. :banghead:
 
I'm giving these guys another year or so to turn themselves around and start generating some consistent returns for holders.

Conservatively, based on their projections and upcoming projects, i dont see why they can't generate 3 - 4c eps consistently
 
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