Seamec Limited

The company is backed by HAL offshore limited which has two decades of operatio nal expertise in the Oil & gas industry. Majority of the senior management has prior experience in the same industry and is supported by an eight member Board consisting of four independent directors. Established relationship with clients and strong market position Seamec has been providing specialized services to the offshore oil & gas industry in India and abroad. Over the years, the

Seamec has been providing specialized services to the offshore oil & gas industry in India and abroad. Over the years, the company has built upon a strong market position through its deliverables and superior service record of accomplishmen t. The company mostly offers its services to reputed clients in the oil & gas industry and has been serving most of these clients ov er a long-term period. The company’s past track record provides visibility on its quality of service, which has helped the com

During FY16-18, On account of provisions made for bad/doubtful debts primarily from Swiber group, the networth of the company had eroded however has improved in FY19 and 9MFY20 mainly due to strong financial performance exhibited by the company. Further, the capital structure of the company is comfortable with negligible debt in past and current year. Overall gearing therefore stood comfortable at 0.01x as on March 31, 2019. The subsidiary, Seamec International FZE, has purchased

Over the past few years, financial performance of Seamec has been on improving trend mainly led by higher charter rates and deployment days. During FY19, revenue from operations increased from Rs.209.38 crore to Rs.328.18 crore (Y -o-Y change of 57%) mainly led by robust performance in H2FY19 due higher vessel deployment days. Further during 9MFY20, the company 1 Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications

The prospect for the offshore services industry hinges upon the growth of Oil & Gas Exploration and Production (E&P) activities. Since field and new exploration, activity is supported by the MSV and utility vessels of Seamec, its revenues will be directly affected by the level of E&P activities of major oil & gas companies. Any decline in E&P spending by these major oil & gas companies can have a negative impact on the demand for offshore service vessels, which would also impact the vessels day

The average age of Seamec’s fleet is around 35 years, which continues to remain a major concern. With periodic changes on the regulatory front pertaining to the age of the servicing vessels, the redeployment risk of putting up the old vessels on a long- term charter significantly increases. Revenue concentration from offshore support vessels Seamec’s revenues are dependent upon the E&P activity of some of its major customers in the Oil & Gas industry which has

Seamec’s revenues are dependent upon the E&P activity of some of its major customers in the Oil & Gas industry which has recently taken a hit due to decline in upstream investment. Within the Oil & Gas industry as well, Seamec offers its services only to particular sub-segment which further exposes the company to revenue concentration risk.