Agree 100% with regard to the additional interest cost and higher depreciation, I had the same notes on my worksheet (envelope).
Getting into the marine services business creates more risk also (as well as higher margins), they will have equipment etc. Their previous (old) business was very low on capex and was easily scale-able up or down. It's not a large part of their business (yet?), but gives me pause for thought.
Although at a guess I feel business will be a bit better than this past year. There will be margin pressure, but I also think that SKE will remain on the panel (approved supplier list) of many clients whereas some smaller operators will be removed. I think we might see something from Roy Hill also. Thanks for the comment on Gorgon I hadn't considered that tapering so soon.
Conservative is good. I tend to be a bit provocative here on HC, its nice to draw out some debate and also other may see what I have missed.
SKE Price at posting:
$3.36 Sentiment: Buy Disclosure: Held
