Australia’s MMA Offshore, which just reported a A$324 million ($248m) loss for the first half of its financial year, has announced the sale of its Dampier and Broome Supply Bases to Japanese-owned Toll Group.
MMA said it will realise around A$44.1 million ($33.8m) from the sale of the Dampier Supply Base asset and A$8.7 million ($6.7m) from its 50% interest in the Toll Mermaid Logistics Broome Supply Base. Net proceeds from the transactions will be applied to debt reduction.
As part of the agreement, MMA will continue to operate the Dampier Slipway facility for at least 12 months under a service agreement, and it will continue to serve as a vessel maintenance and repair facility for MMA’s Australian fleet as well as third party vessel operators in the region.
Tony Howarth, chairman of MMA Offshore, said: “The sale of the Supply Base assets marks a significant step in the strategic repositioning of MMA’s asset portfolio and is supported by the Company’s Banking Syndicate.
“Historically the Supply Base assets were a significant contributor to the earnings of our predominantly Australian focussed operations. However, in recent years the Supply Base business has become less significant as the Company has focused its strategy on its Australian and international offshore vessel operations.”
The sale is part of MMA’s strategy to rationalise non-core assets and reduce debt, which Howarth says will better position the company to take advantage of improved oil and gas market conditions when they occur.
The Dampier Supply Base sale is expected to complete by June 2017, while the Broome Supply Base sale should be completed by April 2017. The deals are subject to regulatory approval.