Australia's MMA Offshore Limited (MMA or the Company) has been awarded a contract by Woodside Energy Ltd. (Woodside) valued at approximately $35.2 million (AUD 50 million).
The Woodside Integrated Fleet Contract (Contract) will see MMA provide three vessels to support Woodside’s offshore Northwest Shelf, Pluto and AusOil production assets in Australia’s North West region. The three vessels to be chartered under the Contract include two of MMA’s purpose built Offtake Support Vessels (OSVs) (the Mermaid Sound and the Mermaid Strait) and a modern, high specification Platform Supply Vessel (PSV) (the Mermaid Leeuwin).
The Contract for the three vessels is for a firm period plus a number of options. Should all options be exercised, the Contract value would be approximately $77.5 million (AUD 110 million) in total.
Commenting on the award, MMA’s Managing Director, Jeff Weber, said:
“The significance of the Contract in the current competitive market cannot be overstated. There is enormous pressure on the offshore marine industry to achieve sustainable cost positions without compromising quality operations. The award of this Contract is an endorsement of our ability to support world class operators in this challenging economic time and to provide cost effective solutions. Our focus on providing specialist vessels, innovative technical solutions and reliable safe operations remains a competitive advantage in the offshore marine industry. We look forward to continuing our long-standing relationship with Woodside in the North West.”
The offshore Oil and Gas vessel market remains under significant pressure due to low oil prices and substantially reduced demand for services across all sectors of the market. As a result, the first four months of trading were lower than expected with market conditions unlikely to improve through FY2016. The Company continues to generate positive operating cash flows and expects to deliver EBITDA in the region of $52.8-59.9 (AUD 75-85 million) for the full year but with a low level of visibility of demand for the second half of the financial year.
MMA is currently supplying services to Technip for the Wheatstone project with the current scope expected to complete by January 2016. In addition Gorgon related activity continues to decline and the accommodation vessel Silja Europa will complete its contract in December 2015 which will impact second half earnings.
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