swapna
11-11-2007, 07:55 AM
Being a 78% subsidiary of Technip S.A of France, the largest oilfield engineering, construction and service group in Europe, SEAMEC Ltd (195.00) operates multi-purpose support vessels (MSV) for diving and provides underwater/subsea engineering and construction, maintenance, inspection of under-water structures, rescue-operations and fire-fighting and other support services for offshore oil/gas installations located in India or abroad. Hence it is a pure play of charter hiring of MSVs, which are more specialized vessels than Offshore Supply Vessels (OSV) as they are equipped with Dynamic Positioning (DP) system and can go underwater for repair & maintenances of underwater pipelines. Ironically, there are only 6 MSV in India; out of which four belongs to SEAMEC and the rest two are with ONGC. However, the recently acquired fourth vessel - Seamec Princess is presently abroad for conversion to diving support vessel and is expected to be ready in next few weeks. Meanwhile the dry dock for vessel I have already completed and vessel II will complete within this fiscal only. So, FY08 will be a bumper year for the company with continuous deployment of all its four vessels coupled with higher charter rates. It can report a topline of 250 cr and bottomline of 80 cr i.e. EPS of 24 Rs on current equity of 33.90 for the year ending Dec 2008. Being a debt free MNC it deserves much better valuation and its share price can move up to 350 Rs in medium term