Just took a closer look and they sold the bases and slipway for about $16.9M less than last year's book value. That's about 25% off. These assets earn EBIT of about $1M last six months... So maybe they are non-core assets.
It is a shame as I too thought the two bases would be quite important to its overall service delivery cycle/diversification etc. But though times so yea.
They still have two bases/yard in Batam and Singapore, might be cheaper to operate there than in Australia. Especially when the distance to the North/West offshore fields are not too significantly different.
On the positive side... not needing to raise equity for at least a year; with debt repayment pushed back two and a half year; with oil looking to be returning to a more profitable range for oilers. Demand for MRM's services will pick up over the coming two years.
So a company that looks like it's going to survive without diluting its shareholding, selling for around 1/3 its book value.
Wouldn't be at these prices if it's all smooth sailing. But yea, I got my orders in. Let's hope the market think differently.
Just took a closer look and they sold the bases and slipway for...
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