Otto Marine's Financial Health on the Mend

Posted by George Backwell
Thursday, April 17, 2014
Michael See Kian Heng: Photo Otto Marine

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.0 million in year 2013, an increase of 36.8% over US$374.4 million in 2012. The shipping and shipyard segments were the main contributors to 2013’s revenue at 51.9% and 43.5% respectively. Excerpts from the firm's financial report  follow:

Shipping
Revenue from the shipping segment remained stable at US$265.6 million in 2013. As at 31 December 2013, the Group’s fleet has expanded to 65 vessels, consisting of 23 owned vessels, 35 chartered in vessels and 7 vessels held with strategic partners. During the year, our fleet profile was significantly enhanced with the additions of Go Phoenix and Go Pegasus, which will be deployed to the North Sea.

In a broad stroke, the Group has observed a marginal increase in charter rates and utilisation rates in 2013. However, due to the timing of vessel sales and additions, this improvement was not reflected in the segment revenue. The Group secured charter contracts amounting to a total of US$253.2 million in 2013, building on to our presence in Australia and North Sea, and venturing into new markets such as Indonesia and Malaysia.

Shipyard
The shipyard segment witnessed a rebound in 2013, generating revenue of US$222.8 million compared to US$55.4 million in 2012. In addition, the level of activity for shipyard works were higher during the year. Consequently, gross profit for the segment improved from a gross loss of US$25.8 million in 2012 to gross profit US$11.8 million in 2013.

With the change in the Group’s strategic direction, we anticipate that shipyard utilisation will be raised significantly. However, the focus is to provide repair and maintainance services to our fleet. Nevertheless, the release of capacity arising from the delivery of the complex vessels in 2013 leaves room for the Group to secure third party vessel construction, ship repair and conversion, and fabrication jobs on a selective basis

Strengthened Balance Sheet
The Group’s financial position improved significantly during the year. Notably, working capital requirements eased as the construction of the ultra large and high specification vessels nears completion.

Cash flow generated from operating activities was strong at US$114.9 million compared to US$62.1 million in 2012. As such, the Group took the opportunity to deleverage with the full redemption of S$100 million (approximately US$83.2 million) including interest on our three year Medium Term Notes programme.

 

 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Klüber Obtains Certification for Manufacturing Facilities

Klϋber Lubrication has received the National Sanitation Foundation (NSF) ISO 21469 certification at its Londonderry, New Hampshire facility. The certification from

APM Terminals to Sell Container Terminal in Virginia

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said it would sell a big U.S. container terminal to infrastructure investor Alinda Capital

FORAN Users Meeting (FORUM 2014)

The Eighth FORAN Users Meeting (FORUM 2014) took place June 11-13, 2014 in the Parador de la Granja, Segovia, and when it was over the organizers proclaimed it a great success,

Shipbuilding

FORAN Users Meeting (FORUM 2014)

The Eighth FORAN Users Meeting (FORUM 2014) took place June 11-13, 2014 in the Parador de la Granja, Segovia, and when it was over the organizers proclaimed it a great success,

MAN Extends High Speed Power Range

MAN announced it will present a newly developed 12-cylinder V-engine for use in working vessels at the SMM 2014 trade fair in Hamburg, Germany. The German engine

Scorpio Bulkers Gets $540m Loan for Newbuilds

Scorpio Bulkers Inc. announced that it has received a commitment for a $540 million loan facility and provides an update on the financing of its fleet. On July 21,

Ship Repair & Conversion

MAN Extends High Speed Power Range

MAN announced it will present a newly developed 12-cylinder V-engine for use in working vessels at the SMM 2014 trade fair in Hamburg, Germany. The German engine

Germany as a Maritime Location Endangered: VDR

Germany, which currently is home to the world’s biggest container vessel fleet, will in future have fewer small shipping firms as European banks avoid the industry

Andrew Weir to Support UK Navy in Antarctica

Andrew Weir Shipping Ltd. announced that it has been awarded the contract for the support and maintenance of HMS Protector (A173), following a competitive tendering process.

Offshore

DNV GL Publishes Regulatory Roadmap for Floaters in the US

DNV GL announced it has mapped out what is necessary to be in compliance with U.S. Coast Guard (USCG) requirements to operate FOIs, FSOs and FPSOs in U.S. waters.

Second Typhoon Threatens Taiwan

The Taiwan military was collecting and distributing sandbags to guard against possible flooding on Tuesday as a typhoon bore down on the island after brushing the Philippines.

Shipbuilders Vard Report Financial Fair Sailing

Designers and shipbuilders of offshore and specialised vessels, Vard Holdings, has announced its financial results for the second quarter of financial year 2014 (“2Q2014”),

Finance

Pier Damaged at Port Canaveral

Undergoing Repairs While Coast Guard Investigates   The U.S. Coast Guard is investigating a weekend incident that caused pier damage and scattered concrete debris in the harbor on Sunday.

APM Terminals to Sell Container Terminal in Virginia

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said it would sell a big U.S. container terminal to infrastructure investor Alinda Capital

Scorpio Bulkers Gets $540m Loan for Newbuilds

Scorpio Bulkers Inc. announced that it has received a commitment for a $540 million loan facility and provides an update on the financing of its fleet. On July 21,

Vessels

Engine Performs in Roll Over Test

Engines customized for new Dutch search-and-rescue lifeboat vessels keep running after full rotation on axis. In thrashing, unforgiving seas, a capsized rescue vessel used to be a symbol of defeat.

Third RAmparts 2500 Tug for SMIT-Rebras

Keppel Singmarine BrasilLtda. (KSMB), of Navegantes, Brazil has recently completed the construction of the SMIT Panará, the third of a series of six Robert Allan Ltd.

Russia Doubts France Will Cancel Warships Sale

A senior Russian official said on Monday he doubted France would cancel its sale of warships to Russia, despite coming under pressure from other Western leaders

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1704 sec (6 req/sec)