Australia's MMA Offshore Bags a $35.2M Contract to Supply OSVs to Woodside

There is tender activity in the market however rates are under significant pressure as competition for the work and margin pressure is intense. We have had success, recently securing both short term contracts and longer term contracts in Australia and internationally. We are actively pursuing other production support contracts where available. Overall utilization for the first quarter was 52 percent for the international fleet and 61 percent for the Australian fleet.

The Dampier Supply Base traded broadly in line with expectations for year to date as did the Broome Supply Base JV. Demand for Slipway services was well below expectations due to fewer offshore vessels in Australia and clients reducing costs.

MMA is trading within the banking covenants and is actively working to reduce debt through asset sales. Whilst the sale and purchase market is difficult we have seen more interest in our vessels in recent times. MMA has a young and well maintained fleet which is attractive to other operators seeking specific vessels. To date we have contracted approximately $15.5 million (AUD 22 million) in vessel sales and are continuing to pursue other sales opportunities.

MMAs cost reduction programme is on track to deliver our targeted $10.6 million (AUD 15 million) in savings and we continue to pursue opportunities for further cost savings and productivity improvements. MMA has currently two vessels cold stacked and six vessels warm stacked at our facilities in Batam and Singapore.

The award of the Woodside contract highlights MMA’s ability to secure important long term contracts by providing innovative and cost effective solutions for our clients.