SEAMAC LTD is a leading provider of offshore oilfield services in India, with a diversified portfolio of offerings that includes offshore vessel chartering, marine engineering, and offshore logistics. The company has a strong track record of growth and profitability, and is well-positioned to benefit from the continued expansion of the offshore oil and gas industry in India.

1. Course Code: FINM816 Course Title: Securities Market and
Equity Research
Course Instructor: Dr. Sushant Gupta Date of submission: 8th Oct 23
Academic Task Type: Individual Academic Task No.: 0
Section: Q2239 Student’s Reg. No:12202414

2. About The Industry
The offshore oilfield services industry plays a critical role in
supporting offshore oil and gas exploration and production activities
worldwide. This sector encompasses a wide range of services,
including drilling, well construction, maintenance, logistics, and
equipment rental. Offshore oilfield service companies provide the
necessary expertise, technology, and equipment to extract
hydrocarbons from beneath the seabed efficiently and safely. These
services are essential for the success of offshore oil and gas projects,
making the industry a vital component of the global energy sector.
However, it faces challenges related to fluctuating oil prices,
environmental concerns, and the need for continuous technological
innovation to operate in increasingly challenging offshore
environments.

3. 95.7
97.07
99.67
100.27
91.19
97.08
99.57
86
88
90
92
94
96
98
100
102
2016 2017 2018 2019 2020 2021 2022
Oil
Demand
in
Billion
Brrels
per
DAY
Year
DEMAND
Global Crude Oil Demand From 2016-
2022
Key Market Trend
https://www.mordorintelligence.com/industry-
reports/global-oil-field-services-market-outlook-industry

4. Schlumberger
50.16% Market share
GE Baker Huges
National Oilwell
Varco
Weatherford International
Halliburton
Transocean
Key Market Players

5. The Market Will be Accelerating
Growing at a CAGR of More Than
Incremental Growth
The Market is Extremely
Fragmented With Many Players
Occupying the Market Share
54% Comes From the American Region
One of the key Trends of this Market
will be the technological advancements
to drive productivity in outfield services
54%
46%
Growth
America Rest of the World
Below are some of the key findings from this oilfield
services market analysis report

6. About the Company
26 Dec 1986 : Incorporated as Private
Limited Company named “Peerless Leasing
Private Limited”.
Year 1987: Name of the Company changed
to “Peerless Drive Private Limited”.
Year 1988 : The Company became a
deemed public company and the word ‘private’
was deleted from the name of the Company, by
the Registrar of Companies, West Bengal,
Kolkata.
Year 1994 : Name of the Company was
changed to ‘Peerless Shipping and Oilfield
Services Ltd’
Year 1994 : PGFI sold its holding of 49.85 % to
Cefalexin Stena Offshore Mauritius Ltd who with its
holding of 8.36% became the majority shareholder and
promoter consequently having 58% share in the
Company.
Year 2000 : Name of the Company was again
changed to ‘Southeast Asia Marine Engineering &
Construction Ltd’
Year 2001 : On acquisition of the Cefalexin Group
Worldwide by Technip of France, SEAMEC thus
became a part of the TECHNIP. The Technip Group
subsequently raised its holding in SEAMEC to 75%.
Year 2007 : Name of the Company was then
changed to its present name ‘Seamec Ltd’
Year 2014 : TECHNIP Group sold its entire
holding to HAL Offshore Limited (HAL), who became
the promoter of SEAMEC and SEAMEC became a
subsidiary of HAL and a part of MM Agrawal Group.

7. Market Position and Competitor Analysis
Company Name LTP (₹) P/E (%) Mkt cap
(in cr)
NP (Qtr.) Div Yield Sales in
(Qtr.)
Book
Value
Great Eastern Shipping
Company
836.55 5.05 11800.42 566.29 3.43 1041.30 596.79
Shipping Corporation Of
India Ltd
149.80 8.11 7005.63 147.42 0.29 1200.11 136.78
SEAMEC Ltd 628.80 29.54 1602.92 45.39 0.00 194.60 270.19
Shreyas Shipping & Logistics
Ltd
360.65 6.35 791.11 1.31 0.42 70.68 372.85
Essar Shipping Ltd 14.16 11.87 334.06 40.40 0.00 2.06 77.47

8. OUR KEY COMPETITIVE STRENGTHS

9. 313
384
256
349
437
0
50
100
150
200
250
300
350
400
450
500
2019 2020 2021 2022 2023
Amoiunt
in
cr
Year
Revenue Per Year
72%
3%
0%
25%
Shareholding
Promoter FII DII Public
32.19
52.41
38.85
32.92
13.2
0
20
40
60
2019 2020 2021 2022 2023
Amount
in
RS
Year
EPS
Financial Performance

10. 26.09
34.69
38.56
23.94
7.67
0
10
20
30
40
50
2018 2019 2020 2021 2022 2023 2024
Amount
in
cr
Year
Net Profit
0.15
0.1 0.11
0.16 0.17
0
0.05
0.1
0.15
0.2
2019 2020 2021 2022 2023
TIMES
YEAR
DEBT TO EQUITY
Debt to Equity
https://www.moneycontrol.com/india/stockpric
equote/shipping/seamec/S14
13.3
5.15
11.28
40.66 45.08
0
20
40
60
P/E
Chart Title
2019 2020 2021 2022 2023

11. Net Sales at Rs 211.57 crore in June 2023 up 68.72% from Rs. 125.40 crore in June 2022.Quarterly Net Profit at Rs. 25.60 crore in June
2023 up 13.02% from Rs. 22.65 crore in June 2022.EBITDA stands at Rs. 60.81 crore in June 2023 up 28.78% from Rs. 47.22 crore in
June 2022.
Seamec has a total shareholder equity of ₹7.9B and total debt of ₹1.4B, which brings its debt-to-equity ratio to 17.5%. Its total
assets and total liabilities are ₹10.6B and ₹2.7B respectively. Seamec's EBIT is ₹136.1M making its interest coverage ratio -165.1. It
has cash and short-term investments of ₹1.5B.
https://simplywall.st/stocks/in/energy/bse-
526807/seamec-shares/information
Seamec Consolidated June 2023 Net Sales at Rs 211.57 crore, up 68.72% Y-o-Y
About Debt and Equity

12. Based on the provided financial data and ratios for Seamec, here is an analysis to assess whether it is a good investment
opportunity:
1.Revenue Growth:
•Net Sales have shown a significant increase of 68.72% from June 2022 to June 2023. This indicates strong revenue growth, which
is a positive sign for the company.
2.Profitability:
•The Quarterly Net Profit has also increased by 13.02% from June 2022 to June 2023. While this growth is positive, it's not as
substantial as the revenue growth. It's essential to keep an eye on profit margins to ensure they are sustainable.
3.EBITDA Margin:
•The EBITDA margin has improved by 28.78% from June 2022 to June 2023. This suggests that the company is becoming more
efficient in generating operating profits.
5.Liquidity:
•Seamec has a healthy cash and short-term investment position of ₹1.5B, which provides a cushion for any unforeseen expenses or
opportunities. This liquidity is a positive indicator for the company's financial stability.
Analysis

13. Conclusion:
Based on the provided information, Seamec shows some positive signs for investment, such as strong revenue growth, improved
EBITDA margin, and a low debt-to-equity ratio. However, the negative interest coverage ratio is a significant concern and requires
further investigation. Investors should carefully analyze the company's ability to cover its interest expenses. Additionally, it's important
to consider industry trends, competitive positioning, and any potential risks or challenges specific to Seamec. Consulting with a
financial advisor or conducting a more detailed financial analysis would be recommended before making any investment decisions.
6.Total Assets and Liabilities:
The company's total assets of ₹10.6B are substantially higher than its total liabilities of ₹2.7B. This indicates that the company has a
strong asset
7.Interest Coverage Ratio:
The interest coverage ratio of -165.1 is concerning. A negative interest coverage ratio suggests that the company is not generating
enough earnings to cover its interest expenses. This is a red flag and indicates potential financial distress.
8.EBIT:
Seamec's Earnings Before Interest and Taxes (EBIT) is ₹136.1M. This is an important indicator of the company's operational
profitability.