I'd be taking forward figures from the PRG management with a handful of salt. Blaming the falling oil price for their woes in the marine business is a worry, the nature of the work they are exposed to generally wouldn't change based on the daily price of Texas crude. In reality they would (should) have known the state of forward work for the marine business during the due diligence of the merger.
The fact that management is putting a guidance for FY17 out makes me skeptical given they haven't been able to forecast 6 months ahead. I preferred the approach McMahon had when he was CEO of SKE not proving numbers for guidance on EBIT - I don't think anyone is this sector, in this environment, can realistically forecast the future.
PRG Price at posting:
$1.18 Sentiment: Hold Disclosure: Held
