Mermaids, page-45

First 45 Last

Share
Profile

Follow
schmoove

689 Posts.

19

29/07/16

10:38

Post #: 18396655
Share

Originally posted by Austinhealeysprite ↑

Hi Croasian.

Good post above, appreciate your points of view to the debate.

In relation to 25 percent of book value as the sale price of vessels, 25 percent is actually pretty hard to get and its only the cheaper, older and more depreciated boats that will even sell.

For MRM I do not argue that they need to impair all of their boats as we know some will find work on the good contracts such as Inpex and we know the newer or new boats go on such contracts and their values are OK.

But at the same time industry utilisation seems to be around 30 to 40 percent of vessels. This means that 60 to 70 percent of boats are sitting unused based on industry stats. I have not seen an MRM stat for some time.

The cheapest way to store an unused boat is to cold stack it. Basically that means anchor it, take out the keys and turn it off. Pretty soon tho problems arise. Rusted hydraulics, cooling systems not working, safety gear stuffed, moisture in electrics, the list goes on and on. After all, these are iron based boats sitting in salt water. Boats can not be compared to prepared alloy jets sitting in the dry desert of the airline industry (which springs to mind sometimes when thinking of OSV's). Putting a cold stacked boat back to work requires capex and even then that boat is likely lower valued in real terms as you can hang your hat on one thing and that is that it it will be less reliable.

I am firmly of the belief that MRM will need to write down their fleet and we should see that in the coming weeks. At that point the NTA backing many investors hold on to will be significantly weakened.

Expand

And look at the final part.
It happened today.
Exactly right.
That was a very good call.
Well done AHS!

MRM Price at posting: 29.5¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Optimising your equity market strategy: Tips for investors

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

There are more pages in this discussion • 9 more messages in this thread...

First 45 Last

Add MRM (ASX) to my watchlist

Mermaids, page-45

Top Stories

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Optimising your equity market strategy: Tips for investors

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Featured News