cowpehcowmoo :
The margin is not high as ship repair profit margin is between 5 to 15% at best so this will not have much of an impact on their margin and mostly teeth filler to cover some of their basic operations. <Assumption> Lets be generous and assume they generate 500M revenue on this 2 years contract, and generous again that they make 15%, not even enough to pay 2 months of interest on their current debt. But any contract wins are still better than none, their priority is really to par down their debt fast since news today suggest that high rates are here to stay, and even if fed adjust downward later this year, the adjustment will be paced and not drastic
MSK007 : just nice. before lunch. very timely.
cowpehcowmoo : The margin is not high as ship repair profit margin is between 5 to 15% at best so this will not have much of an impact on their margin and mostly teeth filler to cover some of their basic operations. <Assumption> Lets be generous and assume they generate 500M revenue on this 2 years contract, and generous again that they make 15%, not even enough to pay 2 months of interest on their current debt. But any contract wins are still better than none, their priority is really to par down their debt fast since news today suggest that high rates are here to stay, and even if fed adjust downward later this year, the adjustment will be paced and not drastic
BagHolder23 cowpehcowmoo: Where do you get that figure of 5-15% from?
102660768 cowpehcowmoo: Agreed.
Marine project margin is not high. 5-15% is average. Very rare cases to land a margin that’s above 20%