Miclyn Express Offshore exits Iran

By 24 December, 2012Announcements

Miclyn Express Offshore Limited (ASX:MIO) (“MIO” or “the Company”) would like to inform the market it has ceased operations in Iran. Recently our last three vessels and crew operating in the region were safely withdrawn. The Company has been considering its position in the region for some time in the face of international sanctions against Iran. It’s been a difficult process for both management and Board members, weighing up the Company’s potential legal and ethical responsibilities under the sanctions against our responsibility to protect to our assets, both vessels and receivables, and most importantly to protect our people operating in Iran and our ability to manage their safe withdrawal. In the end a decision was made to make an immediate, unannounced withdrawal to ensure the safety of the Company’s people and recovery of its vessels.

Unfortunately this decision results in some doubt about the recoverability of receivables and deposits amounting to US$[7.1]m. In light of this we will be making a provision against the full amount, impacting our earnings in the first half of Financial Year 2013. This is a one off adjustment that has occurred as a result of unprecedented circumstances. It does not impact the true underlying value of Miclyn. The Company is confident that the vessels can be promptly redeployed on similar or better returns than they were achieving in Iran.

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