MMA cash as­set hit

Pilbara News - - News - Stu­art McKin­non

Strug­gling oil and gas ser­vices com­pany MMA Off­shore has warned of a $140 mil­lion non-cash im­pair­ment on the car­ry­ing value of its as­sets in its full-year re­sults.

“The im­pair­ment charge re­flects the on­go­ing im­pact on the com­pany’s op­er­a­tions of the low oil price en­vi­ron­ment which has led to a sig­nif­i­cant re­duc­tion in oil and gas-re­lated ac­tiv­ity in both the Aus­tralian and in­ter­na­tional mar­kets,” MMA Off­shore said in a state­ment.

“The com­pany ex­pects to recog­nise the im­pair­ment charge across the car­ry­ing value of the as­sets in each of its three op­er­at­ing di­vi­sions.”

MMA spec­i­fied the im­pair­ments as $3 mil­lion against the Dampier Slip­way, $37 mil­lion against the Dampier Sup­ply Base and $100 mil­lion against the value of the com­pany’s fleet of ves­sels.

The ex­act value of the im­pair­ments is sub­ject to fi­nal­i­sa­tion of the com­pany’s full-year au­dited ac­counts.

MMA said the non-cash im­pair­ment charges would not af­fect the com­pany’s com­pli­ance with its debt fa­cil­ity covenants.

Last month, MMA down­graded its earn­ings guid­ance for this and the next fi­nan­cial year with no im­prove­ment ex­pected un­til at least fis­cal 2018.

MMA is also strug­gling to sell a tar­geted 20 per cent of its 50strong fleet in a bid to re­duce its $380 mil­lion debt.

A $78 mil­lion sales tar­get for this year will not be met. The com­pany is ex­pected to de­liver a full-year loss next month.

Shares in the com­pany are trad­ing around 10-year lows.

How­ever, bil­lion­aire Sin­ga­porean ho­tels owner and Miclyn Ex­press Off­shore founder Michael Kum has been build­ing a size­able stake in the down­trod­den com­pany. He is thought to have amassed a stake of at least 12.8 per cent.

Pic­ture: Mer­maid Ma­rine

MMA’s as­set value has suf­fered in the low oil price en­vi­ron­ment.

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