Why is MMA Offshore (ASX: MRM) up over 75% in one year?

4 min read | November 10, 2023 10:42 AM AEDT | By Team Kalkine Media

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Why is MMA Offshore (ASX: MRM) up over 75% in one year? — Image source: Pixabay

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Highlights

In FY23, MMA Offshore registered 115% YoY rise in EBITDA

The company has gained a contract from Australian Department of Defence which is expected to generate revenue of AUD 30 million

The highest stake in MRM is held by Thorney Investment Group, with a shareholding of around 10.47%

MMA Offshore Limited (ASX:MRM) is an ASX-listed firm which offers vessels and a comprehensive suite of marine and subsea services. The company mainly caters to the maritime, government and defence industries and offshore energy sector.

IN the financial year 2023 (FY23), MRM recorded 233% YoY increase in cash flow to AUD 50.5 million. Revenue of the company increased by 9% YoY to AUD 308.3 million and EBITDA surged by 115% YoY to AUD 69.3 million. The period saw positive fundamentals because of visible improvement in the demand for vessels and subsea services.

Top 10 shareholders of MRM

The top 10 shareholders of MRM have nearly 41.61% shareholding in the company. The highest stake is held by Thorney Investment Group, with a shareholding of around 10.47%.

Recent business update

Today (9 November 2023), through an ASX filing, the company informed that it has bought a multi-purpose support vessel – “Offshore Solution” to assist its multi-purpose support vessel fleet.

The vessel has been purchased from Gurdian Offshore for AUD 14 million, which would be funded by existing cash reserve of MMA.

Through an ASX update dated 18 October 2023, the company shared that it has been granted a contract by the Australian Department of Defence. Under the contract, MMA would offer familarisation services to the Royal Australian Navy on remote, robotic and autonomous maritime systems. The program is expected to occur between November 2023 and June 2024. The campaign is expected to generate revenue of AUD 30 million.

Outlook

In FY24, the company plans to focus on new debt facility to render favourable momentum across key markets, continue improvement in earnings and capital structure flexibility.

Share performance of MRM
MRM shares closed 4.88% higher at AUD 1.29 apiece on 9 November 2023. Including today’s gain, MRM shares have recorded a rise of 76.71% in the last 12 months and a surge of 16.22% in the last six months.

52-wek high of MRM is AUD 1.45, recorded on 13 September 2023, and the 52-week low is AUD 0.69, recorded on 25 November 2022.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 November 2023. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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