Strategic Review

The Board commissioned specialist international maritime investment bank Pareto Securities to conduct a strategic review of its business plan and financial model.

Conclusion from the Pareto Securities independent review: “the Company has demonstrated a clear and sensible strategic direction”.

Review Findings

1. The non-core asset sale program the Company is working through is appropriate in the circumstances as it has allowed the Company to:

  • Reduce debt by 30% since FY2014, which is significant amongst MMA’s peers on a global scale.
  • Preserve cash that otherwise would have been spent on holding vessels in lay-up.
  • Preserve MMA’s market leading position in Australia, while streamlining the fleet into markets that are recovering (such as the maintenance and subsea sector) or are expected to recover earlier (such as the jack-up rig drilling support market).
  • Reduce the age of the core fleet to approximately 5 years, which is one of the youngest fleets amongst MMA's peers.
  • Ensure that the fleet was focused on high value add vessels rather than commoditised vessels that had no pricing power.

2. The regional structure of Australia/New Zealand, South East Asia and the Middle East/Africa (as the geographical focus for the Company's operational strategy) is appropriate for MMA’s fleet and organisational structure.

3. The Subsea Inspection, Maintenance and Repair (IMR) business is a new sector for MMA and MMA would benefit from increased scale and value adding services to extract more leverage from these assets.

4. Significant progress has been made in eliminating costs from the business and permanently lowering MMA’s cost structure while maintaining operational excellence.