"The private equiteers are leaving nary a stone unturned in the search for value, and hte oil and gas services sector is proving to be a rich hunting ground.
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."
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