Thanks Wombat! I like what I see! Numbers do look fine to me and...

Thanks Wombat! I like what I see!

Numbers do look fine to me and even conservative for the time they were written. I do think the EPS was always going to shrink in 2016 and 2017 compared to 2015 due to the one off Gordon related projects, but then I don't really understand Jaya or their markets to the same extent as Mermaid's. I've heard commentary though that Asia projects are generally very low cost so their cancellation is unlikely.

I'd imagine if the big Aussie projects (wheatstone, Ichthys, etc) continue MRM will possibly have earnings growth in 2016-17. How we can be trading at such a discount to asset value is beyond me. And I cant foresee dividends going down more than a couple cents by 2017. Meantime I think shareholders will be happy with the income.

I am unsure what I want from this company - reduce fleet size by retiring old assets and not renewing, or to maintain shipbuilding and perhaps grow... Many other international vessel operators have come out and said they will be looking to expand their fleet by looking at purchases of distressed assets. Could this be an opportunity for mermaid?

Also, though I don't really rate them that highly - Motley fool have identified mrm as a very undervalued company. GLTA