Mermaid Marine Australia is growing its international business.
However, currently the Angola and Suez Canal- Egyptian contracts generate the company substantially larger profits than those in Australia. The cost base due of these contracts are very low compared to those in Australia, thus allowing MRM to extract far larger profits. As said in previous post the outgoings are also paid in $US. The original contracts are not converted from AUD$ to $US, so Mermaid is not exposed to the downside, rather, to the upside of the strength of the AUD$, therefore increasing its margins
Also holding costs for the international business are negligible, as there are no idle vessels or manpower or infrastructure to worry about
I do not wish to be moderated, so Mookie if you have further comments on this topic can you please take it over to the Mermaid Marine page
NMS Price at posting:
66.5¢ Sentiment: LT Buy Disclosure: Held
