Debt-ridden MMA to sell supply bases
Struggling marine services provider MMA has made a deal to sell its North West supply bases to Toll Group to reduce debt.
The announcement came as the company reported an impairment-fuelled $324 million loss for the first half.
MMA said it would realise about $53 million from the sale of its Dampier supply base and 50 per cent share in a Broome facility.
The transaction — subject to foreign investment approval because of Toll’s Japanese ownership — is expected to complete in April.
MMA chairman Tony Howarth said the sale would reposition the company’s asset portfolio and was supported by its banking syndicate.
“In recent years, the supply base business has become less significant as the company has focused its strategy on its Australian and international offshore vessel operations,” he said.
“Proceeds from the sale will strengthen our balance sheet and position MMA to take advantage of improved oil and gas market conditions when they occur.”
Managing director Jeff Weber said MMA remained firmly committed to the Australian market through its offshore vessel services.
MMA Offshore managing director Jeff Webber with chairman Tony Howarth.