Seamec Ltd shares saw the highest jump in its prices, up to 13% at intraday, since December 29, 2023, as they extended their gains to a second session on March 25. On Monday, it had announced that engineering conglomerate Larsen & Toubro awarded a Letter of Award (LoA) to the consortium of Seamec and Posh India Offshore for subsea installation work.
The shares of Seamec Limited are trading at a gain of about 5 percent as of 12:21 pm, touching Rs 995.
The contract is valued at $5.61 million. The subsea installation work under the pipeline replacement project PRP VIII and the Daman Upside Development Project is expected to be completed by May 2026, the company said in an exchange filing.
Additionally, the company has entered into a subcontract with Posh India Offshore Private for executing riser clamps, bowstring, and other installation works related to pipeline replacement project VIII and the Daman Upside Development Project for Oil and Natural Gas Corporation (ONGC).
Seamec had entered into Memoranda of Understanding (MoUs) with HAL Offshore Ltd last year, for the charter of two advanced offshore support vessels (Sea Pearl and Sea Diamond) designated for deployment with ONGC. As per the agreement, both vessels will be leased at a daily charter rate of USD 8,750 for a period of three years, bringing the total contract value to USD 19.18 million (excluding GST). The MoUs also incorporate provisions for potential extensions, subject to operational needs.
Seamec had posted a 26.4 percent quarter-on-quarter (QoQ) increase in its consolidated revenues for Q3FY25 (quarter ended December 2024). However, on a year-on-year (YoY) basis, the company witnessed a sharp revenue decline of 36.4 percetn. Expenses for the quarter surged 31.4 percent QoQ, though they were down 11.8 percent YoY. Net profit took a massive hit, declining 2118.8 percent sequentially and 105.7 percent YoY, reflecting financial strain. Additionally, earnings per share (EPS) fell to 1.3 during the quarter, signaling a challenging period for the company.
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