Ann: Divestment of Hofco Oil Field Services, page-15

I do not agree with your survival scenario.

A few remarks:
- Net margins for any catering and/or logistics businesses are minuscule. You can look at 2-6% at max in my opinion across many regions and industries.
- RCH is not worth much very much to me too. They lease most of the equipment they have, so there isn't really much EBITDA (they had a negative EBIT margin, even before impariments). On top of that, Royal Wolf has massive leverage over them it seems. In the half year report, it was even mentioned that the equity raise was to satisfy RW's credit needs. TTN has to pay a 10% interest rate on deferred lease payments. Taking these points into consideration, not subtracting the leasing debt is wrong in my opinion. The debt will only be manageable when they can maintain a high level of utilization. This will be a tough job in the current climate.

These businesses had huge margins in the recent past due to the big capex cycle in the industry (CSG). When companies do capex, they are a lot less price sensitive then when they are pressured in a lower price opex environment. Have a look at the mining services sector for what kind of margin normalization you can expect here.

All that leaves is Atlas.

I have a pretty favorable opinion about them, since their MD came form Hughes, which is one of the best in the drilling business. Still, you can't change the macro environment.
The current book value of the rigs is just shy of 14 million. You could argue that this is a reasonable valuation in some sense.
Still, expect them to loose money for a while, considering they have just 1 active rig right now.
What kind of margins can you expect in a normal business scenario?

Asset turns on drilling rigs are about 0,8x-1x on average with EBITDA margins usually somewhere between 15 and 25%. That holds about up for Atlas too.
Revenues should thus be around 30 million, and with an average EBITDA margin of 20%, this gives 6 Million in EBITDA. That would be great, if they didn't have a management ant bureaucracy which takes home about 7 million a year.
One more remark. Don't forget that they will probably do 2-3 years before they will reach these revenue and ebitda levels again. so patience is required.
The calculation about NLAV is also flawed, considering they are clearly cash-flow negative right now, and will probably remain this way for at least a few more quarters to come. So the question that should be posed is: "what will be the remaining NLAV when the business will normalize".

Conclusion: Most Value is in Altas, and is dependent upon rightsizing the business (lowering SG&A). That aside, in the short run there is quite some uncertainty since the limited liquidity they have and the deteriorating market. Could be worth a shot, but there are better risk reward situations out there. Possible upside is maybe 2-3 times, but with a high chance of permanent loss of capital as well.