Mermaid secures contract extension in the Middle East

MERMAID Maritime Public Company Ltd, through its joint venture company formed with a local offshore services operator, has secured key contract extension worth approximately US$96 million for subsea services in the Middle East.

The services, comprising offshore inspection, repair and maintenance services, will be carried on with a national upstream oil and gas company following its initial five-year contract period, mainboard-listed Mermaid said on Monday.

Under the contract, Mermaid will continue supplying a suite of diving services using its modern DP2 saturation dive support vessel Mermaid Asiana, and its remotely operated vehicles, specialised diving equipment and divers. Its joint venture partner, which was not named, will be providing other offshore vessel related services and logistics.

Mermaid said, in a Singapore Exchange filing, that its potential revenue represents "a major part of this contract value over this period" and that the performance of the extended contract period is scheduled to start in the fourth quarter of this year.

Chief executive officer of Mermaid Chalermchai Mahagitsiri said: "For Mermaid, this contract extension represents a stream of stable revenue over the next financial year, and is a clear and positive step towards the steady growth of our company. We are very proud of all our team involved in delivering the highest quality of services to our customers."

Mermaid closed trading at S$0.128 on Monday, down 0.002 Singapore cent, or 1.54 per cent.