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Otto Marine books loss in first half

Otto Marine books loss in first half
Singapore’s Otto Marine booked a net loss in the first half ended 30 June 2015, dragged down by the decrease in other income despite a rise in revenue.

The deficit in the first half was recorded at $15.95m, a reversal from the profit of $2.48m in the same period of last year. Otto Marine said its other income during the period plunged by $8.96m to $4.48m.

Revenue for the first half was registered at $219.27m, up 15.9% compared to $189.15m in the previous corresponding period, with contributions mainly from the shipyard segment.

“It has been a tough time for the industry, and we have rolled out a series of measures in marketing and operation to ensure optimal performance in this challenging environment,” said Michael See, group ceo of Otto Marine.

See noted that the shipyard segment has remained profitable, while the shipping and chartering segments would need more efforts in terms of securing new chartering orders and improving utilisation rate.

He also observed that Australia has been a stable market for chartering as supported by mainly LNG projects. In the North Sea market, the company maintains a reasonably healthy utilisation rate for its vessels which are mainly larger size, deepwater vessels.

“Latin America and Africa markets see better performance than Asia,” See added.

As at 30 June 2015, Otto Marine sat on an orderbook value of $307.2m, boosted by the $132.2m new chartering contracts added in the second quarter this year.