Seamec Limited Navigates Choppy Waters, Charts Course for Growth with Strategic Investments

Seamec Limited, a prominent player in the offshore support vessel sector, recently shared its financial performance for the second quarter and first half of fiscal year 2026. The period presented a mixed bag, with the company reporting a consolidated revenue of INR 108 crores for Q2 FY26 and INR 338 crores for H1 FY26. While the first half showed a consolidated profit after tax (PAT) of INR 50 crores, the second quarter recorded a consolidated PAT loss of INR 26 crores. These figures reflect a challenging quarter marked by operational headwinds, yet also highlight the company's strategic initiatives aimed at long-term growth and fleet modernization.

The decline in Q2 performance was primarily attributed to monsoon seasonality, which typically impacts vessel deployment and chartering activities in the offshore segment. Adding to this, the company's vessel SWORDFISH experienced a technical breakdown in mid-August, further impacting its availability and revenue generation. Deployment delays for SWORDFISH were also caused by visa issues with the Saudi government. Despite these challenges, management confirmed that all vessels are now operational, and the company is focusing on preventive maintenance and maintaining adequate spares to mitigate future disruptions. Employee costs saw an increase, partly due to crew being deployed on vessels like SWORDFISH even when they were not earning revenue due to breakdowns.

Strategic Initiatives and Fleet Modernization

Seamec Limited is not merely reacting to current challenges but is proactively investing in its future. A significant development is the Memorandum of Understanding (MOU) signed with the Directorate General of Shipping during India Maritime Week 2025. This MOU outlines a commitment to invest approximately INR 1,000 crores in the company's maritime business over the next few years. This strategic capex is aimed at expanding and modernizing the fleet, capitalizing on government incentives for shipbuilding and the broader shipping industry.

Further demonstrating its growth trajectory, the company recently took delivery of the Seamec Agastya. This vessel, acquired for about INR 200 crores (USD 23 million), is scheduled for deployment from December 2025 under a four-year contract with ONGC through HAL Offshore, with an expected daily rate of USD 25,000. Management anticipates an Internal Rate of Return (IRR) upwards of 20% from this acquisition, underscoring its potential for enhancing profitability. The company also secured a charter hire agreement worth INR 6.3 crores with HAL Offshore for the MV Goodman for ONGC's NLM9 Project and the Seamec Glorious barge has entered a firm charter party with L&T for 150 days in the Mumbai High and Western Offshore region.

Market Outlook and Operational Focus

The company is strategically positioning itself to leverage the transformative expansion of the Indian petroleum and energy sector. India's energy demand is projected to grow faster than all major global economies, with refining capacity expected to reach 310 MTPA by 2028. This robust market outlook provides a fertile ground for Seamec's specialized services. The company is also exploring international expansion, with plans to make its UK liaison office operational by September 2026 to access the lucrative Northern Europe offshore market.

Seamec is actively managing its fleet, which includes 6 Diving Support Vessels, 1 Offshore Support Vessel, and 1 Accommodation Barge. While acknowledging the age of some vessels, the company is committed to fleet modernization. It has acquired four new vessels in the last four years and sold an older bulk carrier, SEAMEC NIDHI, in April 2024. The management is also evaluating options for other older vessels, considering regulatory age norms and economic viability. A key strategic shift involves increasing focus on higher-margin Inspection, Maintenance, and Repair (IMR) contracts, which are expected to contribute positively to profitability.

Concluding Thoughts

Despite a challenging Q2 FY26, Seamec Limited demonstrates strategic clarity and a proactive approach to growth. The company's commitment to fleet modernization, significant capex plans, and expansion into new markets underscore its ambition to capitalize on the robust demand in the offshore oil and gas sector. With all vessels now operational and a clear roadmap for strategic investments, Seamec is poised to strengthen its foundation for sustainable growth and enhance shareholder value in the coming quarters.