Chart has short term potential, page-371

I was scared out of MRM with a substantial loss months ago as soon as I read page 24 of the last annual report. With the utilisation and charge rates for vessels on the slide, I expected a sizable impairment would be applied. After all, if an asset is not expected to be used in the next year or two, then in my opinion it should be carried in the accounts at only scrap or resale value.
However, management has chosen to take a 5-year view based solely on their forecast of "an anticipated recovery in the price of oil during this period . . ." so as to avoid any immediate impairment in the last reporting period.

See page 2 for
The international market for offshore vessels remains very difficult with large numbers of vesselscompeting for limited work.Maiintaining utilisation remains challenging and rates have now come down by up to 50% in some markets.
Page 24
Vessel utilisation continued to fall a further 5- 10 % in the first quarter of FY16, however, began to stabilise towards the end of the reporting period to 31 December 2015. The company is forecasting a slow recovery in day rates over the next 5 year period together with a recovery in utilisation levels These rates have been estimated by management based on an anticipated recovery in the global price of oil during this period, from the present historical lows. However, if the oil price does not recover as expected during this periodit may adversely affect these rates.

The only sentence that has 100% certainty is the last, with all the rest being hypothesising and stargazing. No one knows the future, even what tomorrow will bring, so it's hopeless to make wishfull "forecasts" for the next 5 years.

I am trying to be informative here and don't mean to downramp. I wish those holding MRM well, as the oil situation could turn quickly and I am keeping a close eye on MRM for favourable news.

Cantankerous James