Set to grind higher, page-28

Thanks. You seem to know a lot about the OSV market. You said vessels are being sold 20-30% of book value. Any insights into why the impairment charge and notes on page 83 in the latest annual report is not reflecting that?

"The recoverable amount of the vessels was determined using a market based approach, reflecting the value which could be expected to be realised through the disposal of the vessels with reference to recent transactions for similar vessels in the current market.

An independent valuation of the fleet was undertaken by a specialist marine valuation consultancy and ship broking company. In preparing their Valuation Report, some of the factors they considered included the current market conditions in which the vessels operate, a review of recent vessel sales and consideration of the specification and earnings potential of each vessel."

They have switched impairment testing to fair value less costs of disposal (FVLCOD) for the 1st time in 2016.