Leading engineering services company, Neptune Marine Services (ASX: NMS) has further consolidated its market position following a strong quarter of activity for the period ending 31 March, 2008. Neptune’s revenue for the period increased to $24.5 million, up 66% from the previous quarter, while year to date cash receipts of $56.4 million were in line with expectations.
Describing the performance as encouraging, Neptune’s Managing Director and CEO, Christian Lange, said the group’s future revenue was expected to increase as it continued to expand its geographical footprint, secure larger integrated projects and attract interest from new and existing clients.
“It has been a productive quarter for Neptune that has finalised its expansion into the lucrative UK market through the acquisition of Ross Deeptech Initiatives and Ross Deeptech Symons, has signed a MoU to acquire its first support vessel and has launched its ROV strategy,” he revealed. “Internationally, our US and UK subsidiaries performed very well, generating income from and/or securing new projects collectively valued at approximately $8 million. “Locally, the scope of work in Australia and Asia has also been very encouraging, supported by very high levels of investment in the oil and gas sector. The addition of the Sea-Struct business in the June quarter will provide further opportunity for expansion into Asia, as will the evolution of our vessel and ROV division.”
Looking to the immediate future, Mr Lange said the group remained confident with its outlook and various opportunities on offer. “The first two weeks of April generated customer receipts totalling $5.3 million so we are well on our way to exceeding the revenue performance of the March quarter,” he suggested. “This reflects the fact that our comprehensive range of integrated subsea services is attracting increased attention from clients who also recognise the benefits and economies associated with utilising such a unique service. “Our pipeline of tendering opportunities is strong across all markets and we will continue to take advantage of the tremendous growth that the oil and gas sector is experiencing,” he added.
The Company’s Cashflow Report for the three months to 31 March, 2008 is attached. The major cashflow components for the period include:
• Revenue of $24.5m, an increase of 66% on the previous quarter.
• Cash receipts from core business of $56.4m (YTD/9 months)/$21.7m (quarter)
• Net cashflow from operations of $4.8m (YTD/9 months)/$500K (quarter)
• The completed acquisition of UK-based (Aberdeen) Ross Deeptech Initiatives Ltd/Ross Deeptech Symons Ltd
Receipts from customers totalling $5.3 million were received during the first two weeks of April.
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