DBS Vickers is keeping its fully valued rating on Mermaid Maritime with 9 cents target price as the outlook on new orders look challenging for the offshore marine company.
The negative comments come after Mermaid reported a net loss of US$245 million ($343 million) in the fourth quarter.
“Results in [the] fourth quarter were affected by seasonal weakness in addition to [the] impact of a challenging oil price environment,” the broker says.
The company’s order book fell to US$255 million as of end-2015 from US$473 million as of end-2014, the broker says.
Its balance sheet remains relatively stress-free but debt will increase over 2016 and 2017 as the company will take deliveries of a subsea vessel and two tender rigs, DBS Vickers says, adding that charter for these vessels have not yet been secured.
At 9.05am, its shares are priced at 10.5 cents with no trades done.
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The negative comments come after Mermaid reported a net loss of US$245 million ($343 million) in the fourth quarter.
“Results in [the] fourth quarter were affected by seasonal weakness in addition to [the] impact of a challenging oil price environment,” the broker says.
The company’s order book fell to US$255 million as of end-2015 from US$473 million as of end-2014, the broker says.
Its balance sheet remains relatively stress-free but debt will increase over 2016 and 2017 as the company will take deliveries of a subsea vessel and two tender rigs, DBS Vickers says, adding that charter for these vessels have not yet been secured.
At 9.05am, its shares are priced at 10.5 cents with no trades done.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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