Go-AcamarOtto Marine's shipbuilding division, which specializes in building complex offshore support vessels, recently clinched a contract for 2 AHTS vessels. Company photo
OTTO MARINE has secured orders for building two offshore vessels for a total value of US$27.8 millionits first newbuilding order in two years.

Awarded by a renowned Indonesian marine and offshore vessel operator, the contracts are for two identical units of 5,150 bhp Anchor Handling Tug Supply Vessels (AHTS).

Each AHTS will be about 62 meters in length, constructed to meet ABS class requirements and to be delivered in 2H2014.

250_Michael-SeeCFO Michael See. Company photoOtto has been challenged by losses in the past two financial years and the latest order is expected to contribute positively to its earnings this year.

"We restructured and consolidated our yard operations to be more efficient with a lower cost structure.  We are now in a much better position to grow our shipbuilding segment," said CFO Michael See.

Its FY2012 revenue was US$374.3 million, down 9.8% year-on-year.

Net loss attributable to shareholders was US$73.7 million, compared to a loss of US$52.2 million in FY2011.

Ship chartering is currently its earnings driver, accounting for about three quarters of Group revenue. This division generated gross profit of US$41.0 million in FY2012.

During FY2012, its chartering revenue increased by 16.6% to US$267.4 million due to better utilization rates and higher charter rates.
 

"We are going to focus on our core competency in shipbuilding, which includes high-spec and complex offshore vessels, ship repair and fabrication," said the CFO.


20130311---Stock-chartOtto's stock price has declined from above 40 cents to less than 10 cents in the past 3 years. The stock recently traded at 8.4 cents. Bloomberg data



Related stories:

OTTO MARINE: Vessel Cancellation Drags Down FY2011 Earnings; Bright Spark In Chartering Segment

OTTO MARINE: Clinched Newbuild Orders Worth US$77 Million For 2 AHTS Vessels

You may also be interested in:


You have no rights to post comments

Counter NameLastChange
AEM Holdings2.740-0.040
Avi-Tech Electronics0.2650.010
Best World1.780-0.030
Broadway Ind0.0870.003
China Sunsine0.380-0.010
ComfortDelGro1.4100.020
Delfi Limited1.040-0.010
Food Empire1.410-0.040
Fortress Minerals0.250-0.010
Geo Energy Res0.410-0.005
GSS Energy0.029-
Hong Leong Finance2.5600.020
Hongkong Land (USD)3.3300.070
InnoTek0.425-
ISDN Holdings0.345-
ISOTeam0.034-0.002
IX Biopharma0.039-0.004
Jiutian Chemical0.026-
KSH Holdings0.2450.005
Leader Env0.053-
Medtecs Intl0.139-0.002
Nordic Group0.350-
Oxley Holdings0.092-0.001
REX International0.123-0.004
Riverstone0.750-0.005
Sinostar PEC0.140-
Southern Alliance Mining0.585-
Straco Corp.0.515-
Sunpower Group0.210-
The Trendlines0.085-0.001
Totm Technologies0.025-0.002
Uni-Asia Group0.875-0.025
Wilmar Intl3.2600.020
Yangzijiang Shipbldg1.670-0.020
 

We have 595 guests and no members online

rss_2 NextInsight - Latest News