Project report

On

Company analysis

(SEAMEC shipping industry)

By: sammer preet kour (511)

Executive summary:
The main purpose of the report is to make the reader
understand the particular company
There is also an analysis given SEAMEC adheres to
QHSE (Quality, Health, Safety, and Environment)
standards and is compliant with all necessary
regulatory and statutory requirements. It implements
systematic plans and procedures that ensure the safety
of the vessel and operators. It conducts extensive
offshore safety audits of the vessels twice a year as per
the statutory requirements.

Technically strong and financial capabilities

allow SEAMEC to bid for large, offshore long-term
contracts ushering long-term commercial visibility and
deployment of vessels. Spare capacity is utilized
around the year through smaller projects and spot
contracts
introduction to the seamec industry:

seamec is a powerhouse providing niche services in the

offshore Subsea segments.
From a modest beginning in 1986, when it was
incorporated as Peerless Leasing Pvt Ltd, to becoming a
part of Technip FRANCE.
In 2014 SEAMEC became a subsidiary of HAL Offshore
Ltd (HAL) thus a part of MM Group, Seamec has
achieved many milestones during the journey, and
today it is a powerhouse to reckon with.
Presently Seamec has the largest fleet of Diving
Support Vessels in the Middle East and India Region.
With the well-maintained fleet of DSVs, Seamec is
catering to a variety of clients-be it a turnkey basis or
day rate basis.
SEAMEC and its Subsidiaries are engaged in the
operation of Bulk Careers worldwide. it has ventured
into EPC Infrastructure through a Joint venture
company.

SEAMEC is mainly engaged in the provision of Diving

Services & Light Construction Support. Activities
Include:
core competencies of marine offshore division:
• Inspection / Work class ROV operation support
• Inspection and maintenance of single buoy moorings
• Removal and re-installation of single buoy moorings
• Pigging and retrieval of pigs

Core competition of bulk carrier:

SEAMEC along with a wholly owned subsidiary owns
three types of Bulk Carrier namely:
Handymax, Supramax, and Panamax. The new line of
business is Progressing in a desired satisfactory manner
through effective technical & Commercial management

29th December 1986

Incorporated as a Private Limited Company named
“Peerless Leasing Private Limited”.
Business model:
Promoted by Peerless General Finance & Investment
Company the flagship of the Peerless group South East
Asia Marine Engineering and Construction Ltd
previously known as Peerless Shipping & Oilfield
Services is engaged in the business inter alia of
operation of multi-support vessels for underwater /
sub-sea engineering services deep-sea diving
inspection of underwater structures rescue operations
and firefighting.
The company has experience operating 3 multi-
purpose support vessels (MSVs) (including two from
ONGC) for more than 5 years in the areas of sub-sea
engineering and deep-sea diving services. It came out
with a public issue in 1995 to part-finance the
acquisition of two MSVs to meet long-term working
capital requirements and to meet the expenses of the
public issue
OFFSHORE SHIPPING SEAMEC’s offshore fleets include
SEAMEC I, SEAMEC II, SEAMEC III, and SEAMEC
PRINCESS which are multi-support, multi-functional
DSVs. Offshore Shipping contributes the bulk of the
revenue and profit of the Company.
 Product portfolio:
A product portfolio is the collection of all the products or services offered by a company. Product
portfolio analysis can provide nuanced views on a stock type, company growth prospects, profit
margin drivers, income contributions, market leadership, and operational risk

SEAMEC I SEAMEC II
Features

 Length 108.56 m
Seamec I Built in 2006, the Barge is  Breadth 28.04 m
designed, constructed and certified for  Depth 6.93 m
worldwide operations. Flag State Indian.  Draft 4.80 m
Accommodation, work barge (surface Unit  Accommodation: 304 people
under MODU code) Mooring winch: 8-point  Clear work area1200 m2
mooring winch.  Halideck Present
 Crawler crane 250 ton and Pedestal
Crane 60 ton

SEAMEC III SEAMEC PRINCESS

SEAMEC II Built-in 1982, the vessel is Features

designed, constructed, and certified for
worldwide operations and build in the  Length 94.70 m
Netherlands. The Seamec II provides  Speed 10 knots

services, which include S.B.M maintenance
removal and installations, Platform, Riser,
and Pipeline repairs, Subsea constructions,
and Maintenance operations &
deployment of ROV
 Accommodation: 90 people
 DP II and FIFI - II
 100 Ton crane
 3 men bell, 300 m dive system
 Air Diving System permanently
installed

Features
SEAMEC III Built in 1983, the vessel is
designed, constructed, and certified for  Length 94.70 m
worldwide operations and build in the  Speed 10 knots
Netherlands. The Seamec III provides  Accommodation: 90 people
services, which include S.B.M maintenance  DP II and FIFI - II
removal and installations, Platform, Riser,  50 Ton crane
and Pipeline repairs, Subsea constructions,  3 men bell, 200 m dive system
and Maintenance operations &  Air Diving System permanently
deployment of ROV installed

SEAMEC PRINCESS Built in 1984, the vessel Features

is designed, constructed, and certified for
worldwide offshore operations and build in  Length 123.40 m
Finland. The Seamec Princess provides  Speed 10 knots
services, which include S.B.M maintenance  Accommodation: 117 people
removal and installations, Platform, Riser,  DP II
and Pipeline repairs, inspection & survey,  100 Ton & 50 Ton crane
Subsea constructions, Anode installations  3 Men Bell, 300 m dive system
& deployment of ROV & Grouting  Air Diving System permanently
operations, and Hook up jobs/ installed
commissioning.

Management profile:
Mr. Sanjeev Agarwal

Sanjeev Agrawal is an eminent and successful Entrepreneur

and heads MM Group to which SEAMEC belongs. Mr.
Agrawal has vast experience of over 25 years in the field of
the Oil & Gas Sector, Soft Drinks, Fast Food Chain, Education,
Hospitality, and Real Estate.

Anant Agarwal

Anant Agrawal is the Vice Chairman of M. M. Agrawal Group

(MMG). Mr. Agrawal holds a Master’s degree in Innovation
and Entrepreneurship from the University of Warwick,
England. Mr. Agrawal is the next-gen leader and plays an
instrumental role in Group business and passionate about oil
and gas sector, consumer businesses, Coca-Cola’s bottling
plants and other Coca-Cola’s beverages, McDonald’s
restaurants in North and East India. He plays a key role in
driving the digital transformation of all group companies.

Naveen Mohta

Naveen Mohta is a qualified Chartered Accountant and Cost

and Works Accountant. Mr. Mohta has 23 years of
experience which includes 21 years with HAL Offshore
Limited, the Promoter Company of SEAMEC Limited. Before
joining HAL, Mr. Mohta has worked with India Gypsum
Limited, a joint venture between Birla Group and BPB Plc UK.
In his present position, he looks after the operations and
commercials of offshore fleets. His area of expertise is
Commercial and Operations.
S. N. Mohanty

S. N. Mohanty has over three decades of experience in the

areas of corporate affairs, compliance corporate governance,
legal, commercial, procurement, audit, HR and Admin,
insurance, Information Technology, Finance and Taxation and
business development. By qualification, Mr. Mohanty is
Masters in Commerce, Company Secretary, Cost and
Management Accountant and has a degree in Law. Mr.
Mohanty is also a Director on the Board of Seamec
International FZE, wholly-owned subsidiary of the Company
and Seamate Shipping FZC, Step Down Subsidiary. Mr.
Mohanty is also entrusted with the operations of overseas
subsidiaries and business development.

Subrat Das

Subrat Das is a qualified Chartered Accountant. Mr. Das has

29 years of experience in the field of Finance, Accounts,
Taxation, and Legal Matters. Mr. Das has worked with Shiv-
Vani Oil & Gas Exploration Services Ltd, Great Eastern Energy
Corporation Limited, Ortel Communications Ltd, UNDP/GEF
Project (Steel), New Delhi, Modi Korea Telecommunications
Ltd, Usha Ispat Ltd, Rathi Alloys & Steel Ltd. His area of
expertise is Finance and Accounts
RISK MANAGEMENT COMMITTEE
Mr. Deepak Shetty Chairman
Mr. Sanjeev Agrawal
Mr. Surinder Singh Kohli
Dr. Sangeeta Pandit
Mr. Naveen Mohta
Mr. Vinay Kumar Agarwal

Revenue analysis:
On a Consolidated basis, Seamec Ltd reported a total income
and loss of Rs 100.45 Cr and Rs 16.97 respectively for the
quarter ending 2022-09-30. Total Income and profit for the
year ending 2022-03-31 were Rs 395.64 Cr and Rs 83.21 Cr. 5.
Period 1 Year 3 Year 5 Year 7 Year 10 Year
Debt To Equity 18.25 % 2.59 % 25.57 % 33.57 % 0.00
Short-term To Equity 11.55 % -5.28 % 5.29 % 17.78 % 0.00
Interest Coverage -38.18 % -18.37 % 17.78 % 10.61 % 0.00
Share Holder Equity 0.0486 % 5.48 % 2.56 % -1.69 % -1.66 %
Dividend Coverage 0.00 0.00 0.00 0.00 0.00
Debt To EBITDA 27.97 % 14.85 % 41.41 % 38.12 % 0.00
Asset To Sh Holder Funds -0.0485 % -5.20 % -2.50 % 1.72 % 1.69 %
INCOME

REVENUE FROM OPERATIONS 293.33 228.5 361.39 301.39 193.46

[GROSS] 1

Less: Excise/Sevice Tax/Other Levies 0.00 0.00 0.00 0.00 0.00

REVENUE FROM OPERATIONS [NET] 293.33 228.5 361.39 301.39 193.46

1

TOTAL OPERATING REVENUES 293.52 229.2 365.25 303.83 193.60

4

Other Income 44.23 34.04 30.38 26.61 18.77

TOTAL REVENUE 337.75 263.2 395.64 330.44 212.37

8
Profitability:

 Return on Equity- Company has had a low return on

equity of 13.5% over last 3 years. The company has been
maintaining healthy ROE of 20.88% over the past 3
years.
 Return on Capital Employed (ROCE): Company has been
maintaining healthy ROE of 20.8827364103023% over
the past 3 years. ROCE Ratio with the value of 22.03 was
the highest in Year Mar-20 in the Last Five Years

PROFITABILITY RATIOS MAR2 21 20 19 18

2

PBDIT Margin (%) 49.90 37.8 49.9 42.5 26.8

0 5 7 3

PBIT Margin (%) 27.33 19.1 37.3 26.7 1.57

2 9 1

PBT Margin (%) 26.18 45.8 37.1 26.5 1.16

3 1 1

Net Profit Margin (%) 25.80 42.5 35.6 25.2 0.15

8 2 4

Return on Net worth / Equity (%) 11.72 17.1 27.2 22.0 0.10
2 5 8

Return on Capital Employed (%) 11.39 7.55 28.0 23.2 1.11

7 6

Return on Assets (%) 9.93 15.3 20.0 15.5 0.07

8 1 3
Total Debt/Equity (X) 0.10 0.00 0.00 0.01 0.03

Asset Turnover Ratio (%) 0.42 0.36 56.1 61.5 47.2

9 1 3

Mar- Mar-
year Mar-22 Mar-19
21 20

Debt To Equity % 16.37 13.84 10.44 15.16

Short-term Debt to Equity % 6.78 6.08 3.96 7.98

Interest Coverage 14.19 22.95 28.38 26.08

Share Holder Equity Ratio % 77.11 77.08 66.85 65.70

Dividend Coverage 0 19.38 26.20 16.10

Debt To EBITDA % 69.96 54.66 29.54 46.18

Asset To Sh Holder Funds % 129.68 129.74 149.60 152.20

Debt To Asset % 12.62 10.67 6.98 9.96

Cash Flow (ops) To Debt % 76.69 116.01 398.86 148.69

Debt To Capital % 14.06 12.16 9.45 13.16

Solvency analysis:
a solvency ratio measures the size of a company's
profitability and compares it to its obligations. By interpreting
a solvency ratio, an analyst or investor can gain insight into
how likely a company will be to continue meeting its debt
obligations. A stronger or higher ratio indicates financial
strength.
Competitive advantage:
Many institutions measure their performance against
an index that approximates the local market. So, they
usually pay more attention to companies that are
included in major indices.
Institutions own less than 5% of Seamec. That indicates
that the company is on the radar of some funds, but it
isn't particularly popular with professional investors at
the moment. If the business gets stronger from here,
they could see a situation where more institutions are
keen to buy.

A.Strengths-
 Company with Low Debt
 Book Value per share Improving for last 2 years
 Company with Zero Promoter Pledge
 FII / FPI or Institutions increasing their
shareholding
B. Weakness-
 Inefficient use of shareholder funds - ROE declining
in the last 2 years
 Inefficient use of assets to generate profits - ROA
declining in the last 2 years
 Poor cash generated from core business -
Declining Cash Flow from Operations for last 2
years
  Decline in Net Profit

Best practices:

 Experienced Promoters
The company is backed by HAL offshore limited
which has two decades of operational expertise in
the Oil & gas industry. Majority of the senior
management has prior experience in the same
industry and is supported by an eight-member
Board consisting of four independent directors.
 Established relationship with clients and strong
market position
Seamec has been providing specialized services to
the offshore oil & gas industry in India and abroad.
Over the years, the company has built upon a
strong market position through its deliverables
and superior service record of accomplishment.
The company mostly offers its services to reputed
clients in the oil & gas industry and has been
serving most of these clients over a long-term
period. The company’s past track record provides
visibility on its quality of service, which has helped
 the company in garnering repeat orders from
them over the years.

Comfortable capital structure and liquidity position

During FY16-18, On account of provisions made for
bad/doubtful debts primarily from Swiber group, the
net worth of the company had eroded however has
improved in FY19 and 9MFY20 mainly due to strong
financial performance exhibited by the company.
Further, the capital structure of the company is
comfortable with negligible debt in past and current
year. Overall gearing therefore stood comfortable at
0.01x as on March 31, 2019. The subsidiary, Seamec
International FZE, has purchased a new bulk carrier in
July 2018 funded by loan of USD 7.2 million, for which
parent Seamec Limited has furnished corporate
guarantee, and further purchased an additional vessel
during August 2019 wherein both vessels have been
deployed on long term charter basis.
 Improvement in financial and operational
performance over the past 3 years
Over the past few years, the financial performance of
Seamec has been on an improving trend mainly led by
higher charter rates and deployment days. During
FY19, revenue from operations increased from
Rs.209.38 crore to Rs.328.18 crore (Y-o-Y change of
57%) mainly led by robust performance in H2FY19 due
higher vessel deployment days. Further during
9MFY20, the company

1Complete definition of the ratings assigned are

available at www.careratings.com and other CARE
publications
2 CARE Ratings Limited
Press Release
has achieved revenue of Rs.296.14 crore (38.18% YoY
growth) and PAT of Rs.104.52 crore (2.67x YoY
growth). The company
generates 80-90% of operating revenue from domestic
markets with balance generated from overseas
markets.
 The outbreak of novel Coronavirus (COVID-19)
towards the end of FY 2019-20 caused stringent
preventive lockdowns that restricted the
movement of goods and people, disrupted
manufacturing and trade activities, and posed
severe logistical constraints. Thankfully, our
business operations and financial performance
 for FY 2019-20 remained materially
unhampered. This was on account of excellent
traction in our oilfield services and bulk carrier
operations
However, given the uncertainty
around the pandemic’s impact on global economic
activity, they have undertaken pre-emptive
measures to ensure the smooth running of our
business operations. Additionally, they have taken
precautionary measures to protect the health and
safety of our employees and have seamlessly
transitioned to work-from-home. Even as they face
challenges around logistical coordination, sourcing of
critical spare parts, and continued manpower
engagement, they are confident of maintaining our
growth trajectory. Our confidence is backed by our
operational expertise, financial strength, dedicated
workforce, and favourable industry dynamics.