The offshore vessels builder registered a slim first quarter profit of $45,000 as against a deficit of $8.2m in the same period of 2012, due largely to a gain of $3.2m from foreign exchange forward contracts.
Revenue during the period rose 12.2% year-on-year to $134.4m due primarily to businesses from shipbuilding, chartering and subsea services, but offset by the leasing and geophysical segment.
The Singapore-listed company said challenging global economic conditions have dampened the business environment for the shipbuilding industry. “Although the shipyard is under-utilised, the group is selectively increasing its order intake of shipbuilding repair and fabrication projects,” it said.
Meanwhile on the legal front, Otto Marine has commenced arbitration in Australia to recover payment from its customer and/or end-user of the vessels hit by default from bareboat chartering contracts.
A ruling by the an Australian court had been obtained which resulted in the return forthwith of a letter of undertaking amounting to AUD3.5m ($3.5m) for a vessel wholly-owned by Otto Marine.
“The parties are currently proceeding to litigate on the quantum claimed in respect of three other vessels that were each, 49% owned indirectly by the group.” Otto Marine added.
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