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Otto Marine cuts jobs as offshore downturn hits

Otto Marine cuts jobs as offshore downturn hits
Offshore vessels operator Otto Marine has laid off some 30% of its staff strength so as to address the tough business environment since the plunge in oil prices, reports said.

The Singapore-based company said it has cut 30 employees across its operations as part of its restructuring moves since January, its group chief executive Michael See told the local media.

The reduced headcount represented a cut of about 30% of its staff strength.

Otto Marine has also reduced payrolls for its remaining employees, excluding junior staff, by an average of 15%. Its top management took a pay cut of 20%.

Several offshore companies, not just Otto Marine, have been impacted by the downturn in the global oil industry since the second half of 2014.

Oil majors have reduced their expenditures for oil and gas exploration and production, leading to lower utilisation and rates for both oil rigs and OSVs.

Singapore-listed Otto Marine posted a first quarter net loss of $13.23m, from a deficit of $14.38m in the previous corresponding period.

The company had faced some financial troubles when a creditor attempted to wind up the company over some $1.18m of debts, but Otto Marine had paid up the sum in full.

Otto Marine also announced earlier that it is defending a claim of around $8.88m against its wholly-owned Otto Ventures with regards to the acquisition and operation of two OSVs.

See admitted that the rest of the year will continue to be challenging for the company, and it will focus on cutting back operational expenditure.

TAGS: Offshore