MMA Offshore cuts dividend - expects tough market for some time to comeCompany News // February 24, 2016
MMA Offshore's Chairman, Tony Howarth, says market conditions in the offshore oil and gas industry continue to be very challenging with oil prices at 12 year lows. He said MMA’s first half result, whilst disappointing, was in line with expectations and reflective of current market conditions.
“In the current environment, MMA is focused on improving the business through areas that it can control such as reducing costs, increasing productivity and improving our operating performance. We believe that such actions will position the Company well to navigate through the current market downturn," said. "We are also strongly focused on our asset sales programme to reduce debt. MMA has recently renegotiated the terms and conditions of its banking facilities and is committed to reducing its debt levels to better match the company’s earnings in the current market. Given current market conditions, the MMA Board has suspended the payment of dividends in
order to retain cash to support business operations until trading conditions improve."
"Whilst there is no doubt that the company is facing difficult conditions at present, MMA is backed by quality assets and has a strong operating track record which I believe will stand us in good stead whilst we navigate through this difficult period.”
MMA’s Managing Director, Mr Jeffrey Weber, said: "At this stage, we anticipate market conditions will remain challenging for the remainder of FY16 and into FY17. We expect second half earnings to be significantly lower than the first half as a result of reduced Australian construction activity, the seasonal impact of the Southeast Asian
monsoon period and ongoing depressed market conditions.”