Stock of this shipping company has zoomed 32% in two days

Seamec has entered into a subcontract with its consortium partner in Pipeline Replacement Project (PRPVII) for subsea installation works of ONGC on unit rate basis

Shares of Seamec moved higher by 14 per cent to Rs 789.65 on the BSE in Friday's intra-day trade after the company entered into a subcontract with its consortium partner in Pipeline Replacement Project (PRPVII) for subsea installation works of the state-owned oil exploration & production company, Oil and Natural Gas Corporation (ONGC), on unit rate basis.

In the past two trading days, the stock of the shipping company has zoomed 32 per cent. In comparison, the S&P BSE Sensex was down 1.2 per cent at 59,088 at 02:19 pm. It has rebounded 40 per cent from its 52-week low of Rs 565.95, touched on February 28.

"The approximate total value of the contract, at the maximum indicated quantity of scope of work, shall be approximately Rs 80.78 crore, exclusive of GST. The work scope is to be executed over two working season i.e. till May 2024," the company said in an exchange filing .

Seamec is a subsidiary of HAL Offshore Limited (HAL). HAL is a leading, end-to-end solutions provider of underwater services and provides EPC services to the Indian Oil and Gas industry. HAL is also engaged in Charter hire of Diving Support Vessels in Mumbai High areas, undertaking diving, fire-fighting, material logistic activities etc. Over the years, HAL has developed a diversified portfolio for undertaking Turnkey projects involving sub-sea and marine services as an EPC Contractor.

India continues to be the third largest consumer for oil in the world. The government has an ambitious plan to enhance exploration of oil and gas to 0.5 million sq. km by 2025 and to one million sq. km. by 2030 with a view to increase domestic output.

Activities forecasted in oil and gas sectors will engage Company’s Diving Support Vessels. The development and replacement of pipelines, ONGC contracts and IMR jobs are the core areas where SEAMEC has dominance, the company said.