May 25, 2009 SEAMEC LTD.

Ghalla Bhansali Stock Brokers Pvt Ltd.

Company Profile BUY

Shipping
Promoted by Peerless General Finance & Investment Company, the
flagship of the Peerless group, South East Asia Marine Engineering and Price: Rs. 147
Construction (SEAMEC) Ltd, previously known as Peerless Shipping & BSE Code: 526807
Oilfield Services is engaged in the business, inter alia, of operation of NSE Symbol: SEAMECLTD
multi-support vessels for underwater / sub-sea engineering services, deep- Face Value : Rs.10
sea diving, inspection of underwater structures, rescue operations and fire
fighting. Mauritius based Coflexip Stena Offshore had acquired 58.24%
Share Price Data
stake in the erstwhile Peerless Shipping in 1999, which in turn was
Paid up Equity (Rs.Cr) 33.90
acquired by Technip S. A. of France in April 2000. Pursuant to this Technip
Market Cap (Rs. Cr.) 470.87
made an open offer to the shareholders of SEAMEC in December 2002
52 week High (Rs.) 178.45
taking its shareholding in SEAMEC from 58.24% to 78.24%
52 week low (Rs.) 30.05
Being a leading provider of DSV based diving services, SEAMEC
Book Value (Rs.) 113.19
has unrivalled experience in the ongoing sub sea inspection, repair, EPS(Rs.) 33.73
maintenance and light construction required for the support of offshore oil P/E 4.12
production.
Currently the company owns three multi functional diving support
vessels capable of working throughout the years in severe sea and weather Shareholding Pattern (%)
conditions. Multi support vessels are normally used for supporting oil fuel Promoters 75.00
services, diving, remote vehicle operations, fire fighting, rescue and FIIs 2.04
helicopter services. Most of the time dedicated dive support vessels are Institutions 7.02
used for diving and sometimes for ROV service (Remote Operated Public & Others 12.75
Vehicles), which are underwater remotely controlled vehicles.
SEAMEC is an ISO 9001:2000, ISO 14001:2004 and ISO 18001:1999
certified Company.

SEAMEC - I
The SEAMEC-I is a highly advanced multi support vessel that can perform
a wide range of tasks including:
• Subsea construction / maintenance
• Non-destructive testing/pipeline inspection
• ROV operations
• Fire fighting I & II
• Rescue
• Pollution control
Mahesh Babaria
Seamec-I is under long term charter with DOEL till March 2010.
Maheshb@ghallabhansali.com

SEAMEC - II Mittal dharod

The SEAMEC-II is a multifunctional diving support vessel capable of mittald@ghallabhansali.com
working throughout the year in severe sea and weather conditions.

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May 25, 2009 SEAMEC LTD.
Ghalla Bhansali Stock Brokers Pvt Ltd.

The vessel has the ability of performing a wide range of tasks including:
• Single buoy mooring maintenance/removal and installations
• Platform repairs-subsea/topside
• Riser repairs-subsea/topside
• Pipeline repairs-subsea
• Fire fighting
• Rescue
• Pollution control
Seamec-II is on charter with Rana Diving Marine Contractors, Italy for
working in Congo for a firm period of 60 days with option for extension of
60 days.

SEAMEC - III
SEAMEC-III is a multifunctional diving support vessel capable of working
throughout the year in severe sea and weather conditions.
The vessel has the ability of performing a wide range of tasks including:
• Single buoy mooring maintenance/removal and installations
• Platform repairs-subsea / topside
• Riser repairs-subsea/topside
• Pipeline repairs-subsea
• Fire fighting
• Rescue
• Pollution control
Seamec-III is on charter in Mexico effective February 2009 for firm period
of six months with option for extension.

SEAMEC PRINCESS
Seamec has acquired a cable lay vessel in June 2006, named Seamec
Princess (Ex Oceanic Princess) from M/S James Fisher Logistics Ltd. The
vessel was modified to DP-II Diving Support Vessel at Dubai Dry-dock.
After modification, she was put on charter with effect from 1st March
The vessel has the ability of performing a wide range of tasks including:
• Platform repairs-subsea / topside
• Riser repairs-subsea/topside
• Pipeline repairs-subsea
• Fire fighting
• Rescue
• Pollution control
Upon completion of charter with Sime Darby has commenced new charter
with Workboat international, Dubai with effect from 12th December 2008
for a firm period of six months.
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May 25, 2009 SEAMEC LTD.
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Key Financials
Sales for the quarter ended March 2009 were at Rs 100.12 crore up by 187.29 % in the corresponding period
in the previous year. PBIDT was at Rs 69.55 crore up by 703.73 % in the same quarter of the previous year.
PAT was at Rs 61.95 crore up by 513.83s % from the quarter ended on March 2008.

Quarter Ended 1st Qtr 1st Qtr % Change 4th Qtr 4th Qtr % Change 3rd Qtr 1st Qtr % Change
Mar-09 Mar-08 Dec-08 Dec-07 Sep-08 Sep-07
Net Sales 100.12 34.85 187.29 104.41 22.27 368.84 68.61 45.34 51.32
PBIDT 69.55 -11.52 703.73 61.92 -9.42 757.32 -4.99 14.57 -134.25
PAT 61.95 -14.97 513.83 54.61 -15.74 446.95 -12.23 9.52 -228.47
EPS (Unit Curr.) 18.27 0.00 0.00 16.10 0.00 0.00 0.00 2.63 17.90

Yearly Results

Year End 200812 200712 Var % 200712 200612 Var % CAGR

Net Sales 268.59 170.44 57.59 170.44 159.13 367.98 19.06
PBIDT 74.16 59.65 24.33 59.65 75.29 -20.77 -0.50
PBIDT Margin (%) 27.61 35.00 -- 35.00 47.31 -- --
PAT 51.72 37.74 37.04 37.74 58.57 -35.56 -4.06
PAT Margin (%) 17.54 21.73 -- 21.73 36.81 -- --
EPS (Basic) Rs. 13.90 10.92 27.30 10.92 17.28 -36.80 -7.00
Dividend (%) 0.00 0.00 -- 0.00 0.00 -- --

Sales Growth

300 100.00

250 80.00
60.00
200
40.00
150
20.00
100
0.00
50 -20.00
0 -40.00
200412 200512 200612 200712 200812

Sales Growth

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May 25, 2009 SEAMEC LTD.
Ghalla Bhansali Stock Brokers Pvt Ltd.

Key Ratios
60
28.11
Year End 200812 200712 200612 50
Price Earning (P/E) 2.72 26.27 11.20 40
Price to Book Value ( P/BV) 0.40 3.54 2.76 30
23.93 14.46 15.8
28.98
M Cap/ sales 0.48 5.71 4.12 11.41
20
15.89 16.35
ROCE (%) 16.35 15.89 28.98 13.03
10 8.46
RONW (%) 15.80 14.46 28.11
0
Interest Cover Ratio 128.29 96.93 223.59
200412 200512 200612 200712 200812
Debt-Equity 0.00 0.00 0.00
Current Ratio 1.87 2.11 4.27 ROCE (%) RONW (%)

80 50 70 40
70 60 35
40
60 50 30
50 30 25
40
40 20
20 30
30 15
20 20 10
10
10 10 5
0 0 0 0
200412 200512 200612 200712 200812 200412 200512 200612 200712 200812

PBIDT PBIDTM (%) PAT APATM (%)

Investment Opportunities
~ The contract for the vessel Seamec II with Rana Diving Marine Contractors,
Italy, working in Congo, West Africa has been further extended till Jun. 24,
2009.

~ With reference to the earlier announcement dated Sep. 09, 2008; Seamec
announced that the vessel charter with CAL DIVE International, 2500 City
West BLVD, Texas United States was completed. The company has entered
into a charter party with Condux SA de CV, Mexico for charter hire of vessel
for a firm period of six months with option for extension. The contract value
during the firm period would be USD 10.62 million.

~ Seamec`s vessel `Seamec Princess` has been awarded a contract by Sime

Darby Engineering, Qatar for charter hire and diving operations for a period
of six months with option for extension. The contract has become effective
from Mar. 01, 2008. The total contract value for the period is USD 19 million
approximately.

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May 25, 2009 SEAMEC LTD.
Ghalla Bhansali Stock Brokers Pvt Ltd.

~ All of its vessels will be fully available for CY09. The effect of full
operations was seen in Q1 CY09 in which the company reported a sale of Rs.
100.12 crore with a PBDIT margin of 70 %.

~ SEAMEC provides support services to the offshore oil and gas industry
and its business prospects are closely linked to the offshore exploration and
production activities. Higher crude prices make offshore exploration and
production projects viable and consequently drive the demand for support
services. Owing to the sharp global economic slowdown, crude prices had
collapsed from $147 / barrel in July 08 to $33 in December 2008. Crude prices
since then have recovered significantly from their lows and currently
hovering around $ 60. In future Crude going at higher level will drive the
demand for SEAMEC`s services.

SEAMEC a leading provider of DSV based diving services has unrivalled

experience in the ongoing subsea inspection, repair, maintainence and light
construction required for the support of offshore oil production. With many
offshore sites coming in future and full capacity utilization of the company
we recommend a strong buy from a long term perspective.

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May 25, 2009 SEAMEC LTD.
Ghalla Bhansali Stock Brokers Pvt Ltd.

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Information Sources:
Capitaline
SEAMEC Ltd website.

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