Business Overview
Subsea Services
Our business activities are focused on diving and remote intervention by unmanned submersibles (ROV) with the world’s first autonomous underwater vehicle (AUV) and subsea flowline control and repair (SFCR) units that are being developed. Its Subsea Division is represented by Mermaid Subsea Services (Thailand) and Mermaid Subsea Services (International) Ltd. Both subsea units are integrated and operate under the same brand, “Mermaid Subsea Services.” A wide range of subsea engineering services are provided, including subsea installation engineering, offshore decommissioning, inspection, repair and maintenance, construction and installation support, commissioning, and cable and pipe laying projects.
As of 31 December 2023, the subsea fleet consists of 8 subsea support vessels, 5 of which are specialized dive support vessels and one a specialized shallow water cable- and flex-lay vessel, and 13 ROV systems, including deep water and ultra-deep-water heavy construction class systems. Apart from its key assets, the Subsea Division has a workforce of over 1,000 professional engineers, divers, technicians, surveyors, HSE personnel, marine personnel, and support staff to work on its subsea engineering projects in addition to a permanent workforce.
Fleet Services
All vessels are classified by DNV, BV or ABS, three of the foremost classification societies worldwide. They undergo regular inspections by class surveyors, in addition to scheduled dry-docking and other planned maintenance activities. Another fundamental strength of the Subsea Division lies in its ability to conduct diving operations to world-class standards, with a particular focus on meeting the rigorous criteria established by the International Oil and Gas Producers Association (“IOGP”).
Subsea Fleet List
| No. | Name of Vessels | Vessel Type | Calendar Year | |
|---|---|---|---|---|
| Built Year / Conversion | Purchase Year / Long-term Charter Year | |||
| 1. | Mermaid Endurer | DP2 Dive Support Vessel | 2008 | 2010 |
| 2. | Mermaid Asiana | DP2 Dive Support Vessel | 2010 | 2010 |
| 3. | Mermaid Commander | DP2 Dive Support Vessel | 1987 | 2005 |
| 4. | Mermaid Sapphire | DP2 ROV Support Vessel | 2008 | 2009 |
| 5. | Mermaid Challenger | General Utility Vessel | 2006 | 2008 |
| 6. | Millennium 3 | Special Utility Vessel | 2011 / 2018 | 2021 |
| 7. | Resiliant | Derrick Pipe Lay Barge / Accommodation | 2007 | 2022 |
| 7. | Van Gogh | DP2 Dive Support Vessel | 2019 | 2022 |
The following details the Subsea Division’s core services:
Marketing and Competition
Subsea Services Clients
Major national and international oil and gas producers, suppliers, pipeline transmission companies, as well as offshore engineering and construction firms, place their trust in Mermaid as their strategic partner within our regional markets spanning the Middle East and Asia Pacific. The clients in the Middle East constitute a significant and integral contribution to Mermaid’s overall business. Mermaid’s primary source of revenue comes from its largest customer, Middle Eastern oil producers, under a long-term annual service contract through a joint venture between Mermaid and local partners in the Middle East.
Most of our other customers operate on a project-based model, with the project duration contingent upon the nature of the work. As part of our “Positioning for Growth” strategy, the company aims to expand its footprint in strategic subsea engineering to encompass additional regions in the coming years, notably targeting Africa and the Mediterranean region.
Optimizing vessel utilization stands as a top priority for the organization. Concurrently, there is a concerted focus on implementing techniques that stimulate clients to procure additional services through cross-selling strategies. Additionally, the company is actively engaged in negotiating long-term contracts, particularly in high-growth markets such as Southeast Asia and the Middle East.
Competition
Our extensive and highly experienced team, coupled with our commitment to on-time project delivery and exceptional customer service, remains our crucial differentiator. There are several reasons why customers choose Mermaid. We take pride in our excellent health, safety, and environmental track record. Moreover, we offer top-tier service quality at a competitive price, demonstrating our capability and resources to handle projects of all sizes and provide a comprehensive ‘one-stop-shop’ service point.
Supported by a large pool of in-house, experienced, and dedicated personnel, strategic local partnerships in various geographies, and full compliance with international standards for our vessels and equipment, Mermaid ensures the highest standards in our operations. Our track record of successful projects with reputable clients, expansion into new geographical areas, and the development of regionally based operations with long-term customer relationships reflect our commitment to excellence. We have systems in place to provide dedicated customer support and ensure a quick response to emergency callouts and variation orders in all situations. As a result, Mermaid is delighted to receive continued repeat business from our valued customers.
Mermaid’s Industry Positioning
Having garnered over 38 years of experience in the Oil & Gas industry, Mermaid proudly showcases a well-established track record of subsea excellence. Operating across Southeast Asia, the Middle East, and more recently, in the North Sea and West Africa, Mermaid stands as a trailblazer in the global subsea markets. Demonstrating proficiency in subsea engineering solutions, Mermaid possesses the capability to address intricate and demanding engineering challenges at any water depth in any region worldwide, catering specifically to the needs of the Oil and Gas markets.
With ownership and operation of a fleet comprising subsea construction, intervention, and survey vessels, Mermaid positions itself uniquely to provide distinct advantages to our clients. Our emphasis lies in cultivating enduring relationships, which not only elevate our service delivery but also mitigate overall risk factors.
Mermaid maintains a cautious outlook on the offshore oil and gas market for the upcoming 12 months. Given the recent rebalance in the oil market and the lingering effects of COVID-19, industry observers have highlighted specific attributes of offshore oil and gas service companies that could position some more favourably than others in this environment. Having carefully considered these factors, Mermaid is confident in its standing as one of the well-positioned companies poised to leverage the current market conditions. This confidence stems from Mermaid’s strategic industry positioning, reputable standing, proven track record, and stringent fiscal discipline, which are expounded upon below:
The majority of Mermaid’s subsea vessel fleet primarily operates in relatively shallow waters, a strategic choice that proves to be more resilient and less susceptible to the impact of lower oil prices. This resilience is attributed to the lower break-even costs associated with shallow-water fields compared to their deeper-water counterparts, making them less prone to experiencing a decline in service demand. Additionally, Mermaid has established a robust local presence through subsidiaries and joint ventures in cabotage-protected markets, specifically catering to National Oil Companies (NOCs) in various regions such as Europe, the Middle East, Africa, Asia Pacific, and the UK. This deliberate expansion into these markets positions Mermaid advantageously, as NOCs in these regions pursue sustained growth and energy security, displaying a lesser sensitivity to price fluctuations.
One of Mermaid’s core businesses involves the annual inspection, repair, and maintenance program for Saudi Aramco and NOCs. These key clients have shown resilience against capital expenditure reductions. The medium to long-term demand for our services in this sector remains strong, providing a positive outlook for Mermaid.
Mermaid is actively pursuing service and geographical expansion to capitalize on growth opportunities, focusing on countries with robust demand. This strategic approach is particularly emphasized in the inspection, repair & maintenance (IRM), subsea engineering, installation of cabling systems for connecting devices on offshore oil production platforms (SURF), and subsea cable installation markets. Mermaid aims to reinforce its industry position by diversifying in regions with sustained demand.
Mermaid maintains its status as a significant industry player, boasting an outstanding operational and safety record underscored by a professional management team. The subsea fleet at Mermaid remains notably youthful, with a significant portion less than 15 years old. This positioning proves advantageous, particularly with Oil and Gas majors, who exhibit a preference for newer equipment due to their superior capabilities and operational efficiency.
In response to evolving market dynamics, Mermaid has proactively executed asset growth plans by chartering additional subsea tonnage. This strategic move not only affords Mermaid the flexibility to meet anticipated demand but also allows for the release of such charters in the event of declining demand, all without necessitating significant capital expenditure.
Mermaid’s stable order book, primarily in the subsea services sector, is complemented by the anticipation of more near-term contract wins. This existing contract backlog is poised to serve as a robust revenue backbone for 2024, with the potential for additional upside