When it comes to offshore services, time spent at dock is time wasted but comfortably on top of that, MMA Offshore (ASX: MRM) is set to deploy MMA Pinnacle to Qatar within just weeks of finishing another 3-year offshore contract.
The new deal is valued at $23 million with MMA to provide offshore construction support in Qatar for a range of subsea services around pipeline installation. The work is expected to commence in June 2022 and run through to December 2022 with MMA Pinnacle being a multi-purpose support vessel.
“This project marks a major milestone for MMA, securing a significant integrated subsea services contract which utilises our subsea skills and vessel in combination,” said MMA Managing Director, David Ross.
“The MMA Pinnacle recently returned to the fleet after a three-year fixed term charter and we are very pleased to have secured the vessel into an integrated subsea contract. We look forward to supporting our client to deliver a successful outcome on the project.”
The new contract win follows up from another win last month when MMA secured work from resources giant Woodside to deploy their MMA Inscription vessel to an offshore drilling site for 350 days.
For the half year ended 31 December 2021, MMA reported $137.3 million in revenue which represented a 14.5% increase on the previous year. EBITDA of $14.3m was down 62.7% but this was adjusted to account for one off write downs including $14.8m in debt forgiveness.
Although earnings were down, MMA has a solid pipeline of upcoming work, including long term vessel contracts worth more than $130 million of work. Further Option periods can deliver an additional $97m with some of the work having been delayed initially due to the impact of COVID-19.
While the business of offshore services has long been in operation, increased attention around clean energy have produced renewed revenue opportunities for MMA. This has included offshore wind farms which are more energy efficient than their onshore counterparts.
Further preparing for more work in this field on top of recurring oil and gas projects around the world, MMA has been upgrading their fleet to incorporate more battery technology while strengthening their balance sheet with the sale of underutilised vessels and facilities that have delivered $32m in sale proceeds over the past three months.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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