PERTH, Western Australia: Neptune Marine Services Limited (ASX: NMS - Neptune or the Company) is pleased to announce it has signed a Memorandum of Agreement for the sale of the vessel, ROV Supporter including the on board remotely operated vehicle (ROV) ("Assets").
Under the terms of the agreement, Neptune will sell the Assets for US$2.4 million. The sale proceeds will augment working capital with Neptune now no longer holding any term debt.
Completion of the schedule is expected in the week commencing 25 July 2011.
Since commencing the restructuring program, Neptune has confirmed A$9.5 million in annual cost savings and asset sales totalling US$16.4 million. Asset sales are part of the on-going restructuring plan that is focussed on driving revenue growth, profitability and shareholder value.
Neptune's Chief Executive Officer Robin King said the sale of the Neptune Supporter Vessel and the ROV represents another milestone in the restructure of Neptune's business and assets.
"Sale of non-core assets are a key part of Neptune's 'back to basics' restructuring program as we don't believe it is necessary to have Neptune's capital tied up in vessel ownership. We are very pleased to achieve another milestone by confirming the sale of these non-core assets," Mr King said.
As a result of the sale of these assets, Neptune will incur a write down of A$1.25 million which will be provided for in the statutory accounts for the period ending 30 June 2011.