Mermaid Maritime (DU4.SG) below $0.50 for first time in almost 3 weeks, off 4.9% at $0.490 in active trade, extending yesterday’s 8.0% loss, on continued unease over earnings outlook, says Dow Jones.

This after oil drilling firm sold its KM-1 tender rig project for US$66.6 million ($92.4 million) to Malaysia’s Kencana Petroleum (5122.KU), incurring US$7.4 million loss. Company disposing rig (ordered in 2007 but still under construction) in bid to cut losses, citing delay in construction, cost overruns.

“The disposal will not only impair the group’s earnings power, but also significantly reduces earnings visibility,” says DBS Vickers; has Fully Valued call, cuts target price to $0.32 from $0.53 after reducing FY10-11 earnings forecasts by 74%-43%.

Near-term support at 52-week low of $0.44.