On a reported basis, however, Mermaid Maritime’s net profit missed expectations due to unfavourable forex movements of the US dollar (USD) against the Thai baht (THB), and lower-than-expected contribution from the company’s Zeaquest joint venture (JV) due to ending of a key project with PTTEP in 3Q2024.
CGS International analysts Meghana Kande and Lim Siew Khee have maintained their “add” call on Mermaid Maritime (SGX:DU4
) as the company’s 3QFY2024 ended Sept 30 core net profit of US$3.8 million ($5.1 million) stood in line with the analysts’ estimate. The figure excludes the impact of foreign exchange (forex), which stood at a loss of US$2.7 million.
Excluding the loss, Mermaid Maritime’s core ebit margin in the 3QFY2024 improved by 60 basis points q-o-q on a 100 basis point increase in gross margin and a 60 basis point drop in selling, general and administrative (SG&A) expense as share of revenue.
