MMA Offshore reports better earnings

Perth-based, ASX-listed marine and subsea services company MMA Offshore Limited has seen improved earnings visibility and performance in the second half of the year.

It announced updated earnings guidance for fiscal 2024, with underlying EBITDA expected to be in the range of $146 million to $149 million and underlying EBIT expected to be in the range of $96 million to $99 million.

The results follow the successful completion of a number of projects.

The positive result was also driven by: negotiated payments including: payment of unused contracted service days; negotiated recovery from customers of previously incurred costs; a change in the scope of a project for which contractual negotiations had predicted significantly poorer performance; and significant completion of a key subsea project, with results exceeding forecasts in most cases, thanks to what MMA said was effective execution and cost management.

“The current trading environment, combined with the above payments, is expected to result in the final quarter of this fiscal year outperforming the projections included in MMA’s previous earnings guidance,” the report said.

MMA remains focused on building its 2025 contract work portfolio and securing long-term contract positions to improve overall earnings stability in the coming years.

The MMA Directors continue to unanimously recommend that MMA shareholders vote in favor of the Scheme of Arrangement with Cyan MMA Holdings Pty Ltd, absent a better proposal and provided that the Independent Expert continues to determine that the Scheme is in the best interests of MMA shareholders

MMA Offshore offers global marine and subsea services with a fleet of modern offshore vessels that are pioneering blue solutions to support energy and marine renewable energy projects, governments and offshore infrastructure around the world.

Headquartered in Perth, MMA has offices in Singapore, Taiwan, Malaysia, Dubai and the United Kingdom.