Acknowledging that the order book of US$642 million remains “sizeable”, the analysts highlight that contract “wins are key for long-term visibility of earnings” and have therefore kept their "add" call on this counter.
CGS International analysts Meghana Kande and Lim Siew Khee have lowered their target price for Mermaid Maritime to 14 cents from 16 cents due to a slower-than-expected momentum in order wins for the year.
As at Sept 30, Mermaid Maritime’s total order book stood at US$642 million ($836.4 million), 21% lower than its previous order book of US$814 million as at the end of September 2024. This was mainly driven by completion of cable laying (from US$355 million to US$44 million), transportation and installation (T&I) and decommissioning projects (from US$142 million to US$97 million) while being offset by contract wins for the inspection, repair and maintenance (IRM) segment (from US$317 million to US$501 million).
