Where to ...supply base?, page-33

In hindsight it's easy to judge where they went wrong. Scanning through that offer document, I'm not sure they overpaid for Jaya at the time.

Price was $550M.

Asset [assumed book value ] was $619M. Revenue $121M. EBITDA $59M.

That's not overly excessive if they think oil won't suffer a crash anytime soon. Quite a reasonable price under that reasonable assumption.

I mean, the oil crash was intentional. Done for strategic and geopolitical reason. Oil didn't crash because the world have gotten out of it and are into renewables.

It crashed because OPEC [Saudi Arabia] was told by the US to raise its supplies to crush Russia and Venezuela. Saudi complies because that's what little lieutenants must do... that and they can console themselves to being strategic and put US Shale out to defend market share.

Hard to predict what people will do.


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From that document, MRM management said they plan to use those bases for logistical support in the medium term. Long term to engineer/fabricate for the offshore market.

As to why the sales of Australian bases... beside what we and others have speculate... possible they also want to do it to prevent a takeover from foreign operators hoping to come on in on the cheap.

Harder to make the case of buying a company just for its vessels; harder still for a Singaporean business to buy an Australian one without any bases to operate on over here.

Well, that just take away my hope of a takeover, but yea... Telling you as I always tell myself when I buy and it didn't work out soon enough: I'm a long term investor