Priyanka Tiwari
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Seamec Ltd witnessed a significant intraday jump of up to 13%, marking its strongest gain since December 29, 2023. The rally extended into a second trading session on March 25, following the announcement of a new subsea contract.
By 12:21 PM, Seamec shares were trading nearly 5% higher, reaching ₹995.
Subsea Contract Awarded by L&T
Engineering giant Larsen & Toubro (L&T) has issued a Letter of Award (LoA) to a consortium comprising Seamec Ltd and Posh India Offshore. The contract, valued at $5.61 million, involves subsea installation work under the Pipeline Replacement Project VIII (PRP VIII) and Daman Upside Development Project.
The project is scheduled for completion by May 2026, as disclosed in the company's stock exchange filing.
Subcontract and ONGC Collaboration
Seamec has signed a subcontract with Posh India Offshore to carry out detailed tasks such as riser clamp, bowstring, and other installation components for ONGC’s pipeline projects.
In addition, Seamec had previously signed Memoranda of Understanding (MoUs) with HAL Offshore Ltd to charter two vessels—Sea Pearl and Sea Diamond—for ONGC operations. The vessels will be leased at a daily rate of $8,750 each over a three-year term, amounting to a total contract value of $19.18 million, excluding GST. The MoUs also allow for contract extensions based on operational needs.
Mixed Financial Performance in Q3FY25
In Q3FY25 (ended December 2024), Seamec reported a 26.4% quarter-on-quarter (QoQ) increase in consolidated revenue. However, on a year-on-year (YoY) basis, revenue plunged 36.4%.
Expenses rose 31.4% QoQ but dropped 11.8% YoY.
Net profit declined 2118.8% QoQ and 105.7% YoY, reflecting serious financial pressure.
Earnings per share (EPS) dropped to 1.3, indicating a tough quarter.
Investor Sentiment Remains Positive
Despite the recent financial strain, investor confidence appears strong following Seamec’s latest contract win. The partnership with L&T and Posh India Offshore, along with ongoing ONGC projects, could help stabilize earnings and improve performance in upcoming quarters.
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