Mermaid Maritime - DBS Research 2016-03-07: More pain ahead

MERMAID MARITIME PUBLIC CO LTD DU4.SI 

Mermaid Maritime - More pain ahead 

4Q15 results were weak; impairments larger than expected. 

• The Group incurred a loss of US$245m for the quarter as Mermaid booked a US$163m impairment charge on its assets and a US$65m share of impairment from associate Asia Offshore Drilling (AOD), suggesting a roughly 40% haircut on vessel/rig asset values. 
• Subsea vessel utilisation dipped to 56% in 4Q15, down from ~80% in the previous two quarters, a result of both a challenging subsea market and seasonal factors. 

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