We believe our competitive strengths are as follows:
Established operational track record in South East Asia and the Middle East Mermaid is one of the largest subsea engineering services providers operation in South East Asia and has a growing presence in the Middle East. We have over 10 years of experience in providing subsea engineering services and over 25 years experience in servicing the oil and gas industry. In 2005, we commenced the provision of drilling services to the South East Asia market and in 2010 expanded our subsea presence in the Middle East and Persian Gulf. We have successfully built a client base of independent and national oil and gas companies providing repeat business in Thailand, Indonesia, China, Myanmar, Russia, Saudi Arabia, Malaysia and Vietnam. Our geographical locations in both the Middle East and South East Asia allows us to respond in a timely and efficient manner to our clients' needs. We believe our emphasis on safety and our operational track record provides us with a competitive advantage in our business.
Strong client relationships and reputation Mermaid has built a reputation with our client base in both the Middle East and South East Asia as a leader in providing subsea engineering services, by consistently delivering high quality services, safely and efficiently. Our tender rigs and experienced personnel with strong technical expertise and commitment to safety have also enabled us to develop strong relationship with major oil and gas companies operation in both regions. 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, nine subsea vessels, air and saturation dive systems, and a fleet of ROVs. Additionally, we hold a 33.75% stake in Asia Offshore Drilling which has three high-specification jack-up rigs under construction and due for delivery on calendar year 2013, 1st Quarter, 2nd Quarter and 3rd Quarter, respectively. 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 believe that the ownership of our drilling and subsea 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.
Our two principal business operations reduce our earnings volatility The drilling business services both the drilling and production sectors, while the subsea 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 subsea 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 subsea 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, nine support vessels and three jack-up rigs. 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 5,714.14 million in the financial year that ended on 30 September 2012, equal to a compounded annual growth rate of 23.5%