Mermaid Maritime Full Year 2024 Earnings: Beats Expectations

Mermaid Maritime Public Company Limited (SGX:DU4) has reported its full-year earnings for 2024, surpassing analysts' expectations. The company, which operates in the energy sector, has demonstrated significant growth in revenue and net income, as well as an improvement in earnings per share. This article will delve into the key aspects of Mermaid Maritime's 2024 performance and its implications for investors.

Revenue Growth and Net Income Improvement

Mermaid Maritime's revenue for the full year ended December 31, 2024, reached THB 18,556.87 million, representing a substantial increase of approximately 91.2% compared to the previous year's THB 9,704.8 million. This significant growth in revenue can be attributed to the company's expansion in operations and services, as highlighted in a research report by Nicholas Yon Lim & Tan Securities Research.

The company's net income also showed a notable improvement, with THB 477.34 million in 2024 compared to THB 343.38 million in 2023. This increase in net income, coupled with the significant revenue growth, led to an improvement in basic earnings per share from continuing operations. The basic earnings per share in 2024 was THB 0.3377, compared to THB 0.243 in 2023.

Analysts' Perspectives and Research Reports

While Mermaid Maritime's 2024 performance did not fully align with analysts' expectations, the company's results still demonstrated significant growth. In a research report published on 2024-09-21 11:22 PM, SGinvestors.io noted that Mermaid Maritime's revenue exceeded their estimates by 6% in the first half of 2024. However, the significant shortfall in net profit attributable to shareholders (NPAT) was primarily attributed to a 134.9% increase in the cost of rendering services. One of the company's vessels, Hilong 106, incurred considerable cost of carry due to late vessel delivery to Thailand, which dragged total earnings down. Excluding this impact, Mermaid Maritime's results would likely have met their 1H24 estimates.

Nicholas Yon Lim & Tan Securities Research downgraded their rating for Mermaid Maritime to 'HOLD' following the disappointing 2QFY24 results. However, a previous report published on 2024-07-03 had a more optimistic outlook, titled "Mermaid ~ Seas The Day!" This shift in analysts' sentiment highlights the importance of monitoring Mermaid Maritime's performance and the impact of operational challenges on its financial results.

Implications and Opportunities

Mermaid Maritime's strong performance in 2024, despite operational challenges, demonstrates the company's resilience and growth potential. As the energy sector continues to evolve, investors should closely monitor Mermaid Maritime's progress and consider the opportunities that may arise from its expansion and growth strategies. The company's ability to adapt and overcome operational challenges, as evidenced by its 2024 results, is a positive sign for investors seeking exposure to the energy sector.

In conclusion, Mermaid Maritime's full-year 2024 earnings report showcases the company's significant growth in revenue and net income, as well as an improvement in earnings per share. While the company's performance did not fully meet analysts' expectations, its strong results demonstrate the potential for future growth and success in the energy sector. Investors should continue to monitor Mermaid Maritime's progress and consider the opportunities that may arise from its expansion and growth strategies.