Mermaid Maritime issues profit warningCompany News // February 16, 2016
The Board of Directors of Mermaid Maritime Public Company Limited has announced that, in anticipation of the company’s announcement of its audited financial results for the financial year ended 31 December 2015 (FY2015), the directors consider it appropriate to issue profit guidance in respect of the results.
"As stated in the financial statements for 3Q2015 (announced on 13 November 2015), the global oil and gas industry continue to experience significant challenges in light of the current oil price environment," said the company. "Consequently, this has led to reductions in oil and gas spending, activity, and contract awards across the subsea and offshore drilling services segment thus creating supply and demand imbalance that has negatively impacted utilization and pricing.
"Following a preliminary review of its financial statements for FY2015, the group is expected to take a substantial impairment and consequently net loss. This shall be mainly attributable to non-cash provisions for impairment on the value of key assets, investments in subsidiaries as well as share of loss in an associate investment driven by a similar impairment exercise.
"Notwithstanding this one-time adjustment, the group is expected to deliver positive EBITDA and operating cash flow in FY2015 and has maintained a sound balance sheet backed by a healthy cash balance. The group also remained low in debt at the end of FY2015 and has also taken, and continues to take, proactive measures on cost reduction and efficiency in order to reinforce the Group through and beyond the current downturn."
The company is still in the process of finalizing its financial results for FY2015. Details of the group’s performance will be disclosed when the group releases its audited financial statements for FY2015 on or before 29 February 2016.