MMA Offshore (ASX:MRM) awarded $74m contracts

Marine services provider MMA Offshore (ASX:MRM) has recently been awarded a number of new contracts including two significant long-term vessel contracts to the value of $74 million.

The company has been awarded a new contract with Woodside for the “MMA Cove”, to continue to provide production support services for Woodside’s facilities in Australia’s North West. The contract is for a firm period of three and a half years, with a further one and a half years in option periods. The “MMA Cove” will be fitted with battery technology making the vessel more efficient and lowering the overall carbon footprint of the operation.

The other contract is for the “MMA Privilege” to provide accommodation and walk to work support services in Côte d’Ivoire. The contract is for a period of two years firm, commencing in March 2022. The vessel will be mobilising from Singapore in February 2022.

The third contract under the Hydroscheme Industry Partnership Program (HIPP) to complete a hydrographic survey off Tasmania. The project is expected to commence in January 2022 and continue for a period of four months.

The fourth contract is with Marinus Link Pty Ltd (a wholly owned subsidiary of TasNetworks) to acquire, integrate and interpret geotechnical data to assist with a cable route feasibility assessment for the Marinus Link interconnector project, a proposed 1500 megawatt electricity and telecommunications connection between Victoria and Tasmania.

The two vessel contracts amount to a combined value of $62 million for the contract firm periods and a potential value in excess of $91 million if the relevant option periods are exercised. In addition, the two survey contracts carry an anticipated contract value of $12.4 million. The combined total increases MMA’s contracted revenue by $74 million firm and potentially $103 million with the inclusion of the option periods.

Shares in MMA Offshore (ASX:MRM) are trading 12.5 per cent higher at 40.5 cents.