SEAMEC Ltd

SEAMEC Ltd reported a consolidated revenue of INR 210 crores in Q4 FY25, marking a 12% decline from INR 240 crores in Q4 FY24. Consolidated EBITDA for the quarter stood at INR 91 crores, a slight increase from INR 90 crores in the prior year, while consolidated PAT decreased to INR 41 crores from INR 53 crores. For the full fiscal year FY25, consolidated revenue was INR 682 crores, down 10% from INR 758 crores in FY24, with PAT at INR 88 crores compared to INR 121 crores in FY24. Standalone PAT for FY25 was INR 116 crores, impacted by a tax provision of INR 15 crores in Q4 FY25 due to profits from the Barge Glorious and other income.

The company's Board has approved the acquisition of a new Multi-Support Vessel (MSV) named NPP Nusantara for $23 million, to be financed through a mix of debt and internal resources. This acquisition aligns with the strategy to replace older fleet assets over the next 3-5 years. Furthermore, the vessel Swordfish has secured a 2-year long-term charter with Aramco at approximately $78,000 per day, effective May 21, 2025, ensuring the entire fleet is currently deployed. Management emphasized that most vessels are on long-term contracts, providing high utilization outside the monsoon season.

SEAMEC International FZE, a wholly-owned subsidiary, has incorporated a joint venture company, Searete India IFSC Private Limited, in Gift City, India, with UAE-based Arete Shipping DMCC. This JV's primary objective is vessel leasing, buying, and selling, and it is already in the process of acquiring another cargo vessel. This initiative is expected to contribute to future growth and expand the company's operational footprint in the vessel services market.

Management confirmed that the company's debt levels have decreased, with current debt standing at approximately INR 170 crores. No additional debt was taken in FY24-25, and the company has actively repaid existing debts over the last four quarters. SEAMEC plans to utilize its available cash surplus for further debt reduction and future capital expenditures, aiming to minimize its debt position in the coming financial year.

The Dubai subsidiary is reported to be profitable in FY25. However, the UK business is still in a development stage and contributing to consolidated losses, primarily due to non-cash depreciation and interest provisions related to its capex. Management expects the UK operations to become cash flow positive starting FY26-27, aiming to nullify the gap between standalone and consolidated financial results over the next two years through efficient business operations.

The company's performance in FY25 was impacted by an unscheduled breakdown of vessel Seamec II in Q3 and lesser deployment for Swordfish. The Seamec Barge is subject to seasonal off-hire during the monsoon period (May 15 to October 15), and other vessels will undergo dry dock maintenance, leading to 60-70 days of off-hire. Despite these challenges, the company is confident in its long-term contracts and plans to replace older vessels like Seamec 2, 3, and Princess with newer acquisitions to maintain operational efficiency.