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Mermaid Maritime Plc, a subsidiary of TTA, invests over Bt3 billion to acquire a new build DP2 dive support vessel

Back Jun 11, 2009

Thoresen Thai Agencies Public Company Limited ("TTA") has confirmed the purchase of a new build dynamically positioned class 2 ("DP2") dive support vessel worth Bt3,116 million, by Mermaid Offshore Services Ltd. ("MOS"), a wholly owned subsidiary of Mermaid Maritime Plc. The new vessel is to be constructed by Bergen Group BMW AS, of Norway  It will allow MOS to fulfill anticipated demand for sub-sea engineering services.

M.L. Chandchutha Chandratat, Managing Director of TTA, announced that "Mermaid Offshore Services Ltd. ("MOS"), a wholly owned subsidiary of Mermaid Maritime Public Company Limited ("Mermaid"), which is listed on the Singapore Exchange Securities Trading Limited, has signed a contract worth Bt 3,115,840,000 with Bergen Group BMW AS of Norway to purchase a new build dynamically positioned class 2 dive support vessel (DP2 DSV). Delivery of the new vessel, to be named "Mermaid Endurer" is scheduled for the fourth calendar quarter of this year.  The new investment has been made in anticipation of a strong demand for a wide range of sub-sea engineering services which Mermaid provides, including infrastructure and submerged structure installation, inspection, repair, maintenance and salvage".

"The acquisition of the new vessel, the Mermaid Endurer, will be partially funded by retained earnings in MOS and by debt. Approximately 30% of the investment will be payable during the remaining phase of the construction with the balance of approximately 70% payable upon delivery and acceptance of the vessel. M.L. Chandchutha added.

MOS' existing sub-sea fleet comprises seven vessels, two of which are DSVs. The "Mermaid Endurer" is the third new build sub-sea vessel. Independent reports on the construction have confirmed that the new build  DP2 dive support vessel has a modern and efficient design specification and is built to high standards. This acquisition will further enhance Mermaid's owned fleet utilization and accommodate future expansion of its sub-sea engineering services.

"MOS is also scheduled to take delivery of a new build DP2 DSV "Mermaid Asiana" in the third calendar quarter of 2009 and a new build DP2 remotely operated vehicle ("ROV") support vessel "Mermaid Sapphire" in the fourth calendar quarter of 2009.

Since 2008, MOS has steadily expanded its geographical client base out of South East Asia to include India, China, Sakhalin, the Middle East and Brazil. This acquisition will allow MOS to respond to the anticipated demand growth within its expanded geographical market for sub-sea engineering services with a modern and globally mobile fleet", according to M.L. Chandchutha.

TTA is a leader in the dry bulk shipping industry, providing liner and charter services, and is a major player in Southeast Asian offshore services through Mermaid.  TTA is amongst the top 50 companies listed on the Stock Exchange of Thailand with high liquidity.