MRM is still generating strong operational cash at these levels,...

MRM is still generating strong operational cash at these levels, with high depreciation. Unfortunately, it is all committed at the moment to the new vessels under construction. (Look at the annual report presentation. Cash at bank went from $143.5 million at 31 December to $140 million now despite the fact that there is $39 million of capex in this half year to June 15).

There is $88m of capex to finish the last four vessels in 2015/2016. Once those new vessels are complete (early next year), with no further deterioration in the market, MRM will be generating good cashflow to pay down debt. In the interim I would prefer dividends to be suspended, since the debt is the key risk at the moment.

dyor