ASX Announcement

29 July 2016

MMA Offshore Limited - Impairment of Assets

The Listing Manager

Australian Securities Exchange Ltd Level 4, Stock Exchange Centre 20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam,

Impairment of Assets

MMA Offshore Limited (MMA or Company) advises that it expects to book a non-cash impairment charge of approximately $140 million before tax against the carrying value of its assets as at 30 June 2016.

The impairment charge reflects the ongoing impact on the Company's operations of the low oil price environment which has led to a significant reduction in oil and gas related activity in both the Australian and International markets.

The Company expects to recognise the impairment charge across the carrying value of the assets in each of its three operating divisions - Slipway, Supply Base and Vessels as follows:

  • $3 million against the carrying value of the Dampier Slipway;

  • $37 million against the carrying value of the Dampier Supply Base; and

  • $100 million against the carrying value of the Company's vessel fleet.

In determining the impairment amount, consideration has been given to the market value of the assets in each of the operating divisions as at 30 June 2016. The amount of the impairment charge is subject to finalisation of the Company's full year audited financial statements.

This non-cash impairment charge will not impact the Company's compliance with its debt facility covenants.

For further information please contact:

Mr. Jeffrey Weber, Managing Director (08) 9431 7431

Mr. Peter Raynor, Chief Financial Officer (08) 9431 7431

MMA Offshore Limited ABN 21 083 185 693 Endeavour Shed, 1 Mews Road Fremantle WA 6160

PO Box 715 South Fremantle WA 6162 T +61 8 9431 7431 F +61 8 9431 7432

A PERFECT DAY EVERY DAY

www.mmaoffshore.com

MMA Offshore Limited published this content on 15 July 2016 and is solely responsible for the information contained herein.
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