What do Woodside, Apache, Bhp, Santos, BP, Chevron, ConocoPhillips, Eni, Exxon Mobil, Hess, Royal Dutch Shell, Santos, and Halliburton have in common
These companies are all serviced by Mermaid Marine Australia
The Investor Presentation of Mermaid Marine for 2010 gave a healthy insight into the future growth of the company
In my view there were 2 important points that I would like to highlight on this forum
1 The company has picked up over AUD40 million dollars of new work for its vessels in the last two months.
2 In the last quarter of financial year 2010 the tonnage going through the Dampier Supply Base had increased month on month by approximately 10 percent
April tonnage going through Dampier 22,500 tonnes May tonnage going through Dampier 25,000 tonnes June tonnage going through Dampier 27,500 tonnes
It will be only a matter of time before Mermaid Marine Australia has 30,000 tonnes of cargo going though its Dampier Supply Base on a monthly basis
If this is not a growth story-what is!!!
In regards to a new shareholder with more than a 5% holding being disclosed to the stock exchange on Friday, what fantastic news. The question is where did those shares come from. Did they buy them off market. If so from who. If they were purchased on market the share price of the company should have sky rocketed. In regards to the share price, the results were fantastic, and what happens to ths stock - it drops 10 percent. Incredible. There is major manipulation going on here.
The annual compound growth rate (CAGR) of a company demonstrates the average historical return over a period of years
Lets look at Mermaid Marines CAGR
Revenue 2006 - 2010 31% 2010 18.6%
EBITDA 2006 - 2010 45% 2010 28.2%
EBIT 2006 - 2010 47% 2010 23.9%
PROFIT BEFORE TAX 2006 - 2010 52% 2010 24.4%
NPAT 2006 - 2010 58% 2010 43%
EPS 2006 - 2010 47% 2010 40.7%
ROA 2006 - 2010 12% 2010 15.1%
ROE 2006 - 2010 17% 2010 20.79%
NTA PER SHARE 2006 - 2010 25% 2010 14.1%
The above figures speak for themself
So how is it that the share price of Mermaid Marine Australia is so depressed. The phenomenal growth of the company has been underrated by many investors, analysts, and the newspapers
In regards to Mermaid Marines unique position in the oil and gas industry
Mermaid Marine Australia has 2 strategic assets combined with its Marine Vessels - The Dampier and Brooms Supply Bases. There is not one company that is able to compete with them because of this in the Western Australian Oil and Gas Industry
My view is the company has at least another $1.00 upside in its share price. It is currently trading at a P/E of 12, with the sector on an average of 15.
There are a lot of projects that will be coming on line in the next few years
Gorgon, Wheatstone, Pluto, Browse, Prelude, Ichthys, Macedon, and the list goes on
There has been speculation over time that Mermaid Marine Australia could be a takeover target
Lets wait and see
MRM Price at posting:
$2.35 Sentiment: LT Buy Disclosure: Held
(20min delay)