1. INDUSTRY STRUCTURE AND OUTLOOK
The global shipping industry is the backbone of International Trade. Considered to be the biggest sector in the World in terms of dollar value, the Oil and Gas Industry is global powerhouse employing hundreds of thousands of workers worldwide as well as generating hundreds of billions of dollars globally each year. In summary, the offshore oil and gas industry is for growth in 2025, driven by increasing demand, technological advancements, and favourable policy changes, despite facing challenges related to supply chain costs and geopolitical tensions.
Global Crude Oil Prices emanating out of geopolitical tensions often led to oil price volatility.
Global oil demand is anticipated to rise to 103.9 million barrels per day (mb/d) in 2025. The offshore drilling market is expected to grow significantly, with a forecasted value of USD 80.64 billion by 2033, up from USD 36.60 billion in 2023, indicating a compound annual growth rate (CAGR) of 8.22%.
On the technological advancement, deep water/ ultra-deep water excavation enabled by AUV, ROV and AI Driven analytics. Major oil companies, increasing in CAPEX, mostly in the vision of South America, West Africa and Brazil.
W estern sanctions on Russia have reshaped energy markets. However, India has benefitted from discounted Russian crude, helping to offset some of the economic pressures caused by high international oil prices.
U .S. sanctions on Iran have severely impacted ability to import cheaper Iranian crude. This has forced India to rely more on costlier alternatives, increasing its energy import bill.
High oil prices increase Indias import bill, leading to inflationary pressures as petroleum is a key input in transportation, manufacturing, and agriculture. Indias global commitments to reduce carbon emissions often come into conflict with its need to secure affordable fossil fuels. Geopolitical scenarios, such as European countries pushing for renewable energy investments, can influence Indias energy policies.
Geopolitics often accelerates Indias push for solar and wind energy projects as part of its energy mix to reduce reliance on imported oil and gas.
Advances in extraction technologies are making previously unreachable reserves accessible, particularly in deepwater and ultra-deepwater regions. Major oil companies are increasing their capital expenditures on offshore projects, signaling a robust investment climate.
A conservative growth is expected in offshore oil and gas-related Engineering, Procurement, and Construction (EPC) contracts, with a total projected value of approximately USD 54 billion. This growth reflects ongoing challenges such as supply chain cost inflation that have affected project timelines since 2022.
Geopolitical scenarios have a significant impact on Indias oil and gas industry, given its reliance on imports for meeting domestic energy demands. India imports over 85% of its crude oil requirements and around 50% of its natural gas. This makes the country highly vulnerable to global geopolitical shifts.
Geopolitical factors have also led to rising natural gas prices globally, affecting Indias domestic industries reliant on LNG, such as power generation, fertilizers, and transportation. Geopolitical tensions can deter foreign investments in Indias upstream oil and gas sector due to concerns about global supply chain stability.
The growth in offshore projects is expected to create a demand for skilled professionals, including drilling engineers, ROV operators, and health, safety, and environmental specialists. Competitive compensation packages are anticipated due to the high demand for technical roles.
Another dimension to geopolitical uncertainties, such as sanctions or trade restrictions, can deter foreign companies from investing in Indias oil and gas sector. The global shift toward renewables and reduced financing for fossil fuel projects make it harder to attract investment in exploration activities. Indias aggressive push towards renewable energy like Solar, Wind and Green Hydrogen is diverting attention and Investment from fossil fuel explorations. Growing awareness of climate change and environmental issues has reduced public and investors enthusiasm for fossil fuel projects. Fluctuations in global oil prices discourage exploration investments, as low oil prices make domestic production less competitive compared to imports.
Instability in neighboring regions attribute to geopolitical risk and adds another layer of complexity to Indias energy security, as disruptions in transit routes or pipelines affect supply reliability.
In India, there are some significant challenges.
Increasing domestic oil and gas exploration faces a range of obstacles. These challenges span across technical, economic, regulatory, and environmental domains.
Automation underwater vehicles (AUV) and
Remotely Operated Vehicles (ROV) are critical for operating underwater survey, pipeline inspection and maintenance in deep water and ultra deep water environments. These technologies reduce the need for diverse and improve safety in offshore operations. India needs more strategic planning for these resources.
Advanced exploration and production activities require highly skilled professionals such as geologists, petroleum engineers and deep-water drilling specialists. India faces a shortage of such skilled personnels. Many skilled professionals in Oil and Gas sectors move to countries with more lucrative opportunities, leaving a talent gap.
Indias pipeline infrastructure for transporting Oil and Gas from exploration sites to refineries or consumers is under-developed, particularly in remote and offshore regions. Insufficient storage facilities for crude oil and natural gas as well as limited processing capacities, pose challenges to scaling up domestic production. Exploration in remote areas, such as North-East or Offshore regions faces logistic problems due to road, port and transport infrastructure.
Way Forward for India i. Diversification: Continue diversifying energy import sources to reduce dependency on the Middle East. ii. Domestic Exploration: Increase investments in domestic oil and gas exploration to reduce import reliance. iii. Energy Transition: Accelerate renewable energy adoption to decrease fossil fuel dependency. iv. Strategic Reserves: Expand SPR capacity to mitigate global supply shocks.
With a vast coastline over 7500 kms, India has potentiality to emerge as a significant player in global maritime industry. The Indian Government consistently pursuing to utilize its marine potential to unlock significant economic benefit. Two key initiatives, the "Maritime Vision 2030" and "Sagarmala" program already launched to propel further growth.
In India, in response to the rising demand, the government has implemented several regulatory measures. Multiple areas of the industry, like oil refineries, natural gas, and petroleum-based goods, have been able to attract 100% Foreign Direct Investment (FDI) as a result.
Despite some adversaries, Indias energy demand and economic development is poised to go hand in hand resulting likely greater demand for oil and gas in the coming years as well. This will undoubtedly make the sector attractive to new investors.
The Indian government efforts for E&P operations covering a total area of 1 million sq km offshore areas in West Coast, East Coast and the Andaman and Nicobar Islands is underway to provide a boost to the oil and gas exploration.
2. OPPORTUNITIES AND THREATS
SEAMEC continues its unchallenged reputation as a prominent player in DSV Sector in India. SEAMEC through a strategic planning increasing Fleet strength in consonance with the market dynamics and taking appropriate action complemented by strong vision. This makes SEAMEC a dynamic leader.
Age restrictions by Government are a threat for the older Tonnage. Management is closely monitoring these aspects to undertake appropriate timely redressal measures.
Diversifying to other sections of Fleet such as OSVs and Accommodation Barge has already been initiated.
The enhanced combination of Fleet will strengthen the Companys position in diverse area.
3. BUSINESS SEGMENT ANALYSIS
The business segment for the Company year under review has been the offshore segment in domestic market.
The performance of the Company and details of segment reporting are presented in the financial statements and notes annexed thereto.
4. FINANCIAL PERFORMANCE
F or meaningful comparison, the pertinent financial parameters are provided below: ( In Lakhs)
Particulars |
FY 2024-25 | FY 2023-24 |
Total Income | 65,956 | 70,673 |
Total Expenses | 39,591 | 41,720 |
Operating Profit | 26,365 | 28,952 |
Operating Profit | 0.40 | 0.41 |
Margin | ||
Interest Expenses | 1,356 | 1,135 |
Depreciation | 11,574 | 10,582 |
Profit / (Loss) before | 13,435 | 17,235 |
Tax & exceptional | ||
item | ||
Exceptional item | 0 | 1,301 |
(income) | ||
Profit / (Loss) before | 13,435 | 18,536 |
Tax | ||
Tax Expenses | 1,880 | (123) |
Profit / (Loss) after Tax | 11,555 | 18,659 |
Net Profit Margin | 0.18 | 0.26 |
Debtor/Sales | 3.23 | 4.06 |
Creditor/Purchase | 4.32 | 4.64 |
Particulars |
FY 2024-25 | FY 2023-24 |
Inventory / Turnover | 7.13 | 8.45 |
Current Ratio | 1.58 | 2.35 |
Debt Equity Ratio | 0.18 | 0.26 |
Net worth | 98,658 | 87,094 |
Interest Coverage | 10.91 | 16.19 |
Ratio |
Note: With respect to details of significant changes in key financial ratios with explanations, please refer to Note 43 of the Standalone Financial Statements forming part of this Annual Report.
Comments on Current Years Financial Performance:
5. HUMAN RESOURCES AND INTERNAL CONTROL ADEQUACY
Human Resources and Internal Control System and adequacy thereof have been stated in the Directors Report that forms part of this Report.
Ten Years at Glance
2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | |
SHARE CAPITAL | 2,543 | 2,543 | 2,543 | 2,543 | 2,543 | 2,543 | 2,543 | 2,543 | 2,543 | 2,543 |
RESERVE & SURPLUS | 39,455 | 24,497 | 24,530 | 32,195 | 45,199 | 54,475 | 62,050 | 66,153 | 84,552 | 96,115 |
NET WORTH | 41,998 | 27,040 | 27,072 | 34,738 | 47,741 | 57,018 | 64,592 | 68,696 | 87,095 | 98,658 |
LOAN FUND |
||||||||||
SOURCES OF FUNDS | 41,998 | 27,040 | 27,072 | 34,738 | 47,741 | 57,018 | 64,592 | 68,696 | 87,095 | 98,658 |
GROSS BLOCK OF FIXED ASSET | 22,039 | 29,966 | 29,857 | 33,495 | 35,797 | 36,277 | 56,186 | 84,938 | 87,453 | 92,945 |
RESERVE FOR DEPRECIATION | 4,683 | 9,361 | 13,009 | 17,817 | 22,405 | 22,011 | 28,664 | 37,922 | 45,935 | 57,509 |
NET BLOCK OF FIXED ASSETS | 17,356 | 20,605 | 16,848 | 15,678 | 13,392 | 14,265 | 27,522 | 47,016 | 41,518 | 35,436 |
INVESTMENTS | 3,400 | 3,732 | 4,458 | 9,749 | 18,017 | 22,702 | 27,380 | 16,123 | 22,608 | 47,559 |
DEBTORS (NET) | 18,655 | 10,878 | 11,736 | 16,354 | 15,351 | 7,675 | 3,757 | 10,500 | 22,258 | 15,920 |
TOTAL OTHER ASSETS | 18,291 | 7,921 | 7,948 | 7,611 | 18,237 | 18,802 | 17,553 | 11,576 | 38,090 | 30,555 |
TOTAL LIABILITIES & PROVISION | 15,704 | 16,096 | 13,918 | 14,654 | 17,257 | 6,426 | 11,620 | 16,519 | 37,380 | 30,812 |
NET ASSETS | 2,587 | -8,158 | -5,970 | -7,043 | 981 | 12,375 | 5,933 | -4,943 | 710 | -258 |
APPLICATION OF FUNDS | 41,998 | 27,040 | 27,072 | 34,738 | 47,741 | 57,018 | 64,592 | 68,696 | 87,095 | 98,658 |
REVENUE FROM OPERATION | 32,792 | 20,757 | 19,360 | 30,383 | 36,525 | 22,924 | 29,352 | 39,902 | 66,557 | 61,733 |
OTHER INCOME | 2,297 | 1,760 | 1,877 | 2,661 | 3,038 | 3,404 | 4,423 | 1,547 | 4,116 | 4,223 |
EBITDA before extra ordinary | 5,918 | -9,632 | 5,196 | 12,935 | 18,247 | 8,668 | 14,647 | 13,116 | 28,953 | 26,364 |
items | ||||||||||
EXTRA ORDINARY ITEMS | - | - | - | - | - | -6,188 | - | - | 1,301 | - |
INTEREST EXPENSES | 27 | 115 | 78 | 62 | 103 | 64 | 336 | 329 | 1,135 | 1,356 |
DEPRECIATION | 4,737 | 4,799 | 4,891 | 4,817 | 4,588 | 4,284 | 6,624 | 9,267 | 10,582 | 11,574 |
PROFIT BEFORE TAX | 1,153 | -14,546 | 227 | 8,056 | 13,556 | 10,508 | 7,687 | 3,520 | 18,537 | 13,435 |
TAX | 577 | 413 | 197 | 385 | 544 | 746 | 112 | -608 | -123 | 1,880 |
PROFIT AFTER TAX | 576 | -14,959 | 29 | 7,671 | 13,012 | 9,763 | 7,575 | 4,128 | 18,660 | 11,555 |
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