Sale of Vessels & Supply Base

MMA Offshore has been rationalising its asset base through the sale of non-core assets, which has supported numerous strategic objectives that are in the best interests of MMA Offshore and its shareholders (as described further in the Company's Notice of 2017 Annual General Meeting):

1. Value achieved from vessel sales to date is $34m higher than the estimated realisable value of those vessels today.

Achieved Value

Source: Pareto Securities Report, “Analysis of certain assertions made by Halom”, 27 October 2017

2. MMA Offshore has achieved cash savings of more than $5 million per annum in lay-up costs.

Annual Cost Savings

Source: Pareto Securities Report, “Analysis of certain assertions made by Halom”, 27 October 2017

3. We have targeted sales of our older vessels, reducing the age profile of our fleet to one of the youngest profiles of our Peer Companies.

Average Age

Source: Pareto Securities Report, “Analysis of certain assertions made by Halom”, 27 October 2017

4. We have targeted sales of our smaller vessels, optimising the fleet to match our customer requirements.

Average Size

Source: Pareto Securities Report, “Analysis of certain assertions made by Halom”, 27 October 2017

Supply Base Sales

Due to the wind down of the Gorgon LNG Project construction phase and the decision not to proceed with the Browse LNG Project, the profitability of MMA's Australian Supply Base assets had reduced considerably in recent times. Demand for supply bases services in the region is not expected to recover in the foreseeable future and as such MMA Offshore considered that these assets no longer retained their previous strategic value.

Dampier Supply Base EBITDA

Source: MMA Half Year Results Investor Presentation, 31 December 2016

MMA Offshore therefore sought to realise maximum value from these assets through a sales process. The sales proceeds were used to reduce debt.

It is worth noting, that none of the companies in the Peer Group owns a supply base.