I am enjoying your comments Croasian.
There is a lot of strange (imho) views related to oil price and balance sheet formula.
The interesting point is that there is likely a relationship between the problems MRM have, and these views.
The summary - very little understanding and along the lines of what Shesh from Jaya mentioned in his speech in the posts earlier. "Empire Building", "Oversupply but we are big so lets order 4 more boats" ... etc etc
Nice that there is announcement on an award of a new contract - in announcements gone by there has usually been a comment on the value of such a contract.
Why is there no comment on the value or duration of this recent contract for this "expensive" vessel?
It makes me wonder whether this is announcement designed solely for the sake of announcing rather than actually explaining how we are in fact travelling. Please excuse my cynical approach but something feels like it may be missing.
So far this feels like it has been a corporate poker game.
Like musical chairs.
The chips are laid down and final hands are being called.
The musics about to stop and the realisation seems to be there that there may be no chairs after all.
I share the views that there is very likely a sale of the supply base not far off.
I wonder if I would be interested to invest in separate company that could buy that Supply Base - i think i would have a good look.
I wonder if the supply base was sold off, how the interest would be attracted - someone would need a very very intricate understanding of all of the fundamentals that go into managing something like that. Its unlikely for everyone. Its significantly overcapitalised from all that short term gorgon work and will represent a good opportunity for someone new.
Lets pick that up in a subsequent thread in a few months time when / if that happens.
It may not be appropriate to go into that detail now.
Sufficient to say for now that its likely a topic that we see being discussed.
I am going to start off 2017 by predicting that the flexibility on lending is likely to allow more time to raise some more cash from a sale that is likely as big as the supply base. Noting the two big payments due in the first half.
Oil price and political instability is not going to see Oil recover post $62 BBL.
There does not appear to be any fundamental reason to support an increase in MRM vessel services in the next 12 months.
The last interesting comment i noticed was a theory that the value of a dead MRM would likely see present investors do alright at present levels around $0.27/$0.28c.
It is going to be interesting to see how any sale (apologies for carrying on about it like its foregone conclusion), of the Supply Base may be not too dissimilar to how (for example) Pacific Richfield assets seem to have been sold by their financiers to Seacor Holdings. Talk of soft debt terms etc ...
http://www.businesstimes.com.sg/companies-markets/seacor-buys-11-pacific-richfield-marine-vessels
IF the supply base is sold, it would surely only be reasonable to assume that the lenders would be looking after themselves first?
Imagine if the supply base became the new base upon which to build an offshore services company?
WaitandC - i guess
