Marine construction specialists MMA Offshore (ASX: MMA) has secured three contracts for a range of offshore wind farm services where they will mobilise three vessels off the coast of Taiwan.
East Asia has emerged as a core focus for MMA’s offshore services where the region is making a concerted effort to improve its clean energy capabilities with the view of reducing its reliance on coal. Under these contracts which total approximately $7 million in revenue, MMA will deploy three of their vessels for a total of 270 days at sea with additional option periods totaling another 118 days.
“We are extremely pleased to secure these contracts which further establish MMA’s presence in servicing our offshore wind market clients in Taiwan,” said MMA Offshore Managing Director, David Ross.
“This is a key strategic focus area for the business as we diversify our service offering into supporting the growing offshore renewables market.”
MMA Pride will disembark in early April 2021 with the vessel to provide accommodation and walk-to-work services at the Changhua wind farm while MMA Crystal will be simultaneously deployed to the Formosa 2 wind farm.
The third vessel, MMA Responder will sail out in June 2021 to commence turbine installation works on the Changfang and Xidao wind farm project.
For the Half-Year ended 31 December 2020, MMA reported a 8.4% decline in year-on-year revenue to $119.8 million however net profit after tax increased substantially by 259% to $15.5m as the Company returned to profitability.
With a strong balance sheet of more than $92m cash at bank reported in the H1 financials, MMA Offshore will proceed with their revenue growth strategy where they are also actively targeting defence industry projects alongside offshore renewables.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, bloodstock enthusiast and former Analyst.
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