Competitive StrengthsWe believe our competitive strengths are as follows:
Established operational track record in South East Asia. Mermaid is one of the largest sub-sea engineering services providers operating in South East Asia. We have over 10 years of experience in providing sub-sea engineering services and over 25 years experience in servicing the oil and gas industry in South East Asia. In 2005, we commenced the provision of drilling services to the South East Asia market. We have successfully built a client base of independent and national oil and gas companies providing repeat business in Thailand, Indonesia, China, Myanmar, Russia, Malaysia, and Vietnam. Our geographical base in South East Asia allows us to respond in a timely and efficient manner to our clients' needs. We believe our emphasis on quality and safety and our operational track record provide us with a competitive advantage in our business.
Strong client relationships and reputation. Mermaid has built a reputation with our client base in South East Asia as a leader in providing sub-sea engineering services, by consistently delivering high quality services, safely and efficiently. Our efficient tender rigs and experienced personnel with strong technical expertise and commitment to safety have also enabled us to develop strong relationships with major oil and gas companies operating in South East Asia. We believe our relationships and reputation will result in the continued demand for our services, which can be measured by the volume of repeat business.
Superior service and cost effectiveness through ownership of assets and facilities. Mermaid owns and operates two tender rigs, five sub-sea vessels, air and saturation dive systems, and a fleet of ROVs. We operate a world class facility at our operational base in Chonburi, Thailand. This facility allows us to control our own maintenance and refurbishment requirements of equipment, and, more importantly, the facility's geographical location allows us to mobilise expeditiously and efficiently to our clients' locations. We also have our entire senior management team based here allowing for regular reviews of our business. We believe the ownership of our drilling and sub-sea engineering assets as opposed to chartering provides us with the ability to: (i) provide superior and customised services to our clients; (ii) maintain better control of our operating costs; and (iii) provide competitive market pricing. Asset ownership also results in client recognition that we are a committed drilling and sub-sea engineering services provider. This allows for longer-term relationships with our clients.
However, under certain market conditions, chartering vessels may be financially attractive. By chartering vessels, we are able to increase our capacity without incurring additional capital expenditure. Further, in periods of excess capacity, we would also be able to reduce any unnecessary capacity by terminating such charter arrangements, subject to contractual terms. We operate one DP2 construction vessel and an additional DP2 ROV/air dive support vessel under such charters.
Our two principal business operations reduce our earnings volatility. The drilling business services both the drilling and production sectors, while the sub-sea engineering business typically services the production sector. By servicing both sectors, we seek to reduce the volatility in our earnings. Our drilling services contracts are generally longer-term in nature, while our sub-sea engineering contracts are generally shorter-term in nature. By having a mix of both longer and shorter-term contracts, we seek to reduce the volatility in our sales and maximise our profits by locking in longer-term contracts when rates are favourable, particularly in relation to our drilling contracts, and using shorter-term contracts when they are not.
Experienced management. Mermaid's senior management has an average of over 25 years of experience in providing drilling or sub-sea engineering services internationally. Members of our senior management have extensive operational experience with recognised industry leaders operating in all major offshore oil and gas locations. Our management and employees have undergone extensive training and development programs in order for us to meet our clients' needs and provide safe and efficient drilling and sub-sea engineering services.
Our management has a proven track record of growing businesses through acquisitions and organically. Our management has overseen the acquisition and successful integration of our two tender rigs and five support vessels. As a result, our service income and sales have grown significantly from THB 1,307.46 million in the financial year that ended on 30 September 2005 to THB 5,285.44 million in the financial year that ended on 30 September 2008, equal to a compounded annual growth rate of 59.3%