Miclyn Express Offshore Limited informed the market it has ceased operations in Iran. The Company’s last three vessels and crew operating in the region ceased operations by the end of 2012 calendar year and were safely withdrawn over the course of the past week.
The Company has been considering its position in this operation 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 its assets and most importantly people operating in Iran and Company’s 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$5.4m. In light of this MIO will be making a provision against the full amount, impacting its 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 redeployed in the Middle East reasonably quickly on similar or better returns than they were achieving in Iran.
[mappress] MIO, January 3, 2013