I also attended today's Perth presentation. Ill just add what I believe hasnt been covered in recent posts (apologise if I overlap).
- Robin highlighted that the ROV supporter being idle cost $2M/year. However, I believe this was once they reduce staff to the bare minimum and where under some 'special' mooring type arrangement. So initially it would have been more until they realised it wasnt getting work anytime soon
- In the presentation the sale of the Fabrication (Aus) bus, ROV supporter and USUS would be $2-$4M. If they include the Trident (not in a firesale rush but want it done this calender year)would be approx $20M. Its a farily new vessel (5 years) but without going into detail mentioned there were technical issues that would make it difficult in the long term
- Currently in discussions for growth within the Diving business but didnt expand as other companies are also interested . By the idea is to be a leader in that sector in Australia.
- Phase 2 of QatarGas contract starts in May this yea (60 days). This week past NMS submitted a tender for works the client has highlihgted would start directly after phase 2.
- All board members taking their entitlement in full, except Ross Kennnan (as he has a much higher number of shares). Robin King indicated he would buy shares even though he orginally didnt have many (due to being new). Rod Evans is apparently buying more than his entitlement.
- NMS has 2 institutional investors, WestOz and XX??. They meet with them over this 4 days presentation tour (believe in Sydney). No indication either way whether they would support the CR yet.
- Robin was asked about what would happen if the CR was not supported. explained the options clearly and didnt sugar coat it.
- In terms of the board taking a pay cut - it was highlighted that the board members at least will not take up their 10% equity remuneration this f/y. I am not sure when this would have been taken exactly. Ross Kennan apparently gets 20% which he wont take either, but God know why they pay that useless man. Get rid of him.
- A key note from one of the questions I thought was that Robin emphasise the sector they are in can only have a 3-6 month view of the work coming up (sometime less). Therefore difficult to give a forecast. However, the target is to get to a revenue of $160M with the margins in the 2H more reflective of what they expect going forward.
- Robin also highlighted that in the 1st qtr the EBIT for the Aus businesses was $7.5M and $2.5M in the UK. Highlights there are good profitable businesses but also how deterimental idle ships are. Being idle also affects the ROV and survey business as they work together. One factor for the poor performance of 1Q was BHP deferring the latest $9M contract. The Trident is used in this works so it was scheduled to earn revenue in this period but instead had a heavy toll on the EBIT.
The questions went for about an hour but thats all I can remember. Hope that helps people that couldnt attend
NMS Price at posting:
8.4¢ Sentiment: None Disclosure: Held
