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33.0¢ mma offshore limited

So if there is a C/R - how much will be needed, page-10

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croasian

2,211 Posts.

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28/06/16

10:31

Post #: 18138656
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Originally posted by Pardner ↑

The presentation that went with the December half profit announcement stated vessel utilisation was 60%. The Australian vessel business is protected by the requirement to man the ships with Australian crew. So, the Australian vessel utilisation is likely to be higher than 60% and the Jaya fleet utilisation lower; if the Australian fleet utilisation is 70% then the Jaya utilisation is approximately 50%. At this level revenue wont cover cash cost and, at that point, the business is currently worthless. I have no doubt MRM would have survived this oil price shock prior to the Jaya acquisition. If the current oil price conditions remain for (say) another 2 years then Jaya is the millstone I allude to above.

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That's a useful insight thanks, happy to be corrected blame should go on management in this case.
I umderstand they took on 178m of debt for the aquisition as well so it would be a very different picture today if they hadn't made that decision. I still think this company is worth watching to see how this plays out though.

Last edited by croasian: 28/06/16

MRM Price at posting: 31.0¢ Sentiment: None Disclosure: Not Held
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