I've spent the last few days looking at Hallin Marine, and they tipped me over the edge, announcing a contract win this morning. It looks a quality business.

Hallin floated on AIM in June. Established in 1998, Hallin is profitable - just under $1 million on turnover of $20million last time. market cap just 17 million.

It maintains, installs, surveys and repairs seabed equipment - pipelines etc. The company itself says that it is impacted by activity in the oil market, and when they floated oil was around $55. Now it is as we all know $65. Of course if you believe the oil market is still worth investing in (I have avoided to date) you'll probably like the fact that Halling raised funds at 64p and is currently 55p to buy.

They will benefit from the stronger dollar (lost over $200,00 on currency last year). Their saturation diving systems can support up to 12 people for a month on the seabed and customers have included BP, Shell, Mitsui, Premier and Total. it's important to have regional presence. As well as business bases in Singapore, China and Thailand they are expanding into the UAE.

It looks a good way to have exposure to oil in a relatively low risk area.

Worth taking an initial stake imho, as i have this morning.

Here is this morning's contract, which represents 25% of last year's turnover:

'Hallin Marine Subsea International plc

Hallin Marine Wins US$5m Order to Support Gulf of Thailand Pipeline

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, announces that it expects to supply Diving Support Vessel services to
the PTT 3rd Pipeline Construction Project in the Gulf of Thailand. Hallin is in
receipt of a letter of intent* from Hyundai Heavy Industries ('HHI') regarding
this contract. This is in addition to Hallin's contract with HHI, signed in
July, to supply construction diving services to the same project.

The Diving Support Vessel work will take place in two phases, the first starting
in December 2005 and the second scheduled for February 2006, with a contract
value of approximately US$5 million.

The PTT 3rd Pipeline Project is a major expansion of the Thai Offshore Natural
Gas Infrastructure, which provides gas for the domestic market. A 606km
pipeline and associated offshore facilities is to be constructed from PTT's
Arthit field in the Gulf of Thailand to a landfall at Layong, south of Bangkok.
Under the two subcontracts awarded by HHI, Hallin Marine will provide all the
construction diving services from three pipelay barges as well as conducting
Saturation Diving and Hot Tapping of connections into the pipeline from the
Diving Support Vessel.

John Giddens, Chief Executive of Hallin Marine, said:

'We are extremely pleased to have been awarded this work. The Diving Support
Vessel side involves Hot Tapping and Saturation Diving services and is in
addition to the onboard barge construction diving services that we are already
contracted to supply to HHI for the PTT 3rd Pipeline Project. The winning of
these orders confirms that Hallin Marine is able to provide HHI with the
increasingly complex services they require, at competitive prices.'

Exposure to China and India, exposure to oil and the stronger dollar in its favour, yet defensive qualities too. Once it becomes discovered, profitable and a sub 20 million market cap, should be of interest to many investors. Nice little move up today on the back of the contract win just could be the start.

Recent article from website:

Most Technically Advanced Portable Saturation Diving System Launched by Hallin Marine

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas industry, announces completion and commencement of operations of its third Saturation Diving System.
The company believes its new 12 Man system is the most technically advanced portable saturation diving system operating in the Far or Middle East.

State of the art Saturation Diving System design and build completed in 6 months at Hallin Marines facility in Singapore

The technically advanced system has been designed to give divers new standards in comfort and efficient living conditions

In house build price is significantly less than the cost of buying a new comparable system

System delivered to first client J Ray McDermott on 1st June for a contract lasting until October

At full usage, it will take less than two years for the build costs to be recovered

Including rented units, Hallin is now operating five saturation diving systems

Rental rates for a full system are now in the region of US$90k per month

Saturation diving systems allow divers to work for long periods deep underwater. When not working, they live in pressurised living quarters replicating the pressure levels at which they work on the seabed. The living chamber resides on the deck of the operating vessel and the divers are transported from there to the seabed via a diving bell without changing pressure. It can take many days for a diver to decompress safely after working at depths of up to 200 metres underwater. The divers can spend up to 30 days at a time living within the pressurised system, decompressing just once at the end of that period.

For divers, living in such close and cramped conditions for a prolonged period causes stress and can lead to less efficient working. Hallin recognised this and from the design stage included technically advanced engineering solutions to ensure the divers environment was made as pleasant and efficient as possible.

The most important innovation is the way the divers environment is controlled. Hallin has gone to great lengths to improve and precisely control the humidity and temperature of the environment to ensure the divers feel comfortable for the period of up to 30 days that they are in sat. The system also includes advanced gas scrubbers to remove the CO2 from the special mixture of gases the divers have to breathe while in sat,

The system has already been delivered to its first client, McDermott, for use on the Unocal Phase 28 project in the Gulf of Thailand. The system is likely to be involved in this project until October 2005.

John Giddens, Chief Executive of Hallin Marine, said:

In order to meet increasing demand over the last twelve months we have had to rent more systems from third parties; clearly, operating our own systems is far more profitable. Market conditions remain strong and we expect the new system to be working at full capacity for the foreseeable future. We plan to use some of the money raised at our IPO to add a further saturation diving system to our portfolio before the end of the year.

We have built this new saturation diving system in house for significantly less than the cost of purchasing a new comparable unit, whilst also achieving the highest technical specification, we believe, on any portable system in the Far East or Middle East.

We paid special attention to the well-being of our divers a happy diver is an efficient one. The level of demand already for this new system supports our belief that clients will want this Sat System on their jobs and divers will want to work on it.

With rental rates remaining high, we believe the system represents an excellent investment for Hallin.




Enquiries:

Hallin Marine
John Giddens, Chief Executive
John Quinn, Non-Executive Director

College Hill
Ben Brewerton / Jim Joseph


020 7457 2020



020 7457 2020



Technical Specifications
The new Saturation diving system was designed and built by Hallin Marine in Singapore. It is a portable, 12 man system with a 3 man diving bell. The system can be used in depths of up to 200 metres (21 bar). The system fully incorporates current International Marine Contractors Association Guidelines and Codes of Practice. Safety features include a 12 man hyperbaric rescue chamber and a Divex diver gas reclaim system.

A full technical specification sheet can be found on: www.hallinmarine.com.

Notes to Editors
Hallin Marine was formed in 1998 to provide high quality marine and underwater services to the offshore industry, particularly in support of Oil & Gas development. It has grown from a US$1 million turnover company in its first year to a US$20 million turnover company in 2004. Hallin Marine was admitted to AIM in April 2005.

The Company is an experienced provider of subsea construction and inspection solutions. It employs experienced subsea engineering staff to manage projects using: support vessels, saturation diving systems, air/mixed gas diving spreads and remote operating vehicles. The Company owns all its principal equipment, including the diving systems. Hallins expanding operations cover the South East Asia, India, China and Middle East regions.

Typically the work undertaken by the Group comprises the installation, construction maintenance, repair or survey of equipment on the seabed. Most of the projects are planned well in advance and Hallins role is that of a key contractor, normally working as part of a larger team. The largest projects may take two or more years from decision to go ahead to the stage where divers actually enter the water. Hallin provides clients with safe, professional and cost effective solutions by combining innovative approaches and new technology with time proven techniques.

hawick - I've spent the afternoon reading the RNS history (slim) and corporate website (nice) incluidng the 2004 accounts and placing document. I like the story on this one very much. It is well-established and trading profitably (dividends promised even!) in a geographical area I am keen to have exposure on in a field of endeavour which must be on the up as the world (and in particular China) invests heavily in neglected means of oil production over the next cycle (at least till 2010, if not 2015??) - the expression "shovels, not gold mines" springs to mind. It's management and strategic view of their future developments and capital needs seem sound.

It strikes me as a relatively low risk investment, but at the current price of 56.5p with 30.4 million shares in issue and a profit after tax of $962,202 at 1.80 $/, we have EPS of 1.76p and a PE of 32 (PEG of zero, since last year it made a loss). This is quite a sexy rating and points to the major question - can they grow the net profits by say 40% p.a. to leave room for the SP to grow by 25% pa (my portfolio minimum bench mark) for a couple of years by which time the prospective PE will still be about 25? Is there another quantum leap in operating level comparable to that between 2002 to 2004 about to happen, or conceivable even, that would earn the SP a substantial re-rating?

Let's say the Middle East operation will grow net profits by 10%, the Shanghai connection by 10% and other existing markets by 10% and their margins can improve by 10% (more self-owned equipment, lower marginal overheads) - it's feasible.

I'd like to get a steer on this from the interims to June 30th which must be due out any time now. Do you know when? But remain seriously intrigued and might dip a toe in on any good contract or other news meanwhile.

Nice find. Thanks.

sd

Hi Stockdog a well measured reply, thank you for that!

I'm looking at growth in Shanghai to be well above the 10% you mention and as they expand into India growth there too. Owning their own products is a plus too, as you say. While it's not their region the latest hurricane shows why, as oil prices soar, companies like HMS are 'well-positioned' (i hate that phrase!) to grow. The Gulf of Thailand of course spawns such hurricanes.

I'm sure revenues will be lumpy, but as well as quieter periods (less likely given the rush to recover oil) that also gives the propensity to surprise to the upside.

A quality nuts and bolts business which hasn't rushed its way to floating, that I really think can flourish.

That's why i doubled my holding today.

Nice move up today, from this, imho, undervalued - and so far virtually unnoticed - stock.

Well Stockdog it's now up 20% since your post!! That's most of year one taken care of, this week! Did you manage to get in?

No - got busy with MOI and DGT and never got round to it. But on this one there will be other opportunities to get in, even at a higher price. Just a question of where you choose to enter and exit the trade (whoops! sorry, the investment!).

Good luck with it - keep posting.

sd

Interims out today - haven't looked at the details yet.



RNS Number:1136R
Hallin Marine Subsea International
12 September 2005


Monday 12th September 2005

Hallin Marine Subsea International plc
("Hallin", "Hallin Marine" or "the Company")
(Formerly Hallin Marine Subsea International Ltd)


Interim Results for the six months ended 30th June 2005


Hallin Marine, the provider of subsea solutions to the oil and gas industry,
announces its maiden set of interim results, following its admission to AIM in
April. Hallin has strong market positions in South East Asia, China and the
Middle East. Typically the projects undertaken comprise the surveying,
maintaining, repairing or installing of equipment on the seabed.



Highlights



* Turnover increased 65% to $13.6m (2004: $8.2m)

* Gross profit increased 83% to $2.2m (2004: $1.2m)

* Profit before tax increased 61% to $869,000 (2004: $539,000)

* Completed the build of one saturation diving system and purchased
another


John Giddens, Chief Executive of Hallin Marine, said:


"Since our IPO in April, we have added significantly to our capacity by
completing the build of one saturation diving system and purchasing another.
Despite strong competition, we have managed to significantly grow revenues while
increasing margins. We remain confident of delivering a progressive improvement
in profits going forward."

Very satisfied with performance. Sounds like July was quieter but the next few months are already taken care of. Also the contract announced in June is due to start in November, so altogether very promising.

Hawick
Typical market response to sell on results. An all engulfing black candle (opening higher than Friday and extrending down below Friday's opening) I have heard is quite a strongly bearish signal, so I'm going to wait till the end of the retracement before considering any move.

Is it time to take your own profits and re-enter lower down, or will you stay put?

sd

I know where you are, technically, but I'm very happy to keep hold of mine - I might even top up under 60p if they did fall that far. I know I could try to trade in and out, but not really my style. Also i think it is too small a stock to rely on very short term (day to day) chart patterns, though I do like and use longer term charts a great deal even for such stocks.

Fair enough - I've let so many in/out opportunities slip past me on various stocks this year - not really my style either, but I wish I could do it. It would improve my return by probably 20% across my entire portfolio if I just did it on the obvious few. Tnat pis.

sd

Slipped back SD, tempting now(good candle call!) ? Especially given this news which should eliminate any awkwardness at end of financial year.

Recent small pullback, another bargain price on this stock!

Hallin Marine Subsea International plc

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, is pleased to announce that it has received a Letter of Intent from a
key client. Under this contract Hallin Marine anticipates carrying out subsea
repairs and inspection works offshore Indonesia.

This project is scheduled to take place in November and December 2005 and will
involve essential subsea maintenance and inspection work. Hallin Marine will
utilise the Support Vessel Fu Lai, with Hallin's saturation diving system
onboard, together with remote operating vehicles and other specialist services
for the project. The contract is forecast to have a value of approximately
US$2m.

This project will also be the first to be supported from our newly opened office
and subsidiary company PT Hallin Marine, based in Jakarta.

John Giddens, Chief Executive of Hallin Marine, said:

'We are delighted to be supporting this key client, once again. This project
rounds off what has been a very busy year for our team onboard the DSV Fu Lai
and is also an excellent first contract win for our newly opened Indonesian
operation'

Notes to Editors

Hallin Marine was formed in 1998 to provide high quality marine and underwater
services to the offshore industry, particularly in support of Oil & Gas
development. It has grown from a US$1 million turnover company in its first
year to a US$20 million turnover company in 2004. Hallin Marine was admitted to
AIM in April 2005.

The Company is an experienced provider of subsea construction and inspection
solutions. It employs experienced subsea engineering staff to manage projects
using: support vessels, saturation diving systems, air/mixed gas diving spreads
and remote operating vehicles. The Company owns all its principal equipment,
including the diving systems. Hallin's expanding operations cover the South
East Asia, India, China and Middle East regions
Typically the work undertaken by the Group comprises the installation,
construction maintenance, repair or survey of equipment on the seabed. Most of
the projects are planned well in advance and Hallin's role is that of a key
contractor, normally working as part of a larger team. The largest projects may
take two or more years from decision to go ahead to the stage where divers
actually enter the water. Hallin provides clients with safe, professional and
cost effective solutions by combining innovative approaches and new technology
with time proven techniques.

Another good announcement today, solid progress, which should secure most of H1 2006 earnings as indicated: Worth highlighting: 'Additional works awarded should provide full utilization through to mid 2006.'. .

Hallin Marine Subsea International
06 December 2005

Tuesday 6th December 2005
Hallin Marine Subsea International plc
('Hallin Marine' 'Hallin' or 'the Company')

Hallin Marine purchases further Saturation Diving System

Immediately secures contract for the new system

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, has purchased a further Saturation Diving System, taking its total
number of systems operated to five.

The nine man system with three man bell was extensively re-furbished at the end
of 2004, prior to being operated by Hallin for the past six months under a
rental agreement. Hallin then arranged purchase from the owners for a price
circa US$2 million.

The purchase will:


protect Hallin from rising rental rates,

improve long-term profitability,

give greater flexibility, and

guarantee supply at a time when there is a shortage of saturation systems
available for hire.

The system has already been deployed on the Heavy Derrick Lay Barge HD1000 for
operations offshore the coast of India in support of ONGC, the state-owned Oil
and Natural Gas Company of India. Additional works awarded should provide full
utilization through to mid 2006.

Saturation diving systems allow divers to work for long periods deep underwater.
When not working, the divers live in pressurised living quarters replicating the
pressure levels at which they work on the seabed. The living chamber resides on
the deck of the operating vessel and the divers are transported from there to
the seabed via a diving bell without changing pressure. It can take many days
for a diver to decompress safely after working at depths of up to 200 metres
underwater. The divers can spend up to 30 days at a time living within the
pressurised system, decompressing just once at the end of that period.


John Giddens, Chief Executive of Hallin Marine, said:

'Hallin Marine's purchase of HMS-SAT-04 is a great addition to the company,
cementing our position as a leading provider of subsea services to the oil and
gas industry in Asia and the Middle East. The system has been put to work
onboard our client's construction vessel, and is supporting operations offshore
India. The additional contract provides 100% utilization of our fourth
Saturation System through to spring 2006.

Nice trading update. Topped up.

Trading Update

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, issues the following pre-close trading update ahead of the
announcement of its preliminary results for the year ended 31 December 2005,
expected to be on 20 March 2006.

The oil and gas industry in South East Asia, China and the Middle East, the
company's areas of operation, remain buoyant and Hallin has been operating at
near capacity for much of the period. During the year it has also purchased one
further saturation diving system and built one system to further increase
capacity.

The company believes its preliminary results will be in line with market
expectations.

On the back of yesterday's upbeat news, moving ahead again.

What a truly fantastic announcement from a 20 million market cap company.

'Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, has signed an agreement with a substantial US based offshore
contractor for work in the Gulf of Mexico. The US$16.4 million contract is for
an initial 12 month period with an option for a further year valued at US $13.9
and is the largest contract ever won by the company.

Under the terms of the contract Hallin will supply technical support as well as
Dynamically Positioned (DP) vessel and sub-sea intervention equipment,
consisting of a 200 metre-rated Saturation Diving System and Air Spread Diving
System. The equipment will be operated from the vessel 'Toisa Voyager' which
Hallin has chartered from Sealion Shipping for the duration of the contract.
This sophisticated DP vessel is currently being completed at Wu Hu Yard in China
and will be taken on charter by Hallin Marine in Singapore in May 2006 prior to
mobilisation to the Gulf of Mexico.

The contract is to support the US company's construction work in the Gulf of
Mexico region. The vessel and equipment will be managed and mobilised from
Singapore in June 2006 and work is expected to commence in July 2006. Hallin has
traditionally been strong in the South East Asia, India and China and this
contract is Hallin's first in the Gulf of Mexico.

hi
Got into this today based on their rns of this AM. Seems a good company with potential for multi todays gains.
Well done hawick if u have been building a stake since creating this thread in August.
good luck to all

Hi Scottie, belated welcome, wish it was even bigger - results were excellent and now a substantial placing at 77p, "due to unprecedented demand" for its business. Not a fan of placings as a rule, but this is for all the right reasons imho:

(Also GHE hold a large stake in HMS and are trading at lest 300p below nav, greedy pig, i have some of them too!).

HALLIN MARINE SUBSEA INTERNATIONAL PLC
('the Company' or 'Hallin')


Proposed Placing of 9,000,000 New Ordinary Shares at 77p per share

The board of Hallin believes the company is well positioned to exploit the
opportunities presented by the high level of demand for its services both now
and in the future.
The board has witnessed a virtually unprecedented level of activity in offshore
oil and gas construction fuelled by the continuing strong oil price. This has
resulted in a corresponding level of demand for the services and equipment
offered by the Company and its operating subsidiaries ('the Group').

Unconnected but in addition to this the increase in demand for support equipment
for contracts in the Gulf of Mexico, following Hurricane Katrina, is expected to
make the business outlook extremely strong for those companies with available
equipment and trained personnel.

The board believe the global offshore oil and gas industry will continue to have
a high demand for the Group's services for the foreseeable future.

Accordingly, the board consider that the Group should position itself as far as
possible to take maximum advantage of the opportunities that are currently
available to it by increasing its investment in operational assets. It is quite
clear that this cannot be done solely by the Group's own cash generation and
that in order successfully to grow the business significant external funding is
required.

In conjunction with its advisers the Board has considered the available options
and has concluded that this funding can best be achieved by way of a Placing of
new Ordinary Shares ('New Ordinary Shares') with a small number of institutional
investors. Accordingly, the Board is now proposing a placing of 9,000,000 New
Ordinary Shares at a Placing price of 77p per share to raise 6,930,000 million
before expenses (6,600,000 net of expenses including placing commission). The
New Ordinary Shares have conditionally been placed on behalf of the Company by
the Company's Stockbroker, J.M. Finn & Co. The net proceeds thus raised will be
utilised for further investment in additional plant and equipment for the
Group's business.

In order for the Placing to proceed it is necessary to increase the Company's
authorised share capital and to grant the requisite authority to the Directors
to issue the New Ordinary Shares. A circular containing further information on
the Placing and seeking shareholders' approval to the increase in share capital
and the granting of the necessary authority to the Directors to issue shares was
posted to shareholders yesterday. The circular also contains a notice of an
Extraordinary General Meeting of the Company to be held at JM Finn, Salisbury
House, London Wall, London, EC2M 5TA on Wednesday 26th April 2006 at 11.30 a.m.
The notice of EGM contains Resolutions to give effect to these proposals and the
Placing is conditional inter alia on the passing of these Resolutions.



The Directors consider that the Placing is in the best interests of the Company
and its shareholders. Accordingly, they are recommending shareholders to vote in
favour of the Resolutions to be proposed at the EGM, as they intend to do in
respect of their own shareholdings amounting in aggregate to 8,595,000 Ordinary
Shares (representing approximately 28.3 per cent. of the existing issued share
capital of the Company).

Added a few today, suffering a severe funds shortage or it would have been more. i intend to accumulate as long as they stay around these prices. Remember they said recently:

'The board has witnessed a virtually unprecedented level of activity in offshore
oil and gas construction fuelled by the continuing strong oil price. This has
resulted in a corresponding level of demand for the services and equipment
offered by the Company and its operating subsidiaries ('the Group').

Unconnected but in addition to this the increase in demand for support equipment
for contracts in the Gulf of Mexico, following Hurricane Katrina, is expected to
make the business outlook extremely strong for those companies with available
equipment and trained personnel.'

A re-rating looks overdue to me as they have missed out on the frenzy amongst the trendier producers and explorers.

If youve had a good day please consider giving a donation to the lads dressed as Elvis racing 350 miles to the North Pole on behalf of Great Ormond Street Hospital It makes the London Marathon seem like a stroll in the park!
To donate or view how theyre getting on visit
http://www.elvispolarchallenge.co.uk/
thanks for your time

Added again today, up to my quota for now!

One of the real beauties of this is that with oil at $75, orders should pour in and these orders tend to run for at 18 months to two years, as companies rush to repair pipelines or look to release previously uneconomic resources.
So if there ever was a downturn for the likes of HMS you can see it coming a long way away a in a sharply falling oil price and have years to unwind your position! Oil was $55 when HMS floated and business was good then, so I reckon with oil at $75, HMS has at least three years from here of clear water.
'When there is a goldrush, the wise man invests in the man who makes the shovels!'

Been tracking this since float, off and on. Now looks a very interesting time to take advantage of the recent pull back in the share price. However, a couple of questions for you more knowledgeable folks out there:-

Question 1) In the accounts to 31st December the FD's report mentions buying 6.5m assets for ROV based out of Aberdeen via bank loans. The current proposed share placing will raise 6.6m net. Are these 2 amounts the same money, or will the fund-raising be used for purposes additional to the ROV/bank finance expansion? I've emailed the company for the answer.

Question 2) What is your guess on turnover for next year? We already have $21m in the bag (assuming the recent sale of @5m and the order for 12 months maintenance are all booked by 31st Dec 2006).

Assuming the amounts in Q1 above are the same, then interest charges next year should be effectively nil and ROCE and Operating Margin will look good on turnover of about $35m (pure guess of, say, 33% increase over 2005) at 20% gross margin less 50% of gross profit on overheads makes $3.5m net profit before tax. This is a 10% OM (quite satisfactory) and (with the new capital raised of 6.6m added to existing) a ROCE (average capital between current value and this year's after the fund-raising) of nearly 22% with a PE of about 18 (allowing a 10% tax rate) BUT an EPS of pretty much the same as last year of 7.87c because of the increased share capital in issue and thus a PEG of infinite - very unattractive.

Conversely, to get the PEG down to a respectable 0.66 (for a high growth share) EPS need to rise by about 22% (7.87c + 22% = 9.60c EPS, gives PE of 14.6 and PEG of 0.66). To get EPS to rise 22% on shares in issue increased by 29%, net profits after tax must increase by 57.38%. With tax rate and gross margin as above and overheads restricted to, say, $3.5m (anyone think this too high?), this needs a turnover for 2006 of $38.8m - an increase of 46% on 2005. Operating margin would be 11% and ROCE would be 26%.

So, to rephrase Question 2) above, do you think we can achieve almost 50% increase in turnover and nearly 60% increase in after tax profits this year to justify the current price, let alone justify an increase in the SP?

Question 3) Does anyone know of any existing or pending broker's report on this company?

Question 4) Should I buy a) before the AGM, assuming all special/extraordinary items will be approved, or b) should I wait until afterwards, or c) should I wait until the new shares are issued for any dilutive effect to reduce the price?

All answers (and corrections to the arithmetic!) welcome.

sd

Wow! Numbers make your world go round eh! Seriously though, thanks for your efforts.
I do look at what I consider to be the key numbers, but don't go into the same depth as you do! I don't know with Q1, I would guess that they will use some of it to reduce repayments but some of it for expansion. That's how I would read the announcement.
I think profits will be up, but the recent sale will reduce (this year only) the speed of rise. Fwiw, Shares Rag said:
".......Going forward, the profit from the SAT unit sale skews 2006
forecasts a bit but, if we strip that deal out, it implies revenues of
$34 million (19.8 million) this year, rising to roughly $45 million
(26 million) in 2007. Even after assuming rising tax and interest
charges going forward, were still looking at underlying EPS of 5.6p
and 6.7p. Given that the oil services sub-sector trades on an
average PE of 22, a forward PE of 18 for Hallin by the end of this
year would imply a 120p share price, about 45% up from here.''

Edison research (I know nowt about them) came out with a buy rec as did growth Company Investor recently. Don't know of any other reports.

I do think these are a cracking buy and hold though, with substantial contracts up to two years ahead already booked.

Hawick - thanks for the response - will read the reports you mention. I take the Shares article to mean 2006 should be revenues of $34m + $5m SAT unit sale? Not sure how they get EPS of 5.6 = 9.9c - will review my figures (just for fun, you know!)

sd

Always wonder how the weekly rags get their figures! Two crass errors incidentally in the Shares Mag article:
1) They are not IOM based (Singapore if I remember)
2) They haven't expanded from the North Sea to other parts of the world - should be the other way round, they have just opened their Aberdeen division to take advantage of North Sea opportunities.
Have 'fun'! -:)

Hawick - the plc is incorporated in IoM, albeit their main area of operation has been Singapore, also M. East (?) and now Aberdeen.

Touchez! thanks SD.

Below is reply from PR firm re my Question1) in post 25 re use of new placing 6.6m

"Some of the funds may be used to cover the purchase of the ROV's but the real intention was to use these new funds to purchase further equipment in addition to teh new ROV's."

This alters the gearing quite significantly from 13% to 48% - still not too bad. But it does show they plan to expand even faster. Hope they have the mangement and logistics in place to do so.

Also sent me JMFinns note re prelims which I look forward to studying to see what they are projecting.

Still watching and waiting - got distracted by DEBT on the way.

sd

Not surprised you got distracted! Thanks for info I do feel management hasn't put a foot wrong so far so hopefully that can continue. Resolutions ok'd as expected.
'The EGM Resolutions were passed and it is expected that the new
shares will be admitted to AIM on Thursday 27th April 2006. The placing will
raise 6,930,000 before expenses which will be used for further investment in
additional plant and equipment for the Group's business.'

For sure this adds to their borrowings, and risks but is a logical and major advance, taking Hallin a very significant step nearer the big league.

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, has signed a contract for the construction of a 78 metre DP2 Subsea
Operations vessel.

The order confirms Hallin's stated intention to own its own operating vessel and
is seen by the board as a logical step in growing the company's operating
margins and ensuring continuity of vessel supply.

The build contract has been awarded to Singapore based Pan-United Marine Limited
('PUM') for up to US$ 22.6M, depending upon the final options agreed.

In addition a further US$3M will be invested in a state of the art SAT system
incorporating an advanced self propelled hyperbaric rescue chamber for exclusive
use with the vessel and a suitably sized crane will also be added.

The vessel, to be named SOV Ullswater, will be built to Hallin's own design and
specification and is scheduled to be delivered to Hallin in the final quarter of
2008.

Hallin presently operates marine vessels and currently has the Toisa Voyager and
the Sanko Angel under long-term charters.

The cost will be 80% financed through debt with the remainder from the company's
cash reserves. Last month Hallin completed a placing which raised 6.9 million;
the funds will be primarily used to invest in additional plant and equipment to
take advantage of the continued high demand for the Group's services.

John Giddens, Chief Executive of Hallin Marine, said:

'The purchase of our own vessel, specifically designed for subsea operations,
is a transforming event for Hallin. It will enable us to significantly increase
our profit margins on a significant number of the contracts we carry out each
year. It will also give us greater flexibility and the ability to offer clients
a more complete product.

'We have worked closely with Pan-United in the run up to the award of this
contract to develop the vessel that we need at the right price. Pan-United have
a sound reputation for quality and delivery on time and we will continue to work
closely with Pan-United during the build of SOV Ullswater.'

Despite yesterday's market HMS ticked up and now the chart is looking to break to new highs, which could presage another run up.

Looking cheap having participated enthusiastically in the recent pullback!!

Confess to picking up a few more myself yesterday.

Nice news yesterday:

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, announces its success in winning two new contracts with a combined
value of a minimum of US$4.3 million.


Hallin Marine has been awarded a one month contract valued at US$2.5 million for
diving support of a subsea pipeline installation off Thailand for local energy
major PTT and a US$1.8 underwater repair and maintenance contract by Premier Oil
for its gas field off Indonesia.


The main contractor for the Thailand project, Hyundai Heavy Industries (HHI),
awarded the contract to Hallin, which has taken the Diving Support Vessel,
Gulmar Condor, on hire under a standard charter agreement to utilise it as a
platform for Hallin Marines' Saturation Diving System and Remote Operated
Vehicle ('ROV').


The contract may be extended for up to a further two months by HHI.


The second contract Hallin has secured is an Underwater Repair and Maintenance
contract for Premier Oil's Anoa Field in the Natuna Sea.


PT Hallin Marine Indonesia, Hallin's recently established wholly-owned
subsidiary, secured the base contract that is valued at US$1.8 million for the
supply and operation of a DP1 Vessel, a Workclass ROV, together with
intervention services with offshore works, and will start within the next few
weeks.


John Giddens, Chief Executive of Hallin Marine, said:


'We are delighted with these major contract awards. These are excellent project
wins in themselves and both will produce real progress, in different ways, for
our company. The charter of the Gulmar Condor will strengthen our capability and
the second contract win for our newly established office in Jakarta, Indonesian
is a great step forward.


'The HHI contract continues to build on our strong relationship with Hyundai.
The Gulmar Condor, which we are taking on charter for the Hyundai work off of
Thailand, is an excellent diving support vessel ideally suited to our
requirements.


'The Premier Oil contract is another success for our new Indonesian subsidiary.
The works are to be carried out in Premier's Anoa Field which are Gas producing
facilities offshore in the Natuna Sea supplying Singapore via the West Natuna
Transport System Pipeline.


'Premier Oil is a highly respected oil operator and we are pleased to secure our
second subsea contract with Premier and look forward to working with them once
again.'

Another small but of course welcome contract this morning.:
$1.1 million
Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, announces the Contract Award for the provision of a Subsea
construction contract for Talisman Energy at the Bunga Raya Field, offshore
Malaysia.

At short notice Hallin has mobilised the DP1 vessel 'The Mariner', operated by
Sealion and Survey and positioning equipment, Air Diving System, Workclass ROV
and specialist subsea personnel and operators to provide support of installation
of additional offshore platform piles. This activity is part of the Water
Injection Development of the Talisman offshore installation with works expected
to be completed by end of July 2006.

John Giddens, Chief Executive of Hallin Marine, said:
'We are pleased to win our first contract with Talisman Energy in Malaysia. The
speed that we have mobilized this complex package demonstrates our
professionalism and expertise as a marine and subsea contractor.

Interesting re-the BP problems in Alaska which requires massive pipeline repair after a whistle-blower threatened to expose how long BP have been (according to him) camouflaging the problem.

Nice idea for a cracking ramp would be to speculate that HMS would get a bumper contract.
...................But they don't operate in Alaska (though once they get their own rapid response vessel it might well enable such contracts)..............

Drat........................

But interesting to see if other companies decide to come clean and get a few repairs done in areas HMS do operate in...............

stock up a little over the last couple of days....

results last year were 12th Sept, so expecting about the same time this year?

Ran strongly into then up from good results a year ago - should deliver knockout figures this time around, judging from contracts, +day & utilization rates. FY eps THIS year should be in region of 11p, so only 6x PE. New ships to come into use in 2007....

Should deliver strong statement, good cash flows and possibly a dividend surprise

Amities / Although this company provides specialist equipment to companies who operate in a corrupt,dangerous, and cut throat environment fraught for the most part with geo-political problems and tensons the rotary count { inc. workovers }even working at full capacity cannot cope with industry { operator} demand. !! .. .lts as simple as that really. The dearth has brought us to a vicious bottleneck which for once cannot be laid at the IEA or OPECS front door.. We simply UNDERINVESTED at a time when oil was $20 p/b and as such we are witnessing many of the smaller junior expos struggling even to get a sniff of an appropriate rig / for up to 12/ 18 months . ...................................................................................................................Of those who manage who manage to attain rigs they are ALWAYS delayed as the previous operator exercises that part of the contract which allows them a usul 3 month extension .The chronic underestimated shortage of both FPVS, ROVS, and all manner of offshore specialist submersives right down to simple couplings and come to that the utter and total misunderstanding of the entire oil industry makes for dismal reading...... BUT make Hallin worth casting an eye over. Fundementallyi would of course prefer the gearing to be a little lower; but like the water industry it is a capital intensive business and cashburn is severe ,..Lets face it ; Even with oil at record levels the actual producers have suffered quite severe s/p retracements this past 2 months . BUT !! The gas/oil infrastructure suppliers have remained bullish and agggresive, and the only question we need concern ourselves is how snr management deal with what could be a real money spinner {Wait until the "summer driving season and the first drop of snow in NY manifests itself , and i think junior and midcap oil will take off taking with it a host of suppliers on their second leg north . ..Having observed SDX, Abbots Woods ,Hunting ( lronically Hunting released its finals today which illustatated profits SURGED over 850% !!!....gulp !!,,,,,,,ALORS !!! and a plathora of similar related related secondaries who enjoyed success in equal measure ; and all which seems to suggest the neccassary aggresive growth which SD says quite rightly is needed to justify its place in such illustrious company is very possible . . i am hoping Hallin can replicate thier peers relative performances . And Why not ? Only the matter of gearing is a weakness - but i concede i could perhaps picking straws as this variable poses very little concern to myself as i believe oil will NEVER retreat to $25 p/b as suggested recently by Lord Browne @ BP. . Whose force feeding that man such patent nonsense ; or is he too busy counting his bonus' . .. Morelike $100 during the winter ,,and once hedge funds & co stop " shorting " oil NOTHING can hold it back . NOTHING !! , But nobody seems to give a jot reg. cost anyway . Had the case for $100 p/b been made clearer to the market in the 1980,s it would have crashed .. But now ? - qui sait ? . Who knows or really cares ?? . OIL is the / OUR prerequisite to modern 21st century living .....and ANYWAY the boys at the Fed Reserve will print the money regardlesss by way of T Bonds winging their way to China and lndia and dare i say , Vietnam. .... . Anyway im with you boys ... VERY Exiting times ahead i hope . !! ..B/Chance ..@+ J

Okay all gone quiet on this one

I don't much like these type of stocks as when the going is good their employees i.e. divers and others tend to demand and get massive wage rises so longer term contracts, priced on old salaries, lose most of their margin. As such I have not been involved

But look at the graph fallen massively since the 77p placing on this sort of margin problem but on little volume. Contract news has been good too. For details look at TheFrenchConnection above

Why I am interested now is that these guys normally have a Jan trade statement so if everything OK to good as previously good chance of a jump towards 60p IMHO
If no statement by end of this month though just throw out

Company just confirmed that they will be making a trading statement " about the same time as last year" ie 16th Jan ish. No negative pre-announcement, so hopefully a useful update will follow.

Decent bounce now starting today, with a bit of volume

"Trading levels for the year have been ahead of expectations."

delivering the new diving systems and ROV's on time, already earning them money. Contract dispute settled as well.


The offshore oil and gas industry has remained extremely buoyant during 2006
driven both by the continued high price for oil and gas combined with the
significant repair activities in the Gulf of Mexico following the damage
incurred in the 2005 hurricane season. As a result there has continued to be a
high demand for Hallin's services.

The extensive refurbishment programme of its older Saturation Diving Systems was
completed in the first half of the year which allowed utilisation levels to
return to historically normal levels in the second half of the year. The second
half also saw a significant increase in the number of assets in use by Hallin
with a consequent rise in the level of turnover.

The construction of two new Saturation Diving Systems was completed during this
period and during August and September Hallin took delivery of its first four
Remote Operating Vehicles (ROV's) which have all been satisfactorily
commissioned and engaged in profitable work.

Trading levels for the year have been ahead of expectations. Profit levels would
also have been ahead of expectations except for the "one time" cost of settling
the contract dispute outlined in our Interim Results Statement which was
released in September 2006. The details of the dispute settlement are set out
below.


SETTLEMENT OF CONTRACT DISPUTE

As stated in our Interim Results Statement released in September 2006, a
significant contractual dispute arose with a key client during the trading year.

After careful consideration this was settled earlier this month and this has
resulted in a non-recurring write off of US$1.65 million.

Although Hallin's legal advice was that it was likely to be successful at
arbitration, having regard to the scale of the legal costs, the possibility of
their being irrecoverable, the extended time associated with arbitration and the
considerable ongoing impact on management resources, the directors reluctantly
decided, on balance, it was in the long term interests of the Company to settle
the dispute. As a result, invoices outstanding with the client to a value of
some US$5 million have now been settled.

That's probably enough for me -- okay only a little over 10% but not the patience for a price taker like this

New HMS research article Click HERE