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Otto Marine secures new contracts worth $131m in Q2

Otto Marine secures new contracts worth $131m in Q2
Singapore’s Otto Marine has secured new orders worth $131m, primarily from its ship chartering business, in the second quarter of its 2015 financial year.

The offshore marine firm said the increase in new chartering contracts was attributable to the group’s strategy to improve the utilisation rate of the fleet, in view of the potential cost that idle vessels will incur.

“The group has made encouraging progress in securing new chartering orders and improving the utilisation 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 utilisation of our vessels than leaving them idle,” said Michael See, group ceo of Otto Marine.

See added that the group’s higher deployment of vessels during the current challenging times is due to its geographical diversification strategy since five years ago.

“Australia has been a much more stable market for chartering as supported by LNG projects,” he said.

“As we have large-size, DNV-class vessels capable to operate in deepwater, Otto Marine is one of the very few Asian operators working for the North Sea market, where we still maintain a reasonably healthy utilisation rate. At the same time, Latin America and Africa markets are performing much more steadily than Asia.”

See pointed out that while the company enjoys better profit from its own vessels, it can return chartered-in vessels at expiration, and charter in additional, more technologically advanced vessels that can bring in immediate contracts.

TAGS: Offshore