Mermaid Maritime Public Company Limited Q3 2025 Financial Analysis

Mermaid Maritime Public Company Limited, a listed provider of subsea and offshore services, has released its condensed interim financial statements for the three-month and nine-month periods ending September 30, 2025. The following analysis focuses on key metrics, performance trends, exceptional items, and significant events that may impact investor decisions.

Key Financial Metrics

• Revenue (Q3 2025): \$153.4 million (USD), down 1.6% YoY, up 2.2% QoQ
• Net Profit (Q3 2025): \$16.6 million (USD), up significantly YoY and QoQ
• Basic EPS (Q3 2025): \$0.0088, compared to \$0.0008 in Q3 2024
• Net Profit (9M 2025): \$1.2 million (USD), down 73.3% YoY
• Basic EPS (9M 2025): \$0.0006, compared to \$0.0030 in 9M 2024
• Issued and Paid-up Share Capital: increased from \$47.3 million to \$62.1 million (USD) due to a rights issue
• Cash and Cash Equivalents: \$35.3 million (USD) as at September 30, 2025, up from \$22.9 million (USD) at year end
• Shareholders’ Equity: \$229.2 million (USD), up from \$184.8 million at year end
• Total Liabilities: \$221.7 million (USD), down from \$230.9 million at year end

Quarterly and Year-on-Year Comparison Table

Historical Performance Trends

• Revenue has remained relatively stable year-over-year, with a slight decrease in the nine-month period (\$383.0m vs \$396.2m).
• Quarterly profit and EPS jumped sharply in Q3 2025, after several subdued quarters.
• Year-to-date profit and EPS are significantly lower due to weak Q1 and Q2 results.
• Equity and cash positions have improved due to a successful rights issue and improved operating cash flow.

Exceptional Items and Corporate Actions

• Rights Issue: The company raised additional capital through a rights issue, increasing share capital from 1.41 billion to 1.89 billion shares.
• Share Premium Utilization: Share premium was used to offset a substantial deficit of \$267.6 million.
• Legal Proceedings: Ongoing litigation in Indonesia regarding subsidiary shareholdings, outcome pending.
• New Joint Ventures: Investment in Mermate Co., Ltd (Taiwan, offshore wind and subsea cables) and Mermaid EG S.A. (Equatorial Guinea, diving and maritime services).
• Loan Restructuring: Approval for a new credit limit up to \$70 million with parent company TTA, at 7% interest, 5-year term.

Related Party Transactions

• Significant support from parent company in the form of loans (short-term and long-term, totaling \$70m at 7% interest).
• Management fees, interest, and other transactions with subsidiaries, associates, and joint ventures are material.
• Key management compensation: \$527k (USD) for the first nine months.

Assets and Liabilities

• Property, Plant & Equipment: Net book value increased from \$147.6m to \$154.1m, additions of \$19.9m, indicating ongoing capital investment.
• Long-term Borrowings: Increased from \$20.2m to \$32.7m, mostly for vessel financing. All borrowings secured and subject to covenants.
• Guarantees Outstanding: Significant guarantees for subsidiary borrowings and business operations.

Events That May Impact the Business

• Loan Restructuring: Provides financial flexibility but increases leverage.
• Legal Dispute in Indonesia: May impact future cash flows or asset values depending on the outcome.
• Commitments: Capital commitments for asset purchases (\$2.6m for remotely operated vehicles).
• Global Minimum Tax: New tax regime in some jurisdictions, but currently not material.

Share Dilution and Capital Changes

• Shareholders experienced substantial dilution due to the rights issue, but this recapitalization has strengthened the balance sheet and improved liquidity.

Errors, Inconsistencies, or Delays

• No material errors or inconsistencies disclosed in the report.
• Asset revaluation was not specifically mentioned as delayed or pending.

Chairman’s Statement

No Chairman’s Statement was included in the report.

Conclusion & Investor Recommendations

Overall Assessment: The company’s Q3 2025 results show a sharp quarterly rebound in profit and EPS, largely due to improved operating performance and recapitalization. However, year-to-date results remain weak due to poor first-half performance. The balance sheet has been fortified through a rights issue and loan restructuring, but leverage remains high and legal risks persist.

• If you currently hold the stock: Consider holding for now, as the company has demonstrated an ability to recover operating profit and strengthen its balance sheet. Monitor upcoming quarters for sustained profitability and resolution of legal disputes. The recent recapitalization and strategic investments may yield future growth.
• If you do not currently hold the stock: Consider waiting for further evidence of sustained profit improvement and resolution of legal and operational risks. Entry may be warranted if future quarters confirm the Q3 turnaround and legal issues are resolved favorably.

Disclaimer: This analysis is based solely on information contained in the company’s Q3 2025 interim financial statements and should not be considered investment advice. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions.

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