Transforming the way marine
services are delivered
Annual Report
2023
Our
Locations
Key
Office
Operational Facility
AMERICAS
Acknowledgement of Country
MMA Offshore acknowledges the Traditional
Custodians of country throughout Australia and
their connections to land, sea and community.
We pay our respects to their Elders past and
present and extend this respect to all Aboriginal
and Torres Strait Islander peoples today and to
Indigenous peoples around the world.
Aberdeen
EUROPE
AFRICA
19
Vessels
1100+
Employees across
the globe
0.26
TRCF per million
hours worked
Dubai
MIDDLE
EAST
Kuala Lumpur
Singapore
Taiwan
ASIA
AUSTRALIA
Perth
NEW ZEALAND
Contents
About Us
Our Purpose
Our Services
Our Markets
2023 Year in Review
Chairman’s Report
Managing Director’s Report
Sustainability Report
Risk
2
3
4
6
8
10
12
19
38
Board of Directors
Corporate Governance
Directors’ Report
Auditor’s Independence Declaration
Independent Auditor’s Report
Directors’ Declaration
Financial Report 2023
Additional Securities
Exchange Information
40
42
46
62
63
68
69
115
MMA Offshore Limited | Annual Report 2023 1
About Us
MMA Offshore is a leading
provider of marine and
subsea services globally.
With our fleet of modern offshore vessels and our marine, subsea
and project logistics expertise, we deliver pioneering blue
solutions to support energy and offshore renewables projects,
governments and coastal infrastructure around the world.
Whether delivered as a singular solution, or an end-to-end
integrated project – we partner closely with our clients to provide
innovative, fit for purpose solutions to solve the most demanding
marine challenges.
Headquartered in Perth, Western Australia, MMA has a global
presence, with offices in Singapore, Taiwan, Malaysia, Dubai and
the United Kingdom.
We pride ourselves on the world class safety, quality and
reliability of our operations, underpinned by our Target 365 safety
culture which strives for “a Perfect Day, Every Day”.
Our Purpose
We Believe
We believe marine resources
should be developed sustainably.
What We Do
We are a pioneering
marine services business.
Why We Matter
We solve the most
demanding marine
challenges.
Where We
Want To Be
We want to transform
the way marine
services are delivered.
Our Principles
Smarter Together
Only by working together can we solve the biggest problems.
Do What's Right, Not What's Easy
We have the courage to do the right thing, even when it’s hard.
Think Bigger
We embrace big ideas and challenge ourselves to achieve big goals.
Fail Fast & Learn
We back ourselves to innovate and support each other through the process.
Create Tomorrow
The future we want is up to us to create.
2 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 3
Vessel Services
With over 30 years’ experience in delivering offshore solutions to the
world’s energy markets, MMA's fleet comprises 19 offshore vessels
capable of executing the most challenging marine work scopes.
Incorporating state-of-the-art technology and a track record of proven
reliability, our fleet is also supported by a global pool of over 900 highly
qualified offshore personnel with extensive industry experience.
MMA’s vessel services include:
• Production and offtake
• Anchor handling and towing
support
• Supply operations (drilling,
production and seismic)
•
Installation and construction
support
• Accommodation support
•
IMR, ROV, dive and survey
support
• Vessel management and
technical services
Subsea Services
At the forefront of the latest in subsea technology, MMA’s comprehensive
range of subsea services encompasses a diverse array of solutions designed
to meet market needs. From advanced surveying and engineering to ROV
operations and environmental solutions, we provide the skills and equipment
to execute the most complex subsea projects.
MMA’s subsea services include:
•
Inspection, maintenance and
repair
• Subsea installation and
construction
• Offshore and subsea survey and
• Offshore diving
• Specialist subsea engineering
• Manufacture and refurbishment
of subsea structures and
intervention equipment
positioning
• Geophysical and light
geotechnical survey
• Decommissioning and asset
removal and repurposing
• Stabilisation and scour
protection
•
Integrated artificial reefs,
dive attractions and habitat
enhancement
• Coastal erosion control
Project Logistics
MMA has earned a strong reputation for managing complex marine
logistics requirements for large projects around the world. With a bespoke
approach, we partner with our clients to develop innovative and market
leading marine solutions. Our experienced team has worked in many of the
world’s most challenging and remote environments, consistently delivering
projects with outstanding safety and environmental performance.
MMA’s project logistics services include:
•
Integrated logistics solutions
• Tug and barge operations
• Engineered solutions and
• Greenfield and turnkey
logistics studies
solutions
• Vessel chartering
Our Services
We partner closely with our
clients to provide innovative
marine and offshore solutions.
4 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 5
Offshore Wind
With a proven track record as a trusted partner for the
world’s leading offshore wind developers, MMA delivers
tailored and comprehensive support at every stage of wind
farm development. From delivering vessel support and field
preparation investigations to working with our clients to
implement innovative marine habitat protection solutions, our
global support team is experienced in meeting the unique
requirements of the renewable energy market.
Oil & Gas
Servicing all phases of the oil and gas lifecycle, MMA has
over 30 years’ experience in supporting oil and gas projects
around the world. Leveraging our extensive experience, we
can package our suite of vessel, subsea and project logistics
solutions into a single tailored approach for our clients.
Combined with our versatile fleet of vessels, modern subsea
technology and technical expertise, our ability to service the oil
and gas market is unmatched.
Government & Defence
Well-regarded for our operational excellence in delivering
services to government and defence agencies, MMA is a trusted
partner in meeting the unique requirements of these critical
sectors. MMA is a member of the Australian Government’s
Department of Defence HydroScheme Industry Partnership
Program (“HIPP”) and delivers hydrographic survey, vessel
management, crewing and technical training services to defence
and government organisations on an ongoing basis. Utilising our
extensive in-house technical expertise, MMA has the capability
to effectively support defence and government programs.
Coasts, Ports & Reefs
As a marine services provider, MMA is dedicated to protecting
the delicate marine environments in which we operate, as well
as partnering with our clients to deliver this vision. Our team’s
globally-recognised approach of combining engineering with
nature seeks to deliver innovative and sustainable solutions
to ports and coastal infrastructure. Through our suite of
stabilisation, grouting, coastal erosion and engineered reef
products, our solutions are engineered to strengthen at-risk
coastal regions, maximise marine habitats and support optimal
operations for our clients.
Our Markets
We deliver pioneering blue
solutions to support energy and
offshore renewables projects,
governments and coastal
infrastructure around the world.
6 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 7
2023
Year in Review
FY2023 was a milestone
year in terms of returning the
Company to a position of
strength from which to grow.
Revenue
$308.3m
9%
EBITDA
$69.3m
115%
NPAT 1
$127.7m
278%
Operating EBIT
$29.9m
2,200%
Operating Cash Flow
$50.5m
233%
Cash at Bank
EPS
$106.3m
44%
$0.35
275%
NTA per Share
$1.30
37%
1
Including asset impairment reversal and profit on sale of assets.
8 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 9
Chairman’s
Report
Ian Macliver
Chairman
FY2023 was an
excellent year for MMA
with positive market
conditions resulting in a
significant improvement
in earnings.
During the year, we reaffirmed the
Company’s growth strategy which is
focused on extracting the maximum value
from current market conditions in our core
markets, whilst diversifying into new growth
sectors such as offshore wind, government
and defence and environmental services.
Pleasingly, all of our key markets are seeing
positive momentum at present.
Earnings before Interest Tax, Depreciation
and Amortisation (“EBITDA”) for the year
were $69.3 million, a 115% improvement on
FY2022.
MMA reported strong cash flow generation
with operating cash flow of $50.5 million,
up 233% on the prior year.
Oil and gas activity has seen a strong
recovery due to persistent energy security
and supply chain challenges. Greenfield
project sanctioning activity has surged
with over US$420 billion in new offshore
projects now expected to be sanctioned in
the next five years and $150 billion in our
key operating regions.
The offshore wind sector also continues to
grow rapidly with more than 4,600 turbines
to be installed in South East Asia by 2031.
The offshore wind market in Australia is also
gathering momentum albeit at the early
stages of development.
Both of these industries are driving stronger
demand for our vessels and subsea
services where we are seeing a marked
improvement in utilisation and rates.
A key part of our strategy has been to
further develop our integrated services by
packaging our subsea services onboard
our vessels to capture a greater part of
the value chain and further embed us with
our clients. Having acquired the Subsea
business in 2019, we are now starting to
gain traction with our integrated services
and delivered 10 integrated projects during
FY2023 including a $30 million construction
scope in Qatar, our largest integrated
project to date, as well as several projects
in the offshore wind sector. We will continue
to drive our integrated services strategy
which significantly improves the overall
returns on our assets deployed.
FY2023 was also a significant year for MMA
in terms of Balance Sheet improvement.
Following the completion of our non-core
asset sales program which included the
sale of our Batam shipyard facility, we
finished the year with Cash at Bank of
$106.3 million and Total Debt of $91.6
million placing the Company in a $14.7
million Net Cash position.
In addition, the improving market conditions
have positively impacted vessel values
resulting in an $80.3 million reversal
of previous years’ vessel impairments
increasing the book value of our fleet to
$431 million at 30 June 2023.
Whilst our existing debt facilities were
not due to expire until early 2025, our
improved leverage metrics placed
us in a strong position for exploring
refinancing alternatives to optimise our
capital structure. Subsequent to the end
of the financial year, we entered into an
agreement to refinance our debt, replacing
our amortising term loan facility with a
$120 million revolving debt facility which
can be drawn down and repaid as required
providing significantly increased flexibility
for the Company going forward.
With our new debt facility and the Company
generating strong free cash flows, capital
management remains a key consideration
as the Company explores a range of growth
opportunities whilst evaluating our capacity
to improve returns to shareholders.
Our diversification strategy is progressing
well, and we derived 30% of our revenue
from new markets during the year including
24% from offshore wind and 4% from
services to government and defence.
From a sustainability perspective,
approximately 60% of our revenue is
now derived from non-oil sources and
we expect the percentage of oil related
revenue to continue to decline over time,
whilst gas will remain a critical transitional
energy source as renewables capacity is
being developed globally.
Revenue from offshore wind grew from 9%
of revenue in FY2022 to 24% of revenue
in FY2023 and continues to be a major
focus for the business, delivering on
both our growth and sustainability goals.
We continued to be active on several
developments in Taiwan and completed our
first project in South Korea during the year
opening up a new and growing market for
MMA.
We continued to generate revenue from
the government and defence sector,
predominantly through our involvement
in the HydroScheme Industry Partnership
Program ("HIPP"). We also conducted
an autonomous underwater vehicle
(“AUV”) project for the Department of
Defence during the year using state of the
art autonomous underwater surveying
technology. With an extensive future
program of survey works planned around
Australia as well as an increased focus
on defence in general, we are focused on
growing this part of the business and see
increasing opportunities to support the
government and defence sector with our
maritime expertise. Subsequent to the end
of the financial year, we secured an $80
million government contract to manage
the vessel RV Investigator on behalf of the
Commonwealth Scientific and Industrial
Research Organisation (“CSIRO”) which
represents a significant milestone in
growing this part of our business.
We also see tremendous potential for
our new environmental and stabilisation
business with multiple applications for
our artificial reefs to be used to combat
coastal erosion, enhance marine habitats
and to sustainably decommission oil and
gas infrastructure through our rigs to reef
service offering. We also see potential for
collaboration with offshore wind developers
to use our reefs for environmental
enhancement.
During FY2023, we installed two new reefs
in Tasmania, and we are collaborating on
research into wave attenuating reefs with
the University of Western Australia. We
also secured our largest pipe clamping
mattress project, a revolutionary and
more sustainable technology for pipeline
stabilisation which MMA has developed
in conjunction with Shell and has the
exclusive distribution rights for.
As a business, we are passionate about
sustainability and transforming our
business along with the energy transition.
We have made visible progress on our
sustainability strategy over the past
three years with multiple initiatives being
progressed within both the environmental
and social areas. Whilst there is currently
no commercially available alternative to
diesel for our vessel fleet, we are currently
working on several operational efficiency
initiatives to reduce fuel usage across the
fleet. We are also making good headway
on our strategy to increase our share of
revenue from offshore wind in support
of the global energy transition. Our
environmental solutions are significantly
contributing to the health of our oceans,
and we are proud to be at the forefront
of innovation in that area. We have also
contributed to several community initiatives
over the past year which has the dual
impact of benefiting the community whilst
increasing employee engagement and
morale through participation in worthy
causes. I encourage you to read our 2023
Sustainability Report which is included in
this Annual Report.
The health and wellbeing of our people
is core to who we are at MMA. We are
acutely aware of the risks associated with
operating in the offshore industry and
we work tirelessly to embed a culture of
safety across the business. Pleasingly,
we maintained our world class safety
performance during the year with a TRCF
of 0.26. I am also proud to say that we were
recently awarded the 2022 Safety Award
from the International Marine Contractors
Association (“IMCA”) for our Target 365
Leadership Engagement Program, our
latest initiative to foster a positive safety
culture within the business.
I would like to conclude by thanking my
fellow Board members for their valuable
stewardship of the business during the
year, paying a special mention to Peter
Kennan who resigned from the Board
in April 2023. Peter made a significant
contribution to MMA during his tenure
which saw the business successfully
navigating an extremely challenging period
in the offshore industry and we wish him all
the best.
I would also like to take the opportunity to
thank MMA’s senior leadership team and
all MMA’s employees around the world
for their contribution to the business and
their commitment and hard work which is
sincerely appreciated.
Having come through the challenges of the
pandemic, repaired our Balance Sheet and
diversified our earnings base, we now find
ourselves positioned for growth across all
of our key markets. I sincerely look forward
to FY2024 and to delivering ongoing
positive returns for our shareholders.
Ian Macliver
Chairman
Pleasingly, all of MMA's key markets are
seeing positive momentum at present.
10 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 11
Managing
Director’s
Report
David Ross
Managing Director
FY2023 was a positive
year for the Company
with improved market
conditions translating
into significantly higher
profitability.
MMA reported FY2023 Revenue of $308.3
million, up 9% on the prior year. EBITDA for
the year was $69.3 million, up 115% on the
prior year.
The disproportionate increase in EBITDA
was the result of increased rates and
utilisation, improved project delivery, a
higher weighting of international revenue,
an increase in the number of integrated
work scopes delivered and the reduced
impact of COVID-19 on our cost base.
MMA generated operating cash flow of
$50.5 million, up 233% on the prior year
and we closed the financial year with cash
at bank of $106.3 million.
Market conditions continued to improve
throughout the financial year with visibly
increased demand for our vessels and
subsea services and tighter vessel
availability driving rates progressively
higher.
Market Conditions
After a challenging and prolonged industry
downturn which commenced in late 2014,
we are seeing a return to more positive
market conditions for the offshore industry.
Energy security issues together with the
impact of years of underinvestment have
resulted in an uptick in investment in drilling
and oil and gas project developments.
Projected offshore oil and gas sanctioning
activity has increased significantly with an
estimated US$424 billion in new projects
expected to be sanctioned globally over the
next five years and US$153 billion in MMA’s
key operating regions.
The oil price has come down from its
high of US$110 in June 2022 but has
consistently stayed above US$70 per
barrel over the course of the year, a price at
which investment returns on most offshore
projects remain attractive.
Offshore wind activity continues to grow
exponentially with over 4,600 turbines to be
installed and US$125 billion expected to be
spent on offshore wind farm developments
in Asia and Australia between 2024 and
2031. As a vessel and subsea services
intensive activity, offshore wind is expected
to drive significant additional demand
for MMA’s vessels and services over the
coming years.
With strong activity being experienced
in both oil and gas and offshore wind,
the offshore vessel market has tightened
significantly over the past 12 months,
which has driven vessel utilisation and
rates higher and increased demand for our
subsea and integrated services.
With very few newbuild vessels on order
and most of the remaining commercially
viable stacked fleet already reactivated,
vessel supply is limited and is expected to
continue to result in tight market conditions
over the medium term.
Strategy
MMA’s strategy continues to be focused
on extracting the maximum return from
our core business, leveraging the current
recovery in oil and gas investment whilst
continuing to aggressively diversify and
grow our presence into new markets such
as offshore wind, government and defence
and environmental services creating a
sustainable business for the future.
The recent recovery in the oil and gas
market has illustrated the operating
leverage within our business in an
improving market with higher utilisation and
margins translating to a significant increase
in earnings from our core business.
Our strategy to move from a pure vessel
operator to a marine services provider is
beginning to drive higher returns with the
subsea business, which was acquired
in November 2019, making a solid
contribution to earnings during the FY2023
financial year as well as enhancing vessel
utilisation through several integrated work
scopes. The subsea business has also
been instrumental in our diversification
strategy, providing MMA with early inroads
into the offshore wind and government and
defence sectors.
A key strategic focus is to grow our
integrated services offering where
we mobilise our vessels with subsea
equipment and personnel to deliver
integrated project solutions. This strategy
enables MMA to capture an increased
proportion of the value chain whilst
delivering a more efficient solution for
our clients. The strategy is beginning to
bear fruit with several integrated projects
completed during FY2023 including the
successful delivery of a major subsea
pipeline project in Qatar significantly
enhancing our track record as an integrated
contractor.
Our diversification strategy is progressing
well with the Company generating 30% of
revenue outside of our traditional oil and
gas markets during the year, including 24%
from offshore wind and the remaining 6%
from government and defence and other
services. We also completed the integration
of our Environmental and Stabilisation
business, which was acquired in July 2022,
opening up further new growth markets
for MMA in artificial reefs, coastal erosion
protection and wind farm ecology, further
broadening our service offering and aligning
with our environmental and sustainability
objectives.
Sustainability / ESG
Sustainability is integral to our overall
strategy and purpose as an organisation
and we are committed to growing our
business in a sustainable and ethical way.
Balance Sheet
FY2023 was a milestone year in terms
of repairing MMA’s Balance Sheet and
returning the Company to a position of
strength from which to grow.
MMA completed its asset sales program
during the year with the Batam Supply
Base sale settling in December 2022,
together with two vessels sold during the
period. Total proceeds were $34.9 million
which resulted in a profit on sale of assets
totalling $25.1 million.
As at 30 June 2023, MMA had Cash at
Bank of $106.3 million, up from $73.9
million at 30 June 2022. MMA’s Total Debt
(Bank Debt plus lease liabilities) was $91.6
million, down from $125.0 million at June
2022 and Net Cash (Cash less Total Debt)
was $14.7 million up from a Net Debt
position of $(51.1) million at June 2022.
MMA’s key leverage ratios (Net Debt /
EBITDA and Net Debt to Property Plant
and Equipment) were effectively zero at
30 June 2023, placing MMA in a strong
position from which to review and optimise
its capital structure.
Subsequent to the end of the financial year
we entered into an agreement to refinance
our debt, replacing our amortising term
loan facility with a A$120 million revolving
debt facility which can be drawn down and
repaid as required providing significantly
increased flexibility for the Company going
forward.
Several key initiatives have been
progressed over the course of the financial
year to support our environmental, social
and governance objectives.
The Company will have available capacity
under the new facility of A$120 million
providing ample liquidity for the business
going forward.
With our new debt facility and the Company
generating strong free cash flows, capital
management remains a key consideration
as the Company explores a range of growth
opportunities whilst evaluating our capacity
to improve returns to shareholders.
These include further developing our
decarbonisation and fuel efficiency
initiatives, increasing our percentage
of revenue from offshore wind and
contributing to the health of our oceans
through our reefs and coastal erosion
services.
A comprehensive overview of our
environmental, social and governance
strategy and initiatives can be found in
our 2023 Sustainability Report which is
published as an integral part of this Annual
Report.
2023 Highlights
$69.3m
EBITDA
115%
80
%
Utilisation across
the total fleet with
rates improving
Progressing
diversification
strategy
30% of revenue
from offshore wind,
defence and other
marine services
Growing
Integrated
Services
~$100m Revenue
96% on prior year
Balance
Sheet repair
completed
New debt facility
to provide flexibility
and liquidity
Outlook
Continuing
strengthening
market outlook
through FY2024
and beyond
12 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 13
Operational Update
Vessel Services
Vessel revenue for the year was $232.4
million, up 31% on FY2022. Vessel EBITDA
was $71.0 million up 108% as a result of
stronger operating conditions experienced
during FY2023.
EBITDA margins were higher than the
prior year due to the reduced impact of
COVID-19 which had a material impact
on FY2022 operating costs together with
an increased weighting of international
charters during FY2023 (with the differential
in crew costs distorting the overall margin
percentage).
Average utilisation for the year across the
fleet was 80%, up from 73% in FY2022.
Utilisation on some of our larger vessels
was particularly strong which has been
a major driver of the improvement in
earnings. MPSV utilisation was 83% up
from 60%, PSV utilisation was 87% up
from 74% and AHTS utilisation was 82%
up from 69% with the larger AHTS vessels
achieving solid utilisation throughout the
year. We have also seen a strong firming in
day rates, which has also directly improved
our bottom line.
As at 30 June 2023, 50% of available
vessel days for FY2024 were contracted,
increasing to 58% taking into account
highly probable contract awards and
extension periods. This compares to 49%
and 60% at the same time last year. On a
revenue basis, 45% of our forecast revenue
is already under contract for FY2024, (63%
including highly probable) as compared to
58% and 70% at the same time last year.
MMA’s vessels were active on a range of
projects during the year across oil and gas
and offshore wind.
The MMA Plover and MMA Brewster
continued on longer term contracts
supporting INPEX with production support
and drilling operations for the Ichthys LNG
field in Australia’s North West.
The Mermaid Cove continued supporting
Woodside’s North West Shelf operations
on a three-year contract. As part of the
contract, MMA is collaborating with
Woodside using the Cove as a pilot vessel
for a number of decarbonisation initiatives.
This has included the installation of digital
fuel monitoring software and sensors
onboard the vessel and the application of
an alternative lower drag hull coating during
the vessel’s recent docking to measure the
subsequent reduction in fuel usage.
The MMA Vision supported OMV New
Zealand on a three-year contract and in
September 2022 was joined by the MMA
Leeuwin which was mobilised to New
Zealand to support OMV on a nine month
drilling campaign, solidifying our position in
the New Zealand market.
We also secured our first long-term
contract in the Bass Strait during FY2023
with the MMA Coral securing a 12-month
contract plus options with Beach Energy.
The MMA Privilege continued on her long-
term contract providing accommodation
and walk-to-work services for a FPSO
operation in Côte d'Ivoire.
Activity in Asia was stronger during FY2023
as the impacts of COVID-19 dissipated
and we managed to secure utilisation
for a number of our vessels through the
traditionally quieter South East Asian
monsoon period.
Three vessels, the MMA Valour, MMA
Vigilant and MMA Monarch, completed a
seismic node survey in India together with
MMA’s subsea division securing utilisation
for these vessels from October 2022
through to March 2023.
The MMA Majestic, one of our large AHTS
vessels, operated in Malaysia for the
year achieving full utilisation, a pleasing
development given activity in Malaysia was
minimal during the pandemic.
The MMA Pinnacle in conjunction with our
subsea division supported a key offshore
construction scope in Qatar with multiple
contract extensions taking the project
through the first half and into February
2023.
MMA’s vessels supported a number of
offshore wind developments in Taiwan
during the year including the MMA Crystal
which now operates under Taiwanese
flag and is chartered via our Taiwanese
subsidiary, MMA Global Aqua. The MMA
Crystal is fitted with an integrated ROV,
survey spread and A-Frame and completed
a number of wind farm support scopes
during the year including cable trenching
and survey support services.
The MMA Pinnacle mobilised from
Singapore to Taiwan in March 2023 to
support Seaway 7 on a range of work
scopes such as cable installation, ROV
and survey operations in conjunction with
MMA’s subsea division.
The MMA Pride and MMA Prestige also
supported wind projects with the MMA
Prestige operating for the entire year in
Taiwan supporting two separate wind farm
developments.
The Mermaid Searcher supported the
Australian Government Department
of Defence’s HydroScheme Industry
Partnership Program (“HIPP”) Cape
Leeuwin survey project between December
2022 and March 2023, making it the first
HIPP scope conducted on one of our own
vessels to date.
To supplement our owned fleet, we entered
into a bareboat charter arrangement for an
additional platform supply vessel, the ASL
Harmony. The charter is for a minimum of
12 months and up to four years at MMA’s
option providing additional fleet capacity
without the capital outlay. The vessel is
currently being reactivated and is expected
to join the fleet in the first quarter of
FY2024.
The outlook for the vessel business is
looking positive with market conditions
buoyant and a shortage of available vessels
in the market driving utilisation and rates
higher.
With a relatively fixed cost base at current
utilisation levels, there is further operating
leverage in the MMA fleet with higher rates
and utilisation translating directly to the
bottom line.
The outlook for the vessel
business is looking positive with
market conditions buoyant.
14 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 15
Growth Strategy
Subsea
Offshore Wind
Government
& Defence
D
S
E
E
T
C
A
R
V
G
R
E
E
T
S
I
N
I
Vessels
MAXIMISE
CORE
BUSINESS
DIVERSIFY &
GROW NEW
MARKETS
Decommissioning
Project
Logistics
Oil & Gas
Environmental
Solutions
Subsea Services
Subsea revenue was $110.5 million for the
year up 56% and subsea EBITDA was $9.5
million up almost 300% on the previous
financial year.
The business continues to see the benefit
of improvements made to business and
operational processes which has translated
into enhanced operational and financial
performance for the division.
Our integrated services offering is also
gaining traction with several integrated
projects completed during the year,
significantly contributing to the improved
financial result for the subsea business.
During FY2023, we successfully completed
our largest integrated services project
to date, supporting a major pipeline
installation campaign in Qatar. This
project utilised one of MMA’s larger
vessels, the MMA Pinnacle, over a
period of eight months, completing the
project successfully and without incident
or downtime in challenging operating
conditions due to the high temperatures
in Qatar. This project illustrates MMA’s
capability and capacity to deliver complex
subsea projects and growing this part of
the business remains a key element of our
strategy.
Survey activity continues to be busy with
MMA delivering survey services to clients
across offshore wind, oil and gas and
government and defence during the year.
Within the offshore wind sector, MMA
completed its first offshore wind survey
scope in South Korea enabling MMA to
build some early networks in country.
South Korea is expected to generate
significant future demand as offshore wind
developments ramp up, and is a major
future focus area for MMA.
We also completed several offshore wind
survey projects in Taiwan through our
local entity MMA Global Aqua and with our
locally flagged vessel, the MMA Crystal,
which is fitted with a suite of subsea
equipment and permanently located in
Taiwan.
MMA is also positioning itself to be a
leading service provider to the Australian
offshore wind industry with initial survey
activity expected to commence over the
coming 12 months.
Within the oil and gas sector, MMA
continues to be active on rig positioning
surveys with Woodside in Senegal and
INPEX in Australia. Rig positioning activity
overall was slightly down on the prior year
due to reduced drilling activity by Santos,
one of our key clients.
We also continued to provide inspection,
maintenance and repair services including
ROV work scopes onboard the MMA Pride
in Brunei and the MMA Coral in the Bass
Strait. MMA recently entered into a lease
agreement with a third-party ROV provider
to bolster our internal ROV fleet to meet
increasing demand whilst preserving our
capital.
MMA continues to support the
Australian Government Department of
Defence through its involvement in the
HydroScheme Industry Partnership
Program (“HIPP”). During the financial
year, we successfully completed the Cape
Leeuwin region survey in the South West
of Australia, utilising the Mermaid Searcher
as the survey vessel. The project was
successfully delivered notwithstanding
challenging weather and sea conditions.
MMA also delivered an autonomous
underwater vehicle (“AUV”) project to the
Australian Government during the year.
Environmental and stabilisation services
had a quieter year with a number of
projects delayed. The environmental and
stabilisation business, which was acquired
in July 2022, is now fully integrated within
MMA’s subsea division and solidifies
our position in the subsea stabilisation
market as well as bringing a number of
exciting new capabilities under our subsea
environmental and stabilisation service
offering.
Pleasingly, we were recently awarded a
large Pipe Clamping Mattress (“PCM”)
project for the Yellowtail Project in Guyana.
PCMs are a revolutionary pipeline walking
solution for the offshore oil and gas industry
significantly reducing materials, logistics
and installation time in comparison to
more traditional stabilisation methods.
MMA in conjunction with Shell developed
the PCM and is focused on marketing this
technology to the wider industry under an
exclusive distribution agreement.
As part of our environmental services
offering, MMA installed two artificial reefs
during the year in Tasmania. The projects
involved the installation of 318 reef modules
over a an eight-hectare area of seabed with
the reefs expected to significantly enhance
marine life in the area over time. MMA is
looking at several opportunities for reefs
to be installed for coastal erosion, fisheries
enhancement and repurposing of retired oil
and gas assets. Integrated reef solutions
are also being explored with wind farm
developers.
The United Kingdom business had a busy
year with several projects being completed
including a decommissioning work scope
for OMV in New Zealand as well as several
subsea engineering, assembly and testing
and fabrication projects.
The macro-outlook for the subsea business
is positive with strong activity levels being
experienced across all of our service areas.
Access to skilled personnel continues to be
the greatest challenge across the industry
at present.
Project Logistics
The project logistics division had a quieter
year with no major offshore projects being
undertaken in Australia during the year.
Project logistics revenue for the year was
$3.6 million, down from $60.3 million in the
prior year. The division generated a slight
EBITDA loss of $(0.1) million, down from a
positive $2.1 million in the prior year.
Whilst project activity was low during
FY2023, activity is looking stronger for
FY2024 with the business tendering
several opportunities in Australia and
the wider Asian region. We are also
monitoring the situation in Mozambique
with Total reportedly preparing to restart its
Mozambique LNG Project.
Going into FY2024, MMA has been
awarded a decommissioning scope by
Heerema for the Enfield Project which is
expected to commence in the second
quarter of FY2024. The project logistics
division is ideally placed to support
decommissioning works which are
expected to accelerate in the coming years.
Major challenges facing the project
logistics business include project schedule
movements and lower availability of assets,
(both tugs and barges) in the broader
market.
The Batam Shipyard facility was sold
in December 2022 with MMA moving
the majority of its land-based logistics
requirements to a third-party facility in
Singapore. MMA continues to retain a
portion of waterfront area and laydown
at Batam under the sale agreement with
WASCO.
Activity in the project logistics segment
is naturally variable and dependent on
project activity. Whilst activity was soft
in Australia during FY2023 as expected,
the longer-term outlook for project
logistics requirements in MMA’s key
regions is relatively strong, with a number
of large oil and gas projects flagged
for development between FY2024 to
FY2026. Decommissioning projects are
also expected to take place in the same
timeframe with project logistics being a key
component of decommissioning offshore
infrastructure. Similarly, the outlook for
offshore wind is strong and will be a key
focus area for the projects logistics group
into the future.
The macro-outlook for
the subsea business
is positive with strong
activity levels being
experienced across all
of our service areas.
16 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 17
We continue to live our Target 365
philosophy and belief that a Perfect
Day is possible 365 days a year.
Notwithstanding our strong safety
performance, we operate in challenging
industries and strive for continuous
improvement and a relentless focus on
ensuring our people remain safe each and
every day.
Outlook for FY2024
We move into FY2024 in a strong position
with a clear strategy, positive momentum
across our key markets and a solid balance
sheet and flexible capital structure in place.
The current expectation is for continued
strengthening market conditions driven
by demand from both the oil and gas and
offshore wind industries. Vessel supply
is expected to remain constrained with
few newbuilds in the pipeline and limited
remaining vessels available for reactivation.
Overall, we expect a continuing
strengthening market outlook through
FY2024 and beyond with continued
improvement in earnings for FY2024.
David Ross
Managing Director
Health & Safety
Keeping our people safe and healthy
remains fundamental to how we operate at
MMA.
With the World Health Organization
(“WHO”) recently declaring the COVID-19
pandemic officially over, MMA has de-
escalated many of its COVID-specific
protocols, however we continue to take
a risk-based approach to protecting the
health and safety of our workforce.
We have also retained some of the flexible
working arrangements introduced during
COVID-19 to promote overall wellbeing.
During FY2023, we maintained our world
class safety performance with a Total
Recordable Case Frequency (“TRCF”) per
million hours worked of 0.26, significantly
better than the 2022 offshore marine
industry average of 1.45 as measured
by the International Marine Contractors
Association (“IMCA”).
We continue to live our Target 365
philosophy and belief that a Perfect Day
is possible 365 days a year. During the
year we refreshed our Target 365 training
and introduced an improved Target
365 Leadership Engagement Program
recognising that engagement levels had
reduced due to the pandemic. Pleasingly,
our leadership engagement program
has been very successful with over 177
engagements by management across the
business during the year. The program
also won the 2022 IMCA Safety Award with
key insights presented at the annual IMCA
Safety Conference in Amsterdam. Having
face-to-face interactions is key to building
a culture of safety and wellbeing within
the organisation and we look forward to
continuing to improve in this area.
Sustainability
Report 2023
18 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 19
Sustainability Report
ESG Strategy
Sustainability
continues to be at
the core of MMA’s
purpose and is
integral to our overall
strategy to grow the
business sustainably
into the future.
Our core belief that “marine resources
should be developed sustainably” drives
our strategic direction as we continue to
transform our business along with the
global energy transition.
Whilst our traditional markets of oil and gas
will continue to be an important revenue
source for the business for some time, we
are focused on diversifying our revenue
streams into sectors which support the
energy transition such as offshore wind
along with other adjacent marine markets
such as government and defence and
environmental services.
Pleasingly, offshore wind represented 24%
of our total revenue during FY2023 and we
expect this to grow over time.
Building a Diversified Revenue Base
FY21
FY22
FY23
24%
23%
30%
$237m
76%
$272m
77%
$305m
70%
Oil & Gas
Offshore Wind, Govt & Defence, Other
Our environmental and stabilisation
business, which was acquired in July 2022,
is now fully integrated and we are excited
to be able to contribute to the improvement
of our coastlines and marine habitats
through our artificial reefs and coastal
erosion solutions. We also see significant
opportunity to incorporate our reefs into
new wind farm developments to enhance
the marine ecology around these large-
scale developments.
MMA is also ideally positioned to support
the decommissioning of oil and gas
infrastructure and has experience in
converting decommissioned structures into
artificial reefs, significantly enhancing the
ecological outcomes of these projects.
MMA’s ESG strategy continues to
be focused on the following key
elements:
Environment – how MMA performs as a
steward of nature.
Social – how MMA manages its
relationships with employees, suppliers,
customers and the community.
Governance – how MMA is governed.
During FY2023, we made
significant progress across
a range of initiatives within
our ESG strategy.
Environment
Social
Governance
Environmental
Management Systems
Environmental regulations and
conventions, waste management
and pollution prevention
Emissions Reduction
Developing strategies and
initiatives to reduce emissions
across our operations
Supporting the
Energy Transition
Diversifying our services to support
the development of offshore wind
Employee Health
and Safety
Target 365 culture, Critical Controls,
Safety Management System
Corporate Governance
Standards
Compliant with ASX 4th Edition
Corporate Governance Principles
Employee Wellbeing
Employee engagement, EAP,
mental health, flexible working,
parental support
Training and
Development
Code of Conduct
Focus on working legally,
ethically and safely, Group
Whistleblower Policy
Anti-Bribery
and Corruption
Employee support and training
Zero-tolerance approach
Supporting Healthy Oceans
Diversity and Inclusion
Human Rights
Engineered reefs, coastal erosion
prevention, marine habitat
enhancement
Awareness and inclusion events,
measurable objectives
Modern Slavery Statement,
Maritime Labour Convention
Community Support
Community sponsorship,
philanthropy and volunteering
Indigenous Engagement
Indigenous training programs,
collaboration initiatives
MMA’s key ESG initiatives are aligned with several of the United Nations Sustainable
Development Goals, which address the key challenges currently faced globally.
MMA is focused on Goals 3, 5, 7, 8, 10, 12, 13 and 14 which are the most relevant to our operations.
We believe marine
resources should be
developed sustainably.
20 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 21
Environment
Environmental Management
Systems
Environmental Regulations &
Conventions
MMA believes that marine resources
should be developed sustainably and has
a robust suite of management systems and
associated programs to support that aim.
Our ISO 14001 certified Integrated
Business Management System provides
the foundation and key operational
processes to ensure we go about our
day-to-day operations with a focus on
minimising our environmental impact.
These processes are regularly reviewed,
assessed and audited to ensure our level of
compliance never wavers.
We are proud to report that once again
MMA had no non-compliance against
industry standards and regulations and
no adverse or reportable environmental
incidents during FY2023.
As a marine and subsea service provider,
MMA operates in a highly regulated industry
and is committed to 100% compliance
with all applicable international regulations
and conventions to ensure we continue to
protect the marine environments in which
we operate.
These include:
•
International Convention for the
Prevention of Pollution from Ships
(MARPOL 73/78);
• Technical Code on Control of Emission
of Nitrogen Oxides from Marine Diesel
Engines;
• MARPOL Chapter IV – Regulations
on Energy Efficiency for Ships –
Collection and Reporting of Ship Fuel
Consumption Data for >5000 GRT
Vessels;
•
International Ballast Water
Management and Performance
Standard (D-2);
• Biofouling management applies to All
Vessels in line with MEPC.207(62); and
•
Inventory Hazardous Materials (“IHM”)
Hong Kong Convention for the Safe
and Environmentally Sound Recycling
of Ships, 2009 certification in place,
allowing for efficient ship recycling
when needed.
In addition to those regulated standards,
MMA remains abreast of upcoming
changes in the regulatory environment and
is focused on implementing systems and
processes to ensure that regulatory change
transitions are smooth and compliance is
never compromised.
The Energy Efficiency Existing Ship Index
(“EEXI”) is a measure introduced by the
International Maritime Organization (“IMO”)
with the aim to reduce the greenhouse gas
emissions of existing ships. The EEXI is a
measure related to the technical design
of a ship, which requires vessel owners
to assess and demonstrate the energy
efficiency of their vessels. Although the
EEXI regulation currently does not apply
to the vessels within MMA’s fleet, we are
proactively implementing internal systems
that will facilitate future compliance and
robust reporting capability.
Waste Management
MMA is committed to the responsible
management of waste generated as a
result of our operations which includes
both waste minimisation and waste
recycling programs. A dedicated ‘Waste
Management Working Group’ has been
established which is led by the Executive
General Manager Risk and reports to
MMA’s ESG Steering Committee. This
working group is dedicated to establishing
waste management strategies across
all our operations with a number of
programs underway including waste
recycling, elimination of single use plastics
onboard our vessel fleet and supply chain
improvements.
The waste recycling program ensures that
both our onshore facilities and vessels have
the ability to segregate and recycle waste.
This is supported by a robust compliance
program that ensures end-to-end
management, providing comfort that our
waste recycling initiatives are in fact making
a difference. MMA’s waste management
and recycling program is extensive and
includes wastepaper and cardboard,
plastics, glass, e-waste and hazardous
items.
The elimination of single use water bottles
will be a significant step forward for MMA
once fully implemented. Potable water
systems had previously been trialled
onboard a select number of vessels,
however due to the systems being
incompatible with the vessel operating
environment and a discontinuation of
supplier maintenance support, this trial
was halted. MMA is currently investigating
alternative vendors with the aim of
progressively installing potable water
systems across the fleet.
We have embarked
on a comprehensive
fleet digitalisation
program to harness
emerging technologies
and data analytics
to drive efficiencies
and minimise our
environmental footprint.
Management of Adverse
Environmental Events
MMA has stringent controls in place to
mitigate the risk of adverse environmental
events such as spills.
Our marine operations are conducted in
accordance with approved procedures
which are regularly reviewed and revised
to ensure they capture operational
improvements and regulatory changes.
All vessel crew are appropriately trained
and have a robust understanding of these
processes and are empowered to call a
‘Stop to the Job’ if risks or changes are
identified that have the ability to negatively
impact the environment.
During FY2023, MMA recorded three minor
environmental spill events, however due
to the small volumes and preparedness
processes, these did not result in
any release to the environment, were
contained and addressed with no negative
environmental impact.
MMA’s vessel fleet operates in multiple
geographical locations and as such,
effective and compliant ballast water
management is critical to ensuring we do
not cause biodiversity incidents that have
the ability to impact the delicate balance
of our ocean ecosystem. In accordance
with the IMO’s Ballast Water Management
Convention (D-2 Standard) we have a
change management program in place to
ensure compliance is effectively managed
to mitigate ballast water management
incidents and maintain compliance with the
Standard. Having taken into consideration
the nature of our operations, four vessels
within our fleet have converted closed
loop ballast water management systems,
completely mitigating the requirement to
conduct ballast water exchange at sea,
two vessels have approved exemptions
to the Standard due to their limited area
of operation and a portion of our fleet are
currently in planning to have D-2 compliant
systems fitted in accordance with their
International Oil Pollution Prevention
(“IOPP”) expiry dates. The remainder of the
fleet is D-2 compliant with approved ballast
water management systems fitted.
Emissions Reduction
In support of our overarching ESG strategy,
MMA has established a Decarbonisation
Working Group which is actively working on
operational efficiencies, new technologies
and changes in processes to reduce the
emissions from our operations.
As our emissions predominantly stem from
the CO2 emitted by our vessels burning
Marine Gas Oil (“MGO”), a low-sulphur
marine fuel, this is our primary area of
focus. MMA utilises MGO in comparison to
Heavy Fuel Oil (“HFO”) which is utilised by
the majority of the shipping industry, and
as such, our fuel burn in comparison has a
much lower level of carbon emissions.
To effectively address and fulfil our
commitment towards further reducing
our emissions, we have developed a
comprehensive decarbonisation strategy
with a focus on fuel efficiency initiatives until
such a time as alternative fuels for vessels
are available. Significant progress has been
made with this strategy over the past year,
specifically in the following areas.
Digitalisation
Digital transformation is a crucial enabler
of our decarbonisation strategy, and we
have embarked on a comprehensive
fleet digitalisation program to harness
emerging technologies and data analytics
to drive efficiencies and minimise our
environmental footprint. Through this
program, we will equip all our vessels
with the technology required to optimise
efficiency and sustainability, to provide
further transparency for our clients and to
enhance the welfare of our crews.
As a preliminary step towards digitalisation
and as a key enabler for operational
improvements, we undertook a substantial
upgrade of our Daily Vessel Reports
(“DVR”) in late 2022. These reports,
completed by the vessel staff on a daily
basis to record operational vessel data,
have undergone a comprehensive review.
The enhanced DVR now incorporates a
detailed breakdown of activities, engine
and fuel usage, cargo information, crew
and passenger details, HSE KPIs and other
metrics. By incorporating automations, we
have ensured the data is readily available
onshore for further analysis and sharing
with our clients. A range of reports and
dashboards have been developed to
facilitate analysis, particularly in support of
our operational improvement efforts.
22 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 23
MMA has digitised its daily
vessel reports, and increased
the parameters reported by
300% - this valuable data
can be used to track energy
efficiency initiatives.
Operational Improvements
Our digitalisation program will include
the installation of advanced sensors and
monitoring systems, enabling real-time
data on fuel consumption, emissions and
operations performance. This data will be
integrated into data analytics platforms to
facilitate continuous monitoring, analysis
and informed decision-making.
The acquisition and accessibility of
fuel consumption patterns allows us to
establish baselines from which operational
improvements can be identified and
efficiency gains implemented. Detailed
data on fuel consumption, engine load
and trim relative to the vessel’s operating
profile will allow us to optimise the engine
configurations used, determine the optimal
trim and speed and maximise fuel economy
in different operating modes. We will then
outline and implement best practices for
vessel operations, emphasising fuel-
efficient navigation, maintenance and
onboard practices. This approach will yield
substantial fuel savings.
As a pilot trial, MMA has successfully
installed a digitised fuel monitoring system
onboard one of our OSVs, the Mermaid
Cove. We collaborated closely with a
Singapore-based technology partner,
Brightree, who specialise in providing
accurate real-time measurement and
monitoring of fuel consumption, as well
as real-time asset tracking. This system
allows detailed and accurate monitoring of
fuel consumption for each engine across
the vessel’s various operating modes, with
instant remote access to the data and
associated reporting dashboards. We will
also be exploring the integration of voyage
planning technology, which considers
factors such as tides or weather, to further
enhance fuel efficiency.
Another critical aspect of optimising the fuel
efficiency of our vessels is hull condition.
A hull covered in marine growth will have
a significantly higher drag coefficient,
resulting in loss of speed or increased fuel
consumption to maintain the same speed.
We are therefore rolling out hull initiatives to
our fleet, including the application of top-
grade anti-fouling treatments, which offer
a reduced/slower rate of fouling, and are
looking to carry out mid-docking cycle hull
and blade cleans.
Team Engagement Campaigns
We firmly believe that engaging our vessel
team members is vital to achieving our
sustainability goals. To foster engagement
and a culture of environmental stewardship
and energy-conscious decision-making
among our marine staff, we are conducting
annual engagement campaigns. These
campaigns serve as a platform for
sharing our initiatives and findings with
the crew, while simultaneously gathering
their feedback and ideas. We will also
establish regular communication channels
to share updates, success stories and
challenges related to decarbonisation, as
well as implement an incentive program to
encourage and reward innovative ideas and
initiatives.
New Technologies
MMA’s Decarbonisation Working Group
is closely monitoring the advancements
in applicable technologies including
alternative fuels, hull cleaning technology
and battery technologies. We actively
participate in relevant forums to ensure we
remain up to date with the latest relevant
technological advances.
In order to assess the viability of promising
technologies, we are conducting desktop
studies which will be followed by onboard
trials where feasible. The objective is to
identify effective technologies that can
be implemented to reduce our carbon
footprint.
MMA has dedicated extensive efforts to
researching the potential benefits of Energy
Storage System (“ESS”) battery technology
onboard our vessels. However, based on
our operational profiles and the current
available technology, the associated
benefits have not yet justified its adoption
as a practical option. Nonetheless, we
will periodically reassess the value of
implementing this technology onboard our
vessels.
When renewing our fleet, the incorporation
of alternative fuel technology will be a
key driver in our investment decisions,
to support our drive to reduce our fleet’s
carbon footprint. Significant research and
trials have been conducted in recent years,
in particular by the major marine engine
manufacturers, around adapting engine
technology to the use of alternative fuels
such as methanol, ammonia and hydrogen.
However, at this stage there are still no
readily available engines which can run on
one of these alternative fuels, nor regional
availability of the fuels. Until a specific
alternative fuel reaches a sufficient level of
technological maturity and is determined
to be the optimal alternative fuel for our
type of marine operations, with secure
availability, MMA is not in a position to
utilise alternative fuels in our current fleet.
This consideration will however be pivotal
for any future newbuild vessel. In the
meantime, we are however exploring the
utilisation of biofuels as a temporary drop-in
fuel, once their availability reaches a point
where it becomes a viable option.
MMA remains steadfast in our commitment
to decarbonisation and sustainability. Over
the past year, significant progress has been
achieved through our decarbonisation
strategy and we will continue to leverage
technology, innovation and collaboration to
reduce our carbon footprint while upholding
the highest standards of safety, efficiency
and reliability in our operations.
Scope 1 emissions reduced consistent
with the higher utilisation of our vessels,
with Scope 1 reflecting the fuel usage when
vessels are not under charter.
Scope 2 emissions reduced due to the
divestment of our Batam Supply Base as
well as a number of leased facilities being
shut down or subleased.
Scope 3 emissions increased reflecting the
higher percentage of days our vessels were
on charter.
Total emissions per available vessel
day increased due to the higher vessel
utilisation which increased from 73% in
FY2022 to 80% in FY2023, whilst total
emissions per utilised vessel day decreased
slightly from the prior year.
Emissions intensity is highly dependent
on the nature and location of the work,
the distances required to be travelled and
the modes of operation while the vessel is
working, limiting the insights to be gained
from a simple emissions intensity ratio.
During FY2023, vessels operated between
the Middle East, Africa, Asia and Australia.
The work being carried out by our
decarbonisation team will provide greater
insights into our emissions intensity at
various modes of operation and enable
us to work with our clients (who generally
direct our operations) to optimise fuel burn
and ultimately reduce our overall emissions.
FY2023 Emissions
MMA has calculated its emissions for its
global operations for the financial year
ended 30 June 2023 with its Scope 1,
Scope 2 and Scope 3 emissions outlined
below.
Scope 1 reflects MMA’s direct fuel use and
associated emissions while our vessels are
off-hire and fuel is under MMA’s operational
control. Typically, once MMA’s vessels have
been contracted, fuel comes under the
client’s operational control and emissions
are classified as Scope 3. Vessels used in
our subsea survey operations are classified
as either Scope 1 or Scope 3 based on the
scope of work and operational control test.
Vessel emissions are calculated based
on the fuel used as recorded on the Daily
Vessel Reports with the appropriate
emissions factor applied. The other key
emissions sources are electricity, oil and
gas used to power our premises and
emissions related to travel. These are
calculated using the source data provided
from suppliers with appropriate regional
emissions factors applied.
Fuel burn and total emissions are
correlated with vessel utilisation, with fuel
use considerably higher when vessels
are working. To facilitate a comparison
over time, we have used “available vessel
days” as a normalisation factor to calculate
emissions intensity for MMA’s owned fleet
as the fleet size and utilisation fluctuates.
MMA’s overall emissions for FY2023
decreased by 10% in comparison to
FY2022. The primary reason for the
reduction in emissions was fewer owned
and chartered vessels in the fleet in
comparison to the prior year.
Supporting the Energy Transition
Offshore Wind
MMA is focused on growing its revenue
from sectors such as offshore wind, utilising
our skills and assets to facilitate the global
energy transition.
During FY2023, we increased our share
of revenue from offshore wind from 9% to
24% and remain focused on increasing this
percentage over time.
We had several vessels working the
offshore wind market in Taiwan during the
year including three of our larger vessels
– the MMA Pride, MMA Prestige and
MMA Pinnacle. Our subsea division was
also active with a number of geophysical
survey scopes conducted during the year.
Pleasingly, we completed our first project in
South Korea opening up a new market for
MMA with significant development forecast
over the coming years.
Momentum is also building in the Australian
offshore wind market. Following a change
of government, Australia has committed to
significantly increasing its renewable energy
capacity by 2030 and has commenced
the licencing process for six designated
offshore wind zones around Australia.
This has led to a swathe of potential
Australian projects totalling up to 45GW in
capacity being announced, reflecting the
strong momentum in the industry. Whilst
the Australian offshore wind industry is
in its infancy, site feasibility studies will
require significant seabed mapping and
geotechnical survey work which MMA is
ideally positioned to provide.
We will continue to focus on growing
this part of our business with the longer-
term aim of continuing to increase our
revenue from supporting clean energy
developments.
Total Emissions (ktCO2-e)
FY2023
FY2022
FY2021
FY2020
Scope 1
Scope 2
Scope 3
TOTALS
9.4
0.2
117.6
127.2
32.8
1.4
107.2
141.4
21.2
1.2
98.7
121.1
18.0
1.5
132.9
152.4
Offshore Wind Revenue Growth
% of Revenue from Offshore Wind
24%
16%
Emissions Intensity
FY2023
FY2022
FY2021
FY2020
9%
Total Emissions /
Available vessel days
Total Emissions /
Utilised vessel days
19.2
23.9
15.6
24.5
11.9
21.6
14.4
21.5
0%
19
2%
20
21
22
23
24 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 25
Supporting Healthy Oceans
As a marine services company, MMA
is passionate about enabling the ocean
communities in which we operate to
thrive, above and below the waterline. In
FY2023, we continued our pioneering work
in ecosystem engineering with projects
in Tasmania, the North Sea and Western
Australia whilst supporting research with
leading institutes.
Enhancing Offshore Wind
During FY2023, MMA collaborated with
DEME Group to deploy a prototype reef off
the Belgian coast, exploring the benefits of
incorporating engineered reef substrates
into the North Sea’s wind parks. The
massive scale of these offshore wind parks
presents a unique opportunity for operators
to create multifunctional ecosystems that
benefit multiple users and the environments
within which they coexist.
Contributing to Coastal Resilience
Fringing reefs act as natural barriers,
reducing the energy of incoming waves
before they reach the shore. Engineered
fringing reefs can be designed to enhance
this wave attenuation effect. By absorbing
and dissipating wave energy, they help
protect the shoreline from erosion and
minimise the impact of storm surges.
MMA is making an important contribution
to improving coastal resilience through our
long-term collaboration with the University
of Western Australia (“UWA”), which has
resulted in a multi-year research program
into working with nature solutions for
coastal erosion control. With co-funding
from MMA and the Australian Research
Council, UWA researchers have made
a number of advances in the design of
fringing reefs, mimicking natural reefs which
attenuate wave energy.
Researchers have been investigating the
benefits of the coral canopy, seagrass
and dune restoration in combination with
engineered fringing reefs to establish
resilient shorelines for our coastal
communities.
Building on our 2022 installation of a
wave attenuating reef off C.Y. O’Connor
Beach situated along the coastline of
Perth, Western Australia, the Australian
Government’s Coastal and Estuarine
Risk Mitigation Program is co-funding the
second stage of the reef development with
the City of Cockburn. Early engineering and
project planning is currently underway with
installation planned for later in 2023. The
C.Y. O’Connor project will be monitored
over a three-year period by UWA to gauge
the success of coastal erosion mitigation,
serving as a valuable example for national
and international government and
commercial organisations.
We see MMA’s attenuating reef designs
as a potential scalable solution to combat
the erosion of our coastlines globally as a
result of rising sea levels and more frequent
extreme weather events as a result of
climate change.
Enhancing Australian Fisheries
Artificial Reef Installations, Tasmania
During FY2023, MMA installed two new
artificial reefs in Tasmania – one off Bruny
Island and the other at Turners Beach on
the north coast. The reefs, the first of their
kind in Tasmania, consisted of a total of
318 reef modules across a total area of
eight hectares of seabed. Over time we
expect the reef to be colonised with marine
organisms similar to the surrounding rock
reef habitats, as well as the establishment
of a new resident fish population including
species such as snapper, morwong and
yellowtail kingfish.
We see MMA’s attenuating reef
designs as a potential scalable
solution to combat the erosion
of our coastlines globally.
King Reef, Exmouth
Recently commissioned underwater
photography of the King Reef site in
Exmouth showed a plethora of coral and
fish species have inhabited the reef in the
five years since the reef was installed.
King Reef was designed and installed
by MMA as an innovative ‘rigs to reef’
concept using decommissioned oil and gas
infrastructure to create a significant new
marine habitat. The resounding success
of this project should provide further
opportunities for MMA to partner with the
oil and gas industry on future projects to
sustainably decommission infrastructure for
the benefit of our oceans and communities.
Tourism & Marine Habitat Creation
The Wonder Reef on Australia’s Gold Coast
has been installed for just over 12 months
and is exceeding expectations as both a
dive attraction and ecosystem. Some of
the new marine species on the reef include
large Queensland groupers that have made
the site their home. Divers during the whale
migration season have also been treated to
a unique soundtrack of whale song as they
explore the reef.
Social
Employee Health & Safety
At MMA, we protect and prioritise the
health, safety and wellbeing of our people.
This commitment is at the heart of our
Target 365 philosophy to achieve “a Perfect
Day, Every Day,” and serves as the guiding
principle that shapes our operations,
practices and policies.
In FY2023, MMA’s Total Recordable Case
Frequency (“TRCF”) was 0.26, a slight
improvement on the previous year. We
recorded one medical treatment case
which occurred during routine subsea back
deck operations. When compared to our
industry peers and the industries in which
we operate, our TRCF demonstrates world-
class performance and is evidence that our
safety culture is thoroughly embedded in all
areas of our operations.
In line with MMA’s Target 365 program, an
internal measure utilised as an assessment
of our safety performance is our number of
‘Perfect Days’ achieved. ‘Perfect Days’ are
the key metric of our Target 365 program,
with a perfect day being a day free of
recordable injuries or material incidents.
In FY2023, we achieved 347 (95%) perfect
days – a slight improvement on the
previous year.
Total Recordable Case Frequency
(Per Million Manhours)
1.13
0.54
0.28
0.26
20
21
22
23
MMA TRCF
IMCA Average
However, MMA recognises that such
measures are lagging indicators of
performance and as such, a considerable
focus is placed on our leading indicators,
HSEQ programs and initiatives and ongoing
leadership engagements. During FY2023,
the following initiatives and improvements
were delivered and continue to positively
contribute to maintaining our strong safety
focus and performance.
Target 365 Leadership Engagement
Program Refresh
MMA’s Target 365 Leadership Engagement
Program has been developed to promote
and facilitate active engagements by
MMA’s leadership group with the broader
MMA workforce. This program ensures
transparent accountability throughout
the peer group and fosters a culture
of responsibility and oversight, from
the Managing Director downwards.
Engagement targets are agreed by all,
engagement tasks and activities are
visible to all within the program and
performance against those targets is
visibly managed. The conduct of active
leadership engagements has positively
contributed to MMA’s safety performance
whilst also supporting MMA as an employer
of choice and one that is recognised for
its investment in the development and
recognition of its employees. During
FY2023, MMA’s Target 365 Leadership
Engagement Program was also announced
as a joint winner of the International Marine
Contractors Association (“IMCA”) Safety
Awards.
26 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 27
MMA is dedicated to
enhancing not only our
internal health and safety
processes but also those
throughout the industry.
Target 365 Rewards & Recognition
Program
This newly introduced program has
been developed to recognise individuals
whose safety behaviours model those
of our Target 365 culture. The program
provides our employees with a platform in
which to recognise both themselves and
their peers for Target 365 aligned safety
behaviours, positive safety contributions
and initiatives which improve the overall
safety of our operations. Reward recipients
receive a monetary reward for themselves
and donate an equal amount to a
registered charity of their choice which
positively reinforces MMA’s commitment
to supporting the communities in which
we operate. Reward recipients are also
recognised via the HSEQ Newsletter,
MMA Intranet, digital communications
channels and via a presentation within their
workgroups.
HSEQ Communication
Enhancements
The development of comprehensive
monthly HSEQ reports has provided the
operational management group with
current and valuable HSEQ information
enabling them to rapidly respond to and
address any potential concerns or issues,
as well as allowing for real time recognition
of positive performance. In addition to
the enhanced monthly HSEQ reports, the
HSEQ team have implemented a quarterly
HSEQ Bulletin, providing a platform to
communicate HSEQ initiatives, successes,
Target 365 Reward recipients as well as a
general summary of HSEQ performance.
Operational groups are encouraged to
contribute to the bulletin which has been
well-received.
HSEQ & Operational Partnerships
Contribution to the Industry
Continuous Improvement
Employee Wellbeing
Collaborative working relationships are
crucial to delivering sustainable results,
and this is recognised by MMA through the
increased focus on developing valuable
partnerships between the MMA HSEQ
team and the operational management
groups. MMA is cognisant that success is
only achieved when everyone is committed
to the same goal, working collaboratively
and supporting each other. This is the
model that MMA has adopted in relation
to the working arrangements between our
HSEQ team and that of their operational
counterparts. Working alongside the
operational group, the HSEQ team
provide valuable assistance day-to-day in
increasing our safety standards, solving
challenges using a risk-based approach
and continuing to drive our Target 365
ethos.
Incident Investigation Program
Review
A new incident investigation methodology
has been introduced known as Incident
Cause Analysis Method (“ICAM”). ICAM
is a holistic safety investigation analysis
method which allows MMA to identify
both local failures that contributed to an
incident whilst not ignoring potential failures
in the broader operations that need to be
assessed and remedial actions developed.
ICAM training has been provided to key
MMA stakeholders and the process
embedded in MMA’s Integrated Business
Management System.
MMA is dedicated to enhancing not only
our internal health and safety processes
but also those throughout the industry. We
actively participate as a member of various
industry organisations that strive to foster
a robust safety culture. As part of these
industry organisations, operational safety
improvements in which MMA plays an
active role include:
• DP Working Group (Safer Together)
– MMA’s Executive General Manager
Vessel Services sits on this committee
which is focused on facilitating the
sharing of lessons learnt, collaboration
amongst industry experts and
recommendations for changes to
industry guidance and standards;
• Safe Decks Group (Safer Together)
•
– development of a refresher training
package for all offshore crew involved
in the loading, carrying and discharge
of cargo to offshore facilities in
Australia; and
IMCA HSSE Core Committee – MMA’s
Executive General Manager Risk sits
on this committee which is focused
on delivering a number of initiatives
and improvements including safety
promotional campaigns based on
industry trends, gap analysis on safety
parameters between the traditional
oil and gas market versus renewables
markets and developing guidance on
crew mental health.
In addition to identified health and
safety initiatives and focus areas, MMA
continues to drive improvements through
the continual improvement of our HSEQ
systems and processes. Highlights for the
year included:
•
•
ISO 9001, 14001 and 45001
certification renewal across MMA’s
global operations;
Improvement of navigational safety
via the fleetwide implementation
of Electronic Chart Display and
Information Systems (“ECDIS”);
• A Subsea Safety Conference which
provided the opportunity for the HSEQ
team to work with subsea operational
personnel on safety initiatives and
provide greater awareness on our
systems and processes;
•
Increased focus on mental health
including the introduction of “Mental
Health First Aid” training provided;
• Engagement of an internal Health and
Wellbeing Coordinator, increasing
our ability to generate and promote
health and wellbeing campaigns and
effectively manage any workplace
injuries or illnesses;
•
•
Integration of MMA’s Purpose and
Principles into the core of all HSEQ
engagements with the MMA workforce;
and
Joint winner of the 2022 IMCA
Safety Awards for MMA’s Target 365
Leadership Engagement Program.
Our objective at MMA is to cultivate a
diverse, engaging and high-performance
workplace that prioritises the wellbeing of
our employees, enabling them to achieve
their full potential.
We are committed to establishing a healthy,
safe and inclusive work environment, free
from any form of harassment or bullying,
that values the input of every employee,
fostering a deep sense of belonging and
ensuring fair, respectful and dignified
treatment for all. Our aim is to cultivate a
workplace culture where individuals feel
not only encouraged but also safe to speak
up and share their thoughts, ideas and
concerns.
MMA continues to promote employee
wellbeing across the business through a
range of measures, including:
• A culture of transparent communication
including regular Managing Director
town hall meetings and Q&A sessions,
employee-led lunch and learn
presentations and a range of regularly
updated internal communications
channels;
• A calendar of regular employee
engagement events providing
opportunities for fostering professional
networking, social connections
and a sense of belonging, including
conferences, community volunteering
and social activities;
• Flexible working arrangements
to facilitate personal and family
commitments, including a Working
from Home policy for office-based staff;
• Generous parental support
and flexibility on return-to-work
arrangements to facilitate ongoing
participation;
• A Mental Health Policy enabling staff
to use personal leave for mental health
reasons;
• An employee assistance program
which provides counselling and
wellbeing resources to our staff globally
24/7; and
• A Code of Conduct which outlines
MMA’s Purpose, Principles and
expected behaviours.
Crew Engagement
MMA recognises the importance of
maintaining consistent and meaningful
engagement with our offshore crew, who
often face limited opportunities to connect
with the broader organisation due to the
nature of their work at sea.
In line with our commitment to foster
strong relationships and open lines of
communication, we organised a crew
conference in June 2023, held in Perth,
Western Australia. This event brought
together a key group of MMA’s vessel
masters, chief engineers and ratings,
creating an invaluable platform for them to
actively participate in insightful discussions
on a wide range of key topics. Facilitated
by members of our senior and executive
leadership teams, the conference not only
served as an informative and collaborative
forum, but was also a valuable face-to-
face networking opportunity, allowing
our crew members to connect and build
relationships with their peers.
By providing these in-person platforms
for engagement, we are able to focus on
the wellbeing of our vessel crew, ensuring
that their voices are heard, valued and
integrated into our organisation.
28 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 29
By prioritising the growth
and advancement of our
people, we ensure that MMA
remains at the forefront
of delivering exceptional
marine solutions.
Training & Development
Employee Support & Training
At MMA, we are committed to unlocking
the full potential of each of our team
members by making strategic investments
in their ongoing development. By providing
our people with the resources, support and
opportunities to enhance their skills and
expertise, we empower them to elevate
their career progression to new heights.
This not only benefits our employees
individually, but also equips our business
with a highly skilled and motivated team
who are capable of successfully executing
our clients’ most complex marine projects.
Over the course of FY2023, MMA's
employees and contractors completed a
total of 13,457 individual training outcomes.
By prioritising the growth and advancement
of our people, we ensure that MMA remains
at the forefront of delivering exceptional
marine solutions that exceed client
expectations and drive long-term success.
Industry Support
MMA Offshore Hydrographic Surveying
Scholarship
MMA is proud to support the development
of the next generation of hydrographic
surveyors through the MMA Offshore
Hydrographic Surveying Scholarship,
established in conjunction with Curtin
University, Western Australia.
The scholarship, now in its second year,
provides Bachelor of Surveying (Honours)
students in their final year of study at Curtin
University with a monetary contribution
towards their educational related expenses
as well as the potential for hands-on work
experience, alongside MMA’s team of
experienced surveyors.
30 MMA Offshore Limited | Annual Report 2023
The scholarship also provides students with
the potential for employment with MMA
post-graduation. With a shortage of skilled
hydrographic surveyors in Australia, it is
critical to foster the growth of Australia’s
hydrographic surveying industry by offering
students support, career pathways and
real-world exposure to projects.
Singapore Internships
Over recent years, MMA has hosted
interns from a number of Singapore-
based universities including Nanyang
Technological University, Singapore
Polytechnic and Ngee Ann Polytechnic,
and organisations such as the Singapore
Maritime Foundation.
Initially beginning with one intern in our
Chartering department in 2019, the
program has now expanded significantly
with MMA having hosted 12 interns to
date across a wide range of departments,
including subsea, finance, procurement
and crewing. Our teams are proud to
nurture the next generation of maritime
professionals and they willingly share their
invaluable experience with the students.
Furthermore, as part of our commitment to
fostering talent within the maritime industry,
MMA offers pathways for students towards
future employment with the Company
upon their graduation. This initiative not
only benefits the students by providing
promising career prospects, but also
contributes to the continuous growth and
sustainability of the maritime sector in
Singapore.
Career Events
During FY2023, MMA participated in a
number of industry events in order to
promote careers in the maritime industry.
Fremantle Maritime Day
In October 2022, MMA took part in the
annual Maritime Day industry event held in
Fremantle, Western Australia. As a vibrant
community festival that celebrates the
maritime industry, this event offered MMA
a valuable platform to connect with the
local community and initiate meaningful
conversations about marine career
opportunities. By participating in this event,
MMA demonstrated our commitment to
fostering connections with stakeholders,
promoting career prospects and building a
strong presence within the communities in
which we operate.
Australian Maritime College Careers Expo
Additionally, in March 2023, MMA
participated in the annual Australian
Maritime College Careers Expo held in
Tasmania. This event served as an excellent
opportunity to connect with graduates and
aspiring professionals, providing valuable
insights into the diverse range of marine
career paths available within MMA. By
targeting young marine professionals at
events like these, MMA aims to inspire
and guide the next generation towards
rewarding careers in the maritime industry.
Future Engineers Program
During October 2022, MMA was proud
to share an insight into ocean-based
STEM careers through the Subsea Energy
Australia Wise Future Engineers Program.
30 girls from schools across Perth joined
our team on site to learn from MMA’s
engineers and had the unique opportunity
to cast five MMA artificial reef modules
which will be donated to the popular local
Coogee Maritime Trail – one of the world’s
largest living harbour projects, created
by MMA.
Diversity & Inclusion
With over 1,100 global employees with
different experiences, backgrounds and
perspectives, MMA takes pride in our strong
commitment to diversity and inclusion.
Recognising the importance of equality and
inclusion in the workplace, MMA actively
works towards creating an environment
where all employees are empowered to
thrive and succeed.
In order to drive diversity and inclusion
objectives at all levels across the Company,
MMA has a well-established Diversity and
Inclusion Committee. The Committee has
a pivotal role in promoting and maintaining
an inclusive environment across the
organisation, through the establishment
and monitoring of the Company’s strategic
objectives.
MMA also places great importance on
ensuring fairness and equality in our
remuneration practices, with regular
reviews conducted to guarantee that
every employee is compensated fairly,
appropriately and without bias.
Diversity Measurable Objectives
Annually, MMA develops a set of Diversity
Measurable Objectives, including targets
for female participation in technical, senior
management and executive management
positions as well as on our Board of
Directors.
MMA’s percentage of women employed at
an executive leadership level was 28.6% in
FY2023, compared to 33.3% in FY2022.
Additionally, MMA’s Board of Directors
percentage has increased, with 40% female
Board representation in FY2023, compared
to 33.3% in FY2022.
We are targeting 30% female representation
at the senior management level by June
2025, from 17.4% currently. This will be
achieved through a range of HR strategies
encompassing recruitment, training and
development and career path initiatives.
MMA is also targeting increased female
representation in technical positions to
assist with developing the pipeline for senior
management roles.
As at the date of this report, MMA had
12% of technical positions represented by
women as a result of proactive recruitment
practices during the year.
Employee Nationalities - Top 10
7
Ukraine
22
New Zealand
43
Singapore
74
United Kingdom
86
Taiwan
118
Malaysia
120
India
125
Indonesia
330
Australia
240
Philippines
% of Women Employed
35.4
32.5
40.0
33.3
33.3
28.6
19.2
17.4
22
23
Total Organisation
(excluding offshore crew)
22
23
Board of
Directors
22
23
22
23
Executive
Management
Senior
Management
MMA Offshore Limited | Annual Report 2023 31
Diversity & Inclusion Events Program
Diversity at MMA
International Women’s Day
Ramadan & Eid al-Fitr
Fostering a greater appreciation and
understanding of the diverse cultures and
experiences within our business, as well
as diversity issues more broadly, remains a
key focus for MMA’s Diversity and Inclusion
Committee.
A cornerstone of this effort is our formal
Diversity and Inclusion Events Program,
which has been in place since 2020. These
events have proven to be instrumental
in developing a deeper appreciation and
understanding for diversity amongst our
employees, and we continue to hold these
activities in order to foster an inclusive
culture across our business.
During FY2023, MMA employees came
together to recognise a range of events
including a special ‘Diversity at MMA’
initiative focusing on diversity more broadly
at MMA, Lunar New Year, International
Women’s Day, Ramadan and Eid al-Fitr,
International Day for Women in Maritime,
National Reconciliation Week and
NAIDOC Week.
From December 2022 to January 2023,
MMA’s Diversity and Inclusion Committee
held an engagement campaign with
our workforce aimed at recognising the
broad spectrum of diversity across our
business. This period of engagement
included a photo competition where we
asked our team members to share a
photo submission which best represented
the concepts of diversity, inclusion or
belonging. Receiving submissions from
MMA team members all over the world, the
competition acted as a celebration of the
individuals and teams across our business
and highlighted the ways in which all levels
of the organisation work towards fostering
inclusivity.
Lunar New Year
In January 2023, our Perth and Singapore
offices joined in the celebration of the Lunar
New Year, marking the arrival of the Year
of the Rabbit. As part of the festivities,
our offices were adorned with customary
decorations, and our teams respectively
gathered to share a meal to commemorate
the holiday.
In celebration of International Women’s
Day on 8 March 2023, MMA’s Diversity
and Inclusion Committee held a dedicated
event at MMA’s head office in Perth which
was live-streamed and recorded to share
with our global offices. The event featured
a special presentation from guest speaker,
MMA Non-Executive Director Sally Langer,
who shared her perspectives on the 2023
theme “Embrace Equity”, as well as her
career journey and experience on the
boards of some of Western Australia’s
top organisations. Additionally, MMA
sponsored several employees to attend
International Women’s Day functions, where
our team heard from inspiring individuals
across the Western Australian community.
We believe in creating
a positive and lasting
impact that benefits
both our organisation
and the communities
we support.
Throughout March to April 2023, MMA’s
Diversity and Inclusion Committee
recognised the Muslim tradition
of Ramadan. To foster a greater
understanding of the challenges of
fasting during Ramadan and the holiday
as a whole, the Committee facilitated an
informative video interview which featured
an MMA team member who graciously
shared their personal experiences and
family traditions associated with Ramadan
and Eid al-Fitr. This conversation was
shared through the Company's internal
communications channels, allowing
the broader workforce to gain unique
insights into the cultural significance of
this observance. To celebrate Eid al-Fitr,
celebratory lunches featuring traditional
cuisines were held at our Perth and
Singapore offices, with members of
MMA’s Board of Directors and Executive
Management Team in attendance. Our
Singapore office staff wore festive dress for
the event and a number of staff shared with
colleagues their personal experiences of
what Ramadan means to them.
International Day for Women
in Maritime
On 18 May 2023, MMA celebrated the
International Maritime Organization (“IMO”)
event, the International Day for Women in
Maritime. In celebration of the day, MMA
collaborated with the Women’s International
Shipping and Trading Association (“WISTA”)
Australia to sponsor a networking and
panel speaking event to bring together
members of Perth’s broad maritime
community. Additionally, two members of
MMA’s Diversity and Inclusion Committee
represented MMA by participating in the
panel and moderating the event. Aligning
with the 2023 theme ‘Mobilising networks
for gender equality’, the event highlighted
the importance of building strong networks
and partnerships to drive meaningful
progress.
National Reconciliation Week
From 27 May to 3 June 2023, MMA
recognised National Reconciliation Week,
taking the opportunity to support our
workforce in learning more about the
rich cultures, histories and contributions
of Aboriginal and Torres Strait Islander
peoples and to deepen our collective
understandings. In support of the event,
MMA participated in the 2023 Perth Street
Banner Project which displayed sponsored
banners in support of reconciliation in
prominent locations across Western
Australia. MMA’s Perth team also joined in
on the 2023 Walk for Reconciliation through
Kaarta Koomba (Kings Park), which
provided our team with the opportunity to
engage in a range of cultural immersion
activities.
NAIDOC Week
During the period from Reconciliation
Week in June 2023 to NAIDOC Week in
July 2023, the Committee organised a
charity raffle with prizes offering staff the
opportunity to engage with Indigenous
food, products and culture. All funds
raised were provided to the Polly Farmer
Foundation to support local Indigenous
students' education.
In addition, we coordinated a native food
inspired morning tea facilitated by All Good
Grub, a Perth-based, Indigenous-owned
catering business. This provided a unique
experience for our staff, with many team
members able to try native ingredients for
the first time. During the morning tea, we
also premiered a short film documenting
MMA’s partnership between the Undalup
Association (the Wadandi Traditional Owner
group for the South West region of Western
Australia), the University of Western
Australia and Australian Hydrographic
Office which took place through a recent
HydroScheme Industry Partnership
Program (“HIPP”) project.
To close out the week, we also hosted
a cultural awareness training session
facilitated by the Waalitj Foundation. This
provided valuable learning opportunities for
our staff, fostering their understanding of
the traditions, challenges and contributions
of Aboriginal and Torres Strait Islander
peoples. By hosting this experience
for our team, we were able to equip
them with the knowledge and skills to
positively contribute to the wellbeing of the
communities in which we operate.
32 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 33
Seeds for Snapper
Taking place in December
2022, MMA was proud
to partner with OzFish,
to sponsor their Seeds
for Snapper project in
Cockburn Sound in
Western Australia.
Seeds for Snapper is a community-driven
seagrass restoration program by fishing
conservation charity, OzFish.
Seagrass meadows are an important
nursery ground for countless fish and
species of marine life, as well as help to
stabilise the sand which protects coastlines
from erosion. Seagrass fruits once per year
and most seeds are washed ashore or far
out to sea, where they cannot germinate.
The Seeds for Snapper project aims to
both harvest and spread seagrass seeds in
areas where they are more likely to thrive.
MMA staff participated in a volunteering
day which saw our team diving to harvest
seagrass seeds, sorting seeds and bagging
them to be dispersed on the seabed.
MMA was also proud to sponsor a
community seeding event at MMA’s wave
attenuating reef at C.Y. O’Connor Beach,
with over 250,000 seeds dispersed by the
local community. The seeds will regenerate
the seagrass meadow encouraging
a thriving marine habitat and further
contributing to coastal erosion mitigation.
MMA was proud to sponsor and help raise
broader community awareness for this
important environmental initiative.
Community Support
Christmas Food Donation Drives
Blood Donations
MMA is dedicated to supporting the
communities in which we operate.
During FY2023, MMA and its employees
raised more than $31,800 and volunteered
more than 100 hours for local charities,
community groups and not-for-profit
organisations around the world.
Department of Fire and Emergency
Services
With bushfires regularly affecting our local
Western Australian communities, MMA is
proud to support employees in volunteering
for the Government of Western Australia's
Department of Fire and Emergency
Services (“DFES”) through the provision of
flexible working arrangements. In October
2022, MMA was nominated by one of our
participating employees in the Volunteer
Employer Recognition Awards (“VERA”),
which acknowledges businesses that go
above and beyond to enable their staff to
respond to emergencies during work hours.
MSWA Ocean Ride
In November 2022, 20 MMA cyclists
participated in the MSWA Ocean Ride in
Perth, collectively cycling over 1,500km
in support of Western Australians with
neurological conditions. The event brought
together multiple team members from
across MMA, who proudly raised a total of
$8,630 for MSWA, placing MMA in seventh
place on the overall team fundraising leader
board.
Movember
Throughout November 2022, MMA’s vessel
crew on the MMA Vision came together
to take part in Movember, with an aim to
raise much-needed funds for men’s mental
health. The crew rapidly surpassed their
original goal of $1,000 and ultimately raised
$2,080 for the cause.
Now in our third year, our teams in Perth,
Singapore and Aberdeen were proud to
participate in our annual Christmas food
donation drive, donating food and essential
goods to local food bank charities. Our
staff’s contributions supported those
who may have otherwise gone without on
Christmas Day, with donations provided to
Foodbank Western Australia in Perth, the
Humanitarian Organization for Migration
Economics in Singapore and Community
Food Initiatives North East (“CFINE”) in the
UK.
Target 365 Rewards
During January 2023, MMA relaunched
its Target 365 Safety Rewards Program
whereby individuals who demonstrate
exceptional safety performance are
provided with the opportunity to donate
monetary rewards to registered charities. In
the final quarters of FY2023, seven Target
365 Safety Awards winners were selected
and donated their Target 365 rewards to a
range of global charities including the Fred
Hollows Foundation, the Kidney Foundation
of the Philippines and Camp Quality.
Run for a Reason
In May 2023, 24 of our Perth team
members took part in the HBF Run for a
Reason by running, jogging and walking
for a good cause. Our team proudly
raised over $5,000 for the Cancer Council
Western Australia.
Charity Morning Teas
Throughout the year, MMA’s Perth office
held several charity morning teas in
order to raise donations for employee-
nominated charitable organisations, with
MMA matching all amounts raised. During
FY2023, MMA and our staff supported a
range of organisations such as the Starlight
Children’s Foundation, the Royal Flying
Doctor Service and the Royal Children’s
Hospital Research Foundation.
Members of MMA’s Perth team coordinate
a regular group of blood, plasma and
platelets donors, each who contribute
critical, live-saving sources to the Australian
Red Cross on a regular basis. During
FY2023, MMA’s team made 26 donations,
equating to a total of 78 lives saved.
Indigenous Engagement
MMA maintains a steadfast commitment
to establishing and fostering relationships
and partnerships with the Indigenous
communities and Traditional Owners in
our operational areas. We recognise the
significance of these connections and
strive to foster mutual understanding,
respect and collaboration. Through our
ongoing engagement, we aim to contribute
positively to the wellbeing and prosperity of
the communities in which we operate, and
to honour and respect their connection to
the land and waters.
Indigenous Procurement
MMA is a member of Supply Nation
and endeavours to procure goods and
services where possible from Indigenous
enterprises.
Indigenous Training Programs
MMA continues to provide training
opportunities to Indigenous trainees.
Indigenous trainees are engaged on our
modern PSV vessels operating out of
Darwin and Broome, with candidates
completing face-to-face training within
the TAFE system. Trainees then go on
to complete qualifying sea time, gaining
critical work skills and experience over a
period of 16 months.
MMA is dedicated to supporting the
communities in which we operate.
34 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 35
Governance
MMA is committed to a high level of
corporate governance and promoting a
culture that values trust, co-operation and
mutual respect. At MMA, we believe that
high standards of corporate governance
are paramount for sustainable long-term
performance and value creation.
MMA complies with the 4th Edition of
the Australian Securities Exchange’s
Corporate Governance Council’s
Corporate Governance Principles and
Recommendations (4th Edition ASX
Recommendations).
Code of Conduct
Further details of the Company’s Corporate
Governance Policies, including the Anti-
Bribery and Anti-Corruption Policy are
available on the Corporate Governance
page of MMA’s website at: mmaoffshore.
com/investor-centre/corporate-governance.
Modern Slavery
Whilst MMA does not operate in any of
the ‘high risk’ modern slavery industries,
MMA acknowledges that modern slavery
is prevalent in a global economy and is
committed to minimising the risk of modern
slavery issues inadvertently being present
in our supply chain.
MMA’s Code of Conduct has undergone
an update to incorporate MMA’s newly
articulated Purpose, Principles and
behaviours charter.
MMA has a range policies and processes in
place that mitigate the risks of slavery and
human trafficking occurring within MMA’s
operations and in its supply chain.
MMA’s Code of Conduct sets the
standards of behaviour that is expected
of its directors, employees, officers and
contractors who perform work for MMA
and places a strong focus on working
legally, ethically and safely.
We encourage the reporting of unlawful
and unethical behaviour, actively promote
and monitor compliance with the Code
of Conduct and protect those who report
breaches in good faith.
Under MMA’s Group Whistleblower Policy,
whistleblowers are protected from any
disadvantage, prejudice or victimisation for
reporting any breaches of the Policy or the
Corporations Act.
Anti-Bribery & Anti-Corruption
MMA has a zero-tolerance approach
towards bribery and corrupt conduct. The
Company has an Anti-Bribery and Anti-
Corruption Policy for preventing the offering
or acceptance of bribes and other unlawful
or unethical payments or inducements
and applies to all persons associated with
MMA, including directors, employees,
contractors, representatives and agents.
Any breach of this policy will be regarded
as serious misconduct. During FY2023,
MMA had no known incidents of bribery or
corruption.
MMA monitors and reviews the
effectiveness of these policies and
procedures and how well these have been
implemented across the business through
both internal and external audit regimes.
All of MMA’s offshore operations are carried
out in accordance with the Maritime Labour
Convention 2006 (“MLC”) which provides
minimum standards and regulations
relating to employment, working and living
conditions of seafarers.
MMA has developed a strong supply
chain and network of suppliers and
subcontractors to support its operations
and where possible will endeavour to
source products and services from
selected suppliers or contractors local
to the area of operation. As part of
the selection process, MMA conducts
counter-party due diligence on prospective
suppliers and contractors. MMA’s Standard
Procurement Terms and Conditions also
require contractors and suppliers to comply
with modern slavery legislation. Where
third-party terms and conditions are used,
MMA will also endeavour to include similar
provisions into its contracts.
MMA’s 2023 Modern Slavery Statement
can be reviewed on the Australian
Government’s Modern Slavery Register at:
modernslaveryregister.gov.au.
Mapping together on
Wadandi Sea Country
Through the partnership with the Undalup
Association and UWA, MMA was able
to highlight not only the value that the
HIPP brings in achieving the Australian
Hydrographic Office’s obligations under the
Navigational Safety Act, but the value that
the data can bring to the regions in which
they are undertaken. MMA was proud to
demonstrate the importance of engaging
local communities and collaboration with
Traditional Owners.
With a mutual desire to protect, manage
and monitor the ecologically and culturally
sensitive marine environment in which the
project was to take place, a partnership
was developed between MMA, the
Wadandi-led project team and researchers
from the University of Western Australia
(“UWA”) to provide cultural guidance
throughout the HIPP hydrographic survey.
MMA shared relevant extracts of the
captured imagery of the seabed to the
Wadandi People in order to inform the
broader community about the cultural value
and significance of the Sea Country.
MMA also worked with local filmmaker,
Seabird Films, to produce a short film
documenting the partnership which was
premiered at the 2023 Australian Marine
Sciences Association (“AMSA”) conference
held in Queensland during NAIDOC Week
in July 2023.
During June 2022, MMA
was contracted by the
Australian Government
Department of Defence
through the HydroScheme
Industry Partnership
Program (“HIPP”) to
undertake a hydrographic
survey of the Cape Leeuwin
area, located off the
coast of Western Australia
and covering an area of
approximately 421 nautical
square miles.
Prior to the project beginning in December
2022, MMA collaborated with the Undalup
Association and the Wadandi Traditional
Custodian group in the South West of
Western Australia. The Wadandi People
(Saltwater People) are the Traditional
Owners of this part of the South West. The
significant coastal areas are important to
the Wadandi people and their connection
to land and sea through songs, stories,
spirituality and cultural lore (learning and
knowledge of tradition).
36 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 37
Risk
MMA recognises that
risk is an inherent
part of its business.
Effectively identifying
and managing risk
is critical to MMA’s
success.
MMA’s Integrated Business Management
System ("IBMS") documents the risk
management framework that MMA
applies to ensure that a comprehensive
approach to the identification, assessment
and treatment of risk is taken. The risk
framework is aligned to ISO 31000
(2018), the international standard for risk
management.
This section describes (in no order of
significance) the material risks that have
been identified and are being managed for
the Company to deliver on its objectives.
It is not intended to be all encompassing,
nor is any of the information intended to
be taken as a statement of fact. These
risks can be affected by a variety of factors
which can, in turn, impact the Company’s
performance.
Risks Relating to our Operations
The Company’s operations are subject
to various risks inherent in servicing the
offshore energy and wider marine industry.
Our international operations broaden our
risk exposure in terms of both opportunities
and threats.
Operational risks include (but are not
limited to):
• Health and safety incidents;
• Epidemics/pandemics;
• Loss of key customers/contracts;
• Failure by customers to pay for
services;
• Equipment damage, technical failures,
or human error;
•
Industrial relations issues including
strikes;
• Capsizing, sinking, grounding,
collisions, fires and explosions, piracy,
vessel seizures or arrests and acts of
terrorism;
• Environmental pollution, contamination,
and other related accidents;
• Regulatory and legislative non-
compliance;
• Cyber security attacks;
• Kidnap and ransom;
• Fraud and theft;
•
Increases in input costs;
Several other factors also affect the offshore
energy industry, including economic
growth, energy demand, the transition to
renewable energy, the cost and availability
of other energy sources (including onshore
sources) and changes in energy technology
and regulation. There can be no assurance
around future levels of offshore activity. Any
prolonged period of low offshore activity will
have an adverse effect on MMA’s business.
• Failure to attract and retain qualified
personnel or loss of key personnel; and
• Contractual assumptions of risk.
The Company aims to mitigate the impact
of lower offshore investment and lower
offshore activity by:
• Diversifying its service offering into a
range of market sectors including oil
and gas, offshore wind, government
and defence and environmental
services;
• Expanding its service offering to
include subsea and project logistics
services;
• Diversifying its contract portfolio
across the exploration, construction
and production phases and by
providing maintenance/repair and
decommissioning services; and
• Diversifying its geographic footprint
across several key regional areas.
The Competitive Landscape
Demand for MMA’s vessels and services
is impacted by the number of available
vessels in the market and the competitive
landscape.
Any misalignment between vessel supply
and demand can adversely impact vessel
utilisation, rates and contract terms,
thereby impacting MMA’s earnings and
profitability.
MMA seeks to manage this risk by:
• Having a clear strategic plan, including
an ongoing review of its asset mix and
capability to meet market demand;
• Having a clear regional strategy to
position the Company in the most
advantageous areas to operate;
• Providing an integrated marine and
subsea service to clients; and
• Expanding its service offering into the
growing offshore wind sector.
Potential consequences associated with
these risks include the loss of human life
or serious injury, pollution, environmental
damage, significant damage to or loss of
assets and equipment, business disruption,
client dissatisfaction, loss of contracts,
damage to our reputation and legal and
regulatory action, including fines.
This could expose MMA to significant
liabilities, a loss of utilisation, revenue and/
or the incurrence of additional costs and
therefore may have a materially adverse
impact on the Company’s financial position
and profitability.
We employ a number of well executed
controls to manage these risks, including,
but not limited to, appropriate insurance
coverage, hazard and risk management
processes, crisis management processes,
certified health safety and quality systems
and audits, information and security
management systems and mitigation
strategies, planned maintenance programs,
compliance programs, tender and
contract management processes, access
to in-house and external legal expertise,
industrial relations strategies, emergency
preparedness and contingency plans,
preferred supplier and subcontractor
processes, counterparty risk assessments
and a host of engineering and operational
controls.
Dependence on the Level
of Activity in the Offshore
Energy Industry
The Company is dependent on the level of
activity and capital spending in the offshore
energy industry including oil and gas and
offshore wind.
The level of activity may vary and be
affected by, amongst other things,
prevailing or predicted future energy prices,
government policies and macro conditions.
Access to Capital
Cyber Security
Maintaining, replacing and growing our
vessel fleet subject to the Company’s
prevailing strategy at the time may require
significant capital investment which may
require additional debt or equity funding.
Our ability to raise debt and equity capital
on acceptable terms in the future may be
limited depending on market conditions
which could impact our ability to fund future
capital expenditure programs.
To mitigate these risks MMA has a well-
established investor relations program and
strong relationships and track record within
the equity capital markets. MMA will also
have significant capacity under its new debt
facility which is being extended through to
August 2027.
An additional risk mitigation strategy is
the deliberate diversification of revenue
away from the hydrocarbon industry. As
MMA continues to increase its percentage
of revenue from sectors such as
renewables, government and defence and
environmental services, access to capital
markets increases from both debt and
equity sources as MMA plays a part in the
global energy transition.
Foreign Exchange
The majority of MMA’s revenues are paid
in either Australian or US Dollars and the
Company’s operating costs are primarily
denominated in a combination of Australian,
Singaporean and US Dollars, providing a
natural hedge for our activities. MMA also
has a combination of Australian Dollar and
US Dollar debt. Adverse movements in
these currencies may result in a negative
impact on MMA’s earnings.
MMA’s treasury policy and contract
management processes further mitigate
this risk. The Board also considers from
time to time whether to manage currency
fluctuation risk through appropriate
hedging.
MMA utilises sophisticated technology to
deliver high quality services in conjunction
with interfaces with third party information
technology systems. Instances of
cyber-attacks has the potential to cause
disruption and/or financial and reputational
damage to the Company.
MMA has implemented a comprehensive
Information and Security Management
System to proactively identify, monitor and
mitigate information security vulnerabilities,
threats and risks in order to protect MMA,
its employees, customers, assets and data.
The Company cyber response is governed
by an Information and Communications
Technology ("ICT") Steering Committee
which compromises ICT experts, access
to external expertise and Executive
Management representatives.
Climate Change & ESG
Climate change and ESG issues are
becoming increasingly important to capital
providers, customers and other stakeholder
groups.
The energy transition is impacting MMA’s
traditional oil and gas customers as the
world moves towards renewable energy
sources.
The transition to an alternate marine
fuel technology, which is still under
investigation, will also affect MMA’s fleet
when the technology is developed and
marine assets transition to lower emissions
fuel sources.
MMA views climate change and the energy
transition as both a risk and an opportunity.
MMA has diversified its service offering into
the rapidly growing offshore wind market in
order to support the energy transition and
this remains a key focus going forward.
MMA is committed to operating its
business in a sustainable manner and
has a comprehensive ESG strategy led
by a member of the Executive Leadership
team, with regular reporting to the Board of
Directors.
Geopolitical, Government &
Regulatory Risk Factors
Our international operations are subject
to challenging geopolitical risks in varying
degrees.
Changes in the geopolitical climate in
our market areas, such as the outbreak
or resolution of war, nationalisation of
a customer’s projects and changes to
industry related legislation, protectionist
measures, economic sanctions and border
closures or restrictions may open up more
advantageous areas to operate or could
require us to discontinue operating in that
area, leading to corresponding impacts on
vessel and service utilisation. As MMA’s
operations have expanded into the offshore
wind sector in Taiwan, we continue to
monitor the geopolitical situation there and
official advice issued by governments and
marine risk insurers (including the Joint War
Committee).
MMA may face restrictions on its ability
to win work in certain countries due
to changing cabotage regulations or
government controls and may be required
to form joint ventures in some countries in
order to access the local offshore energy
markets. Joint ventures may introduce
a higher level of operational, financial
and counterparty risk. The prevalence of
bribery and/or corruption in some foreign
jurisdictions also limits MMA’s ability to
operate in these areas.
MMA’s strategic plan considers such risks
and operationally we risk assess market
areas and clients regularly to limit negative
and optimise positive impacts.
A comprehensive Anti-Bribery and Anti-
Corruption Policy, Code of Conduct and
Group Whistleblower Policy have been
implemented and are continually monitored
to assist in combatting these risks.
Risks Relating to our Indebtedness
Any material reduction in profitability may
increase the risk of the Company failing to
comply with the covenants associated with
its Banking Facilities.
MMA seeks to manage these risks through
proactively engaging with its lenders and
the wider debt markets as well as actively
monitoring earnings and cash flows to
forecast covenant compliance.
38 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 39
Board of
Directors
Mr Ian Alexander Macliver
Chairman – Appointed 28 January 2021
Ian was appointed as a Director of the Company on 20 January 2020 and as Chairman of the Company on 28 January 2021.
Ian is currently the Chairman of Grange Consulting Group and Grange Capital Partners. Prior to establishing Grange, Ian held positions over
nine years in a general manager or executive director position for various listed and corporate advisory companies.
His experience covers all areas of corporate activity including capital raisings, acquisitions, divestments, takeovers, business and strategic
planning and debt and equity reconstructions.
Ian is currently a Non-Executive Director of Sheffield Resources Limited which is listed on the Australian Securities Exchange, and an
Alternate Director of Wright Prospecting Pty Ltd.
Ian was previously Chairman of Western Areas Limited, and a Non-Executive Director of both Otto Energy Limited and Mount Gibson Iron
Limited.
Ian holds a Bachelor of Commerce from the University of Western Australia and a Post Graduate Diploma from the Securities Institute of
Australia. He is a Senior Fellow of the Financial Services Institute of Australasia and a Fellow of both the Institute of Chartered Accountants in
Australia and the Australian Institute of Company Directors.
Ian is a member of both the Company's Audit and Risk Committee and the Company’s Nomination and Remuneration Committee.
Mr Chiang Gnee Heng
Non-Executive Director – Appointed 5 July 2012
Chiang Gnee graduated as a Marine Engineer in July 1977 from the University of Newcastle Upon Tyne (UK) and spent almost 30 years
working in Singapore government linked companies and in various industries including shipyards, ordnance equipment manufacturing,
aircraft engine component manufacturing, amusement and lifestyle, waste and environment management businesses.
In June 1989, Chiang Gnee attended the Sloan School of Management at MIT (USA) and graduated with a Masters in Management in July
1990. He was formerly the CEO of Sembawang Shipyard for 10 years and CEO of Sembcorp Environment Management Pte Ltd for two
years until August 2007. Chiang Gnee was also formerly the Executive Director of the Singapore Maritime Institute (SMI) which focuses on the
development of the Singapore maritime industry through research. Chiang Gnee was engaged in workplace health and safety management
until 31 March 2018 and in vocational technical education in Singapore. He was Chairman of the Singapore Workplace Safety and Health
Council and Deputy Chairman of the Institute of Technical Education (ITE) Board of Governors until 30 June 2018.
Chiang Gnee is a Director of MMA Offshore Asia Pte Ltd (Singapore) and a majority of its subsidiaries in Singapore and Malaysia.
Chiang Gnee is Chair of the Company's Nomination and Remuneration Committee.
Ms Susan Murphy AO
Non-Executive Director – Appointed 30 April 2021
Sue has over 40 years of experience in the resources and infrastructure industries. Holding a Bachelor of Civil Engineering from the University
of Western Australia, Sue commenced as a Graduate Engineer with Clough Engineering in 1980. She went on to enjoy a 25-year career with
Clough, progressing through a wide range of operational and leadership roles before being appointed to the Board of Clough Engineering Ltd
in 1998.
After leaving Clough in 2004, she joined the Water Corporation of Western Australia as the General Manager of Planning and Infrastructure,
before being appointed as Chief Executive Officer in 2008, a role she held for over a decade.
Sue has received many accolades throughout her career including being awarded the prestigious Sir John Holland Civil Engineer of the Year
Award and is an Honorary Fellow of Engineers Australia. In addition, she won the International Water Association’s 2014 Women in Water
award and was the 2018/19 West Australian Business Leader of the Year at the AIM WA Pinnacle Awards. In 2019, Sue was made an Officer
of the Order of Australia.
Sue is currently a Non-Executive Director of Monadelphous Group Limited, RemSense Technologies Limited, The West Australian Treasury
Corporation, and the UWA Business School and serves as Pro Chancellor of the University of Western Australia.
Sue is Chair of the Company's Audit and Risk Committee and a member of the Company’s Nomination and Remuneration Committee.
Mr David Colin Ross
Managing Director – Appointed 13 January 2020
Ms Sally Langer
Non-Executive Director – Appointed 6 May 2021
David was appointed as CEO of the Company on 1 July 2019 and subsequently as Managing Director of the Company on 13 January 2020.
David has spent more than 30 years working in the maritime industry having started his career as a seagoing marine engineer and qualifying
as an Engineer Class 1 – Motor (Marine Chief Engineer) in 1995.
In 1995, David moved to a shore based marine career - initially at BHP Transport in Melbourne and subsequently moving to operational and
strategic roles at BHP Billiton freight group in the Netherlands.
David has extensive knowledge of MMA’s operations having been with the Company for more than 18 years. Prior to being appointed as
Managing Director and Chief Executive Officer, David held the roles of General Manager Operations, Chief Operating Officer and Deputy Chief
Executive Officer, including relocating to Singapore to drive the Company’s international growth.
David is currently a member of the Board of Directors of Maritime Industry Australia Limited (which represents the collective interests of
maritime businesses in Australia) and is also a director of the Company’s international subsidiaries in Singapore, UK, USA, Taiwan, Malaysia
and PNG.
As Managing Director of MMA, David is responsible for the financial and operational performance of all of the Company’s business lines.
Sally has over 25 years’ experience in professional services including as founder and Managing Partner of management consulting and
executive recruitment firm Derwent Executive - where she set up and led the growth of the Perth office servicing a wide range of clients both
locally and nationally and led the Mining and Industrial Practice.
Prior to that, Sally was a Director at international recruitment firm Michael Page and a Chartered Accountant at accounting and consulting
firm Arthur Andersen.
During her career, Sally has been responsible for strategy development and execution with a strong focus on profitable business growth,
supervising and coordinating large teams and other management functions including strategy, business development, budgeting and human
resources. She has been a trusted advisor to numerous Boards on recruitment, talent management, culture and organisational structure.
Sally holds a Bachelor of Commerce from the University of Western Australia, is a Fellow of the Institute of Chartered Accountants and is a
graduate of the Australian Institute of Company Directors.
Sally is also currently a Non-Executive Director of Northern Star Resources Ltd, Sandfire Resources Ltd, Federation Mining, Ronald
McDonald House Charities and the Gold Corporation / Perth Mint. Sally is also a member of the Hale School Board of Governors.
Sally is a member of both the Company's Audit and Risk Committee and the Company’s Nomination and Remuneration Committee.
40 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 41
Corporate Governance
Corporate Governance
The Board of Directors (“Board”) of MMA Offshore Limited (“Company” or “MMA”) is responsible for the corporate governance of the
consolidated entity. The Board is a strong advocate of good corporate governance.
Compliance with Australian Corporate Governance Standards
The Board believes that the Company follows the 4th edition of the Corporate Governance Principles and Recommendations (“4th Edition
ASX Principles”) set by the ASX Corporate Governance Council, or where it does not, has sound reasons for not doing so as explained in the
Company’s Corporate Governance Statement.
Access to Corporate Governance Statement
The Company’s Corporate Governance Statement which outlines the Company’s corporate governance policies and practices for the year
ended 30 June 2023, can be found on the Company’s website at www.mmaoffshore.com/investor-centre/corporate-governance.
The Company’s Corporate Governance Statement is current as at 28 August 2023 and has been approved by the Board.
ASX Corporate Governance Council Recommendations Checklist
ASX Listing Rule 4.10.3 requires companies to disclose the extent to which they have complied with the 4th Edition ASX Principles and the
reason for any departure from the 4th Edition ASX Principles.
The table below lists each of the 4th Edition ASX Principles and the Company’s assessment of its compliance with these for the year ended
30 June 2023. The Company’s Corporate Governance Statement and Annual Report set out in greater detail the Company’s assessment of
its compliance with the 4th Edition ASX Principles.
4th Edition ASX Corporate Governance Principles and Recommendations
Comply
Principle 1: Lay solid foundations for management and oversight
1.1
A listed entity should have and disclose a board charter setting out:
(a)
the respective roles and responsibilities of its board and management; and
(b)
those matters expressly reserved to the board and those delegated to management.
1.2
A listed entity should:
(a)
(b)
undertake appropriate checks before appointing a director or senior executive or putting someone forward
for election as a director; and
provide security holders with all material information in its possession relevant to a decision on whether or
not to elect or re-elect a director.
A listed entity should have a written agreement with each director and senior executive setting out the terms of their
appointment.
The company secretary of a listed entity should be accountable directly to the board, through the chair, on all
matters to do with the proper functioning of the board.
1.3
1.4
1.5
A listed entity should:
(a)
(b)
have and disclose a diversity policy;
through its board or a committee of the board set measurable objectives for achieving gender diversity in the
composition of its board, senior executives and workforce generally; and
(c)
disclose in relation to each reporting period:
(1) the measurable objectives set for that period to achieve gender diversity;
(2) the entity’s progress towards achieving those objectives; and
(3) either:
A.
B.
the respective proportions of men and women on the board, in senior executive positions and across
the whole workforce (including how the entity has defined “senior executive” for these purposes); or
if the entity is a “relevant employer” under the Workplace Gender Equality Act, the entity’s most
recent “Gender Equality Indicators”, as defined in and published under that Act.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
4th Edition ASX Corporate Governance Principles and Recommendations
Comply
Principle 1: Lay solid foundations for management and oversight (continued)
1.6
A listed entity should:
(a)
(b)
have and disclose a process for periodically evaluating the performance of the board, its committees and
individual directors; and
disclose for each reporting period whether a performance evaluation has been undertaken in accordance
with that process during or in respect of that period.
1.7
A listed entity should:
(a)
(b)
have and disclose a process for evaluating the performance of its senior executives at least once every
reporting period; and
disclose for each reporting period whether a performance evaluation has been undertaken in accordance
with that process during or in respect of that period.
Principle 2: Structure the board to be effective and add value
2.1
The board of a listed entity should:
(a)
have a nomination committee which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and.
(5) as at the end of each reporting period, the number of times the committee met throughout the period
and the individual attendances of the members at those meetings.
2.2
A listed entity should have and disclose a board skills matrix setting out the mix of skills that the board currently has
or is looking to achieve in its membership.
2.3
A listed entity should disclose:
(a)
(b)
the names of the directors considered by the board to be independent directors;
if a director has an interest, position or relationship of the type described in Box 2.3 but the board is of the
opinion that it does not compromise the independence of the director, the nature of the interest, position or
relationship in question and an explanation of why the board is of that opinion; and
2.4
2.5
2.6
(c)
the length of service of each director.
A majority of the board of a listed entity should be independent directors.
The chair of the board of a listed entity should be an independent director and, in particular, should not be the same
person as the CEO of the entity.
A listed entity should have a program for inducting new directors and for periodically reviewing whether there is a
need for existing directors to undertake professional development to maintain the skills and knowledge needed to
perform their role as directors effectively.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/A
Yes
Yes
Yes
Yes
42 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 43
4th Edition ASX Corporate Governance Principles and Recommendations
Comply
4th Edition ASX Corporate Governance Principles and Recommendations
Comply
Principle 3: Instil a culture of acting lawfully, ethically and responsibly
3.1
3.2
A listed entity should articulate and disclose its values.
A listed entity should:
(a)
(b)
have and disclose a code of conduct for its directors, senior executives and employees; and
ensure that the board or a committee of the board is informed of any material breaches of that code.
3.3
A listed entity should:
(a)
(b)
have and disclose a whistleblower policy; and
ensure that the board or a committee of the board is informed of any material incidents reported under that
policy.
3.4
A listed entity should:
(a)
(b)
have and disclose an anti-bribery and corruption policy; and
ensure that the board or a committee of the board is informed of any material breaches of that policy.
Principle 4: Safeguard the integrity of corporate reports
4.1
The board of a listed entity should:
(a)
have an audit committee which:
(1) has a least three members, all of whom are non-executive directors and a majority of whom are
independent directors; and
(2) is chaired by an independent director who is not the chair of the board,
and disclose:
(3) the charter of the committee;
(4) the relevant qualifications and experience of the members of committee; and
(5) in relation to each reporting period, the number of times the committee met throughout the period and the
individual attendances of the members at those meetings.
4.2
The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive
from its CEO and CFO a declaration that, in their opinion, the financial records of the entity have been properly
maintained and that the financial statements comply with the appropriate accounting standards and give a true and
fair view of the financial position and performance of the entity and that the opinion has been formed on the basis of
a sound system of risk management and internal control which is operating effectively.
4.3
A listed entity should disclose its process to verify the integrity of any periodic corporate report it releases to the
market that is not audited or reviewed by an external auditor.
Principle 5: Make timely and balanced disclosure
5.1
5.2
5.3
A listed entity should have and disclose a written policy for complying with its continuous disclosure obligations
under listing rule 3.1.
A listed entity should ensure that its board receives copies of all material market announcements promptly after they
have been made.
A listed entity that gives a new and substantive investor or analyst presentation should release a copy of the
presentation materials on the ASX Market Announcements Platform ahead of the presentation.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Principle 6: Respect the rights of security holders
6.1
6.2
6.3
6.4
6.5
A listed entity should provide information about itself and its governance to investors via its website.
A listed entity should have an investor relations program that facilitates effective two-way communication with
investors.
A listed entity should disclose how it facilitates and encourages participation at meetings of security holders.
A listed entity should ensure that all substantive resolutions at a meeting of security holders are decided by a poll
rather than by a show of hands.
A listed entity should give security holders the option to receive communications from, and send communications
to, the entity and its security registry electronically.
Principle 7: Recognise and manage risk
7.1
The board of a listed entity should:
(a)
have a committee or committees to oversee risk, each of which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times the committee met throughout the period and
the individual attendances of the members at those meetings.
7.2
The board or a committee of the board should:
(a)
review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound,
and that the entity is operating with due regard to the risk appetite set by the board; and
(b)
disclose, in relation to each reporting period, whether such a review has taken place.
7.3
A listed entity should disclose:
(a)
if it has an internal audit function, how the function is structured and what role it performs.
7.4
A listed entity should disclose whether it has any material exposure to environmental or social risks and, if it does,
how it manages or intends to manage those risks.
Principle 8: Remunerate fairly and responsibly
8.1
The board of a listed entity should:
(a)
have a remuneration committee which:
(1) has at least three members, a majority of whom are independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times the committee met throughout the period and
the individual attendances of the members at those meetings.
8.2
A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive
directors and the remuneration of executive directors and other senior executives.
8.3
A listed entity which has an equity-based remuneration scheme should:
(a)
have a policy on whether participants are permitted to enter into transactions (whether through the use of
derivatives or otherwise) which limit the economic risk of participating in the scheme; and
(b)
disclose that policy or a summary of it.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
44 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 45
Directors' Report
The Directors of MMA Offshore Limited (“Company” or “MMA”) present their Directors’ Report (including the Remuneration
Report) together with the Financial Statements of the consolidated entity, being the Company and its controlled entities, for
the financial year ended 30 June 2023.
Directors
The names and particulars of the current Company’s Directors in office are set out on pages 40 to 41 (including their qualifications,
experience and special responsibilities). These Directors held office during the whole of the financial year and since the end of the financial
year.
Mr Peter Kennan resigned as a Non-Executive Director of the Company on 19 April 2023.
Directorships of Other Listed Companies
Directorships of other listed companies held by the Directors in the three years immediately before and since the end of the financial year are
as follows:
Name
Company
Mr I Macliver
Sheffield Resources Limited
Western Areas Limited
Otto Energy Limited
Ms S Murphy
Monadelphous Group Limited
RemSense Technologies Limited
Period of Directorship
Since August 2019
October 2011- June 2022
January 2004 – November 2019
Since June 2019
Since May 2023
Ms S Langer
Northern Star Resources Limited
Since February 2021
Sandfire Resources Limited
Since July 2020
Gold Corporation/The Perth Mint
Since February 2021
Saracen Mineral Holdings Limited
May 2020 - February 2022
Directors’ Shareholdings
The following table sets out each current Director’s relevant interest in the securities of the Company as at the date of this report:
Directors
Mr I Macliver
Mr D Ross
Mr C G Heng
Ms S Murphy
Ms S Langer
Fully paid ordinary
shares direct
Fully paid ordinary
shares indirect
-
457,234
83,157
199,200
-
100,000
190,758
-
-
-
Performance
rights direct
-
7,649,560
-
-
-
The Directors do not have any interests in shares, options or rights of any related body corporate of the Company as at the date of this report.
Rights Granted to Directors and Senior Management
During and since the end of the financial year, an aggregate of 3,753,504 performance rights were granted to the Managing Director and to
the five highest remunerated senior officers of the Company as part of their remuneration:
Name
Mr D Ross
Mr D Cavanagh
Mr T Muirhead
Mr S Edgar
Mr T Radic
Ms D Garreffa
Company Secretary
Number of
rights granted
Issuing entity
Number of ordinary
shares under rights
1,610,375
MMA Offshore Limited
1,610,375
618,710
MMA Offshore Limited
338,272
MMA Offshore Limited
481,755
MMA Offshore Limited
480,819
MMA Offshore Limited
223,573
MMA Offshore Limited
618,710
338,272
481,755
480,819
223,573
Tim Muirhead was appointed as Company Secretary on 10 January 2022 and held the position at the end of the financial year.
Tim is an Australian qualified lawyer and Fellow of the Governance Institute of Australia with over fifteen years’ experience in the provision of
corporate and commercial and maritime legal advice as well as advice on matters of governance and compliance.
Tim joined the Company’s legal team in November 2009. Prior to joining the Company, Tim commenced his career as a corporate lawyer at a
top tier Australian law firm, where he gained exposure to a broad range of corporate and commercial transactions. Tim has also been Senior
Legal Counsel at another large ASX listed entity.
Tim holds a Bachelor of Science and Bachelor of Law (with distinction) from the University of Western Australia and a Graduate Diploma of
Applied Corporate Governance and Risk Management from the Governance Institute of Australia.
Principal Activities
The principal activities and operations of the consolidated entity during the financial year were the provision of vessels, subsea and project
services to the offshore energy, renewables, and wider maritime industries.
There were no significant changes in the nature of the activities of the consolidated entity during the financial year.
Review of Operations
A review of the operations of the consolidated entity during the financial year and the results of those operations are set out in the Chairman’s
Address and the Managing Director’s Report on pages 10-18.
Changes in State of Affairs
The Chairman’s Address and the Managing Director’s Report (on pages 10-18) set out a number of matters which have had a significant
effect on the state of affairs of the consolidated entity. Other than those matters, there was no significant change in the state of affairs of the
consolidated entity.
Remuneration of Key Management Personnel
Subsequent Events
Information about the remuneration of key management personnel is set out in the Remuneration Report section of this Directors’ Report
on pages 55 to 57. The term ‘key management personnel’ refers to those persons having authority and responsibility for planning, directing
and controlling the activities of the consolidated entity (i.e. the MMA group), directly or indirectly, including any director (whether executive or
otherwise) of the consolidated entity.
The Company entered into a new finance facility with a debt limit of $130M on a non-amortising revolving basis, being A$120M revolving loan
facility and A$10M of letter of credit facility. Further details of the new finance facility can be found in the announcement released to the ASX
on 10 August 2023.
The Company secured a government contract to manage the vessel RV Investigator on behalf of the CSIRO. The contract is for a period of 4
years (with 2 x 3-year options) and is anticipated to generate approximately $80M in revenue across the firm period. Further details of the new
contract can be found in the announcement released to the ASX on 25 August 2023.
Future Developments
In general terms, the Chairman’s Address and the Managing Director’s Report (on pages 10-18) give an indication of likely developments and
the expected results of those operations.
46 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 47
Environmental Regulations
Insurance and Indemnification of Directors and Officers
The Company continues to conduct its operations within the parameters of all applicable statutory and subsidiary legislative requirements.
There were no known reportable or adverse environmental events for the year ended 30 June 2023.
Dividends
In respect of the financial year ended 30 June 2023 the Directors determined to not pay a dividend in order to maintain sufficient capital to
take advantage of growth opportunities and retain the flexibility required to operate in our industry.
Unissued Shares under Rights
Details of unissued shares under rights as at the date of this report are:
Issuing entity
MMA Offshore Limited
MMA Offshore Limited
MMA Offshore Limited
MMA Offshore Limited
MMA Offshore Limited
MMA Offshore Limited
MMA Offshore Limited
Number of
unissued shares
under rights
1,170,356
440,129
4,616,666
1,750,001
1,518,829
2,050,414
2,925,366
Class of
shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Exercise price
of rights
$
Vesting date
of rights
Notes
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1 July 2023
1 July 2023
1 Nov 2023
31 Dec 2023
1 July 2024
1 July 2024
1 July 2025
(a)
(b)
(c)
(d)
(e)
(e)
(f)
(a) 2020 LTI Performance Rights - These performance rights vested on 1 July 2023 and have a two-year exercise period to 1 July 2025 (being the expiry
date of the performance rights).
(b) 2022 STI Performance Rights - These performance rights vested on 1 July 2023 and have a two-year exercise period to 1 November 2025 (being the
During the financial year, the Company paid a premium in respect of a Director’s & Officers insurance policy for the Directors and executive
officers (including the Company Secretary and former directors) of the Company and of any related body corporate of the Company. The
policy provides coverage against liability incurred by individuals acting in their capacity as a Director, Company Secretary or Executive Officer
of the Company to the extent permitted by the Corporations Act 2001 (Cth). The relevant contract of insurance prohibits disclosure of the
nature of the liability and the amount of the premium.
The Company’s Constitution requires the Company, so far as permitted under applicable law and to the extent the person is not otherwise
indemnified, to indemnify each officer of the Company (including former directors) and its wholly owned subsidiaries, and may indemnify
its auditors, against a liability incurred as such by an officer or auditor to any person (other than the Company or a related body corporate)
including a liability incurred as a result of appointment or nomination by the Company or subsidiary as trustee or as an officer of another
corporation, unless the liability arises out of conduct involving a lack of good faith. The Company has entered into Deeds of Indemnity,
Insurance and Access with each of the Directors of the Company and the Company Secretary and the director of its wholly owned
subsidiaries in terms of the indemnity provided under the Company’s Constitution.
The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to
indemnify an officer or auditor of the Company or of any related body corporate against any liability incurred in acting in their capacity as such
an officer of the Company.
No indemnity payment has been made under any of the documents referred to above during or since the end of the financial year.
Indemnification of Auditors
The Company’s external auditor for the 2023 financial year was Grant Thornton Audit Pty Ltd (Grant Thornton).
The Company has agreed with Grant Thornton, as part of its terms of engagement, to indemnify Grant Thornton against certain liabilities
to third parties arising from the audit engagement. The indemnity does not extend to any liability resulting from the wilful misconduct or
fraudulent act or omission by Grant Thornton.
During the financial year:
expiry date of the performance rights).
• The Company has not paid, or agreed to pay, any premium in relation to any insurance for Grant Thornton or a body corporate related to
(c) 2020 MD & CFO LTI Performance Rights - These performance rights vest on 1 November 2023 subject to the performance criteria as detailed in
note 5.2 and have a two-year exercise period to 1 November 2025 (being the expiry date of the performance rights).
(d) 2022 Senior Management Retention Performance Rights - These performance rights vest on 31 December 2023 subject to the employee
remaining an employee of the Company (or a subsidiary of the Company) as of 31 December 2023. Vested performance rights have a two-year
exercise period to 31 December 2025 (being the expiry date of the performance rights).
(e) 2021 LTI Performance Rights - These performance rights vest on 1 July 2024 subject to the performance criteria as detailed in note 5.2 and have a
two-year exercise period to 1 July 2026 (being the expiry date of the performance rights).
(f) FY2023 LTI Performance Rights - These performance rights vest on 1 July 2025 subject to the performance criteria as detailed in note 5.2 and have
a two-year exercise period to 1 July 2027 (being the expiry date of the performance rights).
The holders of these performance rights do not have the right, by virtue of the issue of the performance right, to participate in any share issue
of the Company.
Shares Issued on Vesting of Rights
• On 5 September 2022, a total of 1,655,164 shares were issued following the vesting of performance rights from the 2019 LTI and 2021
STI; and
• On 11 July 2023, a total of 6,279,135 shares were issued following the vesting of performance rights from the 2020 LTI and 2022 STI.
Grant Thornton;
• No indemnity payment has been made under any of the documents referred to above during or since the end of the financial year; and
• There were no officers of the Company who were former partners or directors of Grant Thornton, whilst Grant Thornton conducted audits
of the Company.
Directors’ Meetings
The following table sets out the number of Directors’ meetings (including meetings of Committees of Directors) held during the financial year
and the number of meetings attended by each Director (while they were a director or Committee member). During the financial year, eight
Board meetings, three Audit and Risk Committee meetings and three Nomination and Remuneration Committee meetings were held.
Name
Mr I Macliver
Mr D Ross
Mr CG Heng
Ms S Murphy
Ms S Langer
Mr P Kennan(1)
Board of Directors
Audit & Risk Committee
Nomination &
Remuneration Committee
Held
Attended
Held
Attended
Held
Attended
8
8
8
8
8
8
8
8
8
8
7
6
3
3
3
3
3
3
3
3
3
3
3
2
3
3
3
3
3
3
3
3
3
3
3
1
(1) Mr Kennan resigned as non-executive director on 19 April 2023.
48 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 49
Proceedings on Behalf of the Company
Key Management Personnel
No proceedings have been brought on behalf of the Company, nor has any application been made in respect of the Company, under section
237 of the Corporations Act 2001 (Cth).
The Directors and key management personnel of the consolidated entity during the whole of the financial year and since the end of the
financial year were:
Non-Audit Services
During the year, Grant Thornton provided non-audit services related to the Company’s tax compliance in jurisdictions outside Australia. Grant
Thornton were paid $8,240 in respect of those non-audit services.
During the year, the Company paid Grant Thornton $513,223 for the provision of audit services.
The Directors are satisfied that the provision of non-audit services during the year by the external auditor (or by another person or firm on the
auditor’s behalf) is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 (Cth).
The Directors are of the opinion that the services as disclosed in note 5.5 to the Financial Statements do not compromise the external
auditor’s independence, based on advice received from the Audit and Risk Committee, for the following reasons:
Executive Director
Mr D Ross (Managing Director/CEO)
Non-Executive Directors
Mr I Macliver (Chairman)
Mr C G Heng
Ms S Murphy
Ms S Langer
Executive Key Management Personnel
Mr D Cavanagh (Chief Financial Officer)
Mr T Muirhead (Executive General Manager Legal/Company Secretary)
• All non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and
Mr Peter Kennan resigned as a Non-Executive Director of the Company on 19 April 2023.
• None of the services undermine the general principles relating to auditor independence as set out in APES 110 ‘Code of Ethics for
Professional Accountants’ issued by the Accounting Professional & Ethical Standards Board, including reviewing or auditing the auditor’s
own work, acting in a management or decision-making capacity for the Company, acting as an advocate for the Company or jointly
sharing economic risks and rewards.
Auditor’s Independence Declaration
The Auditor’s Independence Declaration is included on page 62 of this Annual Report.
Rounding Off of Amounts
The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financials/Directors’ Reports) Instrument 2016/191,
dated 24 March 2016, and in accordance with that Corporations Instrument, amounts in the Directors’ Report and the Financial Statements
are rounded off to the nearest thousand dollars, unless otherwise indicated.
Remuneration Report (audited)
This Remuneration Report, which forms part of the Directors’ Report, sets out information about the remuneration of the Company’s key
management personnel for the financial year ended 30 June 2023.
Remuneration Policy
The Nomination and Remuneration Committee is delegated responsibility by the Board for reviewing the remuneration packages of all
Directors and key management personnel on an annual basis and making recommendations to the Board in this regard. The specific
responsibilities of the Committee are set out in the Committee’s Charter, which can be found on the Corporate Governance page of our
website at www.mmaoffshore.com/investor-centre/corporate-governance.
The Company seeks to structure its remuneration to ensure it is market competitive and can attract, retain, and reward key personnel for
delivering on the Company’s strategy and creating value for shareholders. Remuneration packages are reviewed annually having regard
to employment market conditions and comparable industry salaries. The performance of the Company and specific experience and
performance of the individual personnel are also considered.
From time to time the Committee engages independent remuneration consultants to provide recommendations in relation to remuneration of
Non-Executive Directors and senior management. Whilst no remuneration recommendations were received for the 2023 financial year, the
Committee determined it would engage remuneration consultants for the 2024 financial year, the outcome of which will be reported in the
2024 Annual Report.
Having regard to the overall performance of the Company and the current market conditions, the key remuneration outcomes for the
Company’s Non-Executive Directors and key management personnel in the 2023 financial year are set out below.
The Company’s Remuneration Report for the 2022 financial year was adopted at the Company’s 2022 Annual General Meeting (held on 9
November 2022) with a clear majority of 193,829,493 votes in favour of the motion (representing 94.14% of the votes received).
Remuneration of Non-Executive Directors
The Company’s key management personnel are those persons who have authority and responsibility for planning, directing, and controlling
the activities of the consolidated entity, either directly or indirectly, including any Director (whether executive or otherwise) of the consolidated
entity.
The prescribed details for each person covered by this Remuneration Report are detailed below under the following headings:
• Key Management Personnel;
• Remuneration Policy;
• Relationship between the Remuneration Policy and Company Performance;
• Remuneration of Key Management Personnel; and
• Key Terms of Employment Contracts.
The maximum aggregate fee pool for Non-Executive Directors (which is subject to shareholder approval) is currently set at $950,000 per
annum (as approved by shareholders at the Company’s Annual General Meeting on 22 November 2012). Non-Executive Directors’ fees
(inclusive of superannuation) are included within this aggregate fee pool.
Non-Executive Directors are paid fixed fees set at levels which reflect both the responsibilities of, and time commitments required from
each Non-Executive Director to discharge their duties. Non-Executive Directors’ fees are reviewed annually by the Board to ensure they
are appropriate for the duties performed, including Board committee duties, and are in line with the market. In order to preserve their
independence, Non-Executive Directors do not receive performance-based remuneration. Other than statutory superannuation, Directors are
not entitled to retirement allowances.
During the reporting period the Non-Executive Directors’ schedule of fees was reviewed to standardise fees paid for duties on the Board and
Committees. This resulted in minor adjustments to the fees of the existing Non-Executive Directors (which are outlined in the table titled “Key
Management Personnel Remuneration” set out in this report).
During the financial year the Board implemented the following Non-Executive Directors’ Fee policy for the financial year (inclusive of
superannuation):
Position
Board Chair Fee
Board Director Fee
Committee Chair Fee
Annual Fee
$80,000
$80,500
$9,850
Committee Member Fee
$9,850 (per Committee)
Director of MMA Offshore Asia Pte Ltd and its subsidiaries (on
account of additional responsibilities and time commitments involved
in relation to this position). This fee is currently paid to Mr Heng.
$9,850
50 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 51
Remuneration of Managing Director and Executive Key Management Personnel
No. Remuneration Component
Details
The remuneration of the Managing Director and executive key management personnel has three components, being, a Fixed Annual
Remuneration (FAR), Short-Term Incentive (STIP) and Long-Term Incentive (LTIP). Details of these components are set out below:
3.
Long-term
Incentive Plans (LTIP)
No. Remuneration Component
Details
1.
Fixed Annual
Remuneration (FAR)
• The FAR comprises of base salary and superannuation.
•
In setting the FAR, consideration is given to current market rates and industry benchmarking against
appropriate comparator groups (including the median market rates within the sector and industry
peers), current market conditions, Company performance and individual performance.
• For the 2023 financial year the Managing Director and other executive key management personnel
received a 4% increase in their FAR having regard to market conditions and inflation (with CPI rising
6.1% over the 12 months to June 2022 (ABS Release 27/07/22)).
2.
Short-term
Incentive (STIP)
• The STIP is an “at-risk” component of remuneration designed to reward management for achieving
financial and safety targets over a 12-month period.
• The targets are set by the Board to align management’s interests with those of the shareholders,
with the intention of increasing shareholder value.
• The invitation to participate in the STIP is at the absolute discretion of the Board and is subject to
such conditions which the Board may prescribe from time to time.
FY2023 STIP
• The Board issued an FY2023 STIP to the Managing Director, executive key management personnel
and other senior managers for the 2023 financial year. The FY2023 STIP was payable either in cash
or shares at the absolute discretion of the Board (subject to targets being achieved).
• At the Company’s 2022 Annual General Meeting the Company’s Shareholders approved (by
a clear majority) the issue of up to 647,751 FY2023 STIP Performance Rights to the Managing
Director (subject to the targets being achieved and the Board exercising its discretion to issue the
FY2023 STIP in shares). As disclosed in the Explanatory Memorandum to the Notice of Meeting,
the Company prescribed a value of $0.578 for each FY2023 STIP performance right – being the
30-day volume weighted average price of the Company’s shares up to the commencement of the
performance period for the FY2023 STIP (being 1 July 2022).
• The performance criteria for the FY2023 STIP related to:
– Group EBIT Targets (80% weighting) - set ensure that the remuneration of key management
personnel is directly linked to the achievement of positive financial returns for the business; and
– Group Safety Targets (20% weighting) - set to ensure that key management personnel continue
to prioritise safety in all aspects of the Company’s operations and business.
• Pleasingly the Group Safety Targets were achieved and further, given the Company’s solid
performance for the 2023 financial year, the Group EBIT targets were exceeded. As a result the
executive key management personnel achieved the maximum FY2023 STIP entitlement.
• Having exercised its discretion, the Board has decided that for the Managing Director and executive
key management personnel the FY2023 STIP would take the form of performance rights (which
are not yet issued) which will convert into an ordinary, fully paid shares in the Company upon
completion of an additional 12-months of service by the participant (i.e. they will vest on 1 July
2024). The Board considered that the deferred vesting of these performance rights provides the
Company with an additional retention benefit with respect to the key management personnel.
3.
Long-term
Incentive Plans (LTIP)
• The LTIP is an “at-risk” component of remuneration designed to reward performance against the
achievement of key performance targets over a three-year period.
• The LTIP also aims to retain and suitably incentivise executives, as well as aligning their long-term
interests with those of shareholders.
• Under the LTIP the Company grants performance rights, which (subject to achievement of the
specified performance targets set by the Board) vest and convert into ordinary, fully paid shares in
the Company.
FY2023 LTIP Performance Rights
• The Board issued an FY2023 LTIP for the Managing Director and key management personnel for
the 2023 financial year.
• At the Company’s 2022 Annual General Meeting the Company’s Shareholders approved (by a clear
majority) the issue of up to 1,170,246 FY2023 LTIP Performance Rights to the Managing Director
(subject to the targets being achieved).
• The FY2023 LTIP Performance Rights have a 3-year performance period (beginning on 1 July 2022
and ending on 30 June 2025).
• Each performance right converts to an ordinary, fully paid share in the Company upon vesting.
• As disclosed in the Explanatory Memorandum to the Notice of Meeting, the Company prescribed
a value of $0.58 for each FY2023 LTIP performance right contingent upon retention and a value of
$0.354 for each FY2023 LTIP performance right contingent upon the share price hurdle. This is the
fair value of the performance rights at the beginning of the FY2023 LTIP performance period (1 July
2022) as calculated by an independent valuation firm.
• For the Managing Director and other key management personnel, the FY2023 LTIP Performance
Rights performance criteria are set out in the table below:
LTIP Performance Criteria
(Percentage of LTIP Subject to
Performance Criteria)
Share Price Target (87%)
Performance Criteria Targets
0% vesting if Company’s share price is less than $0.75 at the end
of the LTIP Performance Period.
60% vesting if Company’s share price is equal to $0.75 at the end
of the LTIP Performance Period.
Pro-rata vesting (on a straight-line basis) if Company’s share
price is greater than $0.75 but less than $1.05 at the end of the
LTIP Performance Period.
100% vesting if Company’s share price is $1.05 or greater at the
end of the LTIP Performance Period.
Retention Criteria (13%)
100% vesting if the employee remains employed by the Company
(or a wholly owned subsidiary of the Company) on 30 June 2025
Managing Director Retention Incentive
• The retention of key personnel has become a significant issue facing the Company. This is largely
due to the extremely competitive employment market conditions being experienced in both
Australia and internationally. Within Western Australia, the Company competes for personnel against
the mining industry which continues to attract professionals away from other sectors with lucrative
remuneration and retention packages. The Company was directly impacted by this during the 2022
financial year losing two of its executive leadership team to the mining sector.
•
In order to mitigate against the disruption that can result from key personnel turnover, the Board
felt it appropriate to introduce a retention incentive package for the Managing Director in order to
incentivise the Managing Director to remain with the Company and further deliver on the Company’s
strategy.
• At the Company’s 2022 Annual General Meeting the Company’s Shareholders approved (by a
clear majority) the issue of up to 628,188 Retention Incentive Performance Rights to the Managing
Director (subject to the retention condition being met and the Board exercising its discretion to issue
the retention incentive in shares). As disclosed in the Explanatory Memorandum to the Notice of
Meeting, the Company prescribed a value of $0.596 for each retention performance right – being
the 30-day volume weighted average price of the Company’s shares up to the date the Board
resolved to issue the retention performance rights to Mr Ross.
• As the Shareholders have approved the issue of performance rights, the retention incentive is
payable either in cash or performance rights (up to a maximum of 628,188) at the Board's discretion
if the Managing Director remains employed by the Company (or a wholly owned subsidiary of the
Company) on 31 December 2023.
• Each performance right converts into an ordinary, fully paid share in the Company upon vesting.
52 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 53
Allocation of Executive Remuneration between Fixed and Variable Remuneration
Remuneration of Key Management Personnel
The allocation of total executive remuneration between fixed and variable remuneration for the 2023 financial year was as follows:
Managing Director
Other Key Management Personnel
44%
16%
40%
29%
16%
55%
In this Annual Report remuneration outcomes are presented based on the requirements of accounting standards (which has the benefit of
being readily comparable with other companies) rather than the actual “take-home” pay received by key management personnel (being cash,
other benefits and the value of equity vesting during the relevant financial year).
An example of this includes LTIP awards which are recognised and accounted for over the performance period (three years) based on their
assessed value when originally granted to the executive. This may be significantly different to their value, if and when the incentive vests to
that executive.
The following tables disclose:
(A)
(B)
The actual remuneration of the Directors and other key management personnel of the Company for the 2023 financial year (i.e. the
actual “take-home” pay received by key management personnel for the 2023 financial year); and
The statutory presentation of the remuneration of the Directors and other key management personnel of the Company for the 2023
financial year and for the previous financial year based on the requirements of accounting standards.
FAR
STIP
LTIP
FAR
STIP
LTIP
(A) Key Management Personnel Remuneration (Actual)
Relationship between the Remuneration Policy and Company Performance
The table below summarises information about the Company’s earnings for the 2023 financial year and the Company’s earnings and year
end share price movements for the five years to 30 June 2023. The Company’s performance is a key consideration for the Nomination and
Remuneration Committee when setting remuneration packages.
Revenue
Net profit/(loss) before tax
Net profit/(loss) after tax
Share price at start of the year
Share price at end of the year
Interim dividend
Final dividend
Basic earnings per share
Diluted earnings per share
3-year compound annual TSR(1)
30 June 2023
$’000
30 June 2022
$’000
30 June 2021
$’000
30 June 2020
$’000
30 June 2019
$’000
308,265
130,493
127,695
$0.56
$1.15
0cps
0cps
34.80cps
32.90cps
27%
283,766
34,860
33,830
$0.425
$0.56
0cps
0cps
9.21cps
8.91cps
(32%)
237,507
3,362(2)
2,391
$0.065
$0.425(3)
0cps
0cps
0.87cps
0.86cps
(45%)
273,011
(93,657)(2)
(94,187)
$0.18
$0.065
0cps
0cps
(10.44cps)
(10.44cps)
(24%)
239,259
(35,879)(2)
(37,373)
$0.25
$0.18
0cps
0cps
(4.36cps)
(4.36cps)
(16%)
(1)
(2)
TSR comprises share price growth and dividends.
There was an impairment reversal against the carrying value of the Company’s assets as at 30 June 2023 of $80.3 million [2022: $35.3 million
impairment reversal; 2021: nil; 2020: $57.7 million impairment charge; 2019: $10.4 million impairment charge].
(3) The share price at the end of the year is post the 1-for-10 share consolidation effected by the Company on 11 February 2021.
Short-term employee benefits
Post-employment benefits
Share based
payments
Total
2023
Directors
Mr I Macliver
Mr D Ross
Mr P Kennan(2)
Mr CG Heng
Ms S Murphy
Ms S Langer
Key Management
Personnel
Mr D Cavanagh
Mr T Muirhead
Total
Salary &
fees
$
Cash
Bonus
$
Non-
monetary
$
Superannuation
$
Termination
$
Annual/Long
Service Leave
Payout
$
163,028
722,400
84,743
113,404
99,576
95,422
393,077
296,631
1,968,281
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,118
25,246
-
6,889
10,455
4,759
27,500
25,246
117,213
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Rights(1)
$
$
-
180,146
198,260
945,906
-
-
-
-
84,743
120,293
110,031
100,181
99,608
520,185
27,200
349,077
325,068
2,410,563
(1)
The value of the rights vested to key management personnel as part of their remuneration is calculated as at the vesting date using the market price at
date of vesting.
(2) Mr P Kennan resigned as a Non-Executive Director on 19 April 2023.
54 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 55
The table below sets out the relative proportions of the elements of statutory remuneration of key management personnel that are linked to
performance:
Fixed Remuneration
Remuneration linked to Performance
Non-Executive Directors
Mr I Macliver
Mr CG Heng
Mr P Kennan(1)
Ms S Murphy
Ms S Langer
Executive Directors
Mr D Ross
Key Management Personnel
Mr D Cavanagh
Mr T Muirhead
2023
100%
100%
100%
100%
100%
40%
49%
65%
2022
100%
100%
100%
100%
100%
58%
63%
60%
2023
2022
0%
0%
0%
0%
0%
60%
51%
35%
0%
0%
0%
0%
0%
42%
37%
40%
(1) Mr P Kennan resigned as a Non-Executive Director on 19 April 2023.
No key management personnel appointed during the period received a payment as part of his or her consideration for agreeing to hold the
position.
(B) Key Management Personnel Remuneration (Statutory Presentation)
Short-term employee benefits
Post-employment benefits
LTIP Share
based
payments
Total
Salary &
fees
$
STIP(2)
$
Non-
monetary(2)
$
Superannuation
$
Termination
$
Annual/Long
Service Leave
Payout
$
Rights(1)
$
$
2023
Directors
Mr I Macliver
163,028
-
Mr D Ross
722,400
314,397
Mr P Kennan(3)
Mr CG Heng
Ms S Murphy
Ms S Langer
Key Management
Personnel
84,743
113,404
99,576
95,422
-
-
-
-
Mr D Cavanagh
393,077
147,441
Mr T Muirhead
296,631
80,612
Total
1,968,281
542,450
-
-
-
-
-
-
-
-
-
17,118
25,246
-
6,889
10,455
4,759
27,500
25,246
117,213
Short-term employee benefits
Post-employment benefits
-
-
-
-
-
-
-
-
-
-
-
180,146
12,481
848,663
1,923,187
-
-
-
-
-
-
-
-
84,743
120,293
110,031
100,181
19,561
313,573
901,152
14,578
97,270
514,422
46,620
1,259,506
3,934,070
LTIP Share
based
payments
Total
2022
Directors
Salary &
fees
$
STIP(2)
$
Non-
monetary
$
Superannuation
$
Termination
$
Annual/Long
Service Leave
$
Rights(1)
$
$
Mr I Macliver
163,636
-
-
Mr D Ross
623,468
192,710
14,197
Mr P Kennan(3)
Mr CG Heng
Ms S Murphy
Ms S Langer
Key Management
Personnel
100,127
111,491
99,983
91,024
-
-
-
-
Mr D Cavanagh
381,603
100,749
-
-
-
-
-
Mr D Roberts(4)
190,594
-
6,723
Mr T Muirhead(4)
136,560
63,880
-
16,364
15,138
-
7,258
9,998
9,102
27,500
13,416
10,606
Total
1,898,486
357,339
20,920
109,382
-
-
-
-
-
-
-
-
-
-
-
-
180,000
10,644
290,439
1,146,596
-
-
-
-
-
-
-
-
-
100,127
118,749
109,981
100,126
140,919
650,771
3,101
(47,338)
166,496
-
32,299
243,345
13,745
416,319
2,816,191
(1)
The value of the rights granted to key management personnel as part of their remuneration is calculated as at the grant date using the Monte Carlo
method. The amounts disclosed as part of remuneration for the financial year have been determined by allocating the grant date value on a straight-line
basis over the period from the grant date to the vesting date (i.e. three years).
(2) STIP amounts are paid through performance rights.
(3) Mr P Kennan resigned as a Non-Executive Director on 19 April 2023.
(4) Mr D Roberts ceased to be Company Secretary on 10 January 2022; Mr T Muirhead was appointed as Company Secretary on 10 January 2022.
56 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 57
During the financial year, the following rights schemes were in existence:
Series
Number issued
Grant date
Vesting date
Exercise
price
$
Fair value at
grant date
$
Expiry date
(for vested rights)
2019 Senior Management LTI
Performance Rights (a)
2019 Managing Director LTI
Performance Rights (a)
2020 Senior Management LTI
Performance Rights (MD and CFO) (b)
2020 Senior Management LTI
Performance Rights (b)
2020 MD & CFO LTI
Performance Rights (c)
2021 Staff STI
Performance Rights (d)
2021 Senior Management STI
Performance Rights (e)
2021 MD STI
Performance Rights (f)
2021 MD LTI
Performance Rights (g)
2021 Executive Management LTI
Performance Rights (h)
2022 Senior Management Retention
Performance Rights (i)
2022 Senior Management STI
Performance Rights (j)
FY2023 Senior Management LTI
Performance Rights (k)
1,846,954
29 Nov 2020
1 Jul 2022
0.00
0.16
1 Jul 2024
351,145
21 Nov 2019
Did not vest
0.00
0.16
1 Jul 2024
1,758,356
28 Jan 2021
1 Jul 2023
0.00
0.14
1 Jul 2025
4,905,329
28 Jan 2021
1 Jul 2023
0.00
0.20
1 Jul 2025
4,616,666
28 Jan 2021
1 Nov 2023
0.00
0.17
1 Nov 2025
329,000
30 Sept 2021
1 July 2022
0.00
0.38
1 July 2024
1,297,904
24 Sept 2021
1 July 2022
0.00
0.38
1 July 2024
172,400
10 Nov 2021
1 July 2022
0.00
0.38
1 July 2024
1,518,829
10 Nov 2021
1 July 2024
0.00
0.20
1 July 2026
2,050,414
23 Dec 2021
1 July 2024
0.00
0.23
1 July 2026
1,750,001
30 May 2022
31 Dec 2023
0.00
0.56
31 Dec 2025
3,032,591
25 Nov 2022
1 July 2023
0.00
0.578
1 July 2025
2,925,366
25 Nov 2022
1 July 2025
0.00
0.517
1 July 2027
(a) 2019 Senior Management and MD LTI Performance Rights; On 1 July 2022, 133,993 of these performance rights vested and were converted into
ordinary shares in the Company. The remaining performance rights lapsed.
(b) 2020 Senior Management LTI Performance Rights; On 1 July 2023, 4,857,029 of these performance rights vested. 470,947 performance rights
did not vest and lapsed. On 11 July 2023, 3,686,673 of the vested performance rights were converted into ordinary shares in the Company. The
outstanding vested performance rights must be converted to ordinary shares in the Company within a two-year period from the vesting date (i.e. by 1
July 2025) or such other time as determined by the Board in its sole and absolute discretion.
(c) 2020 MD & CFO LTI Performance Rights; In accordance with the terms of the MMA Offshore Limited Performance Rights Plan – 2020 (issued by the
Board on 4 March 2021 and as approved by the shareholders at the Company’s Annual General Meeting on 28 January 2021) the number of Retention
Incentive Performance Rights which vest in favour of the Managing Director and Chief Financial Officer on 1 November 2023 will depend on the
Company achieving the Share Price Target as set out in note 5.2 of the Financial Statements (70% weighting) and the Retention Criteria (30% weighting)
as set out in note 5.2 of the Financial Statements. Any vested performance rights must be exercised within a two-year period from the vesting date (i.e.
by 1 November 2025) or such other time as determined by the Board in its sole and absolute discretion.
(d) 2021 Staff STI Equity Performance Rights; On 1 July 2022, 284,256 of these performance rights vested and were converted into ordinary shares in
the Company. The remaining performance rights lapsed.
(e) 2021 Senior Management STI Performance Rights; On 1 July 2022, 1,236,915 of these performance rights vested and were converted into ordinary
shares in the Company. The remaining performance rights lapsed.
(f) 2021 Managing Director STI Performance Rights; On 1 July 2022, 172,400 of these performance rights vested and were converted into ordinary
shares in the Company (as approved by the Shareholders at the Company’s Annual General Meeting on 10 November 2021).
(g) 2021 Managing Director LTI Performance Rights; In accordance with the terms of the MMA Offshore Limited Performance Rights Plan – 2021 (as
approved by the shareholders at the Company’s Annual General Meeting on 10 November 2021) the number of LTIP Performance Rights which will
vest in favour of the Managing Director on 1 July 2024 will depend on the Share Price Target (100% weighting) as set out in note 5.2 of the Financial
Statements. Any vested performance rights must be exercised within a two-year period from the vesting date (i.e. by 1 July 2026) or such other time as
determined by the Board in its sole and absolute discretion.
(h) 2021 Executive Management LTI Performance Rights; In accordance with the terms of the MMA Offshore Limited Performance Rights Plan – 2021
(as approved by the shareholders at the Company’s Annual General Meeting on 10 November 2021) the number of 2021 Executive Management LTIP
Performance Rights which vest in favour of the Key Management Personnel and other Senior Managers on 1 July 2024 will depend on the Company
achieving the Share Price Target (70% weighting) and the Retention Criteria (30% weighting) as set out in note 5.2 of the Financial Statements. Any
vested performance rights must be exercised within a two-year period from the vesting date (i.e. by 1 July 2026) or such other time as determined by
the Board in its sole and absolute discretion.
(i) 2022 Senior Management Retention Performance Rights; In accordance with the terms of the MMA Offshore Limited Performance Rights Plan –
2021 (as approved by the shareholders at the Company’s Annual General Meeting on 10 November 2021) the Retention Incentive Performance Rights
were issued to motivate and retain senior management personnel within the Company. The Performance Rights only vest in favour of an employee
who remains employed by the Company or a wholly owned subsidiary of the Company on 31 December 2023 (100% Retention Criteria). Any vested
performance rights must be exercised within a two-year period from the vesting date (i.e. by 31 December 2025) or such other time as determined by
the Board in its sole and absolute discretion.
(j) 2022 Senior Management STI Performance Rights; On 1 July 2023, 3,032,591 of these performance rights vested. On 11 July 2023, 2,592,462 of
the vested performance rights were converted into ordinary shares in the Company. The outstanding vested performance rights must be exercised
within a two-year period from the vesting date (i.e. by 1 July 2025) or such other time as determined by the Board in its sole and absolute discretion.
(k) FY2023 Senior Management LTI Performance Rights; In accordance with the terms of the MMA Offshore Limited Performance Rights Plan – 2022
(as approved by the shareholders at the Company’s Annual General Meeting on 9 November 2022) the number of 2023 Senior Management LTIP
Performance Rights which vest in favour of the Key Management Personnel and other Senior Managers on 1 July 2025 will depend on the Company
achieving the Share Price Target (80% weighting) and the Retention Criteria (20% weighting) as set out in note 5.2 of the Financial Statements. Any
vested performance rights must be exercised within a two-year period from the vesting date (i.e. by 1 July 2027) or such other time as determined by
the Board in its sole and absolute discretion.
There has been no alteration of the terms and conditions of the above share-based payment arrangements since the grant date.
The following share-based payments were granted as compensation to the Managing Director and key management personnel during the
current financial year:
Name
Mr D Ross
Mr D Cavanagh
Mr T Muirhead
Series
Grant Date
Number
granted
Number
vested(1)
% of grant
vested
% of grant
forfeited
% of compensation for
the year consisting of
share-based payment
2022 STIP
2023 LTIP
2022 STIP
2023 LTIP
2022 STIP
2023 LTIP
25 Nov 2022
25 Nov 2022
440,129
1,170,246
25 Nov 2022
25 Nov 2022
25 Nov 2022
25 Nov 2022
234,723
383,987
128,332
209,940
0
0
0
0
0
0
0
0
0
60%
51%
34.6%
(1)
The 2022 STIP performance rights vested after the 2023 financial year on 1 July 2023.
During the financial year, the following key management personnel exercised performance rights that were granted to them as part of their
compensation. Each performance rights converted to one ordinary share in the MMA Offshore Limited.
Name
Mr D Ross
Mr D Cavanagh
Mr T Muirhead
Number of
performance
rights exercised
Number of ordinary
shares of the
Company issued
172,400
86,616
23,652
172,400
86,616
23,652
Amount paid
nil
nil
nil
The following table summarises the value of performance rights to key management personnel which were granted or vested during the
financial year as part of their remuneration:
Name
Mr D Ross
Mr D Cavanagh
Mr T Muirhead
Value of rights
granted at grant date
$
Value of rights vested
at vesting date
$
1,135,314
436,191
238,482
198,260
99,608
27,200
The following table summarises the performance rights that lapsed during the financial year in relation to performance rights granted to key
management personnel as part of their remuneration:
Name
Mr D Ross
Mr D Cavanagh
Mr T Muirhead
Financial year in
which performance
rights were granted
No. of performance
rights which lapsed
during the current year
2019
2019
2019
351,145
170,800
28,195
58 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 59
Director and Key Management Personnel Equity Holdings
Share Trading Restrictions
Details of the fully paid ordinary shares of the Company held by Directors and key management personnel are as follows:
2023
Mr I Macliver
Mr CG Heng
Ms S Murphy
Ms S Langer
Mr P Kennan(1)
Mr D Ross
Mr D Cavanagh
Mr T Muirhead
Balance at
1 July 2022
Granted as
compensation
Received on vesting of
Performance Rights
Net other
change
Balance at
30 June 2023
Balance held
nominally
100,000
83,157
100,000
-
29,706,815
475,593
6,521
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
99,200
-
(29,706,815)
100,000
83,157
199,200
-
-
172,400
86,616
23,652
-
647,993
(43,308)
(11,826)
49,829
11,826
-
-
-
-
-
-
-
-
(1) Mr P Kennan resigned as Non-Executive Director on 19 April 2023.
2022
Mr I Macliver
Mr CG Heng
Ms S Murphy
Ms S Langer
Mr P Kennan(1)
Mr D Ross
Mr D Cavanagh
Mr T Muirhead(2)
Balance at
1 July 2021
Granted as
compensation
Received on vesting of
Performance Rights
Net other
change
Balance at
30 June 2022
Balance held
nominally
100,000
83,157
-
-
29,706,815
475,593
6,521
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
-
-
-
-
-
100,000
83,157
100,000
-
-
-
-
-
29,706,815
29,706,815
475,593
6,521
-
-
-
-
(1) Mr P Kennan resigned as Non-Executive Director on 19 April 2023.
(2) Appointed as Company Secretary on 10 January 2022.
The Company has policy requiring Non-Executive Directors to accumulate a minimum shareholding in the Company. Directors are expected
to accumulate (over a period of five years from their appointment date) shares in the Company equal in value to the annual fees payable by
the Company to the Non-Executive Director (excluding committee fees). Notwithstanding the minimum holding expectation, the policy is not
intended to financially disadvantage Non-Executive Directors and it is recognised that exceptional circumstances may require Non-Executive
Directors to sell and hold less than the minimum requirement from time to time.
Details of the performance rights held by key management personnel are as follows:
2023
KMP
Balance at
1 July 2022
Granted as
compensation Exercised
Net other
change
(lapsed)
Balance at
30 June 2023
Vested and
exercisable
Vested
but not
exercisable
Rights vested
during year
Mr D Ross
6,562,730
1,610,375
(172,400)
(351,145)
7,649,560
Mr D Cavanagh
3,054,939
618,710
(86,616)
(170,800)
3,416,233
Mr T Muirhead
543,209
338,272
(23,652)
(28,195)
829,634
-
-
-
-
-
-
172,400
86,616
23,652
2022
KMP
Balance at
1 July 2021
Granted as
compensation Exercised
Net other
change
(lapsed)
Balance at
30 June 2022
Vested and
exercisable
Vested
but not
exercisable
Rights vested
during year
Mr D Ross
5,031,527
1,691,229
Mr D Cavanagh
2,132,949
1,029,473
Mr T Muirhead(1)
-
370,029
-
-
-
(160,026)
6,562,730
(107,483)
3,054,939
-
543,209
-
-
-
-
-
-
-
-
-
(1) Appointed as Company Secretary on 10 January 2022.
All performance rights issued to key management personnel during the financial year were made in accordance with the terms of the
respective employee performance rights plans.
Further details of the share-based payment arrangements during the 2023 and 2022 financial years are contained in note 5.2 of the Financial
Statements.
The Company’s Share Trading Policy requires key management personnel and other designated employees to obtain written approval before
dealing in the Company’s shares and prohibits any trading during restricted periods. Any breach of the Share Trading Policy is taken seriously
by the Company and may be subject to disciplinary action, including possible termination of a person’s employment or appointment. A copy
of the Company’s Share Trading Policy can be found on the Corporate Governance page of the Company’s website at
www.mmaoffshore.com/investor-centre/corporate-governance.
Key Terms of Employment Contracts
As at the date of this report, the Managing Director and other key management personnel are all employed by the Company under an
employment contract, none of which are of fixed-term duration.
These employment contracts may be terminated by either party giving the required notice and subject to termination payments as detailed in
the table below:
Name
Mr D Ross
Mr D Cavanagh
Mr T Muirhead
Termination notice period
Termination benefits payable
6 months
24 weeks
12 weeks
Yes(1)
Yes(2)
No
(1)
(2)
If the employee is made redundant because of a material diminution in the nature and level of responsibilities or functions of the employee’s position
including, without limitation, through a change in control of the Company, the employee will be entitled to an aggregate payment equivalent to the
maximum amount that may be paid to the employee under the Corporations Act and ASX Listing Rules without prior shareholder approval.
If the employee is made redundant because of a material diminution in the nature and level of responsibilities or functions of the employee’s position
including, without limitation, through a change in control of the Company, the employee will be entitled to a payment equal to 0.5 times the Fixed
Annual Remuneration in the relevant year (excluding any short-term incentives or long-term incentives).
Under these employment contracts, the remuneration package for the Managing Director and other key management personnel consists
of an annual base salary and statutory superannuation contributions. Participation in the Company’s incentive schemes is at the absolute
discretion of the Board.
Loans to Key Management Personnel
There were no loans to key management personnel during the 2023 financial year.
Other transactions with Key Management Personnel
There were no other transactions with key management personnel during the 2023 financial year.
This Directors’ Report is signed in accordance with a resolution of Directors made pursuant to section 298(2) of the Corporations Act 2001
(Cth).
On behalf of the Directors,
Ian Macliver
Chairman
Perth, 28 August 2023
60 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 61
Auditor’s Independence Declaration
Independent Auditor’s Report
Grant Thornton Audit Pty Ltd
Level 43 Central Park
152-158 St Georges Terrace
Grant Thornton Audit Pty Ltd
Perth WA 6000
Level 43 Central Park
Grant Thornton Audit Pty Ltd
PO Box 7757
152-158 St Georges Terrace
Level 43 Central Park
Cloisters Square
Perth WA 6000
152-158 St Georges Terrace
Perth WA 6850
PO Box 7757
Perth WA 6000
Cloisters Square
PO Box 7757
T +61 8 9480 2000
Perth WA 6850
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
T +61 8 9480 2000
Independent Auditor’s Report
Independent Auditor’s Report
To the Members of MMA Offshore Limited
To the Members of MMA Offshore Limited
Report on the audit of the financial report
Grant Thornton Audit Pty Ltd
Level 43 Central Park
152-158 St Georges Terrace
Perth WA 6000
Grant Thornton Audit Pty Ltd
PO Box 7757
Level 43 Central Park
Grant Thornton Audit Pty Ltd
Cloisters Square
152-158 St Georges Terrace
Level 43 Central Park
Perth WA 6850
Perth WA 6000
152-158 St Georges Terrace
PO Box 7757
T +61 8 9480 2000
Perth WA 6000
Cloisters Square
PO Box 7757
Perth WA 6850
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
T +61 8 9480 2000
Auditor’s Independence Declaration
Auditor’s Independence Declaration
Auditor’s Independence Declaration
To the Directors of MMA Offshore Limited
To the Directors of MMA Offshore Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
To the Directors of MMA Offshore Limited
of MMA Offshore Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief,
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
there have been:
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of MMA Offshore Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief,
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
of MMA Offshore Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief,
there have been:
there have been:
Auditor’s Independence Declaration
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
b no contraventions of any applicable code of professional conduct in relation to the audit.
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
Grant Thornton Audit Pty Ltd
Level 43 Central Park
152-158 St Georges Terrace
Perth WA 6000
PO Box 7757
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
the audit; and
the audit; and
the audit; and
To the Directors of MMA Offshore Limited
b no contraventions of any applicable code of professional conduct in relation to the audit.
b no contraventions of any applicable code of professional conduct in relation to the audit.
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of MMA Offshore Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief,
GRANT THORNTON AUDIT PTY LTD
there have been:
Chartered Accountants
GRANT THORNTON AUDIT PTY LTD
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
Chartered Accountants
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
b no contraventions of any applicable code of professional conduct in relation to the audit.
the audit; and
B P Steedman
Partner - Audit & Assurance
B P Steedman
Perth, 28 August 2023
GRANT THORNTON AUDIT PTY LTD
B P Steedman
Partner - Audit & Assurance
Partner - Audit & Assurance
Chartered Accountants
Perth, 28 August 2023
Perth, 28 August 2023
B P Steedman
Partner - Audit & Assurance
Perth, 28 August 2023
www.grantthornton.com.au
ACN-130 913 594
www.grantthornton.com.au
www.grantthornton.com.au
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
ACN-130 913 594
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
ACN-130 913 594
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
Legislation.
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
www.grantthornton.com.au
Legislation.
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
ACN-130 913 594
Legislation.
62 MMA Offshore Limited | Annual Report 2023
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Report on the audit of the financial report
Grant Thornton Audit Pty Ltd
Opinion
Level 43 Central Park
152-158 St Georges Terrace
Auditor’s Independence Declaration
We have audited the financial report of MMA Offshore Limited (the Company) and its subsidiaries (the
Perth WA 6000
Opinion
PO Box 7757
Group), which comprises the consolidated statement of financial position as at 30 June 2023, the
Cloisters Square
We have audited the financial report of MMA Offshore Limited (the Company) and its subsidiaries (the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
To the Directors of MMA Offshore Limited
Perth WA 6850
Group), which comprises the consolidated statement of financial position as at 30 June 2023, the
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
consolidated financial statements, including a summary of significant accounting policies, and the Directors’
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
declaration.
of MMA Offshore Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief,
consolidated financial statements, including a summary of significant accounting policies, and the Directors’
there have been:
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
declaration.
2001, including:
Auditor’s Independence Declaration
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
To the Directors of MMA Offshore Limited
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
a giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance
b no contraventions of any applicable code of professional conduct in relation to the audit.
a giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of MMA Offshore Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief,
there have been:
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
for the year ended on that date; and
for the year ended on that date; and
T +61 8 9480 2000
the audit; and
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Basis for opinion
the audit; and
Chartered Accountants
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
of our report. We are independent of the Group in accordance with the auditor independence requirements
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
B P Steedman
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
GRANT THORNTON AUDIT PTY LTD
Partner - Audit & Assurance
our other ethical responsibilities in accordance with the Code.
Chartered Accountants
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
Perth, 28 August 2023
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
opinion.
Key audit matters
Key audit matters
B P Steedman
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
Partner - Audit & Assurance
the financial report of the current period. These matters were addressed in the context of our audit of the financial
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
Perth, 28 August 2023
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
matters.
www.grantthornton.com.au
www.grantthornton.com.au
ACN-130 913 594
ACN-130 913 594
www.grantthornton.com.au
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
ACN-130 913 594
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
Legislation.
Legislation.
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
#10388206v3w
#10388206v3w
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
www.grantthornton.com.au
Legislation.
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
MMA Offshore Limited | Annual Report 2023 63
Key audit matter
How our audit addressed the key audit matter
Impairment reversal of Vessel Cash Generating
Carrying value of the Subsea Cash Generating Unit
Unit – refer to Note 3.6
– refer to Note 3.6
The Group’s vessel fleet valuation is a significant
In accordance with AASB 136 Impairment of Assets,
component of property, plant, and equipment. The
Management completed an impairment assessment at
Group report the vessel fleet as a separate Cash-
balance date for the Subsea Cash Generating Unit
Generating Unit (CGU) that is recognised at fair value.
(CGU).
Historically, poor market conditions resulted in
Management prepares a VIU model to estimate the
significant impairments. With recent improvements in
recoverable amount of the Subsea CGU. A VIU
market conditions identified, impairment reversals have
assessment involves a combination of estimates and
been recognised based on valuations of the vessels as
judgements including:
prepared by management's independent experts.
• Determination of cash inflows and outflows;
• Terminal value.
• Discount rate; and
Management engaged an external expert to determine
the fair value of each vessel held by the Group. The
valuation process included an en bloc discount that
reduces the fair value of a vessel to reflect the amount
This area is a key audit matter due to the estimates
which would be achieved if the fleet was disposed of in
and judgements required specific valuation expertise
a single transaction. The above process requires
and analysis.
Management to consider estimates and judgements to
reach a conclusion on the fair value ascribed to the
Group's vessels.
The valuation is considered a key audit matter to the
value of vessels reported and significant estimates and
judgements applied by management applying the fair
value less cost of disposal (FVLCOD) method. Our
procedures focused on evaluation of the following
estimates and judgements:
Revenue recognition and related costs – refer to
Note 2.2
• determination of the appropriateness of the GCU
assessment;
Given the nature and timing of revenue contracts, and
the associated contract liabilities, Management
the fair value approach utilised for each vessel;
judgement is required in determining when revenue
over time is recognised in accordance with AASB 15
Revenue from Contracts with Customers.
the application of an ‘en bloc’ discount to the vessel
fleet; and
Our procedures included, amongst others:
Our procedures included, amongst others:
• Performing walkthroughs on the processes and
• Performing walkthroughs on the processes and
controls surrounding the evaluation of the
controls surrounding the evaluation of the
recoverability of the Vessel CGU;
recoverability of the Subsea CGU;
• Assessing Management's indicators of impairment
• Assessing Management’s determination of the
in accordance with AASB 136 Impairment of Assets,
recoverable of the Subsea CGU when applying the
and reviewing the supporting information from
VIU;
internal and external sources;
•
Inquiring Management in relation to forecasting
• Assessing Management’s determination of the
assumptions within the VIU model and comparing to
Vessel as a single CGU;
approved budgets, as well as corroboration of the
• Discussing with the external experts engaged by
growth rate to secured contracts and review of
market announcements;
Management over the methodology used in the
valuation and the en bloc discount, including
• Challenging Management’s ability to forecast in
assessing the experts' competency and objectivity;
performing a look-back analysis of prior year
projected revenue to actuals;
• Reviewing the external valuation to assess the
appropriateness of the methodology and the
• Performing sensitivity analysis on key assumptions,
assumptions used;
such as revenue, growth rates and discount rates to
ensure there is appropriate headroom; and
• Comparing actual and prior year sales prices of
• Reviewing the appropriateness of related
vessels, including en bloc discount and selling costs,
as well as similar vessels sale from other companies
disclosures within the financial statements.
during the reporting period to evaluate the
reasonableness of the external valuation;
• Obtaining management's reconciliation of the
vessels, review for any unusual items and
Our procedures included, amongst others:
reconciliation to the general ledger;
• Understanding and documenting the design of
• Assessing Management’s determination of the
internal controls and their operational effectiveness
recoverable value of the Vessel CGU when applying
over revenue recognition process through testing a
sample for each revenue stream;
the VIU;
There is also an increased risk in the accuracy of
the determination that the FVLCOD value was in
revenue recognition due to the estimates and
excess of the Value in Use (VIU), therefore the
judgements within contracts in relation to estimates to
most appropriate valuation technique to be applied.
complete.
The above process requires Management to consider
The Group record revenue from multiple streams that
estimates and apply judgement to reach a conclusion.
have separate and distinct elements relating to
revenue recognition and processes.
We have separately reviewed individual revenue
stream which have been divided into the following
categories consistent to our understanding:
• Vessels;
• Subsea; and
• Project logistics.
This area is a key audit matter due to the level of
estimation and management judgement required to
determine the revenue recognised from each contract.
•
•
• Engaging with our auditor’s Corporate Finance
Involving our IT Specialist team to review and
understand the IT environment’s processes and
experts to assist in reviewing the reasonableness of
information processing;
the impairment model inputs and assumptions used,
especially the WACC and overall completeness of
• Reviewing a sample of contracts for vessels and
the model;
subsea streams and underlying obligations to
consider and evaluate the key inputs required to
Inquiring Management in relation to forecasting
determine revenue recognition;
assumptions within the VIU model and comparing to
approved budgets, as well as corroboration of the
• Reviewing sales recorded near period end and
growth rate to secured contracts and review of
performing specific tests of cut-off for “open” project
announcements;
revenue for subsea as at 30 June 2023 in line with
AASB 15;
• Challenging Management’s ability to forecast in
performing a lookback analysis of prior year
• Challenging Management’s estimates regarding
projected revenue to actuals;
timing and recoverability of revenue are appropriate;
and
• Performing sensitivity analysis on key assumptions,
• Assessing the adequacy of the Group’s AASB 15
such as revenue, growth rates and discount rates to
ensure there is appropriate headroom; and
disclosures in the financial statements.
•
•
•
• Reviewing the appropriateness of related
disclosures within the financial statements.
Grant Thornton Audit Pty Ltd
Grant Thornton Audit Pty Ltd
64 MMA Offshore Limited | Annual Report 2023
Carrying value of the Subsea Cash Generating Unit
– refer to Note 3.6
Carrying value of the Subsea Cash Generating Unit
– refer to Note 3.6
In accordance with AASB 136 Impairment of Assets,
Management completed an impairment assessment at
In accordance with AASB 136 Impairment of Assets,
balance date for the Subsea Cash Generating Unit
Management completed an impairment assessment at
(CGU).
balance date for the Subsea Cash Generating Unit
(CGU).
Management prepares a VIU model to estimate the
recoverable amount of the Subsea CGU. A VIU
assessment involves a combination of estimates and
judgements including:
Management prepares a VIU model to estimate the
recoverable amount of the Subsea CGU. A VIU
assessment involves a combination of estimates and
judgements including:
• Determination of cash inflows and outflows;
•
• Determination of cash inflows and outflows;
• Discount rate; and
• Discount rate; and
• Terminal value.
• Terminal value.
This area is a key audit matter due to the estimates
and judgements required specific valuation expertise
and analysis.
This area is a key audit matter due to the estimates
and judgements required specific valuation expertise
and analysis.
Revenue recognition and related costs – refer to
Note 2.2
Revenue recognition and related costs – refer to
Note 2.2
Our procedures included, amongst others:
• Performing walkthroughs on the processes and
Our procedures included, amongst others:
controls surrounding the evaluation of the
• Performing walkthroughs on the processes and
recoverability of the Subsea CGU;
controls surrounding the evaluation of the
recoverability of the Subsea CGU;
• Assessing Management’s determination of the
recoverable of the Subsea CGU when applying the
• Assessing Management’s determination of the
VIU;
recoverable of the Subsea CGU when applying the
VIU;
Inquiring Management in relation to forecasting
assumptions within the VIU model and comparing to
•
Inquiring Management in relation to forecasting
approved budgets, as well as corroboration of the
assumptions within the VIU model and comparing to
growth rate to secured contracts and review of
approved budgets, as well as corroboration of the
market announcements;
growth rate to secured contracts and review of
market announcements;
• Challenging Management’s ability to forecast in
• Challenging Management’s ability to forecast in
performing a look-back analysis of prior year
performing a look-back analysis of prior year
projected revenue to actuals;
projected revenue to actuals;
• Performing sensitivity analysis on key assumptions,
• Performing sensitivity analysis on key assumptions,
such as revenue, growth rates and discount rates to
such as revenue, growth rates and discount rates to
ensure there is appropriate headroom; and
ensure there is appropriate headroom; and
• Reviewing the appropriateness of related
• Reviewing the appropriateness of related
disclosures within the financial statements.
disclosures within the financial statements.
Given the nature and timing of revenue contracts, and
the associated contract liabilities, Management
judgement is required in determining when revenue
over time is recognised in accordance with AASB 15
Revenue from Contracts with Customers.
Given the nature and timing of revenue contracts, and
the associated contract liabilities, Management
judgement is required in determining when revenue
over time is recognised in accordance with AASB 15
Revenue from Contracts with Customers.
Our procedures included, amongst others:
Our procedures included, amongst others:
• Understanding and documenting the design of
• Understanding and documenting the design of
internal controls and their operational effectiveness
internal controls and their operational effectiveness
over revenue recognition process through testing a
over revenue recognition process through testing a
sample for each revenue stream;
sample for each revenue stream;
There is also an increased risk in the accuracy of
There is also an increased risk in the accuracy of
revenue recognition due to the estimates and
revenue recognition due to the estimates and
judgements within contracts in relation to estimates to
judgements within contracts in relation to estimates to
complete.
complete.
•
Involving our IT Specialist team to review and
•
Involving our IT Specialist team to review and
understand the IT environment’s processes and
understand the IT environment’s processes and
information processing;
information processing;
The Group record revenue from multiple streams that
The Group record revenue from multiple streams that
have separate and distinct elements relating to
have separate and distinct elements relating to
revenue recognition and processes.
revenue recognition and processes.
• Reviewing a sample of contracts for vessels and
• Reviewing a sample of contracts for vessels and
subsea streams and underlying obligations to
subsea streams and underlying obligations to
consider and evaluate the key inputs required to
consider and evaluate the key inputs required to
determine revenue recognition;
determine revenue recognition;
We have separately reviewed individual revenue
stream which have been divided into the following
categories consistent to our understanding:
We have separately reviewed individual revenue
stream which have been divided into the following
categories consistent to our understanding:
• Vessels;
• Vessels;
• Subsea; and
• Subsea; and
• Project logistics.
• Project logistics.
This area is a key audit matter due to the level of
estimation and management judgement required to
determine the revenue recognised from each contract.
This area is a key audit matter due to the level of
estimation and management judgement required to
determine the revenue recognised from each contract.
• Reviewing sales recorded near period end and
• Reviewing sales recorded near period end and
performing specific tests of cut-off for “open” project
performing specific tests of cut-off for “open” project
revenue for subsea as at 30 June 2023 in line with
revenue for subsea as at 30 June 2023 in line with
AASB 15;
AASB 15;
• Challenging Management’s estimates regarding
• Challenging Management’s estimates regarding
timing and recoverability of revenue are appropriate;
timing and recoverability of revenue are appropriate;
and
and
• Assessing the adequacy of the Group’s AASB 15
• Assessing the adequacy of the Group’s AASB 15
disclosures in the financial statements.
disclosures in the financial statements.
Grant Thornton Audit Pty Ltd
Grant Thornton Audit Pty Ltd
MMA Offshore Limited | Annual Report 2023 65
Information other than the financial report and auditor’s report thereon
Responsibilities
The Directors are responsible for the other information. The other information comprises the information included
Carrying value of the Subsea Cash Generating Unit
in the Group’s annual report for the year ended 30 June 2023 but does not include the financial report and our
– refer to Note 3.6
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In accordance with AASB 136 Impairment of Assets,
Management completed an impairment assessment at
balance date for the Subsea Cash Generating Unit
(CGU).
• Performing walkthroughs on the processes and
controls surrounding the evaluation of the
recoverability of the Subsea CGU;
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
• Assessing Management’s determination of the
Our procedures included, amongst others:
Management prepares a VIU model to estimate the
recoverable amount of the Subsea CGU. A VIU
assessment involves a combination of estimates and
judgements including:
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
recoverable of the Subsea CGU when applying the
VIU;
• Determination of cash inflows and outflows;
Responsibilities of the Directors for the financial report
• Discount rate; and
•
Inquiring Management in relation to forecasting
assumptions within the VIU model and comparing to
approved budgets, as well as corroboration of the
growth rate to secured contracts and review of
market announcements;
• Terminal value.
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
This area is a key audit matter due to the estimates
and judgements required specific valuation expertise
and analysis.
• Challenging Management’s ability to forecast in
performing a look-back analysis of prior year
projected revenue to actuals;
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
• Performing sensitivity analysis on key assumptions,
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
such as revenue, growth rates and discount rates to
alternative but to do so.
ensure there is appropriate headroom; and
Auditor’s responsibilities for the audit of the financial report
• Reviewing the appropriateness of related
disclosures within the financial statements.
Revenue recognition and related costs – refer to
Note 2.2
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
• Understanding and documenting the design of
Our procedures included, amongst others:
Given the nature and timing of revenue contracts, and
the associated contract liabilities, Management
judgement is required in determining when revenue
over time is recognised in accordance with AASB 15
Revenue from Contracts with Customers.
internal controls and their operational effectiveness
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
over revenue recognition process through testing a
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
sample for each revenue stream;
There is also an increased risk in the accuracy of
description forms part of our auditor’s report.
revenue recognition due to the estimates and
judgements within contracts in relation to estimates to
complete.
Involving our IT Specialist team to review and
understand the IT environment’s processes and
information processing;
Report on the remuneration report
•
Opinion on the remuneration report
The Group record revenue from multiple streams that
have separate and distinct elements relating to
We have audited the Remuneration Report included in pages 50 to 61 of the Directors’ report for the year
revenue recognition and processes.
ended 30 June 2023.
We have separately reviewed individual revenue
In our opinion, the Remuneration Report of MMA Offshore Limited, for the year ended 30 June 2023
stream which have been divided into the following
complies with section 300A of the Corporations Act 2001.
categories consistent to our understanding:
• Reviewing a sample of contracts for vessels and
subsea streams and underlying obligations to
consider and evaluate the key inputs required to
determine revenue recognition;
• Reviewing sales recorded near period end and
performing specific tests of cut-off for “open” project
revenue for subsea as at 30 June 2023 in line with
AASB 15;
• Vessels;
• Subsea; and
• Project logistics.
This area is a key audit matter due to the level of
estimation and management judgement required to
determine the revenue recognised from each contract.
• Challenging Management’s estimates regarding
timing and recoverability of revenue are appropriate;
and
• Assessing the adequacy of the Group’s AASB 15
disclosures in the financial statements.
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Carrying value of the Subsea Cash Generating Unit
– refer to Note 3.6
In accordance with AASB 136 Impairment of Assets,
Management completed an impairment assessment at
balance date for the Subsea Cash Generating Unit
(CGU).
Our procedures included, amongst others:
• Performing walkthroughs on the processes and
controls surrounding the evaluation of the
recoverability of the Subsea CGU;
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
Management prepares a VIU model to estimate the
recoverable amount of the Subsea CGU. A VIU
assessment involves a combination of estimates and
judgements including:
• Determination of cash inflows and outflows;
• Discount rate; and
• Terminal value.
B P Steedman
Partner – Audit & Assurance
This area is a key audit matter due to the estimates
and judgements required specific valuation expertise
Perth, 28 August 2023
and analysis.
• Assessing Management’s determination of the
recoverable of the Subsea CGU when applying the
VIU;
•
Inquiring Management in relation to forecasting
assumptions within the VIU model and comparing to
approved budgets, as well as corroboration of the
growth rate to secured contracts and review of
market announcements;
• Challenging Management’s ability to forecast in
performing a look-back analysis of prior year
projected revenue to actuals;
• Performing sensitivity analysis on key assumptions,
such as revenue, growth rates and discount rates to
ensure there is appropriate headroom; and
• Reviewing the appropriateness of related
disclosures within the financial statements.
Revenue recognition and related costs – refer to
Note 2.2
Given the nature and timing of revenue contracts, and
the associated contract liabilities, Management
judgement is required in determining when revenue
over time is recognised in accordance with AASB 15
Revenue from Contracts with Customers.
Our procedures included, amongst others:
• Understanding and documenting the design of
internal controls and their operational effectiveness
over revenue recognition process through testing a
sample for each revenue stream;
There is also an increased risk in the accuracy of
revenue recognition due to the estimates and
judgements within contracts in relation to estimates to
complete.
•
Involving our IT Specialist team to review and
understand the IT environment’s processes and
information processing;
The Group record revenue from multiple streams that
have separate and distinct elements relating to
revenue recognition and processes.
We have separately reviewed individual revenue
stream which have been divided into the following
categories consistent to our understanding:
• Vessels;
• Subsea; and
• Project logistics.
This area is a key audit matter due to the level of
estimation and management judgement required to
determine the revenue recognised from each contract.
• Reviewing a sample of contracts for vessels and
subsea streams and underlying obligations to
consider and evaluate the key inputs required to
determine revenue recognition;
• Reviewing sales recorded near period end and
performing specific tests of cut-off for “open” project
revenue for subsea as at 30 June 2023 in line with
AASB 15;
• Challenging Management’s estimates regarding
timing and recoverability of revenue are appropriate;
and
• Assessing the adequacy of the Group’s AASB 15
disclosures in the financial statements.
66 MMA Offshore Limited | Annual Report 2023
Grant Thornton Audit Pty Ltd
Grant Thornton Audit Pty Ltd
Grant Thornton Audit Pty Ltd
Grant Thornton Audit Pty Ltd
MMA Offshore Limited | Annual Report 2023 67
Financial
Report
2023
Directors’ Declaration
The Directors declare that:
(a)
(b)
(c)
in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable;
in the Directors’ opinion, the attached Financial Statements are in compliance with International Financial Reporting Standards, as
stated in note 1.1 to the Financial Statements;
in the Directors’ opinion, the attached Financial Statements and notes thereto are in accordance with the Corporations Act 2001
(Cth), including compliance with accounting standards and giving a true and fair view of the financial position and performance of the
consolidated entity; and
(d)
the Directors have been given the declarations required by section 295A of the Corporations Act 2001 (Cth).
At the date of this declaration, the Company is within the class of companies affected by ASIC Corporations (Wholly owned Companies)
Instrument 2016/785. The nature of the deed of cross guarantee is such that each company, which is party to the deed, guarantees to each
creditor payment in full of any debt in accordance with the deed of cross guarantee.
In the Directors’ opinion, there are reasonable grounds to believe that the Company and the companies to which the ASIC Corporations
(Wholly owned Companies) Instrument 2016/785 applies, as detailed in note 1.2 to the Financial Statements will, as a Group, be able to meet
any obligations or liabilities to which they are, or may become, subject because of the deed of cross guarantee.
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001 (Cth).
On behalf of the Directors,
Ian Macliver
Chairman
Perth, 28 August 2023
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
1. General Notes
1.1
1.2
1.3
Basis of Preparation
Going Concern
Critical Accounting Judgements and
Key Sources of Estimation Uncertainty
2.
Financial Performance
2.1
2.2
2.3
2.4
2.5
2.6
Segment Information
Revenue from contracts with customers
Other Income and Expenses
Earnings per Share
Income Taxes
Dividends Provided for or Paid
3.
Assets and Liabilities
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
Cash and Cash Equivalents
Trade and Other Receivables
Inventories
Property, Plant and Equipment
Right-of-Use Assets
Impairment of Non-current Assets
Investment in Associate
Loan to Associate
Intangible Assets and Goodwill
3.10
Trade and Other Payables
3.11 Contract Liabilities
3.12 Borrowings
3.13
Lease Liabilities
3.14 Provisions
3.15 Deferred Tax Balances
3.16 Acquisition of Business
3.17 Disposal of Shipyard
4.
Capital Structure 9
4.1
4.2
4.3
4.4
Issued Capital
Reserves
Non-controlling Interests
Capital Risk Management
5. Other Notes
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
Commitments for Expenditure
Share Based Payments
Key Management Personnel Compensation
Related Party Transactions
Remuneration of Auditors
Subsidiaries
Parent Company Information
Financial Instruments
Contingent Liabilities
5.10 Events After the Reporting Period
5.11 Other Accounting Policies
Additional Securities Exchange Information
70
71
72
73
74
74
74
74
74
75
75
78
80
81
82
82
83
83
84
84
85
86
87
91
91
92
92
93
93
94
95
96
97
98
9
99
99
100
101
102
102
102
105
105
106
107
109
110
113
114
114
115
68 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 69
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended of 30 June 2023
Consolidated Statement of Financial Position
As at 30 June 2023
Revenue
Finance income
Gain on disposal of shipyard
Other income
Share of results of associate
Vessel expenses
Subsea expenses
Project Logistics expenses
Administration expenses
Impairment reversal
Finance costs
Profit before tax
Income tax expense
Profit for the Year
Note
2.2
3.17
2.3
3.7
3.6
2.3
2.5
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Gain/(Loss) on hedge of net investment in a foreign operation
Foreign exchange differences reclassified to profit or loss
3.17
Other comprehensive income for the year, net of tax
Total comprehensive income for the Year
Profit/(loss) for the year attributable to:
Equity holders of the parent
Non-controlling interests
Total comprehensive income/(loss) attributable to:
Equity holders of the parent
Non-controlling interests
Earnings per share
Basic, profit for the year attributable to ordinary equity holders of the parent
Diluted, profit for the year attributable to ordinary equity holders of the parent
4.3
4.3
2.4
2.4
2023
$’000
2022
$’000
308,265
283,766
1,886
22,919
3,084
(1,284)
82
-
4,948
(248)
(175,205)
(149,940)
(84,081)
(3,324)
(15,359)
80,337
(6,745)
130,493
(2,798)
127,695
12,288
(1,679)
(1,305)
9,304
136,999
127,814
(119)
127,695
137,100
(101)
136,999
(65,667)
(56,954)
(10,048)
35,304
(6,383)
34,860
(1,030)
33,830
21,228
(4,920)
-
16,308
50,138
33,393
437
33,830
49,712
426
50,138
Cents Per Share
Cents Per Share
34.80
32.90
9.29
8.91
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying
notes.
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right-of-use assets
Investment in associate
Loan to associate
Intangibles
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Provisions
Current tax liabilities
Total Current Liabilities
Non-Current Liabilities
Borrowings
Lease liabilities
Provisions
Deferred tax liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Equity attributable to equity holders of the parent
Non-controlling interest
Total Equity
Note
3.1
3.2
3.3
3.4
3.5
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.12
3.13
3.14
3.15
4.1
4.2
4.3
2023
$’000
106,346
84,190
2,170
4,538
2022
$’000
73,864
63,536
1,696
8,166
197,244
147,262
431,442
370,338
9,722
480
5,687
6,302
453,633
650,877
53,408
5,175
5,500
4,842
12,191
2,628
83,744
75,818
5,263
63
144
81,288
165,032
485,845
746,615
154,270
(415,317)
485,568
277
485,845
9,520
1,782
6,515
560
388,715
535,977
43,136
12,256
12,500
3,055
14,431
305
85,683
102,919
6,455
31
140
109,545
195,228
340,749
742,265
141,484
(543,377)
340,372
377
340,749
70 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 71
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
For the year ended of 30 June 2023
Consolidated Statement of Cash Flows
For the year ended of 30 June 2023
Year Ended
30 June 2023
Employee
Equity Settled
Benefits
Reserve
$’000
Issued
Capital
$’000
Hedging
Reserve
$’000
Foreign
Currency
Translation
Reserve
$’000
Accumulated
Losses
$’000
Equity
Holders
of Parent
$’000
Non-
controlling
Interest
$’000
Total
$’000
Balance at 1 July 2022
742,265
4,787
(61,431)
198,128
(543,377)
340,372
377
340,749
Profit for the year
Other comprehensive
income/(loss) for the year
Total Comprehensive
Income/(Loss) for the Year
Subcon acquisition –
share issue
Recognition of share-
based payments
-
-
-
4,350
-
-
-
-
-
3,746
-
-
127,814
127,814
(119)
127,695
(1,679)
10,719
246
9,286
18
9,304
(1,679)
10,719
128,060
137,100
(101)
136,999
-
-
-
-
-
-
4,350
3,746
-
-
4,350
3,746
Cash Flows from Operating Activities
Receipts from customers
Government grants received
Interest received
Payments to suppliers and employees
Provisional payment under arbitration award
Income tax paid
Interest and other costs of finance paid
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Payments for property, plant and equipment
Balance at 30 June 2023
746,615
8,533
(63,110)
208,847
(415,317)
485,568
277
485,845
Proceeds from sale of property, plant and equipment
Year Ended
30 June 2022
Employee
Equity Settled
Benefits
Reserve
$’000
Issued
Capital
$’000
Hedging
Reserve
$’000
Foreign
Currency
Translation
Reserve
$’000
Accumulated
Losses
$’000
Equity
Holders
of Parent
$’000
Non-
controlling
Interest
$’000
Total
$’000
Balance at 1 July 2021
742,247
3,949
(56,511)
176,667
(576,548)
289,804
(207)
289,597
Profit for the year
Other comprehensive
income/(loss) for the year
Total Comprehensive
Income/(Loss) for the Year
Share issue costs
Recognition of share-
based payments
Transactions with non-
controlling interest
-
-
-
18
-
-
-
-
-
-
838
-
-
-
33,393
33,393
(4,920)
21,461
(222)
16,319
437
(11)
33,830
16,308
(4,920)
21,461
33,171
49,712
426
50,138
-
-
-
-
-
-
-
-
-
18
838
-
-
-
158
18
838
158
Balance at 30 June 2022
742,265
4,787
(61,431)
198,128
(543,377)
340,372
377
340,749
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Note
2023
$’000
2022
$’000
296,210
292,128
3.1
3.17
3.17
3.16
3.16
3.12
3.12
3.13
66
1,618
(240,260)
-
(389)
(6,745)
50,500
(18,396)
14,618
-
-
20,252
-
1,600
-
-
-
830
18,904
(35,567)
(215)
(4,728)
(40,510)
28,894
73,864
3,588
106,346
176
83
(260,070)
(10,520)
(599)
(6,040)
15,158
(12,751)
2,423
36,112
2,173
-
(4,200)
-
(2,075)
(6,515)
45
-
15,212
(53,001)
-
(3,862)
(56,863)
(26,493)
96,226
4,131
73,864
Proceeds from sale of assets classified as held for sale
Instalment received in advance for disposal of shipyard
Proceeds from disposal of shipyard, net of cash disposed
Deposit paid for business combination
Cash acquired in business combination
Investment in associate
Loan to associate
Dividend received from associate
Loan repayments from associate
Net Cash Provided by Investing Activities
Cash Flows from Financing Activities
Repayment of borrowings
New facility borrowing costs
Repayment of lease liabilities
Net Cash Used in Financing Activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on the balance of cash held in foreign currencies
Cash and Cash Equivalents at the End of the Financial Year
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
72 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 73
1. General Notes
MMA Offshore Limited (MMA or the Company) is a for profit, listed public company incorporated in Australia. Its shares are traded on the
Australian Securities Exchange. The Group comprises of MMA and its subsidiaries.
2.
Financial Performance
2.1 Segment Information
1.1 Basis of Preparation
The consolidated financial statements have been prepared on the historical cost basis. Historical cost is generally based on the fair values
of the consideration given in exchange for assets.
All amounts are presented in Australian dollars, unless otherwise noted. Transactions in foreign currencies are recognised at the rates of
exchange prevailing at the dates of the transactions. Monetary items denominated in foreign currencies at reporting date are translated at
the exchange rate prevailing at that date. Exchange differences are recognised in profit or loss in the period in which they arise except for
certain hedging transactions and translation of foreign operations as described in note 4.2.
The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financials/Directors’ Reports) Instrument 2016/191,
dated 24 March 2016, and in accordance with this Corporations Instrument, amounts in the financial statements are rounded off to the
nearest thousand dollars, unless otherwise indicated.
Statement of Compliance
These financial statements are general purpose financial statements which have been prepared in accordance with the Corporations Act
2001, Accounting Standards and other authoritative pronouncements issued by the Australian Accounting Standards Board (AASB) and
comply with other requirements of the law.
Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Group comply with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Consequently, this financial report
has been prepared in accordance with and complies with IFRS as issued by the IASB.
1.2 Going Concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the Group have adequate resources
to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in
preparing the financial statements.
1.3 Critical Accounting Judgements and Key Sources of Estimation Uncertainty
In the application of the Group’s accounting policies, the Directors are required to make judgements (other than those involving
estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about carrying values of
assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting
period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year.
Estimation of expected credit losses – refer note 3.2
Impairment of non-current assets – refer note 3.6
Provisions – refer note 3.14
Tax losses – note 3.15
An operating segment is a component of a group that engages in business activities from which it may earn revenue and incur expenses
and whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM, Board of Directors) for the purposes of
resource allocation and assessment of segment performance. Information regarding the Group’s operating segments is presented below.
The accounting policies of the reportable segments are the same as the Group’s accounting policies.
Information reported to the Board of Directors is focused on the category of services provided through the Groups operating activities.
The group’s reportable segments are:
• Vessel Services – provision of specialised offshore support vessels; and
• Subsea Services – services to companies operating in subsea environments including inspection, maintenance and repair; and
• Project Logistics – project management of large marine spreads and complex marine logistics.
Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:
Revenue
External sales
Inter-segment sales
Total revenue
Vessel
Services
2023
$’000
212,743
19,610
232,353
Inter-segment sales are charged at prevailing market prices.
37,538
-
80,337
117,875
Result
Segment profit before impairment
Share of results of associate
Impairment reversal
Segment profit after impairment
Finance income
Other income and expenses
Administration expenses
Finance costs
Profit for the year before income tax
Subsea
Services
2023
$’000
92,335
18,131
110,466
8,254
(1,284)
-
6,970
Project
Logistics
2023
$’000
3,187
458
3,645
(137)
-
-
(137)
Eliminations
Consolidated
2023
$’000
2023
$’000
-
308,265
(38,199)
(38,199)
-
308,265
-
-
-
-
45,655
(1,284)
80,337
124,708
1,886
26,003
(15,359)
(6,745)
130,493
74 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 75
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 2.
Financial Performance (continued)
2.1 Segment Information (continued)
Revenue
External sales
External sales – Assets classified as
held for sale
Inter-segment sales
Total revenue
Vessels
Services
2022
$’000
140,611
18,034
18,685
177,330
Inter-segment sales are charged at prevailing market prices.
Subsea
Services
2022
$’000
Project
Logistics
2022
$’000
Eliminations
Consolidated
2022
$’000
2022
$’000
66,365
58,756
-
-
-
-
4,421
70,786
1,529
60,285
(24,635)
(24,635)
8,705
-
35,326
44,031
698
(248)
(22)
428
1,802
-
-
1,802
-
-
-
-
Result
Segment profit before impairment
Share of results of associate
Impairment reversal/(charge)
Segment profit after impairment
Finance income
Other income
Administration expenses
Finance costs
Profit for the year before income tax
Segment profit/(loss) represents the profit/(loss) earned by the Vessels, Subsea Services and Project Logistics segments without allocation
of finance income, other income, administration costs, finance costs and income tax expense. This is the measure reported to the CODM
for the purposes of resource allocation and assessment of segment performance.
Segment Assets
The following is an analysis of the Group’s assets by reportable segment:
265,732
18,034
-
283,766
11,205
(248)
35,304
46,261
82
4,948
(10,048)
(6,383)
34,860
2.
Financial Performance (continued)
2.1 Segment Information (continued)
Other Segment Information
Vessel Services
Subsea Services
Project Logistics
Unallocated assets
Total
Impairment reversals
Depreciation and amortisation
Additions to non-current assets
2023
$’000
33,498
2,571
34
3,316
39,419
2022
$’000
25,528
1,942
275
3,236
30,981
2023
$’000
20,865
2,188
-
938
2022
$’000
10,492
1,718
-
542
23,991
12,752
In addition to the depreciation charges reported above, the Group also recognised impairment reversals/(charge) (see note 3.6) in respect
of vessels and other assets as set out below:
Vessels held for continuing operations
Vessels classified as held for sale
Subsea Service assets classified as held for sale
Total
Geographical information
2023
$’000
80,337
-
-
2022
$’000
35,435
(109)
(22)
80,337
35,304
The Group is based in two principal geographical areas – Australia (country of domicile) and Singapore. However, vessel services, subsea
services and project logistics are provided around the world including Australia, South East Asia, Middle East/Africa, Europe and other
locations.
The Group’s revenue from external customers by location of operations and information about its non-current assets by location of assets
are detailed in the following table:
Revenue from external customers
Non-current assets
2023
$’000
115,976
102,453
60,894
15,520
13,422
2022
$’000
170,963
69,463
21,215
22,125
-
2023
$’000
104,898
345,719
-
3,016
-
2022
$’000
103,796
282,242
-
2,677
-
308,265
283,766
453,633
388,715
Vessel Services
Subsea Services
Project Logistics
Unallocated assets
Total
2023
$’000
479,562
52,718
106
118,491
650,877
2022
$’000
402,108
33,725
7,379
92,765
535,977
Australia/ New Zealand
South East Asia
Middle East/ Africa
Europe
Other
Total
For the purposes of monitoring segment performance and allocating resources to a segment, all assets are allocated to a reportable
segment other than cash and central administration assets.
For the purposes of monitoring segment performance and allocating resources to a segment, all assets are allocated to reportable
segments other than cash and central administration assets.
Information about major customers for continuing operations
Included in vessel revenues there are approximately $33.4 million (2022: $32.5 million) which arose from sales to the Group’s largest
customer, revenues of approximately $31.2 million (2022: $3.36 million) which arose from sales to the Group’s second largest customer
and revenues of approximately $26.7 million (2022: $3.23 million) which arose from sales to the Group’s third largest customer.
76 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 77
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 2.
Financial Performance (continued)
2.2 Revenue from contracts with customers
Disaggregation of revenue
2.
Financial Performance (continued)
2.2 Revenue from contracts with customers (continued)
Recognition and Measurement
The Group derives its revenue from contracts with customers for the transfer of goods and services over time and at a point in time in the
following major markets.
Revenue from contracts with customers is recognised when control of goods or services is transferred to the customer at an amount that
reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.
Recognised over time:
Oil and Gas
Renewables
Government and Defence
Other
Recognised at a point in time:
Fuel sales
Total revenue
Recognised over time:
Oil and Gas
Renewables
Government and Defence
Other
Recognised at a point in time:
Fuel sales
Total revenue
Vessels
Services
2023
$’000
145,329
57,270
13
6,684
209,296
3,447
212,743
Vessels
Services
2022
$’000
120,641
16,697
819
13,790
151,947
6,698
158,645
Subsea
Services
2023
$’000
65,130
14,450
11,085
1,670
92,335
-
92,335
Subsea
Services
2022
$’000
37,093
8,176
13,723
7,373
66,365
-
66,365
Project
Logistics
2023
$’000
Consolidated
2023
$’000
Revenue from Vessel Services
Revenue from vessel services is an integrated service representing a single performance obligation, except for fuel sales, through the
provision of a fully operational vessel, including crew, to customers for their use.
The services provided and recognition of revenue related to these services is:
1,964
212,423
• Vessel charter: Vessels are contracted on a rate per day. Revenue is recognised over the period of time based on the number of days
-
-
1,223
3,187
-
3,187
71,720
11,098
9,577
304,818
3,447
308,265
Project
Logistics
2022
$’000
Consolidated
2022
$’000
the customer utilises the vessel.
• Mobilisation: some contracts require a vessel to be modified and/or relocated to meet the requirements of the contract with the
customer paying an additional lump sum amount. These are not a separate performance obligation and as such we defer the lump
sum fee as a Contract Liability (note 3.11) and recognise the revenue on a straight line basis over the term of the contract.
Costs associated with the mobilisations are deferred as Prepayments and amortised to Vessel Expenses over the same period as the
revenue.
• Fuel sales: Under some contracts, the customer will purchase the fuel on board the vessel at contract commencement. The revenue
is recognised at the point in time of sale.
Revenue from Subsea Services
Revenue from subsea services is derived from providing a variety of services to companies operating in subsea environments including
surveys, fabrication, inspection, maintenance and repair of facilities and equipment. The services provided in each contract are all
integrated and represent single performance obligations.
The services provided and recognition of revenue related to these services is:
• Provision of equipment, personnel and materials: These are contracted on a set rate per day. Revenue is recognised over the period
51,863
209,597
of time based on the number of days the customer utilises the services provided.
-
-
2,155
54,018
4,738
58,756
24,873
14,542
23,318
272,330
11,436
283,766
• Lump sum contracts (Survey and Fabrication): Some contracts for these services are provided under lump sum contracts. Revenue
is recognised over time based on a percentage of completion to reflect the progress on the contract. In estimating the percentage
of completion, the costs incurred as a proportion of expected total costs are considered a reasonable basis for measuring progress
through the contract and used to calculate the percentage of completion.
Any lump sum invoices are initially capitalised and recognised as Contract Liabilities (note 3.11) with revenue then recognised based
on the calculated percentage of completion.
Revenue from Project Logistics
Revenue from Project Logistics relates to project management of large marine spreads and complex marine logistics. Revenue is
recognised on the same basis as Vessel Services.
The disaggregation of revenue categories have been amended this reporting period to now reflect the major markets where the group is
focussing its service offering.
Each of the markets is subject to different economic factors and the shift in the global energy sector from fossil fuels to renewables
represents an important distinction for the Group. In addition, the provision of services to Government and Defence departments is a
growing part of the business.
78 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 79
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 2.
Financial Performance (continued)
2.
Financial Performance (continued)
2.4 Earnings per Share
The calculation of basic earnings per share is based on the following:
Profit for the year
Weighted average number of ordinary shares
The calculation of diluted earnings per share is based on the following:
Profit for the year
Weighted average number of ordinary shares used in the calculation of basic
earnings per share
2023
$’000
127,814
2023
No.’000
367,284
2023
$’000
127,814
2023
No.’000
367,284
2022
$’000
33,393
2022
No.’000
359,328
2022
$’000
33,393
2022
No.’000
359,328
Effect of dilutive potential ordinary shares
21,222
15,418
Weighted average number of ordinary shares used for purpose of diluted
earnings per share
388,506
374,746
2.3
Other Income and Expenses
Profit for the year has been arrived at after recognising the following specific amounts:
Other income and expenses:
Government grants
Other gains and losses:
Net foreign exchange gains/(losses)
Profit on disposal of property, plant and equipment
Profit on disposal of assets classified as held for sale
Other
Total
Depreciation and amortisation:
Leasehold buildings and improvements
Vessels
Plant and equipment
Computer Software
Right-of-use assets
Total
Impairment and loss allowance charges:
Loss allowance on trade receivables
Reversal of loss allowance on trade receivable recovery
Impairment reversal recognised on vessel services cash generating unit
Impairment charge recognised on subsea services cash generating unit
Employee benefits:
Post-employment benefits:
Defined contribution plans
Share based payments:
Equity settled share based payments
Other employee benefits
Total
Finance Costs
Interest on borrowings
Interest on lease liabilities
Other
Total
2023
$’000
66
60
2,209
-
749
3,084
230
31,989
2,388
213
4,599
39,419
95
(1,477)
(80,337)
-
2022
$’000
176
(63)
156
4,375
304
4,948
241
25,406
1,996
213
3,125
30,981
3,692
-
(35,326)
22
7,547
9,027
3,746
127,334
138,627
6,196
527
22
6,745
838
114,741
124,606
6,022
343
18
6,383
80 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 81
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 2.
Financial Performance (continued)
2.5
Income Taxes
Income tax recognised in profit or loss
Tax expense comprises:
Current tax expense in respect of the current year
Deferred tax
Adjustment recognised in the current year in relation to tax provisions of prior years
Total income tax expense
The income tax expense for the year can be reconciled to accounting profit as follows:
Profit before tax
Income tax expense calculated at 30%
Effect of revenue that is exempt from taxation
Effect of expenses that are not deductible in determining taxable profit
Effect of tax deductible items not included in accounting profit
Effect of foreign income taxable in Australia
Effect of tax losses utilised
Effect of unused tax losses and temporary differences not recognised as deferred tax assets
Effect of different tax rates of subsidiaries operating in other jurisdictions
Adjustment recognised in the current year in relation to tax provisions of prior years
Total income tax expense
2,741
4
53
2,798
130,493
39,148
(19,180)
1,199
(161)
2,499
(17,651)
(2,494)
(615)
2,745
53
2,798
466
84
480
1,030
34,860
10,458
(4,307)
1,906
-
1,183
(1,980)
(6,845)
135
550
480
1,030
The tax rate used for the reconciliations above is the corporate tax rate of 30% payable by Australian corporate entities on taxable profits
under Australian tax law.
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on the taxable profit for the year in certain jurisdictions. Taxable profit differs from profit as reported in
the Consolidated Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable
or deductible in other years and items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates
and tax laws that have been enacted or substantively enacted by the reporting date.
2.6 Dividends Provided for or Paid
No dividends have been provided for or paid during the current year.
Adjusted franking account balance
2023
$’000
47,589
2022
$’000
47,589
2023
$’000
2022
$’000
3. Assets and Liabilities
3.1 Cash and cash equivalents
Reconciliation of cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and in banks.
Cash and cash equivalents
Reconciliation of profit for the year to net cash flows from operating activities
Profit for the year
Depreciation of non-current assets
Impairment reversal of non-current assets
Gain on sale of property, plant and equipment
Gain on sale of assets classified as held for sale
Unrealised foreign exchange (gain)/loss
Loss allowance on trade receivables
Equity settled share-based payment
Interest expense – leases
Share of results of associate
Debt restructure costs
Change in net assets and liabilities:
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in prepayments
(Increase)/Decrease in inventories
Increase/(Decrease) in current tax balances
Increase/(Decrease) in provisions
Increase/(Decrease) in trade and other payables
Increase/(Decrease) in contract liabilities
Increase/(Decrease) in deferred tax liabilities
Effect of foreign exchange on net assets and liabilities
2023
$’000
106,346
127,695
39,419
(80,337)
(25,128)
-
(60)
1,382
3,746
-
1,284
215
(24,585)
3,627
(474)
2,857
(2,272)
10,274
(7,081)
5
(67)
2022
$’000
73,864
33,830
30,981
(35,304)
(156)
(4,375)
63
3,692
838
349
248
-
(14,756)
(4,487)
995
(937)
(8,787)
6,905
6,934
85
(960)
Net cash flows provided by operating activities
50,500
15,158
82 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 83
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3. Assets and Liabilities (continued)
3.2
Trade and Other Receivables
Trade receivables
Allowance for expected credit losses
Other receivables (i)
Total
2023
$’000
82,582
(2,436)
4,044
84,190
2022
$’000
59,306
(3,678)
7,908
63,536
(i)
In 2022 Other receivables included an amount of $4.2 million paid as a deposit for the acquisition of the Subcon business. This
transaction settled during 2023 and the deposit applied as part of settlement. Refer to note 3.16 for further details.
The credit period for customers is negotiated individually on a case by case basis. An allowance has been made for estimated
irrecoverable trade receivable amounts arising from the past rendering of services.
The Group writes off a trade receivable when there is information indicating that the debtor is in significant financial difficulty and there is
no realistic prospect of recovery. Subsequent recoveries of amounts previously written off are credited against the allowance account.
The Group measures the allowance for expected credit losses for trade receivables at an amount equal to lifetime expected credit losses
(“ECL”) using the simplified approach where
1. ECL’s are collectively estimated using a provision matrix based on the Group’s historical credit loss experience adjusted for factors
that are specific to geographic region, general economic conditions and an assessment of current and forecast conditions at
reporting date. This has resulted in ECL’s being applied to debtors aged over 60 days in our international business.
2.
In cases where there is specific information available, the ECL assessment is adjusted for factors that are specific to the debtor
including their financial capacity to make payment, discussions with the debtor on the status of the receivable and any other
information relevant to the assessment of the recoverability.
The ageing of trade receivables to which these measures were applied were:
Trade receivables
Current
$’000
65,016
Over 30 days
$’000
Over 60 days
$’000
Over 90 days
$’000
5,461
2,148
9,957
Total
$’000
82,582
The following table shows the movement in lifetime ECL that has been recognised for trade receivables in accordance with the simplified
approach set out in AASB 9:
Balance as at 1 July 2022
Transfer to credit-impaired
Amounts recovered
Foreign exchange gains and losses
Balance as at 30 June 2023
3.3
Inventories
Fuel – at cost
Consumables
Work in progress
Total
Inventories are stated at the lower of cost or net realisable value.
Collectively
Assessed
$’000
Individually
Assessed
$’000
25
43
(26)
-
42
3,653
52
(1,451)
140
2,394
2023
$’000
1,973
184
13
2,170
Total
$’000
3,678
95
(1,477)
140
2,436
2022
$’000
1,125
483
88
1,696
3.4
Property, Plant and Equipment
Year ended 30 June 2022
At 1 July 2021
Gross carrying amount
Accumulated depreciation and impairment loss
Carrying amount
Additions
Disposals
Reclassified from held for sale
Depreciation
Impairment reversal recognised in profit and loss
Effect of foreign currency exchange differences
Total movement
Balance at 30 June 2022
Gross carrying amount
Accumulated depreciation and impairment loss
Carrying amount
Year ended 30 June 2023
At 1 July 2022
Carrying amount
Additions
Disposals
Depreciation
Impairment reversal recognised in profit and loss
Acquisition through business combination
Effect of foreign currency exchange differences
Total movement
Balance at 30 June 2023
Gross carrying amount
Accumulated depreciation and impairment loss
Carrying amount
Buildings and
Improvements
at cost
$’000
15,370
(13,640)
1,730
43
(670)
-
(241)
-
47
(821)
6,926
(6,017)
909
909
-
(557)
(230)
-
-
6
(781)
586
(458)
128
Vessels
at cost
$’000
654,494
(330,874)
323,620
7,998
(766)
1,508
(25,406)
35,435
19,179
37,948
710,863
(349,295)
361,568
Plant and
Equipment
at cost
$’000
19,397
(11,348)
8,049
2,492
(826)
-
(1,996)
-
142
(188)
19,673
(11,812)
7,861
Total
$’000
689,261
(355,862)
333,399
10,533
(2,262)
1,508
(27,643)
35,435
19,368
36,939
737,462
(367,124)
370,338
361,568
7,861
370,338
16,380
(12,409)
(31,989)
80,337
-
9,209
61,528
716,540
(293,444)
423,096
2,017
(93)
(2,389)
-
352
470
357
21,916
(13,698)
8,218
18,397
(13,059)
(34,608)
80,337
352
9,685
61,104
739,042
(307,600)
431,442
Leasehold buildings and improvements, vessels and plant and equipment are stated at cost less, where applicable, accumulated
depreciation and impairment losses. Cost includes expenditure that is directly attributed to the acquisition of the item.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. Buildings and
improvements are depreciated over the period of the lease or estimated useful life using the straight-line method on the following bases,
Leasehold building & improvements
10%
Vessels
Vessel refits
4%
20%
Plant & equipment
5%-100%
Items are derecognised upon disposal when the recipient obtains control. Any gain or loss on derecognition, calculated as the difference
between net disposal proceeds and carrying amount of the asset, is included in the statement of profit and loss when derecognised.
84 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 85
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3.5
Right-of-use assets
Year ended 30 June 2022
At 1 July 2021
Gross carrying amount
Accumulated depreciation
Carrying amount
Additions
Depreciation
Other
Total movement
Balance at 30 June 2022
Gross carrying amount
Accumulated depreciation
Carrying amount
Year ended 30 June 2023
At 1 July 2022
Opening carrying amount
Additions
Acquisition through business combination
Disposal
Depreciation
Other
Total movement
Balance at 30 June 2023
Gross carrying amount
Accumulated depreciation
Carrying amount
Buildings and
Improvements
at cost
$’000
Vessels
at cost
$’000
Plant and
Equipment
at cost
$’000
17,137
(7,718)
9,419
2,942
(2,892)
(24)
26
15,270
(5,825)
9,445
9,445
1,578
848
(2,155)
(3,097)
25
(2,801)
13,402
(6,758)
6,644
3,125
(3,089)
36
-
(59)
23
(36)
1,400
(1,400)
-
-
4,423
-
(6)
(1,458)
91
3,050
4,521
(1,471)
3,050
1,273
(790)
483
-
(174)
(234)
(408)
235
(159)
75
75
18
-
(7)
(44)
(15)
(47)
54
(26)
28
Total
$’000
21,535
(11,597)
9,938
2,942
(3,124)
(235)
(418)
16,904
(7,384)
9,520
9,520
6,019
848
(2,168)
(4,599)
102
202
17,977
(8,255)
9,722
Right-of-use assets are recognised at the commencement date of the lease, and initially measured at cost less any accumulated
depreciation and impairment losses, adjusted for any remeasurement of lease liabilities. The cost includes amount of lease liabilities
recognised, initial direct costs incurred, expected make good costs, and lease payments made at or before commencement date less any
lease incentives received.
Right-of-use assets are depreciated on a straight line basis, over the shorter of the lease term and the estimated useful lives of the assets.
The right-of-use assets are also subject to impairment assessed in accordance with the Group’s impairment policy, and any impairment
loss is recognised in the income statement.
The Group leases several assets including
• Subsea and operating premises at Welshpool, Australia which expires 30 April 2025, with an option to extend two x five-year terms.
• Current head office premises in Perth which expires 30 November 2026, with an option to extend for one x five years.
• Vessel bareboat charters with lease terms of one to two years.
3. Assets and Liabilities (continued)
3.5 Right-of-use assets (continued)
Amounts recognised in profit and loss
Depreciation expense on right-of-use assets
Interest expense on lease liabilities
Income from sub-leasing right-of-use assets
3.6
Impairment of Non-current assets
2023
$’000
4,599
527
1,622
2022
$’000
3,125
343
2,634
In previous years, the Group has performed a review of non-current asset values at each reporting period and whenever events occur or
changes in circumstances indicate that the carrying amount of an asset group may be impaired. This year, the review date was changed
and the assessment performed as at 31 May 2023. Management have determined that the market conditions for our business has not
changed between the date of impairment assessment and 30 June 2023. Market conditions are monitored for indications of impairment
for all of the Group’s operating assets and where such indications are identified, a formal impairment assessment is performed.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the
asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss
is recognised immediately in profit or loss.
Impairment testing
The carrying amount of the net assets of the Group was greater than the Company’s market capitalisation which was an indicator of
impairment at 31 May 2023. As a result, the Group assessed the recoverable amounts of the Vessels, Subsea and Project Logistics Cash-
Generating Units (‘CGU’).
The assessment resulted in the following impairment reversals/(charges) included in profit or loss:
Segment/CGU
Class of asset
Vessels
Vessels
Subsea
Total
Property, Plant & Equipment
Assets classified as held for sale
Assets classified as held for sale
Method
FVLCOD
FVLCOD
FVLCOD
Impairment reversal/(charge)
2023
$’000
80,337
-
-
2022
$’000
35,435
(109)
(22)
80,337
35,304
The inputs used in deriving the recoverable amount of each CGU is categorised in accordance within the following levels of the fair value
hierarchy:
CGU
Vessels
Level 3(i)
$’000
434,821
Recoverable
Amount
$’000
434,821
(i)
Level 3 inputs are unobservable inputs used to measure fair value. In our Vessels calculations, the inputs used are based on both
observable (vessel sales market) and unobservable (en bloc discount) market data prepared by an independent valuation consultant.
Due to the unobservable market data and internal valuation components of the valuations, the inputs are considered Level 3.
Inputs in determining the classification level within the fair value hierarchy are reassessed at each reporting period as part of the
impairment process. The inputs used within calculations are assessed and discussed internally to determine the extent to which they can
be compared to observable market information and classified accordingly.
86 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 87
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3.6
Impairment of Non-Current Assets (continued)
Industry Conditions
This financial year has seen improvements in overall market conditions in which the Group operates.
During the year the brent oil price has traded in a range between from USD 106/bbl in June 2022 to USD 75/bbl, at 30 June 2023. While
the price has been relatively stable, the more recent decrease reflects the relative uncertainty about future growth rates globally on the
back of rising interest rates coupled with the fear of recession in the United States and Chinese economies. Stronger Chinese oil demand,
on the back of eased COVID restrictions, together with OPEC production target cuts, which have been extended out to 2024, have
partially offset the growth uncertainty.
The overall market conditions in which the Group operates have continued to improve during the period. Offshore vessel activity and
rates have continued to improve throughout the Group’s markets. In addition, the redeployment of vessels to the Middle East market has
tightened supply in South East Asia. Newbuild ordering is expected to remain limited by persistent difficulties in future proofing vessels,
particularly with appropriate green technologies. Access to finance and increased pricing also remain challenges to potential newbuild
projects. The offshore renewables market also continues to gather pace with significant projects committed requiring offshore support
services.
Vessels
The recoverable amount of the core vessels was determined using a market-based approach, reflecting the value which could be
expected to be realised through the disposal of the vessels, in an orderly market, on an “as is where is” basis between a willing buyer and
willing seller.
An independent valuation of the fleet was undertaken by a specialist marine valuation consultancy and shipbroking company. In preparing
their valuation report, some of the factors they considered include the current market conditions in which the vessels operate, a review of
recent market sales of similar vessels, consideration of the specification and earnings potential of each vessel and the inherent value and
replacement cost of each vessel. As a result of the improving market conditions discussed above, the vessel valuation report reflected
increases in values, leading to a partial reversal of prior year impairments.
A key input into the recoverable amount of the CGU was the application of a discount to the independent vessel valuation to reflect the
amount which would be achieved if the core fleet was disposed of in one single transaction. The Directors have decreased this discount
to 5.0% for the current period from 15% at 30 June 2022 and 10% at 31 December 2022. The independent valuer decreased the
expected range this year and the adopted rate is at the mid point of the range specified. The decrease in the discount is also consistent
with the expectation disclosed in previous financial reports.
The following factors were taken into account by the board in adopting this value:
• offshore market indexes indicating increases of rates to the highest levels for seven years
• despite a softening of the oil price during the year, the 2022 calendar year had the highest yearly average price since 2014
•
•
increasing global utilisation rates
increasing global demand
• continued decline in the number of vessels laid up
• market evidence of increasing offshore vessel sales in 2023
•
the adopted % being within the range provided by the independent valuer
• all of the above have been evidenced by the achievement of higher utilisation and day rates for the Group’s vessels during the year.
Consistent with previous periods, selling costs are also assumed to be 2% (2022: 2%) of the vessel sales value.
3. Assets and Liabilities (continued)
3.6
Impairment of Non-Current Assets (continued)
Key assumptions and sensitivity
The Fair Value Less Cost of Disposal (FVLCOD) method requires an estimate of the current market value of the assets and the costs that
would be associated with a disposal of the assets. In estimating the current market value of the assets, the Group engaged experienced
and qualified valuers to perform valuations. Estimates have also been made on the discount to the independent vessel valuation to reflect
the amount which would be achieved if the fleet was disposed of in one single transaction, plus the selling costs associated with the sale.
The following provides information on the assumptions made in determining the fair value of the vessels and resulting reversal of
impairment, together with a sensitivity analysis showing the potential impact on the vessel fair value based on the movement (increase or
decrease) in the assumption.
Assumption
En bloc discount
Selling costs
Subsea
Rate used
5.0%
2.0%
Sensitivity
movement
2.5%
0.5%
Change in
carrying value
$’000
3,288
637
To assess the recoverable amount of the Subsea CGU, a Value in Use (ViU) assessment was performed using five year cash flows and a
terminal value.
There were no material changes in the underlying assumptions used from the assessment as at 30 June 2022, except for expected future
cashflows being updated to reflect recent budgets for financial years 2024 to 2026. In determining the forecast revenues and operating
expenses, consideration has been given to the following:
• current and potential new contracts for the Subsea business
• current and expected tendering activities
• expected Subsea services activity in the region
• cost of running the business including labour and overheads
• project work has been budgeted by applying estimated gross margins, based on historical results, to the estimated revenues of
projects
•
in assessing future revenues, potential projects are identified with estimates of their total revenue. A likelihood of success % is then
applied to the revenue to reflect a risk weighted likely revenue amount
During the year, the Group acquired the Subcon business (note 3.16) and has assessed the assets, including goodwill, to form part of the
Subsea cash generating unit.
A discount rate of 11.56% (2022: 11.33%) has been used for ViU assessments.
In the budget approved by the board, forecast revenues have been increased for the FY24 to FY26 years to reflect the improving market
conditions. 2% revenue growth in FY27 and FY28 has been assumed, with terminal year growth of 2% (2022: 2%) reflecting a long term
inflation rate assumption for all of these years. This rate is also applied to operating expenditures.
88 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 89
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3.6
Impairment of Non-Current Assets (continued)
Key assumptions and sensitivity
The recoverable value of the Subsea assets in the current year was assessed using a ViU approach.
The estimation of future cashflows has been prepared based on approved group budgets with estimates and assumptions regarding
future revenue growth rates, operating margins and discount rates.
The following provides information on the assumptions made in determining the recoverable value of the assets, together with a sensitivity
analysis showing the potential impact on the carrying value based on the movement (increase or decrease) in the relevant estimate or
assumption.
Assumption
Discount rate
Terminal year growth rate
Rate used
11.56%
2.0%
Sensitivity
movement
Increase/(Decrease) in
recoverable value
$’000
+0.5%
-0.5%
+0.5%
-0.5%
(5,502)
6,116
4,196
(3,778)
The Subsea CGU has significant head room and application of any of these sensitivities would not result in impairment.
Project Logistics
To assess the recoverable amount of the Project Logistics CGU, a ViU assessment was performed using five year cash flows and a
terminal value.
The CGU has non-current assets of nil value. All other assets relate to working capital for day to day operations.
In determining the forecast revenues and operating expenses, consideration has been given to the following:
• current and potential new contracts for the Project Logistics business
• current and expected tendering activities
• expected Project Logistics services activity in the region
• cost of running the business including labour and overheads
• project work was budgeted by applying estimated gross margins, based on historical results to estimated revenues of projects
•
in assessing future revenues, potential projects are identified with estimates of their total revenue. A likelihood of success % is then
applied to the revenue to reflect a risk weighted likely revenue amount
•
future revenues also include additional stretch amounts for expected future opportunities not yet specifically identified
A discount rate of 11.56% (2022: 11.33%) has been used for ViU assessments.
Total carrying value of the CGU is $-1.0m being net working capital resulting in low sensitivity to changes in assumptions.
3. Assets and Liabilities (continued)
3.7
Investment in Associate
In November 2021, the Group acquired a 49.9% interest in Global Aqua Survey (GAS) Ltd, a subsea company operating in Taiwan. The
consideration for the investment was 42.5 million New Taiwan dollars (A$2.1m). The investment is accounted for using the equity method
in these consolidated financial statements.
Name of Associate
MMA Global Aqua Survey Ltd (GAS)
Principal
Activity
Subsea
Principal place
of business
Taiwan
Summarised financial information in respect of the associate is set out below:
Financial position:
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Group’s share of associate net assets - 49.9%
Goodwill
Group’s carrying amount of the investment
Financial performance:
Total revenue
Total loss before tax for the year
Group’s share of associate loss before tax
Group’s share of associate income tax expense
Group’s share of associate loss after tax
3.8 Loan to associate
Proportion of ownership interest and
voting rights held by group
2023
49.90%
2023
$’000
9,121
3,148
(11,426)
(359)
484
242
238
480
2,907
(2,573)
(1,284)
-
(1,284)
2022
49.90%
2022
$’000
4,878
9,272
(6,098)
(5,453)
2,599
1,296
486
1,782
721
(496)
(248)
-
(248)
In 2022 a USD 4.25 million loan was made to our associate company, MMA Global Aqua Survey Ltd for the purchase of a vessel from
the Group. The loan is for a five-year term at an interest rate of 4.8% with 60 equal monthly repayments and is secured with a registered
mortgage over the vessel.
The outstanding balance of the loan at the end of the year is A$5.3 million (2022: A$6.1 million)
In addition, a working capital loan was provided during 2022 to the value of A$0.4 million. The loan has not yet been repaid while the
business arranges a finance facility in its own name. No interest is payable on the loan.
90 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 91
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3. Assets and Liabilities (continued)
3.9
Intangibles assets and goodwill
Goodwill
$’000
Software
$’000
Total
$’000
Year ended 30 June 2022
At 1 July 2021
Gross carrying amount
Accumulated amortisation
Carrying amount
Amortisation
Other
Total movement
Balance at 30 June 2022
Gross carrying amount
Accumulated amortisation
Carrying amount
Year ended 30 June 2023
At 1 July 2022
Opening carrying amount
Acquisition through business combination (note 3.16)
Amortisation
Other
Total movement
Balance at 30 June 2023
Gross carrying amount
Accumulated amortisation
Carrying amount
110
-
110
-
7
7
117
-
117
117
5,959
-
(3)
5,956
6,073
-
6,073
3,159
(2,504)
655
(212)
-
(212)
3,159
(2,716)
443
443
-
(213)
-
(213)
3,159
(2,929)
230
3,269
(2,504)
765
(212)
7
(205)
3,276
(2,716)
560
560
5,959
(213)
(3)
5,743
9,232
(2,929)
6,302
For impairment testing, goodwill acquired through the Subcon acquisition is all allocated to the Subsea cash generating unit. Refer to
notes 3.16 for information about the acquisition and note 3.6 for impairment testing process and results.
3.10 Trade and Other Payables
Trade payables
Other payables and accruals
Goods and services tax payable
Total
2023
$’000
10,967
41,358
1,083
53,408
2022
$’000
12,086
30,090
960
43,136
The average credit period on purchases of all goods is 30 - 45 days. The Group monitors payments to ensure that payables are generally
paid within the credit time frame.
3.11 Contract liabilities
Vessel mobilisation
Lump sum contracts
Instalment received in advance for disposal of subsidiaries
Total
3.12 Borrowings
Secured – at amortised cost
Opening balance
Repayment of loan
Foreign exchange movement
New facility borrowing costs
Balance at end of financial year
Current
Non current
Total
2023
$’000
3,434
1,741
-
5,175
2023
$’000
115,419
(35,567)
1,681
(215)
81,318
5,500
75,818
81,318
2022
$’000
6,731
3,352
2,173
12,256
2022
$’000
163,500
(53,001)
4,920
-
115,419
12,500
102,919
115,419
Summary of borrowing arrangements:
The amounts owing under the facility comprises an A$ amount of $33.8 million and a US$ amount of $31.8 million.
The facility expires in January 2025 with the outstanding balance payable in full. The scheduled repayments prior to expiry are A$5.5
million in June 2024 and A$7.5 million in December 2024.
Repayments totalling $35.6 million were made during the year. Including $22.5 million from the disposal of the Batam Shipyard and $13.0
million from the sale of vessels.
During the year, the interest rate payable was a base rate (LIBOR for US$ denominated loans, BBSY for A$ denominated loans) plus a
margin calculated by reference to the groups leverage ratio.
As a result of the phasing out of LIBOR, a facility agreement amendment was signed on 12 July 2023 revising the reference point for the
base rate applicable to US$ denominated loans to Term SOFR (effective from 31 July 2023). This change is not expected to have any
material effect on the loan amount, classification of the loan or the covenants other than a change in reference rate.
The Facility is fully secured by fixed and floating charges given by certain controlled entities within the Group, registered ship mortgages
over a number of vessels owned by certain controlled entities and real property mortgages.
The US$31.8m component of the facility was designated as a hedge of a net investment in a foreign operation and the resulting foreign
exchange movements of $1.7m (2022: $4.9m) are therefore included in Other Comprehensive Income as ‘Gain/loss on hedge of net
investment in a foreign operation’ offsetting the foreign exchange movements in the US$ denominated entities in ‘Exchange differences on
translation of foreign operations’.
Available borrowing facilities
Secured loan facilities with various maturity dates through to 2025 and which may be
extended by mutual agreement:
Amount used
Amount unused
Total
There is no re-draw available on the existing facilities.
Refer to note 5.10 for details of the new syndicated debt facility announced on 10 August 2023.
2023
$’000
2022
$’000
81,533
-
81,533
115,419
-
115,419
92 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 93
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3. Assets and Liabilities (continued)
3.13 Lease liabilities
Opening Balance
Additions
Repayments
Interest expense
Net currency exchange differences
Balance at end of financial year
Current
Non-current
Total
Maturity analysis:
Year 1
Year 2
Year 3
Year 4
Year 5
Less: unearned interest
Balance at end of the year
2023
$’000
9,510
5,498
(5,255)
527
(175)
10,105
4,842
5,263
10,105
4,809
4,287
1,016
526
-
10,638
(533)
10,105
2022
$’000
10,137
2,930
(3,862)
343
(38)
9,510
3,055
6,455
9,510
3,055
2,992
2,610
1,012
508
10,177
(667)
9,510
Refer to note 3.5 Right-of-Use Assets for further detail of current leases.
Lease liabilities are recognised by the Group at Commencement date of the lease. These are measured at the present value of lease
payments to be made over lease term. Lease payments include fixed payments less any lease incentives receivable, variable lease
payments that depend on an index or rate, and amounts payable to return the leased asset to makegood condition.
In calculating the present value of lease payment, the Group uses its incremental borrowing rate (IBR) at lease commencement date,
where the interest rate implicit in the lease is not readily determinable. After commencement date, the liability is increased to reflect the
accretion of interest and reduced for lease payments repaid. The carrying amount of lease liabilities are remeasured if there is a substantial
modification, either in the change in lease term or change in lease payments or change in the assessment to purchase the underlying
asset.
The Group applies short-term lease recognition exemptions to its short-term leases, which are defined as those leases that have a
lease term of 12 months or less from the commencement date. It applies the lease of low-value assets recognition exemption to leases
considered to be low-value. Lease payments on short-term leases and leases of low-value assets are recognised as expenses on a
straight line over the lease term.
The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Group’s
treasury function.
3.14 Provisions
Current
Ongoing legal claims
Employee benefits – annual leave
Employee benefits – long service leave
Total
Non-current
2023
$’000
1,956
4,954
5,281
12,191
2022
$’000
2,064
6,370
5,997
14,431
Employee benefits – long service leave
63
31
As disclosed in the 2021 and 2022 annual reports, a final arbitration award was made against a wholly owned subsidiary of MMA on
22 June 2021.
MMA appealed that decision to the High Court of Singapore but on 26 June 2023 were advised the appeal was dismissed. As a result, a
final payment of S$1.5 million was made on 3 July 2023. After receipt of formal notification, final settlement of costs will also be made.
Significant Estimates
In the current year, the Group has a total provision of $2.0 million (2021: $2.1 million) for the settlement of the legal claim. This amount has
been estimated by the directors as a possible outflow that may be required to settle this legal claim.
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave in the
period the related service is performed.
Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using the remuneration rate
expected to apply at the time of settlement.
Liabilities recognised in respect of long-term employee benefits are measured at the present value of the estimated future cash outflows to
be made by the Group in respect of services provided by employees up to reporting date.
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the
Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date,
taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is the present value of those cash flows.
94 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 95
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3.15 Deferred Tax Balances
Deferred tax assets/(liabilities) arise from the following:
Year ended 30 June 2023
Gross deferred tax liabilities:
Property, plant and equipment
Inventory
Receivables
Other
Gross deferred tax assets:
Provisions
Unused tax losses and credits
Other
Total
Year ended 30 June 2022
Gross deferred tax liabilities:
Property, plant and equipment
Inventory
Receivables
Other
Gross deferred tax assets:
Provisions
Unused tax losses and credits
Other
Total
Opening
Balance
$’000
Recognised in
Profit or Loss
$’000
Closing
Balance
$’000
(34,544)
(15,067)
(49,611)
(90)
3
(22)
(34,653)
4,088
28,470
1,955
34,513
(140)
(158)
(393)
1,058
(14,560)
1,480
13,481
(405)
14,556
(4)
(248)
(390)
1,036
(49,213)
5,568
41,951
1,550
49,069
(144)
(27,469)
(7,075)
(34,544)
(154)
3
(1,662)
(29,281)
2,024
24,585
2,616
29,225
(56)
64
-
1,640
(5,371)
2,064
3,885
(661)
5,287
(84)
(90)
3
(22)
(34,653)
4,088
28,470
1,955
34,513
(140)
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which deductible temporary differences
can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period(s) in which the liability is settled or
the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by reporting date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets
and liabilities on a net basis.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in
equity respectively.
3. Assets and Liabilities (continued)
3.15 Deferred Tax Balances (continued)
Unrecognised deferred tax assets
Deductible temporary differences, unused tax losses and unused tax credits for which no
deferred tax assets have been recognised are attributable to the following:
Tax losses (revenue in nature)
Tax losses (capital in nature)
2023
$’000
2022
$’000
38,367
19,034
53,809
19,034
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Nature of tax funding arrangements and tax sharing agreements
Entities within the tax-consolidated group have entered into a tax funding arrangement and a tax sharing agreement with the head entity.
Under the terms of the tax funding arrangement, MMA Offshore Ltd and each of the entities in the tax-consolidated group has agreed to
pay a tax equivalent payment to or from the head entity, based on the current tax liability or current tax asset of the entity. Such amounts
are reflected in amounts receivable from or payable to other entities in the tax-consolidated group.
The tax sharing agreement entered into between members of the tax-consolidated group provides for the determination of the allocation
of income tax liabilities between the entities should the head entity default on its tax payment obligations or if any entity should leave the
tax consolidated group. The effect of the tax sharing agreement is that each member’s liability for tax payable by the tax consolidated
group is limited to the amount payable to the head entity under the tax funding arrangement.
Key source of estimation uncertainty
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which
the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies.
The Group has $38,367,000 (2022: $53,809,000) of unrecognised deferred tax assets relating to tax losses carried forward. These losses
relate to subsidiaries that have been incurring tax losses in previous years during the downturn in the industry, do not expire, and may
not be used to offset taxable income elsewhere in the Group. The subsidiaries neither have any taxable temporary difference nor any tax
planning opportunities available that could partly support the recognition of these losses as deferred tax assets. On this basis, the Group
has determined that it cannot recognise deferred tax assets on the tax losses carried forward.
3.16 Acquisition of Business
On 28 July 2022, the Group acquired 100% of Subcon International Pty Ltd.
Established in 2011 and headquartered in Perth, Subcon provides innovative stabilisation, coastal erosion and engineered reef solutions to
the oil and gas, offshore wind, coastal infrastructure and tourism sectors both in Australia and internationally.
The acquisition is strongly aligned with the Group strategy to extend and diversify our service offering in a sustainable manner. It enhances
our service offering to our existing oil & gas and offshore wind markets by combining our capability, whilst Subcon also bring a number of
new solutions to expand our reach into coastal erosion management and the tourism sectors.
Consideration Transferred
Issued capital (7,131,940 shares) in MMA Offshore Ltd
Cash (deposit paid June 2022)
$’000
4,350
4,200
8,550
The number of the ordinary shares issued as part of the consideration paid was determined based on the Volume Weighted Average Price
for the 60 days prior to completion of $0.589. The market value of the shares at completion date was $0.61.
96 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 97
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 3. Assets and Liabilities (continued)
3.16 Acquisition of business (continued)
Assets acquired and liabilities assumed at the date of acquisition
Current assets
Cash
Trade and other receivables
Inventories
Current tax asset
Other
Non-current assets
Property, plant and equipment
Right of use asset
Current liabilities
Trade and other payables
Employee entitlements
Lease liabilities
Non-Current liabilities
Lease liabilities
Total identifiable assets acquired and liabilities assumed
Goodwill arising on acquisition
Purchase consideration transferred
$’000
1,600
1,286
5
600
530
352
848
(1,327)
(357)
(126)
(820)
2,591
5,959
8,550
The gross contractual value of receivables acquired was $1.3 million, with the full fair value amount expected to be collected.
The Group measured the acquired lease liabilities using the present value of the remaining lease payments at the date of acquisition. The
right-of-use assets were measured at an amount equal to the lease liabilities and adjusted to reflect the favourable terms of the lease
relative to market terms.
The goodwill reflects the alignment with the Group’s strategy. Benefits include an enhance capability to service our existing markets
through the combination of service offerings, access to new markets through the range of innovative solutions including oil and gas
decommissioning through Subcon’s rigs to reef offering. In addition the acquisition also provides benefits of market consolidation through
the combination of the MMA’s existing subsea stabilisation offerings with Subcon.
None of the goodwill recognised is expected to be deductible for income tax purposes.
During the reporting period after acquisition, the business contributed $7.0 million revenue and $0.3 million net loss after tax to the Group.
3.17 Disposal of shipyard
On 1 December 2022, the Group completed the sale of the shipyard facility in Batam, Indonesia. The details of the sale were:
Consideration Transferred
Cash
Cash disposed
Other net assets disposed
Gain on sale before reclassification of foreign currency translation reserve
Reclassification of foreign currency translation reserve
Gain on sale
$2.2 million of the cash consideration was received during the 2022 financial year.
$’000
24,363
(1,888)
(861)
21,614
1,305
22,919
During the reporting period prior to disposal, the business contributed $1.2 million revenue and $0.5 million net profit after tax to the
Group.
4. Capital Structure
4.1
Issued Capital
Fully Paid Ordinary Shares
Balance at beginning of financial year
Issue of shares
Share issue costs
2023
No.’000
359,328
8,787
-
2023
$’000
742,265
4,350
-
2022
No.’000
359,328
-
-
2022
$’000
742,247
-
18
Balance at end of financial year
368,115
746,615
359,328
742,265
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Share Rights
As at 30 June 2023, executives and employees held rights over 21,221,843 ordinary shares (2022: 20,596,998).
Share rights granted under the employee share rights plans carry no right to dividends and no voting rights.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity
instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
4.2
Reserves
Employee equity settled benefits
Hedging
Foreign currency translation
Balance at end of financial year
2023
$’000
8,533
(63,110)
208,847
154,270
2022
$’000
4,787
(61,431)
198,128
141,484
The employee equity settled benefits reserve arises on the grant of share rights to executives and employees under the Company’s share
rights plans. Amounts are transferred out of the reserve and into issued capital when the rights vest or expire.
The hedging reserve is used to record gains and losses on hedges designated as cash flow hedges including hedges of net investments
in a foreign operation. Gains and losses accumulated in the hedge reserve are taken to the profit or loss when the hedged transaction
impacts the profit or loss, or is included as an adjustment to the initial carrying amount of the hedged item. For a net investment in a
foreign operation any gains and losses are taken to profit or loss on disposal of the foreign operation.
The foreign currency translation reserve represents exchange differences relating to the translation from the functional currencies of the
Group’s foreign controlled entities into Australian Dollars.
The assets and liabilities of the Group’s foreign operations are translated into Australian Dollars using exchange rates prevailing at the end
of the reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences
arising, if any, are recognised through other comprehensive income and recognised in equity.
On the disposal of the foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation), all of the accumulated
exchange differences in respect of that operation attributable to the Group are reclassified to profit or loss.
98 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 99
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 4. Capital Structure (continued)
4.4 Capital Risk Management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns, while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The Group’s overall strategy remains unchanged from the 2022
financial year.
The capital structure of the Group consists of net debt (borrowings as detailed in note 3.12 offset by cash at bank balances) and equity of
the Group (comprising issued capital and reserves as detailed in notes 4.1 and 4.2 and accumulated losses).
The Group is not subject to any externally imposed capital requirements other than normal banking requirements and has complied with
all banking facility covenants.
Based on recommendations of management and the Board, the Group will balance its overall capital structure through new share issues
as well as the establishment of new borrowing facilities or repayment of existing facilities. The Group uses its leverage ratio (measured as
debt to property plant & equipment) to manage its capital. The ratio is monitored on a monthly basis by the Board and management.
Leverage Ratio
The leverage ratio at the end of the reporting period was as follows:
Debt (i)
Cash and cash equivalents
Net (assets)/debt
Property, plant & equipment (ii)
Leverage ratio
(i) Debt is defined as gross long and short-term borrowings, as detailed in note 3.12.
(ii) Property, plant and equipment includes all fixed assets owned by the group, as detailed in note 3.4.
2023
$’000
81,318
(106,346)
(25,028)
431,442
(6%)
2022
$’000
115,419
(73,864)
41,555
370,338
11%
4. Capital Structure (continued)
4.3 Non-controlling interests
Summarised financial information in respect of each of the Group’s subsidiaries that has material non-controlling interests is set out below.
The summarised financial information below represents amounts before intragroup eliminations.
MMA Global Projects Pte. Ltd
Current Assets
Non-current Assets
Current Liabilities
Non-current Liabilities
Net assets
Equity attributable to owners of the Company
Non-controlling interests
Revenue
Expenses
Profit/(loss) for the year
Profit/(loss) attributable to owners of the Company
Profit/(loss) attributable to the non-controlling interests
Profit/(loss) for the year
Total comprehensive income attributable to owners of the Company
Total comprehensive income attributable to the non-controlling interests
Total comprehensive income for the year
Net cash inflow/(outflow) from operating activities
Net cash inflow/(outflow) from investing activities
Net cash inflow/(outflow) from financing activities
Net cash inflow/(outflow)
Non-controlling interest at beginning of year
Share of profit/(loss) for the year
Other
Non-controlling interest at end of year
No dividends were paid to the non-controlling interests in 2023 (2022: nil).
The non-controlling interest has a 20% ownership interest in the entity and 20% of the voting rights.
2023
$’000
2,446
-
(867)
(187)
1,392
1,115
277
2,041
(2,555)
(514)
(395)
(119)
(514)
(413)
(101)
(514)
1,494
-
(3,446)
(1,952)
377
(119)
19
277
2022
$’000
9,518
96
(3,946)
(3,731)
1,937
1,560
377
16,569
(14,378)
2,191
1,754
437
2,191
1,765
426
2,191
1,785
-
-
1,785
(207)
437
147
377
100 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 101
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 5. Other Notes
5.1 Commitments for Expenditure
Capital expenditure commitments
Plant and Equipment
Vessels
Total
5.2 Share Based Payments
Share rights incentive plans
2023
$’000
169
1,663
1,832
2022
$’000
398
2,458
2,856
The Group has established ownership based compensation plans whereby executives and employees of the Group have been issued
rights over ordinary shares of MMA Offshore Limited.
Upon exercise, each share right, converts into one ordinary share of MMA Offshore Limited. No amounts are paid or are payable by
the recipient on receipt of the rights. The rights carry no entitlement to dividends and no voting rights. Holders of rights do not have the
entitlement, by virtue of the right, to participate in any share issue of the Company. The rights may be exercised at any time from their
vesting date to the date of their expiry. The rights are not quoted on the ASX.
The following share based payment arrangements were in existence during the current reporting period:
Series
Number issued
Grant Date
Expiry Date
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Issued 8 June 2020
Issued 8 June 2020
Issued 29 April 2021
Issued 29 April 2021
Issued 29 April 2021
1,846,954
29 Nov 2019
1 Jul 2024
351,145
21 Nov 2019
1 Jul 2024
1,758,356
28 Jan 2021
1 Jul 2025
4,905,329
28 Jan 2021
1 Jul 2025
4,616,666
28 Jan 2021
1 Nov 2025
Issued 30 September 2021
329,000
30 Sep 2021
1 Jul 2024
Issued 24 September 2021
1,297,904
24 Sep 2021
1 Jul 2024
Issued 10 November 2021
172,400
10 Nov 2021
1 Jul 2024
Issued 10 November 2021
1,518,829
10 Nov 2021
1 Jul 2026
(10)
Issued 23 December 2021
2,050,414
23 Dec 2021
1 Jul 2026
(11)
Issued 30 May 2022
1,750,001
30 May 2022
31 Dec 2025
(12)
Issued 25 November 2022
3,032,591
25 Nov 2022
1 Jul 2025
(13)
Issued 25 November 2022
2,925,366
25 Nov 2022
1 Jul 2027
Exercise
price
$
Fair Value at
Grant date
$
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.16
0.16
0.14
0.20
0.17
0.38
0.38
0.38
0.20
0.23
0.56
0.58
0.52
2020 Issues
Performance Rights issued during the 2020 financial year as part of Series 1 and 2 to executives and employees were subject to
achievement of a number of vesting targets. In addition vesting was also subject to the employee remaining employed by the Group on 30
June 2022.
For Key Management Personnel, 50% of the rights were subject to achieving a return on assets of greater than 10% at the end of the
3 year vesting period and the remaining 50% were subject to the Company’s Total Shareholder Return percentile ranking relative to a
selected Peer Group over the three-year vesting period.
For other employees, 40% of the rights were subject to achieving a return on assets of greater than 10% at the end of the three year
vesting period, 20% relate to a retention hurdle with the participant required to be employed by the Group at the end of the three year
vesting period and the remaining 40% were subject to the Company’s Total Shareholder Return percentile ranking relative to a selected
Peer Group over the three-year vesting period.
None of Key Management Personnel or Managing Director performance rights (totalling 1,158,730) vested on 1 July 2022 and these
performance rights lapsed. The Board has determined that for senior managers who achieved the retention hurdle the performance rights
vested and therefore 133,993 of the performance rights vested on 1 July 2022 will be converted to ordinary shares.
5. Other Notes (continued)
5.2 Share Based Payments (continued)
2021 Issues
Performance Rights issued during the 2021 financial year as part of Series 3,4 and 5 to executives and employees are subject to
achievement of a number of vesting targets. In addition vesting was subject to the employee remaining employed by the Group on
30 June 2023.
For the Series 3 issue to Key Management Personnel, the number of rights vesting are subject to the company share price reaching a
minimum level of $0.65, with pro rata vesting on a straight line basis up to 100% vesting if the share price is $0.96 or higher. On 1 July
2023, all of these rights vested.
For the Series 4 issue to other employees, 30% relate to a retention hurdle with the participant required to be employed by the Group at
the end of the three year vesting period and the remaining 70% are subject to the same share price hurdle as Series 3. On 1 July 2023,
3,098,673 of these rights vested.
For the Series 5 issue to Key Management Personnel, 30% relate to a retention hurdle with the participant required to be employed by the
Group at the end of the three year vesting period and the remaining 70% vests if the share price is larger than or equal to $0.90.
2022 Issues
Performance Rights issued during the 2022 financial year as part of Series 6 to 11 to executives and employees are subject to
achievement of a number of vesting targets.
The Series 6, 7 and 8 issues were short term incentive plans for the 2021 financial year. Performance conditions were met at 30 June
2021 with vesting subject to the employee remaining employed by the Group on 30 June 2022. These all vested at 30 June 2022.
For the Series 9 issue to Key Management Personnel, the number of rights vesting are subject to the company share price reaching a
minimum level of $0.65, with pro rata vesting on a straight line basis up to 100% vesting if the share price is $0.96 or higher with the
participant required to be employed by the Group at the end of the three year vesting period.
For the Series 10 issue to other employees, 30% relate to a retention hurdle, with the participant required to be employed by the Group at
the end of the three year vesting period and the remaining 70% are subject to the same share price hurdle as Series 9.
The Series 11 issue is a Key Management Personnel retention plans and only vest subject to the employee remaining employed by the
Group on 31 December 2023.
2023 Issues
Performance Rights issued during the 2023 financial year as part of Series 12 and 13 to executives and employees are subject to
achievement of a number of vesting targets.
The Series 12 issue were short term incentive plans for the 2022 financial year. Performance conditions were met at 30 June 2022 with
vesting subject to the employee remaining employed by the Group on 30 June 2023. These all vested at 30 June 2023.
For the Series 13 issue to Key Management Personnel, the number of rights vesting are subject to the company share price reaching
a minimum level of $0.75, with pro rata vesting on a straight line basis up to 100% vesting if the share price is $1.05 or higher and the
participant required to be employed by the Group at the end of the three year vesting period.
Please refer to the Remuneration Report on pages 50 to 61 for further details of Performance Rights issued to executives and employees.
102 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 103
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 5. Other Notes (continued)
5.2 Share Based Payments (continued)
Fair value of share rights granted during the year
The weighted average fair value of rights issued during the year are detailed in the above table.
Equity settled share based payments to employees are measured at fair value of the equity instrument at grant date.
The fair value of the rights issued during the year in Series 12, were based on the share price at the date of issuing, when all vesting
conditions had been met.
The rights in Series 13 were valued using the Monte Carlo simulation model.
The following shows the inputs into the valuation model for the rights granted during the year:
Inputs into the model
Grant date share price
Exercise price
Expected volatility
Life of rights
Dividend yield
Risk free rate
Series 13
$0.73
$0.00
55%
2.64 years
Nil
3.31%
Expected volatility of 55.0% is based on analysis of the Companies historical daily share price movement prior to the Grant Date. As a
result of the short-term increase in historical volatility caused by the onset of COVID in February to April 2020, these months have been
excluded from our analysis.
The fair value determined at the grant date of the equity settled share based payments is expensed on a straight-line basis over the
vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At
the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with
corresponding adjustment to the employee equity settled benefits reserve.
Movement in share rights during the period
The following reconciles the outstanding share rights at the beginning and end of the financial year:
5. Other Notes (continued)
5.2 Share Based Payments (continued)
Share rights outstanding at the end of the year
The following share rights were outstanding at the end of the financial year:
Series
(3)
Issued 29 April 2021
(4)
Issued 29 April 2021
(5)
Issued 29 April 2021
(9)
Issued 10 November 2021
(10)
Issued 23 December 2021
(11)
Issued 30 May 2022
(12)
Issued 25 November 2022
(13)
Issued 25 November 2022
Total
Exercise price
$
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Expiry Date
1 July 2025
1 July 2025
1 Nov 2025
1 July 2026
1 July 2026
31 Dec 2025
1 July 2025
1 July 2027
Number
1,758,356
3,569,620
4,616,666
1,518,829
2,050,414
1,750,001
3,032,591
2,925,366
21,221,843
5.3 Key Management Personnel Compensation
Please refer to the Remuneration Report for details of key management personnel.
The aggregate compensation made to the Directors and other key management personnel of the Company and the Group is set out
below:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share based payments
Total
2023
$
2022
$
2,510,730
2,276,746
117,213
46,620
1,259,506
3,934,069
109,382
13,744
416,319
2,816,191
2023
2022
5.4 Related Party Transactions
Employee Share Right Plans
Number of rights
Balance at the beginning of the financial year
20,596,998
Issued during the financial year
Exercised during the financial year
Lapsed during the financial year
Balance at the end of the financial year
Exercisable at end of the financial year
5,957,957
(1,655,164)
(3,677,948)
21,221,843
-
Weighted average
exercise price
$
Number of rights
Weighted average
exercise price
$
0.00
0.00
0.00
0.00
0.00
0.00
14,799,157
7,118,548
-
(1,320,707)
20,596,998
-
0.00
0.00
-
0.00
0.00
-
The immediate parent and ultimate controlling party of the Group is MMA Offshore Limited.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on
consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.
Trading transactions with associate
During the year, the Group entities entered into the following trading transactions with MMA Global Aqua Co Ltd that are not members of
the Group:
Associate
Sale of Goods
Purchase of Goods
2023
$
4,802,028
2022
$
-
2023
$
2022
$
1,596,324
917,444
104 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 105
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 5. Other Notes (continued)
5.4 Related Party Transactions (continued)
5. Other Notes (continued)
5.6 Subsidiaries
The following balances were outstanding at the end of the reporting period:
The Group’s material subsidiaries at the end of the reporting period are as follows:
Associate
Amounts owed by related party
Amounts owed to related party
2023
$
3,512,539
2022
$
-
2023
$
55,671
2022
$
-
Sales and purchases of services to and from related parties were made at normal commercial rates.
Amounts outstanding were unsecured and were settled in cash. No guarantees have been given or received. No expense has been
recognised in the current or prior periods for bad or doubtful debts in respect of amounts owed by related parties.
There were no outstanding balances due from related parties that are not members of the Group (2022: Nil)
Other related party transactions and loan to associate
In the comparative year, a Group entity disposed of a vessel to a 100% owned subsidiary of an associate company, MMA Global Aqua Co
Ltd for USD 5.0 million.
As part of the sale, a Group entity also provided a loan to fund a portion of the sale. The loan value is USD 4.25 million with a five year
term and interest charged at 4.8% per annum and is to be repaid with 60 equal monthly repayments.
The outstanding balance of the loan at the end of the year is A$5.7 million (2022: A$6.5 million).
The loan is secured with a registered mortgage over the vessel.
Other transactions that occurred during the financial year between entities in the wholly owned Group were the charter of vessels and
subsea services. These are all provided at commercial rates.
5.5
Remuneration of Auditors
Auditor and related network firms*
Audit or review of financial reports:
- Group
- Subsidiaries and joint operations
Tax compliance services
2023
$
2022
$
280,134(i)
260,873
541,007
8,240
549,247
278,865
338,262
617,127
-
617,127
(i)
Includes an amount of $27,784 paid to Deloitte for file review.
The Group appointed Grant Thornton as its new auditor with effect from 9 November 2022, replacing Deloitte. The amounts for 2022
were paid to Deloitte.
Following a detailed review by the Audit and Risk Committee of the nature of the non-audit services provided by the external auditor
during the year, the Board has determined that the services provided, and the amount paid for those services, are compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001 (Cth) and that the auditor’s independence has not
been compromised.
Parent Entity
MMA Offshore Limited
Subsidiaries
MMA Offshore Vessel Operations Pty Ltd
MMA Offshore Charters Pty Ltd
MMA Offshore Supply Base Pty Ltd
MMA Offshore Asia Pte Ltd
MMA Subsea Services Pty Ltd
MMA Offshore Vessel Holdings Pte Ltd
MMA Offshore Malaysia Sdn Bhd
MMA Offshore Shipyard and Engineering Services Pte Ltd
Airia Jaya Marine (S) Pte Ltd
MMA Offshore Asia Vessel Operations Pte Ltd
JSE Offshore Shipping Pte Ltd
PT Jaya Asiatic Shipyard
MMA Subsea Services Pte Ltd
MMA Subsea Engineering Services Pte Ltd
Neptune Asset Integrity Services Pty Ltd
Neptune Subsea Engineering Pty Ltd
Neptune Geomatics Pty Ltd
Neptune Subsea Stabilisation Pty Ltd
Neptune Diving Services Pty Ltd
Neptune Offshore Services (PNG) Ltd
MMA Subsea Stabilisation Pte Ltd
MMA Marine Pacific Pte Ltd
Neptune Subsea Engineering Ltd
Neptune Offshore Services Ltd
Neptune Subsea Inc
MMA Global Projects Pte Ltd
Premium Project Services Pte Ltd
B&R Marine Pte Ltd
Premium Project Services Middle East LLC
MMA Offshore Services Malaysia Sdn Bhd
MMA Clean Energy Co Ltd
Subcon International Pty Ltd
Subcon Technologies Pty Ltd
Subcon Construction Equipment Pty Ltd
Subcon Technologies Pte Ltd
Subcon Netherlands B.V.
Subcon Europe N.V
Note
Country of
Incorporation
Ownership
Interest 2023
%
Ownership
Interest 2022
%
(i)
Australia
(ii) (iii)
(ii) (iii)
(ii) (iii) (vi)
(ii) (iii)
(ii)
(iv)
(vi)
(ii) (iii)
(ii) (iii)
(ii) (iii)
(ii) (iii)
(ii) (iii)
(vi)
(ii) (v)
(ii) (v)
(v) (vi)
(v)
(v)
(v)
Australia
Australia
Australia
Singapore
Australia
Singapore
Malaysia
Singapore
Singapore
Singapore
Singapore
Indonesia
Singapore
Singapore
Australia
Australia
Australia
Australia
Australia
PNG
Singapore
Singapore
UK
UK
USA
Singapore
Singapore
Singapore
UAE
Malaysia
Taiwan
Australia
Australia
Australia
Singapore
Netherlands
Belgium
100
100
-
100
100
100
100
100
100
100
100
-
100
-
100
100
100
100
100
100
100
100
100
100
100
80
100
100
-
30
100
100
100
-
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
80
100
100
100
30
100
-
-
-
-
-
-
(i) MMA Offshore Limited is the ultimate holding company and head entity within the tax consolidated group.
(ii) These companies are members of the tax consolidated group at 30 June 2023.
(iii) Pursuant to ASIC Corporations (Wholly – owned Companies) Instrument 2016/785, relief has been granted to these wholly owned
controlled entities from the Corporations Law requirements for preparation, audit and lodgment of the financial report. As a condition
of the Class Order, MMA Offshore Limited and the controlled entities entered into a Deed of Cross Guarantee on 15 February 2012
which was updated on 8 November 2019.
(iv) Disposed of as part of the sale of the Batam shipyard and associated companies in December 2022.
(v) Acquisition of Subcon group and associated companies in July 2022.
(vi) These dormant companies were deregistered during the year.
106 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 107
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 5. Other Notes (continued)
5.6 Subsidiaries (continued)
The consolidated statements of comprehensive income and financial position of entities which are party to the deed of cross guarantee
are as follows:
Statement of Comprehensive Income
Revenue
Finance income
Other losses
Vessel expenses
Subsea expenses
Project Logistics expenses
Administrative expenses
Impairment reversal
Finance costs
Profit/(loss) before income tax expense
Income tax expense
Profit/(loss) for the Year
Total Comprehensive Income/(loss) for the year
Statement of Financial Position
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total Current Assets
Non-Current Assets
Other financial assets
Property, plant and equipment
Right-of-use assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Provisions
Current tax liabilities
Total Current Liabilities
Non-Current Liabilities
Borrowings
Lease liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Accumulated losses
Accumulated losses at beginning of the financial year
Net profit/(loss)
Accumulated losses at end of the financial year
108 MMA Offshore Limited | Annual Report 2023
2023
$’000
126,627
633
(1,534)
(93,527)
(39,980)
(642)
(7,873)
15,497
(6,431)
(7,230)
(1,226)
(8,456)
(8,456)
7,784
61,549
887
2,247
72,467
235,624
95,972
3,994
335,590
408,057
77,929
848
5,500
2,614
9,354
1,211
97,456
75,818
2,005
77,823
175,279
232,778
746,635
8,533
(522,390)
232,778
(513,934)
(8,456)
(522,390)
2022
$’000
182,057
21
(5,546)
(103,731)
(42,794)
(41,787)
(3,170)
35,303
(6,317)
14,036
(478)
13,558
13,558
37,277
54,031
369
1,619
93,296
231,892
98,267
5,720
335,879
429,175
61,893
193
12,500
-
11,554
454
86,594
102,919
6,524
109,443
196,037
233,138
742,285
4,787
(513,934)
233,138
(527,492)
13,558
(513,934)
5. Other Notes (continued)
5.6 Subsidiaries (continued)
The table below shows details of non-wholly owned subsidiaries of the Group that have material non-controlling interests.
Name of Subsidiary
Principal place
of business
Proportion of
ownership interest
held by NCI
Profit/ (loss)
allocated to NCI
for the year
Non-controlling
interests
MMA Global Projects Pte Ltd
Singapore
2023
%
20
2022
%
2023
$’000
2022
$’000
2023
$’000
2022
$’000
20
(119)
437
277
377
The Group owns 80 percent of the equity shares of MMA Global Projects Pte Ltd and has the power to appoint and remove the directors
of the company. Therefore, the directors of the Group concluded that the Group has control over MMA Global Projects Pte Ltd, and the
company is consolidated in these financial statements.
5.7 Parent Company Information
Statement of Financial Position
Assets
Current Assets
Non-Current Assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Equity
Issued capital
Accumulated losses
Profit reserve - 2016
Employee equity settled benefits reserve
Total Equity
Financial Performance
Profit for the year
Other comprehensive gain
Total comprehensive gain
Guarantees provided under the deed of cross guarantee
Commitments for the acquisition of property, plant and equipment by the parent entity
2023
$’000
1,477
570,749
572,226
5,520
80,861
86,381
485,845
746,635
(375,052)
114,122
140
485,845
138,841
-
138,841
88,898
-
2022
$’000
17,760
445,373
463,133
12,517
107,962
120,479
342,654
742,285
(513,893)
114,122
140
342,654
53,056
-
53,056
75,558
-
MMA Offshore Limited | Annual Report 2023 109
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 5. Other Notes (continued)
5.8 Financial Instruments
Categories of Financial Instruments
Financial assets
Cash and cash equivalents
Trade and other receivables
Loan to associate
Financial liabilities
Trade and other payables
Lease liabilities
Borrowings
2023
$’000
106,346
84,190
5,687
52,325
10,105
81,318
2022
$’000
73,864
63,536
6,515
38,018
9,510
115,419
The Group’s treasury function includes the management of the Group’s financial assets and commitments including ensuring adequate
procedures and controls are in place to manage financial risks. These risks include market risk (including currency and interest rate risk)
credit risk and liquidity risk.
A Treasury Policy has been approved by the Board and provides guidelines for conducting treasury activities. Compliance with this Policy
is monitored through internal audit procedures and subsequent reporting to the Audit and Risk Committee.
The Group seeks to minimise the effects of these risks, by using, where considered appropriate, derivative financial instruments to hedge
these risk exposures. The allowable financial derivatives and conditions for their use are documented in the Treasury Policy. The Group
does not enter into or trade financial instruments including derivative financial instruments for speculative purposes.
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Where
required, the Group can enter into a range of derivative financial instruments to manage its exposure to these risks.
At a Group level, these market risks are managed through sensitivity analysis. There is no change in the manner in which these risks are
managed and measured in the current year.
Foreign currency risk management
The Group undertakes transactions denominated in foreign currencies. Consequently, exposures to exchange rate fluctuations arise.
Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts, when it is
considered appropriate.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the financial
year are as follows:
US Dollars
Singapore Dollars
British Pound Sterling
Malaysian Ringgits
New Zealand Dollars
Other
Liabilities
Assets
2023
$’000
70,543
1,651
2,794
287
1,645
1,318
2022
$’000
63,063
1,705
2,902
103
963
107
2023
$’000
146,621
1,622
5,812
3,780
1,566
1,490
2022
$’000
62,091
2,072
8,555
7,837
2,229
2,661
5. Other Notes (continued)
5.8 Financial Instruments (continued)
Foreign currency sensitivity analysis
The Group is mainly exposed to US Dollars (USD), Singapore Dollars (SGD), British Pound Sterling (GBP), Malaysian Ringgits (MYR) and
New Zealand Dollars (NZD).
The following table details the Group’s sensitivity to a 10% increase in the Australian Dollar against the relevant foreign currencies. The
10% sensitivity represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity
analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10%
change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Australian dollar strengthens
10% against the relevant currency. For a 10% weakening of the Australian Dollar against the relevant currency, there would be an equal
and opposite impact on the profit or equity.
US Dollar
Singapore Dollar
British Pound Sterling
Malaysian Ringgit
New Zealand Dollar
Profit or Loss
Equity (i)
2023
$’000
(584)
7
3
-
7
2022
$’000
(912)
45
2
-
(115)
2023
$’000
(6,332)
(4)
(277)
(318)
-
2022
$’000
1,000
(78)
(516)
(703)
-
(i)
The USD impact relates to the translation from the functional currencies of the Group’s foreign entities into Australian Dollars.
Interest rate risk management
The Group is exposed to interest rate risk because it borrows funds primarily at floating interest rates. The risk is managed by the Group
by the use of interest rate derivatives when considered appropriate. Hedging activities are evaluated regularly to align with interest rate
views ensuring the most cost-effective hedging strategies are applied, if required. At this point in the interest rate cycle the Group is
unhedged.
The Group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of
this note.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates at the end of the reporting period. For floating
rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in interest rates.
At reporting date, if interest rates had been 100 basis points higher / lower and all other variables were held constant, the impact on the
net profit of the Group would be a decrease / increase in net profit of $815,319 (2022: decrease / increase by $1,154,188). The decrease
in the exposure to interest rates on its variable borrowings is attributable to the $36m reduction in the loan facility during the current
financial year.
110 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 111
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 5. Other Notes (continued)
5.8 Financial Instruments (continued)
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The credit
worthiness of each customer is assessed to ensure minimal default risk. The Group’s exposures to its counterparties are continuously
monitored by management. Where appropriate, the Group obtains guarantees from customers. Cash terms, advance payments or letters
of credit are requested from customers of lower credit standing.
Trade receivables consist of a large number of customers spread across the offshore oil and gas exploration, development and production
industries, renewables industries, governments and defence, and across diverse geographical areas. Ongoing credit evaluation is
performed on the financial condition of trade receivables.
Debtor concentration risk is low with the top three customers of the Group making up only 27% (2022:28%) of the total debtor balance.
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar
characteristics. The Group defines counterparties as having similar characteristics if they are related entities. The credit risk on the three
largest receivables is managed through regular meetings with the customers, on-going contractual arrangements and regular receipts for
the balances outstanding.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings
assigned by international credit rating agencies.
The carrying amount of financial assets recognised in the financial statements, which is net of impairment losses, represents the Group’s
maximum exposure to credit risk.
5. Other Notes (continued)
5.8 Financial Instruments (continued)
The following table details the Group’s expected maturity for its non-derivative financial assets. The table has been drawn up based on the
undiscounted contractual maturities of the financial assets including interest that will be earned on those assets.
Weighted average
effective interest rate
%
Less than
1 month
$’000
1-3
months
$’000
3 months
to 1 year
$’000
1-5 years
$’000
Total
$’000
30 June 2023
Trade & other receivables
Cash & cash equivalents
Loan to associate
Total
30 June 2022
Trade & other receivables
Cash & cash equivalents
Loan to associate
Total
3.76
4.80
0.29
4.80
67,193
106,681
120
51,610
73,882
115
7,619
7,719
1,659
84,190
-
1,078
8,797
-
106,681
4,313
5,751
5,972
196,622
173,994
7,859
6,818
4,407
953
63,788
-
1,041
5,448
-
73,882
5,549
6,936
6,502
144,606
125,607
7,049
-
240
-
231
The table below details the credit quality of the Group’s financial assets.
Fair value of financial instruments
12-month or lifetime
ECL
Gross carrying
amount
Loss allowance
Net carrying
amount
The Directors consider that the carrying amounts of financial assets and financial liabilities recognised in the consolidated financial
statements approximate their fair values.
82,582
(2,436)
80,146
The fair values of financial assets and financial liabilities are determined as follows:
Trade receivables (i)
Note
3.2
Lifetime ECL
(simplified approach)
(i)
For trade receivables, the Group has applied the simplified approach in AASB 9 to measure the loss allowance at lifetime ECL
(refer to note 3.2).
Liquidity risk management
• The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are
determined with reference to quoted market prices.
• The fair values of other financial assets and financial liabilities (excluding derivative instruments) are determined in accordance with
generally accepted pricing models based on discounted cash flow analysis.
The Group manages liquidity risk by maintaining adequate cash reserves, borrowing facilities, continuously monitoring forecast and actual
cash flows and managing credit terms with customers and suppliers.
5.9 Contingent Liabilities
Guarantees given to third parties in respect of dealings, are in the normal course of business. Total amount of the guarantee facility is
$20.0 million (2022: $20.0 million) with total drawn amounts of $2.2 million (2022: $2.0 million).
Liquidity and interest risk tables
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Group can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are at floating
rate, the undiscounted amount is derived from current interest rates at the end of the reporting period.
Weighted average
effective interest rate
%
Less than
1 month
$’000
1-3
months
$’000
3 months
to 1 year
$’000
1-5 years
$’000
Total
$’000
30 June 2023
Trade & other payables
Borrowings
Leases
Total
30 June 2022
Trade & other payables
Borrowings
Leases
Total
7.78
4.68
5.38
4.01
41,576
539
401
42,516
28,770
496
255
2,647
1,060
801
4,508
8,721
1,038
541
29,521
10,300
2,971
10,244
3,608
16,823
527
17,016
2,259
19,802
-
47,194
79,489
91,332
5,295
10,105
84,784
148,631
-
38,018
111,070
129,620
7,223
10,278
118,293
177,916
112 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 113
Notes to the Financial Statements For the year ended of 30 June 2023Notes to the Financial Statements For the year ended of 30 June 2023 5. Other Notes (continued)
5.10 Events After the Reporting Period
Additional Securities Exchange Information
For the year ended of 30 June 2023
Ordinary Share Capital (as at 16 August 2023)
374,394,475 fully paid ordinary shares are held by 4003 individual shareholders. All issued ordinary shares carry one vote per share.
Substantial shareholders (as at 16 August 2023)
Number of Shares % of Issued Capital
Other than described below, there has not been any matter or circumstance that occurred subsequent to the end of the financial year that
has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state
of affairs of the consolidated entity in future financial years.
On 10 August 2023 the Group refinanced its borrowings and entered into a new syndicated debt facility. The facility is subject to
conditions precedent to draw down on standard market terms.
The new facility is provided by a syndicate of three banks with the following key terms:
Thorney Opportunities Ltd
Halom Investments Pte Ltd
Wilson Asset Management Group
Total
• Four year facility expiring in August 2027
• $120.0m AUD revolving loan facility
• $10.0m uncommitted letter of credit facility
• No amortisation over the life of the loan
• The facility can be drawn down in both AUD and USD currencies
• Customary covenants are in place
• The interest rate payable is a base rate (Term SOFR for US$ denominated loans, BBSY for A$ denominated loans plus a margin)
The revolver facility allows MMA to minimise interest payments whilst maintaining liquidity.
5.11 Other Accounting Policies
Adoption of New and Revised Accounting Standards and Interpretations
The accounting policies and methods of computation adopted in the preparation of the financial report are consistent with those adopted
and disclosed in the company’s 2022 annual financial report.
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board
(the AASB) that are relevant to its operations and effective for the current year. None of these had a material impact on the entity or
information to be disclosed.
Standards and Interpretations issued but not yet effective
At the date of authorisation of the financial statements, the Group has not applied the following new and revised Australian Accounting
Standards, Interpretations and amendments that have been issued but are not yet effective:
New or revised requirement
Description
AASB 2020-1
Classification of Liabilities as Current or Non current
AASB 2021-2 Disclosure of
Accounting Polices and Definition
of Accounting Estimates
AASB 7 Financial Instruments
AASB 101 Presentation of Financial Statements
AASB 108 Accounting Policies
AASB 134 Interim Financial Reporting
AASB Practice Statement 2 Making Materiality Judgements
Effective
1 January 2023
1 January 2023
AASB 2021-5
AASB 2014-10
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
1 January 2023
Sale or Contribution of Assets between an Investor and its Associates or
Joint Venture
1 January 2025
The amendments to the individual Standards may be applied early, separately from the amendments to the other Standards, where
feasible.
The directors of the Company do not anticipate that the amendments will have a material impact on the Group but may change the
disclosure of accounting policies included in the financial statements.
Distribution of Holders of Ordinary Shares (as at 16 August 2023)
Size of Holding
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
42,671,801
29,248,195
23,739,332
95,659,328
11.40
7.81
6.34
25.55
Number of ordinary shareholders
649
1,694
609
881
170
4,003
Twenty Largest Shareholders (as at 16 August 2023)
Number of Shares % of Issued Capital
1 CITICORP NOMINEES PTY LIMITED
2 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
3 UBS NOMINEES PTY LTD
4 NATIONAL NOMINEES LIMITED
5 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
6 SANDHURST TRUSTEES LTD
7 BNP PARIBAS NOMINEES PTY LTD
8 BLOSSOMVALE INVESTMENTS PTE LTD
9 BNP PARIBAS NOMS(NZ) LTD
10 FIRST SAMUEL LTD ACN 086243567
11 NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>
12 HISHENK PTY LTD
13 MATTINA INVESTMENTS PTY LTD
14 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
15 SANDHURST TRUSTEES LTD
16 WILLOUGHBY CAPITAL PTY LTD
17 ORPHEO PTY LIMITED
18 BNP PARIBAS NOMS PTY LTD
19 BNP PARIBAS NOMS PTY LTD
20 MR JOHN PATERSON
Total
64,837,482
62,277,541
47,368,020
35,755,765
23,978,334
13,204,163
6,451,621
5,887,840
5,290,310
3,770,339
3,556,610
3,000,000
2,987,845
2,924,747
2,770,433
2,400,000
2,303,666
2,203,477
2,117,520
2,075,000
17.32%
16.63%
12.65%
9.55%
6.40%
3.53%
1.72%
1.57%
1.41%
1.01%
0.95%
0.80%
0.80%
0.78%
0.74%
0.64%
0.62%
0.59%
0.57%
0.55%
295,160,713
78.83%
114 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 115
Notes to the Financial Statements For the year ended of 30 June 2023 Corporate Directory
Directors
Ian Macliver
Chairman
David Ross
Managing Director
Chiang Gnee Heng
Non-Executive Director
Susan Murphy AO
Non-Executive Director
Sally Langer
Non-Executive Director
Company Secretary
Tim Muirhead
Registered Office
EQ12, Level 10
12 -14 The Esplanade
PERTH WA 6000
Telephone: +61 8 9431 7431
www.mmaoffshore.com
Auditors
Grant Thornton Audit Pty Ltd
Level 43, 152-158 St Georges Terrace
PERTH WA 6000
Telephone: +61 8 9480 2000
Solicitors
Thomson Geer
Exchange Tower, Level 27
PERTH WA 6000
Telephone: +61 8 9366 8000
Additional Securities Exchange Information
For the year ended of 30 June 2023
Unquoted Rights (as at 16 August 2023)
14,471,761 unlisted rights held by 19 individual rights holders.
Distribution of Holders of unquoted Performance Rights (as at 16 August 2023)
Size of Holding
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
Number of performance right holders
-
-
-
500,001
13,971,760
14,471,761
Unmarketable Parcels (as at 16 August 2023)
The number of holders holding less than a marketable parcel of the Company’s shares is as follows:
Minimum Parcel Size
Number of ordinary shareholders
Number of shares
372
222
21,857
Voting Rights
Subject to any rights or restrictions for the time being attached to any class or classes of shares, at a general meeting of shareholders, all
ordinary shares carry one vote per share (on a show of hands or a poll) and each shareholder entitled to vote may vote in person or by proxy. The
performance rights do not carry any right to vote.
Other
As at the date of this report 7,131,940 of the company’s securities are subject to voluntary escrow expiring on 28 July 2024.
The Company does not have a current on-market buy-back.
There are no securities approved for the purposes of item 7 section 611 of the Corporations Act which have not yet completed.
No securities were purchased on-market for the purposes of an employee incentive scheme during the reporting period.
Shareholder Enquiries
Shareholders can obtain information about their shareholding by contacting the Company’s share registry, and all registers of securities, registers
of depositary receipts and other facilities for registration or transfer are kept at:
Automic Pty Ltd
Registered Address: Level 5, 126 Phillip Street, Sydney NSW 2000
Postal Address:
GPO Box 5193, Sydney NSW 2001
Enquiries:
(within Australia)
(outside Australia)
hello@automic.com.au
https://www.automicgroup.com.au/
1300 288 664
+61 2 9698 5414
Change of Address
Shareholders should notify the share registry immediately if there is a change to their registered address.
Stock Exchange Listing
Shares in MMA Offshore Limited are listed on the Australian Securities Exchange with the code MRM.
The Company’s securities are not listed on any other stock exchange.
Publications
The Annual Report is the main source of information for shareholders.
116 MMA Offshore Limited | Annual Report 2023
MMA Offshore Limited | Annual Report 2023 117
mmaoffshore.com
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