Hermitage Offshore Services Ltd (fka HOFSQ)

[Short Killer]

1Q2017 NAO High lights -->The credit facility of $150m has been drawn by $137m and matures in March 2020.

•NAO has a low cash breakeven level of about $11,500 per day per trading vessel, including financing and G&A costs

LOW ?? 10 ships x 11.5K $ = $ 115000 pr. day / 1,29 = £ 89147 pr.day / 7 ships on spot market =£ 12735 pr. day each ship needed to break even .As pr. today http://www.westshore.no/ 4 ships are out of work waiting for new job on spot market NAO Storm/Prosper/Guardian/Protector --> Todays spot price = £4000
so lets say 3 ships have average 5000 on spot market now = £15000-£ 89147 = loss today on £74147 wow and they still pay dividend .No wonder they just diluted with 28,3 M shares

Red flag--> stay away until all ships are back in action and day rates are above 10.000 £