Otto recovers

Otto Marine recovered from a 2014 first quarter $14.7m loss by booking a gain of $16.9m in the second three-month period.

After losses in the financial years of 2011 and 2012, the Singapore-listed company is looking ahead with optimism and is now focusing on renewing its fleet.

There are already four platform supply vessels (PSVs) and four work maintenance vessels (WMVs) in its orderbook.

The group’s new offshore charter business in the first half totalled $400m, with average terms of three to five years, while total forward orders now stand at more than $450m.

Executive director and group CEO, Garrick Stanley, said: “The upcoming quarters are looking very promising for Otto Marine. We are seeing extra demand enquiries in certain markets and we are optimistic that this selective market will continue to grow further.”

All business segments reported comparatively higher gross profit margins. The shipyard unit recorded an 18.9% gross profit margin compared with last year’s 12.5%.

The shipping segment booked a slight 7% slip in revenue but the gross profit surged 121%.

Commenting on the financials of the group, Michael See, executive director, said: “With the improved liquidity through the successful issuance of medium term notes of $70m, Otto is poised to fund new capital expenditure and seize opportunity in the growing market by acquiring new offshore vessels with charter contracts with good clientele.”