mermaid's profit hy2010 to increase 100% !!!

As the company did not put out any profit forcasts for the first half of 2010, I will endeavour to provide my estimates


Supply Base Dampier

The lease put in place with Chevron and partners at the Dampier Supply Base suggests full occupation of the premises will return 10 cents earnings per share. Assuming that the completion date is the end of the calender year, and perhaps the Gorgon partners have 20% occupancy now, this would equate to 2 cents per share earnings

Okay what about all the work that the Gorgon Partners wiil need to do on the base in this period. I would add another one cent onto earnings per share.

Then there is the doubling of the bases berthing spots for the marine vessels (going from three to six). Add another couple of cents. This includes all the extra activity associated with the base.




Marine Vessels

Mermaid has just purchased two new vessels which will be earnings positive for the first half year 2010

They have contracts in place. Just assumings earnings per share for the full year is 5 cents per share per boat. This will add another 2.5 cents to earnings up until December 2009. I have calculated the earnings on just three months work per vessel.


Broome Supply Base

I have assumed the activity for exploration will pick up in the Browse Basin over this period. Conservatively estimated half a cent per share.


So in summary

Supply Bases - 5.5 cents per share

Marine Vessels - 2.5 cents per share

So total extra earnings per share is 8 cents

Add this onto last half earnings for 2009 of 7.8 cents

This equates to an increase of earnings per share of more than 100%

Remember these are only my estimates and could be way out of whack. However, irrespective of the earnings per share going forward to first half 2010, I believe that Mermaid Marine has a very bright future!!!

As always, please do not take my comments above as investment advice