- MMA Offshore (MRM) sells its vessel, the MMA Leveque, to a subsidiary of Fortescue Future Industries (FFI) for US$7.75 million (A$10.46 million)
- FFI plans to convert the Leveque to dual fuel with the objective of operating almost totally on green ammonia
- MMA Offshore plans to utilise the proceeds from the sale to de-leverage its balance sheet
- MRM shares are up 2.7 per cent, trading at 57 cents
MMA Offshore (MRM) has sold its vessel, the “MMA Leveque” to a subsidiary of Fortescue Future Industries (FFI) for US$7.75 million (A$10.46 million).
FFI plans to convert the Leveque to dual fuel with the objective of operating almost totally on green ammonia.
The vessel will join FFI’s fleet of prototype trucks, locomotives, drill rigs and other mobile equipment currently being trialled to operate on green fuels.
MMA plans to utilise the proceeds from the sale to de-leverage its balance sheet.
The announcement comes two months after the company had been awarded two long term vessel contracts with a combined value of $62 million and a potential value in excess of $91 million if relevant option periods are exercised.
In MMA’s most recent half-year report, the company recorded vessel revenue of $92 million, a $3.9 million increase compared to the previous corresponding period.
MMA said the financial performance was significantly impacted by the COVID-19 pandemic, with positive cases among crew members, increased costs associated with quarantine and reduced activity in South East Asia.
The company believes the outlook is looking more positive with recent contract renewals in the past year, locking in a firm baseload of contracted earnings going forward.
MRM shares were up 2.7 per cent, trading at 57 cents as of 12:43 pm AEDT.