Seamec Ltd (NSE: SEAMECLTD) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Rajeev Goel — Non-Executive Director
Vinay Kumar Agarwal — Chief Financial Officer
Sunil Gupta — Vice President, Strategy and Investor Relations
Analysts:
Abhishek Jain — Head Of Investor Relations
Sahil Vora — Analyst
Unidentified Participant
Rashi Jain — Analyst
Saket Kapoor — Analyst
Malhar Rao — Analyst
Balasubramanian — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the CMAC Limited Q4 and FY ’25 Earnings Conference Call hosted by Ariant Capital Markets Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Abhishek from Arient Capital. Thank you, and over to you.
Abhishek Jain — Head Of Investor Relations
Good afternoon, everyone. On behalf of Capital, I welcome you to the earnings con-call of CMS Limited for Q4 FY ’25. From the management today, we have Mr Sanjeep Rajeem Goyal, Non-Executive Director; Mr Vinay Kumar Agarwal, CFO; and Mr Sunil Gupta, Vice-President, Strategy and Investor Relationship. Welcome the management of PMAC Limited on this call. And now I invite Mr Rajeev Goyal, Non-Executive Director to give his opening remarks, following which we’ll have opened the Q&A. Over to you, sir.
Rajeev Goel — Non-Executive Director
Good evening, everyone, and a warm welcome to this investor call for CMEC for presenting our Q4 FY ’25 earnings call. Thank you for taking the time to join us today. I’m Rajiv Goyal and I’m joined with my CFO and my Vice-President, Strategy and Investor Relations. In the present, ongoing regularly shifts and the political adversaries that are happening and the evolving energy demand, you know, we understand a lot of changes are happening globally in the energy ecosystem. But CMEC has always demonstrated resilience underpinned by the sustained global demand that reaffirms the enduring importance of oil and gas in powering the world economies. We all know that our oil demand is growing and the — the quantity that we require from — it has already increased from 5.55 million-barrels to almost 5.74 million-barrels in 2025, which is like a 4% annual increase in our oil demand, which is more than the China’s growth rate.
The global energy consumption is projected to grow by 1.8% to 2% in 2025 as compared to 2024. This surge is fueled because of India’s rapid economic expansion, urbanization and industrial growth and particularly in sectors of logistics, transportation and petrochemical. So on a good note, our Board has approved the purchase of another MSC called NPP Nusan Tara. And this has — this is a vessel where International, our wholly-owned subsidiary holds the acquisition right, so they will be nominated in favor of CMEC. This vessel was built-in 2010 and it is being acquired at a cost of $23 million US dollar.
And this financing will be a mix of debt and our internal resources that we already have in our hand. Another good news that I want to give you is regarding the vessel. So this vessel we in our previous call also, so we went into an arrangement for charter hire, ran into some technical issues on part of the vessel, got off hired, then we again were desperately looking out for a charter hire for the vessel. And finally, we have now got into a two-year long-term arrangement for the vessel and the vessel had been on hired effective 21st May.
So as of now, today, I can say that almost the entire fleet of CMEC is working in the fields and that’s a — that’s a good development for the company. I’m pleased to also announce that the charter for CMEC is 730 days and the effective rate is almost $78,000 per day. And this remains unchanged during the entire period. Further development is that in our wholly-owned subsidiary in Dubai, which is International FZE, we have incorporated a joint-venture company in the name of India IFC Private Limited in the Gift City of India in Ahmedabad, Gujarat and other joint-venture partner is a company called Shipping DMCC, which is also a UAE-based company.
And the primary object of this joint-venture is again leasing, buying and sale of vessels. So although ’24, ’25 was a very challenging year for us, but now in the present scenario, we are very confident, we are very optimistic that ’25, ’26 will be a year of results, year of delivery year of performance.
And I will now hand over the floor to Mr Vinyay Agarwal, our CFO, and he will run you through the detailed overview of our financial performance for the quarter and for the year-to-date. Thank you.
Vinay Kumar Agarwal — Chief Financial Officer
Thanks, and good evening, everyone. I am Viney Agrawal, Chief Financial Officer for the company. I warmly welcome everyone participating in today’s Q4 and FY ’25 earnings call. Allow me to walk you through the standalone and consolidated financial performance for the 4th-quarter and full-year of financial year ’25. Our consolidated top-line for the quarter stood at INR210 crores compared to INR240 crores in Q4 FY ’24, reflecting a 12% decline year-on-year. At the standalone level, revenue stood at INR207 crores from INR234 crores in same-period previous year. For the full-year, our revenue at consol level stood at INR682 crores compared to INR758 crores in FY ’25. In FY ’24, down by 10%. At the standalone level, FY ’25 resulted in revenue of INR660 crores versus INR707 crores in last year.
EBITDA for the quarter at consol level was INR91 crores in FY — in Q4 FY ’25 versus INR90 crores in Q4 FY ’24. On a standalone basis, EBITDA stood at INR104 crores in Q4 FY ’25, same as in Q4 FY ’24. Consolidated EBITDA for FY ’25 stood at INR244 crores versus INR271 crores in FY ’24. At the standalone level, EBITDA was INR264 crores in FY ’25 against INR290 crores in FY ’24. The decline in performance has happened mainly due to unscheduled breakdown of vessel 2 during quarter three and lesser deployment for vessels during financial year ’25. Profit-after-tax on a consolidated basis was INR41 crores, compared to INR53 crores in the same quarter for the previous year. On a standalone basis, profit-after-tax stood at INR59 crores in Q4 FY ’25 versus INR76 crores in Q4 FY ’24. Full-year operations resulted in PAT of INR88 crores in FY ’25 against INR121 crores in the last year at a consolidated level. PAT at the standalone level was INR116 crores in current year against INR187 crores in the last fiscal. This is due to tax impact of INR15 crores in Q4 FY ’25 as was carried forward tax losses available in FY ’24. Both the ROCE and ROE stood at 9% at a consolidated level. Now our vessel shortfish has commenced operation. And with the ongoing effort, we are confident to get back on-trade in the upcoming quarter. Thank you. I would now like to open the floor for question-and-answers. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles.The first question is from the line of Sahil Vora from MNF Associates. Please proceed.
Sahil Vora
Hello, sir. Thank you for the opportunity. Sir, given the increase in long-term debt, what strategies are in-place to manage debt levels and ensure financial stability going-forward?
Vinay Kumar Agarwal
Hello, I am Vinay Agarwal. So when you are saying increased debt level to our in debt has gone down, this year we have a debt of around INR170 odd crores only. So whereas where you have will you please check?
Sahil Vora
Yeah, I meant the long-term debt, sir.
Vinay Kumar Agarwal
So okay, now I got it. So what happens? Long-term debt again this is getting reduced.
Rajeev Goel
So I’ll see this year financial year FY ’25, ’26, ’24, ’25, we have not taken any additional debt. In fact, in last four quarters, we have only repaid the debts, okay. We are having cash surplus available in the books, which will also be used for repayment and capex going-forward, as Rajivjee just said, the further acquisition, we will be utilizing our cash reserves and try to minimize our debt position in the coming financial year.
Sahil Vora
Okay, sir. Thank you for the correction. And my next question is, what is our current order pipeline and how do we see that reflecting in our revenues in the upcoming quarter?
Vinay Kumar Agarwal
So Vinay Agarwal again. So when we talk about pipelines, so as earlier told in his address, all our vessels are deployed and only one vessel that is for barge that has completed its long-term contract of two years on 15th of May. So during off-season, it will remain a off-hire from 15th May to 15th October being monsoon season. And after that, it will be deployed. So we don’t have its order in-hand, rest all vessels are deployed and they are working on long-term contract.
Sahil Vora
Okay. Okay, sir. Thank you. My last question is, sir, I wanted to understand where most of our revenues come in from and how do we plan to reduce our revenue concentration? And have we been doing anything to do the same?
Rajeev Goel
So I I’m Rajiv decide. So you know, we are primarily a vessel-owned company. So the primer revenues are all from the charter hire of the various type of vessels that we own. Actually, you know, we are not a bulk carrier or a cargo vessel owned company. We are the owners of very special and technical vessels, which are quite huge in capex. And these are the lifelines of any oil field, right? So as we all are aware, in India, West Coast, which is owned by ONGC is the only developed oilfield and off-late, a lot of work has happened in the KG Basin where after the discovery of oil, almost all major oil companies have set-up their base office, started drilling, oil has started coming out, platforms are being set-up, right?
And we — we are the lifeline for these oil fields. So at present, majority of my vessels are on with ONGC deployed in the West Coast. Other than that, I’m also working opportunities in Middle-East Asia. So Swartfish is now going to Aramco, which is the oil major for Saudi Arabia. And one of our vessels, has already made its entry in the KG Basin on the East Coast where we are right now working for oil. So opportunities are there entire fleet that we have in our possession is right now engaged. We are buying new vessels with firm contracts in-hand for next four years, five years. So that is where the growth, the capex and the overall expansion comes into picture. So I hope I have it for your query. Thank you.
Sahil Vora
Thank you, sir, for the detailed response. I’ll rejoin the queue if I have further questions.
Operator
Thanks. Thank you. The next question is from the line of Abhu, an individual investor. Please proceed.
Unidentified Participant
Hello, sir. Am I audible?
Rajeev Goel
Yes, please.
Unidentified Participant
Yes, sir. Sir, in your previous con-calls, you have said that on the consolidated basis, you aim to be profitable by this quarter. And again, we get to say this quarter that there were significant losses on the consolidated business part. So first of all, what was the reason for those losses? And from here onwards, when do we expect on the consolidated business to be profitable?
Rajeev Goel
Thank you very much for your question. Again, I’m Rajiv Goyal. So in terms of the consolidated business that we have. So our Dubai subsidiary is already profitable in FY ’25, right? In terms of our UK business, that is still in the development-stage and the losses that you are seeing in the balance sheet is primarily because of depreciation, which is a non-cash item.
And other than that, there is the interest provision on the capex that we have incurred. So primarily you know so these are — that is the reason that UK is still showing a loss. In another 12 to 15 months, the development part in the UK will be completed. And our expectation is that we will be cash-flow positive starting FY ’26, ’27 onwards you — our UA is already profitable.
Unidentified Participant
Okay, fine. So my next question is, sir, on the tax liability part, why is it that some quarters the tax liability is so high and for other quarters it is almost
Vinay Kumar Agarwal
I am Agarwal we are tonnage tax company. All our vessels are taxed under tonnage tax scheme covered under Chapter 12G, apart except barge, one vessel which is Baj that is not a qualifying vessel. So its income is getting taxed at a normal rate. So this is the reason why we are showing tax in this quarter. In earlier 3/4, the Deep vessel, whatever profit they have earned, they were sufficient to cover its cost, which they incur during monthly period of Q2 and Q3 and but in this Q4, there was no off higher period and it then successfully whole of the 90 days. So its profit has gone up, corresponding profit and corresponding tax has also gone up. Apart from that, there were certain other income that is earning on earning of interest and mutual fund gains. So tax has also been provided on the earnings. Rest all income from shipping are under time and there is actually no tax on all that. Thank you.
Unidentified Participant
Okay. Understood, sir. Sir, the next question is, sir, your saltfish was to be deployed by March-end, but it did not and you have specified the reason for that. But my question is, sir, was it still doing some work-in the time-being or was it just sitting idle since March?
Rajeev Goel
So since March, thank you for your question. Since March this vessel was idle and we were negotiating a new contract, right? The whole contract we closed successfully, although at a reduced rate. So from 21st of May, this vessel has finally gone to Saudi Arabia to work-in Aramco. And the entire period of March and April, you know that was totally unplanned. Our earlier plan was to go on charter-in March itself but for various reasons we couldn’t even.
So — and the primary reason why we were sitting idle in the month of April was that Saudi Arabia all of a sudden came up with a notification where they stopped giving Vida to India, Pakistan and South Asian nationals because of the in the month of June and they stopped giving Visa till 7th of June to all these people who are — they expected a huge rush for her. And then we went ahead and requested that we are not going for her. We are a vessel company. We have to work-in the oil field and finally on 21st of May, we have gone on charter. Thank you.
Unidentified Participant
Okay. Just a related question to that, sir. Can we expect any new favorable contracts in the Gulf region in the near-future?
Rajeev Goel
Yes. I would have been very happy to have more favorable contracts, but this vessel is now chartered for the next two years, right? And my other vessels are all chartered with ONDC for at least three to four years. So as such, I don’t have a availability of vessel for next three to four — next two to three years. And if we can get hold of another expansion by purchase of new vessel, but definitely there is a lot of work-in the Gulf coming from Aramco and also coming from Adnoc, which is the Abu Dhabi National Oil Company, but the only problem with us is now we don’t have the vessels to actually offer them.
Unidentified Participant
Okay, sir, related to the vessel part, sir, earlier you have said that you have two vessels in your parent company that is HL Offshore, the one vessel that is Anand that you have already brought in. And what about the other — there were plans to bring in the other vessel as well?
Rajeev Goel
No, there was only one vessel in the parent company that is CMEC Anand and as part of the overall structuring, you know that vessel has not yet arrived in CMEC, it is still under process and once completed, we will duly inform.
Unidentified Participant
Okay. Sir, just last question from my side. So the joint-venture that you have done with the UA company, what sort of revenue can we expect in the near-future?
Rajeev Goel
This is again a starting point. So as you understand — as you all know, our UA subsidiary is primarily engaged in bulk carrier business, right? We already have one vessel in the UA subsidiary, which is engaged in time-charter for cargo handling. And this joint-venture again is — we are acquiring another cargo vessel and again, we will putting it on-time charter and the JV partner is the person who has identified the vessel, who has brought in the contract and who will also be a 50% equity partner in this JV.
Unidentified Participant
Okay. Thank you, sir. That’s it from my side. Thank you very much, sir.
Operator
Thank you. Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Ryashi Jain from Capital. Please proceed.
Rashi Jain
Hello, sir. Sir, my question is, given the volatility in the offshore oil and gas sector, so are we exploring diversification into other marine service or sectors to stabilize revenue streams.
Rajeev Goel
Thank you for your question. So I’m very confident to say that for us there is no vulnerability all my vessels right now are engaged working well and they are all deployed for the next three to four years. The only layoff period is monsoon when actually the entire oil and gas industry comes to a standstill. So we are not looking for any expansions anywhere?
Rashi Jain
Okay. Also, can you provide insights into the current utilization rate of fleet and how they — how are you comparing to the industry benchmark?
Rajeev Goel
So in terms of industry benchmark, I’m the only company in India operating multi support vessels in oilfield, whether it is private sector or public sector. So there is no industry benchmark as such. If we do not consider the monsoon period, then once we enter into a long-term contract, which is generally three to five years, then you are looking at 100% utilization. So at present, all my fleet is engaged and they are all on at least two to three years of charter. So for the next two to three years, my revenues, I am seeing very comfortable on that.
Rashi Jain
Okay. Just sir, the last question. Are there any plans to expand operations into new geographical markets like any capex plan, especially in the region showing increased offshore activity.
Rajeev Goel
So again, I would say that already we are buying this vessel with a firm contract in terms of the operations in Northern Europe or maybe Southeast Asia. So we need new assets to actually offer to them. So right now, the asset that we acquired is getting chartered with ONGC. The other one has now gone to Middle-East. So immediately, there are no further plans to acquire more assets.
Rashi Jain
Okay, sir. Got it. Thank you.
Rajeev Goel
Thank you.
Operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor Company. Please proceed.,
Saket Kapoor
Sir, and thank you for the opportunity. So firstly, sir, as you alluded to the fact that all the vessels in our portfolio that is fixed in number are now being deployed. And so for this quarter, we will have the revenue benefit from all the vessels equally or revenue part because I think one was deployed in the month of May. Can you just explain that part of it? And so on a full deployment, which is on a quarterly basis, what should be the ballpark revenue run-rate going ahead?
Sunil Gupta
Sake ji, hi, this is Sunil Gupta. See, out of seven vessels, one is, which Vinaji just told you that it operates only in the non-monsoon period. So from 15th May, that is on off-hire and we will be putting it on higher again back-in somewhere October, November. Okay. And two other vessels, which is 3 and princess. These are our older vessels, which run on spot market basis. The rest all five vessels — four vessels are on long-term contracts and will be running equally among all contract — all quarters going-forward.
However, one caveat, during the year, some of our vessels will go for drydock and during that period, there will be a gap of about 60, 70 days when the vessel will be offired and will be under overhaul. I hope I have clarified.
Saket Kapoor
So I got the point that four are the one which are on a longer charter. Two are on spot rate and one is for the bar which you mentioned, which is yet to be deployed.
Sunil Gupta
Correct.
Saket Kapoor
So sir, just to just to map the revenue trajectory, what should investors? These are long-term contracts and there are no — no variations in the revenue for the four vessels which you have mentioned. So what should we in terms of the revenue going ahead? And another point was that we have seen that the Rig rates have fallen drastically. In the last charter rate, the rigs for the rigs which were deployed to ONGC by both gender drilling as well as great offshore were at about $37,000 to.
Sunil Gupta
The regrade is not relevant for us. We relevant to my point, sir. For us, it is like a technical work that we do, highly-specialized job where the rig rate is primarily governed between the demand and supply situation. Ours is more of a marine services, which is a evergreen service that we have to give.
Rajeev Goel
Actually, we come into picture when the oil production has already started. Rigs comes into picture when you discover oilfield and you set-up the rigs to start drilling the oil. So that is dependent on the oil prices because if you have a very-high oil price, then you can dig deep to find the oil. If you have a low-price, then you don’t dig deep, right?
But ours is a very stable business in the terms once the oil has started coming out, then the cost of producing oil takes care of my revenues. So I’m not linked to the oil prices. Cost of production remains the same.
Vinay Kumar Agarwal
Also, I would like to clarify your other point on the revenue rate. See, these vessels are on different type of jobs and having different revenue rates. I would request you that you can refer to one of our research reports, which will be available online where the entire model is available and this will help you and probably Arihant Capital can help you give those details that you may ask for.
Saket Kapoor
Okay. Okay. Last two points and I’ll join the queue. Sir, firstly, then what are the reference point of setting this charter rate when the rates come for renewal, there must be some benchmark or a reference rate on the basis of which the renewal happens or the market or the rates are defined. So as was mentioning that it is a specialized service or taken into account then how do the person who is deploying our — or giving us the rate — how is the rate defined them? What factors lead to a revision rate?
Rajeev Goel
Yeah. Okay. So the benchmark, while deciding the tender, it is very simple. Number-one, what is reserve oil left in the oilfield, that is the amount of oil that you can produce in the next four to five years of the tender period, what is the present cost of production? So definitely this cost of production increases every year because of the inflation factor, not because the oil prices. So that inflation is definitely accounted for.
And now that we are quoting a firm rate for the entire five-year period, so we have to make that adjustment for the inflation while deciding the benchmark rates for the cost of production. So that is the prime reason that how much is the production going to take place? And what is the present cost of production and to add to it, the inflation adjustment?
Saket Kapoor
Okay. Right. And lastly, sir, on the UK part, I think some of some investments were made in terms of some office space which we had purchased for building our business model there. So — and I think so the earlier participant also did raise the question of consolidation losses arising out of consolidation. So are these attributed to those investments and what steps are being taken to nullify the investment or to divest the same?
And secondly, sir, if you could just explain to your investors and the people listening the call, how is bringing in the vessel from the parent will go to — will be benefiting us when other — in all aspects, the thing gets consolidated. Just to throw some light on the same. As in your earlier remarks, you mentioned.
Rajeev Goel
Thank you, Sunil decide. So first, I’ll come to the vessel consolidation. As you are aware, we are already in the process of it. There are few details which are still underworking. So I can’t give us a lot of details. But the endeavor is that all the vessels and the businesses will eventually get merged with the CMAC.
There is only one vessel which is HL Anand. Definitely Cmax balance sheet is strong. So between a mix of debt and equity, that vessel will be financed. Since the charter is already with ONGC by, so that arrangement will continue for some time. And when the renewals happen, they will be directly taken under CMAC, okay. There are two more contracts which the vessels are owned by ONGC but operated by HAL Offshore.
The endeavor is that we should also try and see if these contracts upon renewal can also be built under CMAC. Coming to the UK losses, it is our endeavor. See, last year, we had a INR67 crore impact on the consolidation versus standalone, okay. And this year, we have already come down substantially. We have sold-on some loss-making assets in Dubai. In UK also, it is our endeavor that we make efficient business operations and ensure that this gap between standalone and consolidated gets nullified over next two years right, sir.
Saket Kapoor
So in a nutshell, just to take into account the preface and the tone set, this is looking to be a better year in terms of the business environment than what FY ’24, ’25 goes.
Sunil Gupta
Definitely. As Rajiv said, yeah. Definitely the vessels are on long-term contracts. We are adding one more vessel to fleet, which is NuSantara. So definitely FY ’26 should be better than FY ’25.
Saket Kapoor
Thank you, sir for the reply. I’ll join the queue..
Operator
Thank you. The next question is from the line of Mahar Rao from Summit Capital. Please proceed.
Malhar Rao
Hi, sir, good evening. My question was we have three DSVs, 2, 3 and Pensus with a life of almost 40 years as on-date. So just wanted to understand what is the remaining life of these three vessels because it is almost more than 40 years since we have been operating them? And also does the operational efficiency in terms of ROCE reduces incrementally due to the maintenance of such ships as the age increases?
Rajeev Goel
Thank you for your question. I’m Rajiv Goel is right. So definitely, as the vessel gets older, the maintenance cost increases and the charter remains the same. But then the call is that whether you really want to scrap this vessel or till the time it is earning you good amount of money in terms of the difference between the charter hire and the expenses, why not continue with it. So 2 is still on a charter with ONGC.
So we really — we are quite happy with that. And if the opportunity for the renewal of tender comes to us, we would be happy to offer CMEK2 against the renewal of tender. And if we get it, then we have another three to five years of working with us. CMEC 3 and princes, they are vessels which have deployed outside ONGC. So one is deployed with L&T on a two-year contract, but during monsoons, these vessels are laid-up at the port because there is no work happening.
And is a vessel which has been well-accepted in the East Coast. And since Feb, it is already deployed with Hardy oil in the East Coast, so it is again on a spot rate, right? And our plans definitely are to replace these vessels over the next three years, five years with better new vessels. As we have — we have purchased, we have purchased. Now we are purchasing Tara.
So this is all part of the plan where we are replacing the old fleet, increasing the number of and that is what we plan to do in future also.
Malhar Rao
Okay. Sir, my second question is, sir, this what we said, the LNT contract which we won in 2022 about $101 million. I just wanted to know-how much did we execute every year up until now? And how much do we subcontract it? Is my understanding right, we subcontracted to Porsche and all of them and the entire revenue is recognized in our book. Just wanted to understand the working around this 101 million LNT contract.
Vinay Kumar Agarwal
Hi, I am Vinay Agrawal deside. So you have rightly mentioned, we have won a contract of 1001 million, but this was in consortium bit for subsea, Singapore and our share of — out of this contract was somewhere around 30 million, 31 million USD. It was spending over to, which we have successfully completed and all revenue pertaining to this contract has been booked in our system, nothing left.
And further to that, this was — this contract was PRP7, now we have entered into another contract — extension of this contract that is called PRP 8 with the same set Of fulfilled Porsche as a partner with LMT. So all three are working again on the same kind of job with L&T. But this is the same 5.661 million contract, which is the PRP 8 for CMAT and CMA 2 so as of now, this is the only contract for both 2 and Princess, they are together working on this $5.61 million contract.
Sunil Gupta
As Rajivil just told you that III is already in the East Coast working with the Hardy oil and Princess is what is working on PRPA. And CMAC 2 is working with ONGC on its present charter of five years, out of which we have already completed three-four years.
Malhar Rao
Sir, CMAC 3, we had won a contract from Asia Energy Services and which was started on 14th of May and it was I think an eight-day contract. So as on-date we are talking, I think there is no exchange notification. So is it still working or is that ended?
Rajeev Goel
And 3 started this particular contract with Asian Energy way back-in February 2025. Initial term was 30 days. And after that, there has been extension of 15 days, almost like four, five times. The last extension was given on 14th of May till 31st of May. And right now also it is working in the field. If the work doesn’t get completed on 31st May, we can expect another extension of 15 days.
Malhar Rao
Got it, sir, because our exchange notification was actually for eight days from 14th of May unit extension the latest notification there. Sure. Thank you.
Rajeev Goel
That depends on the customer actually.
Malhar Rao
Okay. Sir, my last question is, we had won this Woodfish contract of about $3.46 million from Mermaid subsea. But then again we said we had some kind of breakdown and that got converted to about $1 million. So I just wanted to understand did we get paid-for that 3.46 because we commenced on 21st December and then it ran till 30th of Jan, so almost 40 days, 40 days, but then we said we had a breakdown. So if that 3.46 is recognized or not or overall only $1 million got recognized for the Cmax workplace.
Vinay Kumar Agarwal
So what happens in this case, we get into one contract with the subsea for 3.4 million USD and we started working on that vessel was deployed in December ’24 with Mermaid. But after some period, R1 crane got some technical snag and vessel was not able to do the saturation diving for which the vesselage is required by and by our end client Saudi Aramco. So they reduce our charter rate from the earlier decided rate of because they were not able to do the saturation diving, so they shifted it into air diving and they reduce our weight.
So whatever work we have performed, whatever number of days we have performed, we have built for only voltage and we have not recognized 3.4 million remaining.
Malhar Rao
Just to clearly understand sir, the $3.46 million we didn’t recognize that and we recognized some $1 million for the I think ADSV services. Is that correct?
Vinay Kumar Agarwal
So whatever figure you are quoting as of now, I cannot verify that. I cannot endorse that, but whatever actual number of days we have got, we have got — that is the reason. We have put only that much.
Malhar Rao
Okay. Okay. One last question, sir, is generally for all our fleet of ships, generally what is the time period during a year when it is non-operational due to the range? And is it that every vessel is non-operational in those days or there are some vessels which can run for — throughout the year. Like for example, now we have the long-term contract. So if I were to understand if there is no breakdown and hypothetically, it is the best situation, how many days can it run-in a year considering the rains and all of that, just to get that.
Vinay Kumar Agarwal
So see all long-term contracts which are on diving support services run throughout the year. If there is no breakdown, then you can assume full-year working for them 350 days, that is what we consider, okay. In terms of vessels, which are on spot basis or underwater construction activities, since these activities get stopped during the monsoon in the West Coast, so they operate typically seven months in a year.
The barge, which is also accommodation barge is also deployed for seven months in a year. I hope I clarified.
Malhar Rao
Yes, sir. That’s it from my side. I’ll join the queue. Thank you so much thank you.
Operator
Due to time constraint, that was the last question. I now hand the conference over thank you. Sorry for the inconvenience. Thank you. As there are no further questions, I would now like to hand the conference over to Mr Balas. Thank you, and over to you, sir, for your closing comments.
Balasubramanian
Thank you very much. Thank you, sir. Thank you all the participants and any further questions, please reach to us and we can conclude the call. Have a good day. Thank you.
Rajeev Goel
Thank you all the participants. See you next time.
Vinay Kumar Agarwal
Thank you all.
Sunil Gupta
Thank you. Thank you, Bala.
Operator
Thank you. On behalf of Ariant Capital Market Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you