Singapore-listed Otto Marine recorded net loss of S$72.5m ($57.5m) as against net profit of S$37.6m in 2010. Revenue also declined 10.2% year-on-year to S$520.8m.
The shipyard delivered S$108.1m worth of vessels to its chartering fleet in the financial year 2011, an increase of S$79.3m compared to S$28.8m in the 2010 financial year.
The company blamed the fall in profit mainly to non-capitalisable costs of shipyard relating to construction of vessels for the chartering fleet with no corresponding revenue, and the reversal of profits due to the cancellation of two vessels.
The decrease was exacerbated by reduction in leasing revenue and lower utilisation rates of vessels in the geophysical segment, it added.
“Global economic conditions as well as the general environment of the shipbuilding industry remain challenging,” Otto Marine said in a statement.
“The group will actively grow its shipbuilding orderbook, focus on the completion of vessels under construction as well as seek to strengthen its balance sheet and improve cash flow positions.”
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
