Hallin Marine - HMS, A more defensive oil market play? Options

[eyecatcher]

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 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, which enables rapid response. 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.

This post has been edited by eyecatcher: Aug 15 2005, 12:48

[eyecatcher]

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.'

This post has been edited by eyecatcher: Aug 15 2005, 09:39

[eyecatcher]

Above average website, worth a look. Interewsting to see low volumes and very gentle easing of share price since June float - suggests it really has been missed by market up till now.
http://www.hallin.com.sg/

This post has been edited by eyecatcher: Aug 15 2005, 11:34

[eyecatcher]

From UK-Analyst tonight:

'News of a 5-million-dollar contract win sent shares in Hallin Marine 4p higher to 55.5p. The company, which provides subsea solutions to the oil and gas industry, announced that it expected to supply Diving Support Vessel services to the PTT 3rd Pipeline Construction Project in the Gulf of Thailand. Hallin confirmed it had received a letter of intent from Hyundai Heavy Industries regarding the contract. This is in addition to Hallin's contract with HHI, signed in July, to supply construction diving services to the same project.'

[eyecatcher]

Recent article from the 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 Marine’s 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. 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.

[eyecatcher]

Although the latest hurricane is not in HMS's region, climate change will undoubtedly put an increasing emphasis on cos like HMS imo. Both China and more significantly the Gulf of Thailand are particularly prone.

I doubled my holding today.

This post has been edited by eyecatcher: Aug 30 2005, 14:09

[eyecatcher]

Particularly strong last couple of days. I've now a decent holding (for me) of 10k shares - want to get it to 15k if funds allow at some point. breaking up through the float price.

[eyecatcher]

Superb growth reported.

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."

[eyecatcher]

Been chatting to myself on this one, while it has risen a very nice 25%. Broken above placing price of 64p having drifted back to the low 50s after flotation on what were low volumes.
Could be due a more sustained run now as confidence builds.

[camiladasi]

EC, been watching you talking to yourself, but I haven't done any research on this and so have nothing to say.

But please don't think all your good work is in vain.

tx

camlad

[eyecatcher]

This slipped through my net, very good news given that they had said in their interims it would be nice to have more business in November and December!

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'







Enquiries:


Hallin Marine 020 7457 2020
John Giddens, Chief Executive
John Quinn, Non-Executive Director



College Hill 020 7457 2020
Nick Elwes & Ben Brewerton







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.

[eyecatcher]

Looks such a solid (boring) little business. Has spent float money wisely and looks like H1 2006 earnings are already largely taken care of: Worth highlighting:

"Additional works awarded should provide full utilization through to mid 2006.'

'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.'

This post has been edited by eyecatcher: Dec 6 2005, 11:14

[eyecatcher]

Boring is the word! This stock has virtually flat-lined for seemingly ever, yet it has oil, India and China, and profit growth to its name.

Despite the yawn of a share price I am thinking of topping up, i really do believe that while oil stocks have soared this one has been unjustly ignored.

Really good nuts and bolts value investment imho.

This post has been edited by eyecatcher: Jan 16 2006, 14:04

[eyecatcher]

Strange they must have heard me!
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.

[eyecatcher]

Another piece of carefully managed growth. Seems to me from additional comments business is currently very strong.

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, has signed an agreement with Sanko Line of Japan (
www.sankolin.co.jp
)
to charter the newly built Sanko Angel, a DP2 Subsea Operations Vessel. The
charter duration is for a one year period with options for two further one year
periods.



Hallin Marine will take delivery of the new vessel in Singapore in the 4th Qtr
2006 and immediately plans to fit both one of its saturation diving systems and
an air diving system on board.



The Sanko Angel will strengthen Hallin's capabilities and provide a platform
from which to carry out offshore construction, inspection, repairs and
maintenance of new and existing oil and gas fields. Hallin is delighted to
announce the charter at a time of a shortage in the market of suitable
specialist vessels due to continuing global requirement for subsea intervention
work in the oil and gas industry.



The Dynamic Positioning Class 2 Subsea Operations Vessel has been specifically
designed to meet the requirements of the offshore oil and gas support industry.
The 76 metre Vessel, with over 700 sq metres of workable deck space, a Marine
Seabed-plumbing 50T SWL crane and accommodation for up to 132 personnel,
provides an ideal platform to support Hallin Marine's subsea diving operations.



The technically advanced Sanko Angel will eventually replace the ageing Fu Lai
that Hallin has had on long term charter for the last 2 years. The new vessel is
expected to be significantly more fuel efficient and offer an operational edge
compared to older vessels for projects the company is currently bidding or
planning to bid for.



A full Technical Specification can be found on the Hallin Website

www.hallinmarine.com

[eyecatcher]

Moving into the UK market.

Hallin Marine Subsea International Plc, the AIM quoted provider of subsea
solutions to the oil and gas industry have formed a wholly owned subsidiary,
Hallin Marine UK Ltd, to exploit the potential for its services in the North
Sea.

rom its offices in Aberdeen the company intends to compete for subsea
intervention work in the North Sea.

The managing director of Hallin Marine, John Giddens, said: 'We believe the
North Sea is potentially a very exciting market for the company and offers very
significant opportunities for our subsea intervention services.'

[eyecatcher]

I see trendwatch is recommending these as a buy (from a couple of weeks ago). This morning's RNS of purchase of ROVs (Remotely Operated Vessels) should bring new North Sea business, in addition to China, India and the Middle East.
A very smart smaller company.

[eyecatcher]

Doesn't come much better for a 20 million market cap company. One of my favourite tortoises!

Largest Contract win at US $16m, could rise to US $30m

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.

[eyecatcher]

Shows the demand, and enables them to replace one bell with two new ones, looks like they have got a terrific price.

System sold for US $5million

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and gas
industry, announces the sale of one of its Saturation Diving Systems for US$5
million net to Onyx Special Services LLC of Wisconsin, USA.

The system, HMS Sat 03, was built by Hallin at its facility in Singapore and
completed in June 2005. The system has been fully utilised since its completion,
by Hallin's client J Ray McDermott on a Unocal project in the Gulf of Thailand.

Hallin plans to build two new Saturation Diving Systems in 2006.

John Giddens, Chief Executive of Hallin Marine, said:

'It is not generally part of our business strategy to sell our Saturation
systems to other subsea Contractors. However, the post hurricane Katrina
rebuilding programme in the Gulf of Mexico has led to a considerable shortage of
subsea equipment in that area, where we are not an established operator. The
Company identified a significant opportunity to sell one of our SAT systems at
an attractive price.

'This sale will have a material benefit to the bottom line in the current year
which outweighs the loss of profits that will result from being a system short
for part of the trading year.

'The revenue generated by the sale of Sat 03 will allow us to replace it with
two new systems of the same state-of-the-art design and that work is already
under way at our Singapore base facility, both systems are scheduled to be
completed this year. As a result we expect to start 2007 operating five of our
own Sat systems with the option of a sixth system on rental.'

[eyecatcher]

Highlights

Turnover increased 32% to $26.6m (2005: $20.2m)

Gross profit increased 107% to $5.0m (2005: $2.4m)

EBITDA increased 108% to $2.9m (2004: $1.4m)

Maiden dividend payment of 1p per share

Margins increased to 18.9% from 12%

'We believe that the offshore oil and gas industry will have a high demand for
the services provided by Hallin for the foreseeable future and we look forward
with confidence to further significant progress in the current financial year.'

[eyecatcher]

A really superb write up in Shares Mag, worth the effort to read right through, here's the bulk of it, tiny bit taken out only in interests of our copyright chums:

'Record profits and bumper order books: these are recurring themes across the oil services sub-sector at the moment thanks to soaring oil prices and an overflow of projects. Underwater oil services specialist Hallin Marine is sinking its teeth into an ever-growing slice of this pie, promising to
buoy its attractive shares even further.
Earlier this week Isle of Manbased Hallin unveiled revenue
almost $2 million above analyst forecasts for 2005, worth $26.5
million. The bumper figures, its first since floating on Aim last
April, came through thanks to booming demand for its
underwater equipment and sharply rising margins.

Profits totted up to $2.3 million, more than a third higher than the $1.67
million expected by the City. Hallin was set up in 1998 by
chief exec John Giddens, a former Royal Navy diving officer with
research ship HMS Challenger. Its main business is getting crews to
go down to the seabed to work on rigs and other equipment for
the oil and gas industries. Use of clever saturation diving
systems (SATs) allows divers to go deeper – up to 200 metres
down – and stay there longer (up to 30 days) without needing to go
through the decompression process.

This is not new technology but having portable systems means
Hallin can move its kit from project to project within days.
Hallin currently has five SATs in operation, working on
installation projects, construction, maintenance,
repairs and seabed surveys. It even sold SAT recently for $5
million – it will book a $3.1 million profit on the deal in 2006
and may sell others if prices hold up well.

The company also uses air and mixed-gas diving systems and
will soon be the proud owner of four remotely operated vehicles
(ROVs) which will allow it to take on even deeper water work. They
should be up and running, or presumably down and running,
by the summer. Thanks to a fine reputation for
safety and efficiency, Hallin has been working to pretty much full
capacity – barring a minor dip last summer – for about three years,
mainly in the North Sea. However, the company is
sensibly using the £3.5 million it raised at IPO to expand its diving
services into southeast Asia and the Middle East.

Better still, last week Hallin signed its first contract in the
Gulf of Mexico with a major, if unnamed, US oil industry
contractor. Its announcement set the shares racing up to 82p and
little wonder, since it is worth $16.4 million over 12 months, a
mammoth deal that replaces twothirds of the firm’s entire revenue
last year. Better still, there is a secondyear
option, which would add another $13.9 million to income
in 2007 if it is taken up. There must be a decent chance of that.......'

'...........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, we’re 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.'

This post has been edited by eyecatcher: Mar 23 2006, 10:06

[eyecatcher]

...............Oh and spot their deliberate mistake!

Clue, Geography is not Shares Mag's strong point! :S

[eyecatcher]

When is a placing not a bad placing?

Easy, when it is a good one, caused by unprecedented demand for its services!

ALLIN 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).

[eyecatcher]

Time to pop this one back up, has missed out on the frenzy of oil stocks, (up 25% since flotation over a year ago) because it is a service sector play rather than an actual producer.

Given that the company recently said:
'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.'

I believe a re-rating is overdue and make this my top buy pick at the moment. Indeed, I added a few today.

[johnstrath]

I believe a re-rating is overdue and make this my top buy pick at the moment. Indeed, I added a few today.

So did I - it's one of my biggest holdings at the moment.

[eyecatcher]

Hi JS, well done, I managed to pick up some more today and now one of my top five shareholdings too.

This post has been edited by eyecatcher: Apr 21 2006, 17:01

[eyecatcher]

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 gold rush the wise man invests in the man who makes the shovels!'

This post has been edited by eyecatcher: Apr 22 2006, 10:41

[Teal]

Packed a small chunk of these away to give my portfolio more balance. Believe the story is very good, and feel this company is both in a very good position to benefit from the oil story and that this hasn't been reflected in the price. A longer term hold for me, unless we get some fireworks.

[eyecatcher]

Welcome board and soon to be the "good ship" Hallin too.

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.'

[johnstrath]

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.

Yeah, does seem like a good move. I'm looking to top up in the near future, but may need to sell other holdings to do so.