are fundamentals deteriorating? , page-6

arrive 09 - you said "Not sure if you're right about 50% margin Baggie but even 30-40% would be sensational if growth can remain consitently above 20%."

Can I suggest you listen to Boardroom Radio Broadcast 26.11.07 where Christian addressed Investors at the Commsec Emerging Companies Conference to glean first hand the profitability of NEPSYS & ROV Services work.

Christian said that they had set up the business into 3 divisions viz., Diving Services, Engineering Services, and Remote Systems & Marine Services which is a nice way of hiding from our competitors our Hydropgraphic Service Business & our ROV Business which are two incredibily profitable businesses.

About 13 minutes into the presentation he referred to a Nepsys job that they had recently completed in the Gulf of Mexico for Apache Energy. The job cost $2.5 million which Christian said he "was hugely embarrassed to say that half was nett profit to Neptune." He added that if the job been performed by a competitor using the Hyperbaric method the job would have cost conservatively $10 million & probably as much as $20 million.

NEPSYS is steadily being recognised by Oil & Gas Companies as a permanent weld. Competitors cannot compete from a cost point of view & the work can be done in situ. I anticipate huge growth in NEPSYS work particularly as O & G companies will the looking at cutting costs given the world ecomonic crisis.