OTTO MARINE LTD (Company Registration Number 197902647M)
(Incorporated with limited liability in the Republic of Singapore on 5 September 1979)
MEDIA RELEASE - FOR IMMEDIATE RELEASE
Otto Marine Secures New Contracts Worth USD 131 Million So Far in Q2FY2015 Consistent effort has led to higher new order book and improved utilization rate for chartering business in the current quarter
Broad global presence effectively stabilized chartering revenue in a challenging market
Group retains good flexibility in adjusting the fleet size in response to market dynamics
Singapore, 29 June 2015 - Otto Marine Limited, ("Otto Marine" or the "Group"), a leading offshore marine company which specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services, is pleased to announce that in the second quarter of financial year 2015 ("Q2FY2015") till date, the Group has secured new orders worth USD 131 million, primarily contributed by the chartering business.The substantial increase in new chartering contracts was attributable to the Group's strategy to improve the utilization rate of the fleet, in view of the potential cost that idle vessels will incur. Utilization rate for the Group's chartering business has improved for Q2FY2015 against the last few quarters.
Commenting on the new charter contract wins, Mr. Michael See, Group CEO said: "The Group has made encouraging progress in securing new chartering orders and improving the utilization rate for our fleet. While some of the chartering rate is under pressure, it's still in the best interest of our Group to secure better utilization of our vessels than leaving them idle.
The higher deployment of vessels during challenging times once again proved the validity of our geographical diversification strategy that we introduced five years ago. Australia has been a much more stable market for chartering as supported by LNG projects. As we have large-size, DNV-class vessels capable to operate in deep water, Otto Marine is one of the very few Asian operators working for the North Sea market, where we still maintain a reasonably healthy utilization rate. At the same time, Latin America and Africa markets are performing much more steadily than Asia.
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We retain good flexibility in managing our fleet size. While we enjoy better profit from our own vessels, we can return chartered-in vessels at expiration, and charter in additional, more technologically advanced vessels that bring in immediate contracts. With our pragmatic strategy and sheer diligence, we remain confident that together with our team, we will work through the difficult times, and embrace better performance when market starts to recover."
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About Otto Marine Limited (OTML.SP)
Otto Marine Limited ("Otto Marine" or the "Company") is an offshore marine group which owns and operates a large fleet of offshore support vessels and is engaged in specialized shipbuilding of offshore vessels for primarily Deep Sea applications. The shipbuilding includes ship repair and conversion.
Headquartered in Singapore, the Company owns/leases and operates 64 offshore vessels and one of the largest shipyards in Batam, Indonesia - one of the most sophisticated yards in Asia Pacific. The yard is building to ABS, DNV and Norwegian class standards. Its customers are primarily deep sea and offshore operators and equipment companies who provide logistics support and offshore services to companies operating globally in the oil and gas industry.
Otto Marine's specialized approach has allowed it to build up its expertise operating a large offshore fleet and through its shipyard constructing high specification deep sea and offshore support vessels. This quality and level of sophistication has enabled the Company - as one of the few in Asia - to gain recognition as a Marine Services company operating a large deepwater fleet of support vessels with its shipyard focusing on its fabrication, ship repair and building for local content requirements of its clients.
Otto Marine was successfully listed on the Main Board of Singapore Exchange Securities Trading Limited (the "SGX-ST") on 28 November 2008. For more information, please visit the Company's website at http://www.ottomarine.com
Issued for and on behalf of Otto Marine Limited
For more information please contact:
Financial PR Pte Ltd Otto Marine Limited
Romil SINGH / Reyna MEI/ Kathy ZHANG Michael SEE
Email : romil@financialpr.com.sgEmail: michaelsee@ottomarine.com
: reyna@financiapr.com.sg
Tel: (65) 6438 2990 Tel: (65) 6863 2366
Fax: (65) 6438 0064
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