Where to ...supply base?, page-60

Thanks. Forgot about one of them being JV only.

Just looked at its 2016AR again and honestly, doesn't change my thinking though.

I mean, the majority of MRM's longterm assets ($615M compare to $341M) are classified as overseas - not in Australia. So if the advantage to be

Operating bases do not just mean profit, it also mean expenses. This comes to about $56M in slipway and bases for 2016. This figure is, I'm assuming, for both the Australian and Indo/Singaporean bases and slipways.

With expenses of $56M, Revenue of $66M [note 4e], assets booked at $78M (note 4c).. .pretty good margin. Though might not be as impressive if we take that these assets were booked at $148M in 2015.

But seeing how unless we goes back before Jaya and do some maths on what portion of the above are from the Australia business and which from Jaya.

Let's be generous and just split the assets and profit into either 50/50 or 60/40. So the Aussie bases and slipway would earn about $5M; its assets about $40M.... flog these off for some $54M.

In the good years, this is a bad deal. We're not in good years and to flog something we have on our book for at least its book value or higher... not exactly a fire sale.


Then we can argue whether or not these Aussie bases are that crown jewel when the good time rolls back again.

Asians work for less right? New vessel manufacturing, maintenance/fabrication can be done cheaper in Indonesia and Singapore.

So when the good times rocks back in, it's arguable whether an Australian or an Asian centre is more profitable to operate.

As to the base and slipway providing cheap/free docking... it's cheaper to dock them at its Asian bases.


In other news, Transocean just recently got an offer for its 12 offshore platforms - going at about $US1.1B.
There's a bunch of tendering activities for Mexico's offshore acreage recently.

For a company with still some $600M in NTA, revenues of some $480M in its bad (worst?) year, selling for the equivalent of $80M.

Might work out well I think.