“The last 12 months have seen the company secure longer term contracts across the organisation as well as servicing our traditional offshore project related activities,” said chairman Alan Birchmore.

The group’s revenue for the year reached $42.3 million, $35.1 million of which came from its main operating activities such as the $7.2 million Mermaid Clough JV Linda pipelay project.

The company also benefited from major projects such as providing a range of services to contractors on Woodside’s trunkline expansion project and Santos’ use of the Dampier Supply Base to undertake their Mutineer Exeter development program.

During the period Mermaid secured a number of longer-term contracts, including supply and offtake support for the BHP Billiton Griffin Venture; offtake support for the ENI Woollybutt Field; and supply base support for BHP Billiton Petroleum’s drilling.

Mermaid Marine CEO, Jeff Weber said the company had increased its contracted work from 5% of total vessel revenue to 27% over the last two years as part of a strategy to exceed 50% over the next two years. However, Webber did warn of a leaner time in the next financial year.

“Although contracted revenue had increased, the company was still subject to the cyclical nature of the offshore industry and earnings in FY04/05 are expected to be lower due to the reduction in project related work over the coming year.

“We are much more optimistic in relation to FY05/06 and beyond, when a number of Carnarvon Basin and North West Shelf projects are expected to commence. Strategic objectives such as the recently announced $13m build and operate vessel contract for Apache, and the purchase of a 4000 BHP tanker offtake vessel will also add positively to earnings.”

Additionally Mermaid is planning a wharf extension for its Dampier supply base, which will add revenue and reduce the costs associated with operating its own vessels.