"For the growth investor, oil and gas engineering group Neptune Marine Service may be a good way to play oil's growth, outside of the main producers and developers.
Neptune provides servies ranging from rig positioning to repair and maintenance. It has an underwater welding system that allows rigs to be repaired while submerged.
Earlier this month, its Link Weld Emgineering subsidiary was awarded fabrication contracts worth over $5 million to service global oil and gas group Apache Energy's Van Gogh field off Western Australia. Its Tri-Surv Geomatics subsidiary also won an offshore hydrographic survey contract worth more than $8 million for one of INPEX's West Australian gas developments.
Despite the fervour in the oil and gas, Neptune shares are down 52.6 per cent year-to-date, on a two year forward P/E forward ratio of 7.6. Macquarie's Neil Carter says the low P/E ratio makes the stock attractive. Its closest comparable, Mermaid Marine, trades on 11.8."(Oil and gas companies) have got money coming out of their ears, so top-down .... it is fantastic. And bottom-up (Neptune) have got a great set of services, they have a competitive advantage and it's cheap."
NMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
