Detailed Narrative
Q2 FY26 Performance Impacted by Monsoon and Breakdowns
SEAMEC Ltd reported a challenging Q2 FY26, with consolidated revenue declining 3% YoY to INR108 crores and consolidated EBITDA falling to INR18 crores from INR38 crores in Q2 FY25. The quarter resulted in a consolidated PAT loss of INR26 crores, compared to a profit of INR0.2 crores in the prior year. This performance was primarily attributed to the monsoon season, which restricted vessel deployment, and a technical breakdown of the SWORDFISH vessel in mid-August.
Fleet Operational Status and New Contract Wins
Despite operational challenges, the SWORDFISH vessel's defects have been rectified, and it is now fully operational. The company successfully secured a firm Charter Party for Seamec Glorious with L&T for 150 days in the Mumbai High and Western Offshore region. Additionally, a Charter Higher Agreement worth INR6.3 crores was secured for the vessel GOODMAN with HAL Offshore, indicating a recovery in chartering activity post-monsoon.
Strategic Fleet Expansion and Investment Commitments
SEAMEC is actively pursuing fleet expansion, having committed INR800 crores for this purpose. The company also signed a Memorandum of Understanding with the DG Shipping to invest approximately INR1,000 crores in its maritime business over the next few years. This strategic investment aims to capitalize on the up-cycle in the offshore segment and strengthen the company's foundation for sustainable growth, focusing on multi-support vessels and other opportunities.
Agastya Deployment and Expected Returns
The newly acquired vessel, Agastya, is scheduled for deployment from December 2025. It has secured a four-year contract with ONGC through HAL Offshore at a daily rate of USD25,000. Management anticipates an Internal Rate of Return (IRR) upwards of 20% from this acquisition, highlighting its potential to contribute significantly to future profitability.
Improving Overseas Operations and UK Market Entry
The company is focused on turning around its overseas operations, expecting cumulative losses to reduce from INR28 crores last year to INR5-7 crores this year, with a target to achieve breakeven or positive results next year. Furthermore, SEAMEC plans to establish a liaison office in the UK, aiming to make it operational by September 2026, to access the lucrative Northern Europe offshore market.
Fleet Management and Dry Docking Schedule
SEAMEC has a structured dry docking schedule, with Seamec-3, Seamec Princess, and Paladin slated for dry dock in 2026. Other vessels like Seamec-2, SWORDFISH, and Nusantara are scheduled for 2027/2028. Each dry dock exercise typically lasts 90 days and occurs every 2.5 years. A decision regarding the future of Seamec-2, after its contract ends in August or September 2026, is pending, considering regulatory norms and operational viability.