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Mermaid Maritime Bags Contract Extension for Subsea Services in the Middle East

Logistic News - Published on Mon, 04 Nov 2019

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Mermaid Maritime Public Company Limited has announced that its joint-venture company formed between Mermaid and a local offshore services operator has secured a three-year contract extension for offshore inspection, repair and maintenance services with a national upstream oil and gas company in direct continuation to its initial seven-year contract period, whereby Mermaid will continue to provide a suite of diving services using its modern DP2 saturation dive support vessel “Mermaid Asiana” along with remotely operated vehicles, specialized diving equipment and divers.

Mermaid’s joint venture partner, a reputable offshore and marine services company, will provide other offshore vessel related services and logistics. Mermaid has served this contract since 2012. Mermaid’s portion of the total contract value for the three-year extension period is estimated to be approximately US$ 162 million. The commencement of the three-year extended period shall be initiated in phases with all phases scheduled to commence during the fourth quarter of 2019.

The contract extension is at lower day rates. Assuming that the contract extension had commenced and had been completed within the most recent financial year (the Company’s last financial year ended 31 December 2018), the contract extension would have had a material adverse effect on the earnings per share of the Company (on a consolidated basis) and a non-material effect on the net tangible assets per share of the Company (on a consolidated basis) for that financial year.

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Posted By : Rabi Wangkhem on Mon, 04 Nov 2019
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