The MMA Offshore Ltd (ASX: MRM) share price has opened flat today after the company posted its results for the 2019 financial year to the ASX before trading this morning. MMA Offshore provides a diverse range of marine services primarily to major oil and gas exploration and production companies.
What were MMA's numbers like?
Revenue came in at $239.3 million for the 2019 financial year (FY19) – up 19.4% on FY18's $200.4 million, while earnings (EBITDA) came in at $27.8 million – up 50.3% on FY18's $18.5 million.
Almost half (47%) of MMA's revenue is under 'firm contract' – including with large ASX oil companies such as Woodside Petroleum Ltd (ASX: WPL) and Santos Ltd (ASX: STO).
Meanwhile, MMA's cash on hand is sitting at $70.2 million (as of 30 June) while net debt is at $200 million.
MMA took a $10.4 million hit on impairment of assets, which dragged its normalised earnings (EBIT) to a $7.5 million loss. This translated into an overall reported net loss after tax of $37.4 million – up from a loss of $27.9 million in FY18.
In normalised terms, MMA booked a $27 million loss for FY19 – down from the $36.3 million loss in FY18.
Earnings per share came in at a negative 3.2 cents per share – up from FY18's negative 5.6 cents per share.
Outlook for MMA
The company will be primarily focusing on generating a higher return on assets going forward, with MMA's recently announced acquisition of Neptune Marine Services Ltd (ASX: NMS) to play an important role in expanding into the subsea services area (inspection, maintenance and repairs). The company hopes to have the acquisition finalised by November 2019, pending shareholder approval.
Meanwhile, the fleet utilisation rate has increased from 68% in FY18 to 72% in FY19 with a higher weighting to larger vessels and MMA is expecting this trend to continue as well.
The company has not provided specific guidance for FY20, but management at MMA is confident that the industry is in "an early stage of recovery" and also expects to see a "continuing improvement in EBITDA during FY2020."
