Don't be too hasty Anti - while they are indeed in a serious pickle (and have been for at least 2 years now) - in your haste to write to the company off you are overlooking the potential for corporate activity to take the company private and ride out the downturn (without the higher costs of a listed company), bring in a cornerstone shareholder with a medium term horizon (to strengthen the balance sheet), etc.
Judging by recent casualties overseas the OSV is still terrible, especially offshore, but against this there is a certain amount of Production Support & Subsea-IMR work (especially in Australian waters with all recent large gas builds) rain/hail/or shine that MRM mostly will be fulfilling, and atleast bring in a little modest bacon. The horrific new boat Cap-ex program of past few years is finally over with now, so just need enough cashflow coming in (pre D&A) to service bank loans and keep them happy. This hopefully allows a gradual ongoing slimming down in company's costs, and say new oil MT equilibrium is around US$60, the majors will still have to maintain their plant & in time seek out new reserves for depleted ones.
You are projecting all assumptions on current spot prices remaining and management being asleep at the wheel as we sail into the rocks. They are hopefully very well aware of the fragile state the company is in, and been working on solutions behind the scenes.
The boats are only worth 10-20c in the dollar if the company folds now and firesales everything. That will not be in shareholders interests, or the banks interests - so more likely they will take a more gentle approach to give company time to ride out the worst of current downturn, and hopefully things could be looking very different heading into late 2018 / early 2019 (allowing fresh investment/capital injection on more promising outlook).
I am hopeful the 3 major shareholders with 25% of the registry won't want to see their investments go up in smoke, and none have been selling to date (BlackCrane actually increasing recently) - so hopefully they also feel we may be able to hold on & get through until oil/activity/rates improve.
Perhaps I'm just a perpetual optimist, and need a good hard slap. If so - I know there are plenty of you on this forum who will be happy to give it to me!
MRM Price at posting:
15.5¢ Sentiment: Hold Disclosure: Held
