Today's announcement is good evidence of what is happening re...

Today's announcement is good evidence of what is happening re day rates, eg the 3 boats in the Middle East where contracts are being re neg.

The competition in the industry is immense and MRM need to cut rates to get utilisation or another operator will take their spot and MRMs boats will go into stack. In other words the whole industry is running boats at cash cost or thereabouts. No money for maintaining the boats, depreciation or capital holders. To me today's announcement is just evidence of MRM needing to do what it's US competitors are doing (exactly as described above).

Unfortunately the announcement today will only be one of many where the pressure on rates will occur. That means that MRMs revenue for this brand new financial year will be even lower than their amended projections. Watch the future announcements....