Seamec has announced that the contract for the deployment of vessel SEAMEC II with Rana Diving Marine Contractors (Rana Diving) has been extended by one month till 9September, 2009.
The day rate for the contract with Rana Diving is $95,000 per day. After the completion of the contract with Rana Diving, the vessel would be deployed with Dulam International of Dubai (Dulam), which has signed a twelve-month contract with Seamec. The day rate for the contract with Dulam is around $44,700 per day.
With the extension of the contract with Rana Diving, the company will get a higher day rate of $95,000 per day for 30 days in CY2009 as compared with our earlier expectation that the vessel would be deployed with Dulam starting from 10August, 2009 at a day rate of $44,700 per day.
This development would have a positive impact on our estimates and therefore, we have increased our revenue and earnings estimate for CY2009 by 2.3% and 4.3% respectively. Our revised CY2009 earnings estimate stands at Rs44.9 per share.