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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

Vale to Ship Coal Along Mozambique Nacala Corridor

Brazilian miner Vale SA  plans to start exporting coal along the Nacala rail and port corridor in Mozambique and Malawi in the third quarter after heavy rains damaged the rail line,

Neptune Orient Lines Sells Logistics Business

Neptune Orient Lines sells APL Logistics to Kintetsu World Express   Neptune Orient Lines Limited (NOL) announced that it has completed the sale of its logistics business,

Shipbuilding

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

Design & Operation: Wind Farm Support Vessels

Offshore wind farm development has been led globally by the UK, followed by Germany. Both countries have governments with long term commitments to renewable energy.

New Ship Continues Atlantic Offshore's Fleet Modernization

Atlantic Offshore Rescue will unveil the third new vessel in the past 12 months as part of its fleet modernization program, representing an investment totaling $458 million.

Ship Repair & Conversion

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

SENER holds a FORAN seminar in Wuhan, China

The ‘FORAN new modules, new functions and FEM-Link (Hypermesh) Seminar’ was held on April 23rd in Wuhan. SENER is playing a big role in China, where it has been

NordLB Back to Profit

Although the crisis is not over in all segments, Germany's second-largest marine lender, Nord LB, said its shipping loan portfolio turned a corner in the first

Offshore

Study Targets Improved Subsea Mattress Salvage

Subsea mattress research announced at decommissioning event   Independent multi-discipline subsea engineering and training firm Jee Ltd. has completed a contract with Decom North Sea (DNS),

Lerwick Port Promoting Shetland Fishing Industry

The importance of investment in the Shetland fishing industry has been highlighted today by Lerwick Port Authority Chief Executive, Sandra Laurenson. The industry – white fish,

Five Years on from Macondo

An interview with NOIA’s Randall Luthi provides unique perspective on where the offshore energy business has been, where it is now, and where it could be headed next.

Finance

Neptune Orient Lines Sells Logistics Business

Neptune Orient Lines sells APL Logistics to Kintetsu World Express   Neptune Orient Lines Limited (NOL) announced that it has completed the sale of its logistics business,

SFL Adjusts Charter Agreement with Frontline

Ship Finance International Limited (SFL) announced that it has entered into a heads of agreement to amend the long-term chartering agreements with Frontline Ltd.

New Ship Continues Atlantic Offshore's Fleet Modernization

Atlantic Offshore Rescue will unveil the third new vessel in the past 12 months as part of its fleet modernization program, representing an investment totaling $458 million.

Vessels

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

SFL Adjusts Charter Agreement with Frontline

Ship Finance International Limited (SFL) announced that it has entered into a heads of agreement to amend the long-term chartering agreements with Frontline Ltd.

Design & Operation: Wind Farm Support Vessels

Offshore wind farm development has been led globally by the UK, followed by Germany. Both countries have governments with long term commitments to renewable energy.

 
 
Maritime Contracts Maritime Security Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.3903 sec (3 req/sec)