CLO lays gas pipes on the NW Shelf and other work.MRM is the marine side,having boats and pipelaying equipment;also they have completed an onshore facility on the Burrup Peninsular.At this facility they can assemble and weld the pipes which are towed out to sea and sunk in position.The Burrup Peninsular is built out and there is nowhere else suitable for similar setups.These contracts are very large $$$$.Owning 20% of MRM is the Singapore Port Authority;some ship maintenance in the region was done in Singapore but now they have a bit of MRM expect a lot of work being done at MRM which is much closer.MRM have just updated their fleet of boats so can take on any work.They work closely with Apache Oil of USA in the region.As Clough get more of these contracts so the work flows to MRM for execution;Clough are the engineers.The US is apparently very short of LNG so expect more gas fields to be opened up in the region in the short term.At $18 million MRM is grossly undervalued.
CLO Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
