Hi all Made call to company this morning, Christian is out of...

Hi all

Made call to company this morning, Christian is out of the office/country(i think) however I spoke to Phil Bain - media relations guy.

1. Trident has been contracted for the next 3 years in Qatar. Rov supporter is being mobilised at the moment and has 6 weeks work.
2. NPAT hit was from drop in work across Asia and the US. Both markets have picked up substantially and activity looks good going forward.
3. Company has a very large number of projects it is tendering for, alot of them being multi services contracts that are large in size and dollar value
4 Next 6 months will be profitable form an NPAT point of view as most of the 50 million of new contracts will occur and be paid for in the next 6 months, with the exception of Trident which is over 3 years. Ballpark 40 million for next 6 months in addition to ongoing work
5. Company currently tendering for more Middle east work which is looking good.
6. He didn't know sensitivities to AUD on revenue and profit but will ask finance and get back to me
7. There were some technical issues with Nepsys on the last jobs with a couple of the seals needing additional work, this is being remedied.
8. I also asked for a broad idea on the $ value of contracts currently being bid for, not sure whether he can provide but he said he would look into it.
9 NWS work may start flowing from the end of this year
10. He said activity is robust at present and if it continues NMS will have a very good bounce in revenue and profits.
11. contract wins may start within 6 -8 weeks
12. free cash flow is lookibng very good.

I got a sense that from the conversation that there a re a few sizeable deals at present so on a micro level company is looking good, on a macro level activity continues to pick up across Asia and US has seen a big turnaround. Australian activity will be very high over the next 1-5 years.

Overall seems like a buy to me, I think next 6 months is definitely looking good and we will know over this time frame how the future is looking based on the contracts the can secure.

Hope this helps