Interesting session today in Melbourne. MO didn't arrive until question time.... better than his last effort when he didn't arrive at all.
In question time, I gave MO a bit of a hard time on why the CETO 5 buoys were decommissioned and he initially gave the standard response about having met all the contract conditions etc for their funding approval. However on pushing harder on the issue, MO revealed that a major and he emphasised major reason was for Tax reasons.
He wen on to explain that with the CETO 5 project completed and decommissioned the CETO 5 project was the written off completely which enabled CWE to claim 45% tax deduction off the total R&D cost of the project which resulted in a payment of $12 million directly on to the bottom line.
I found this very enlightening as it never made sense to simply remove them
MO took on board the fact that communication to shareholders had not been well managed with respect to the decommissioning of the CETO 5 project. Particularly when I emphasised that the decommissioning was first raised on HT with photographic proof of the buoys sitting on the wharf.
Well done to our very observant jet skiers in exposing this
CWE Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
