Seamec posted a net profit of Rs 35.87 crore in Q3FY19, on the back of healthy revenue growth. The company posted a net loss of Rs 8.03 crore in the same quarter last fiscal. Operational revenue during the quarter rose 2.6-fold at 98.99 crore against Rs 38.68 crore in the corresponding quarter of previous fiscal.
The board of directors of the company in its meeting held on February 2, 2019, reviewed the status and feasibility of scheme of demerger of EPC and Vessel Division of HAL Offshore into Seamec and decided to withdraw the same, considering that the intended synergies based on which demerger was planned have been diluted and will not be in the best interest of the company and its minority shareholders.
Seamec is engaged in the business, inter alia, of operation of multi-support vessels for underwater / sub-sea engineering services, deep-sea diving, inspection of underwater structures, rescue operations and fire fighting.
“During the global downturn experienced over the last decade, there has been a distinctive mismatch between cost and yield in the oil and gas exploration. The oil majors had made a cautious approach and discouraged their spending on capex. The scenario has positively impacted the later part of the financial year 2017-18 (FY18). Though investment has grown, the opportunities for service providers have not grown in tandem. However, it has raised expectation for sustainable growth in offshore exploration and production activities, thus opened up opportunities for service providers,” Seamec said in FY18 annual report.
In India, ONGC has resumed its investment plan in exploration, production activity and development of existing fields to meet energy security. Thus opportunities cropped up for service providers line of business with great assurance for deployment of vessels, it added.
At 12:18 pm, Seamec was trading 7 per cent higher at Rs 344 on the BSE, as compared to a 0.11 per cent decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 49,511 equity shares changing hands on the NSE and BSE so far.