Profit up for MMA

A 34 per cent lift in first-half profit at MMA Offshore shows an improving environment for offshore service providers, with the company having won work with Woodside and Esso.

MMA’s profit came in at $14.6 million, on a revenue rise of 9.5 per cent to $130.9 million against the previous corresponding period.

New contracts for offshore vessels included with AGR, supporting drilling for the Victorian government’s CarbonNet project in the Bass Strait, and with Esso for drilling in the strait.

MMA also won a contract extension with Woodside.

Survey contracts with Inpex and Chevron were secured for the subsea business, which is integrating Neptune Marine Services.

Chairman Andrew Edwards said earnings before interest, tax, depreciation and amortisation increased 50 per cent against the first-half 2018 results, to $18.9 million.

“Global utilisation and vessel rates are beginning to improve as investment in the offshore energy sector resumes,” he said.

“The profitability of MMA’s core vessel business is highly leveraged to increasing rates and utilisation with any improvement translating to the bottom line.

“Our growth businesses of subsea services and project logistics are also set to benefit from the increase in new project activity forecast for the offshore energy sector.

“Our balance sheet remains a key focus. 

“Our debt metrics are improving, and whilst we continue to operate within our banking covenants, we are working closely with our banking syndicate, as well as reviewing the range of alternative financing options, to extend our debt beyond the current expiry of September 2021.

“Whilst the global macro environment remains uncertain, we believe the fundamentals for a continued improvement in the offshore energy markets remain sound and we expect MMA to continue to benefit from increased activity in the sector.”

Shares in MMA lifted 6.7 per cent to be 16 cents each at the close of trading.