MMA Offshore Sells Batam Shipyard

Friday, December 2, 2022

Australian offshore vessel operator MMA Offshore has completed the sale of its shipyard in Batam, Indonesia.

The planned sale was first announced back in May when MMA Offshore said it would sell its shipyard facility to Wasco Engineering Group.

"The final installment of the US$15 million purchase price has been received with the total proceeds from the sale to be used to make a voluntary prepayment of amortization on the company’s debt facility," MMA Offshore said Friday.

MMA Offshore said that this debt reduction was expected to result in interest savings of ~A$1.3 million per year and that it deferred the next scheduled amortization payment to June 2024 (A$5.5 million) with a final amortization payment of A$7.5 million be completed prior to the facility maturity in January 2025. 

Following the completion of the sale, MMA’s net debt position (including ~A$13 million of lease liabilities) has reduced to ~A$30 million (on an unaudited basis) which equates to a net debt leverage ratio of less than 1.0x, based on the Company’s FY22 EBITDA, the company said.

As a result of the transaction, MMA Offshore's net tangible assets (“NTA”) have increased by ~ 5 cents per share from the 30 June 2022 NTA position of 95 cents (on a pro-forma basis), the company said.

MMA’s Managing Director, David Ross said: “We are pleased to conclude the sale of the Batam shipyard facility which completes MMA’s non-core asset divestment program. Our strengthened balance sheet provides additional flexibility with regard to capital management and positions MMA well to take advantage of growth opportunities and capitalise on the positive momentum we are currently seeing in our key markets.”

MMA Offshore's Batam Shipyard facility spans just over 18 hectares, with warehouse storage, significant open laydown area, and direct water-frontage. MMA Offshore bought it in 2014.


Categories: Energy Vessels Coastal/Inland Industry News Activity Asia

Related Stories

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Sapura Energy Scoops Close to $9M for O&M Work off Malaysia

Borr Drilling Bags Three New Assignments for its Jack-Up Drilling Rigs

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Jadestone Submits Field Development Plan for Assets Off Vietnam

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Marine Masters Secures Wellhead Platforms Installation Job Off India

MODEC and Samsung Team Up to Install Carbon Capture Tech on FPSO

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Current News

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Mitigate SCC & HE to Keep Offshore Metal Structures Ship Shape

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com