a cosy fireside chat

today i took the big leap and spoke with the main man.

pleasant throughout, and happy to answer 'most' things openly, expanding where he could.

the 2 cancelled acquisitions were discussed. his position on the way the core announcement was handled (read the posts of the time) hasnt changed. he felt WOR's forex issues were effecting NMS SP (and other related co's) more than any rumour of core not going ahead. the GOM acq was cancelled simply due to those owners wanting in excess of what they CL was prepared to pay.

i stated my belief that the SP often moves PRIOR to announcements of contracts etc. initially CL disagreed, but was also aware industry whispers were often correct, and there is not a lot that can stop that.

i discussed the price paid for STS. some industry insiders suggested to me that NMS overpaid, considering they were receiving 11 aging but well maintained & upgraded ROV's and 2 managers. CL reiterated there were also 30 staff, ongoing contracts across the world & STS have a very well respected name in the industry. i will add that other insiders suggested NMS got a bargain - time will tell.

i asked whether & how CL can better disclose info to shareholders, like contract values & clients. CL agreed it is something to consider, but also stressed the complications that must be overcome if a client is to be revealed in releases from NMS. it is not simply saying who the client is - it often involves a separate feature of the contract if the client is to be revealed, and the value of the contract. such issues can delay deals, and also delay announcing them. this is because of the nature of IRM - the client has faults & problems, but doesnt want to reveal them to competitors.

as far as gorgon, and when NMS can expect work to come their way, CL said it is possible NMS could acquire some engineering work over the next 12 months, but it is installation of equipment where NMS can hope to gain some significant work. he suggested follow the timeframe involved in the pluto project. it is only relatively recently that NMS became really involved in pluto, and hence with the gorgon go-ahead only a few months ago it is likely 2011 before NMS get their chance on the bigger deals.

yes plenty more questions could have been asked, but time ran out. if your questions werent answered, then make the call yourself. hopefully next year it will be just too hard to get hold of him.