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Otto Marine widens loss in 2015

Otto Marine widens loss in 2015
Offshore services provider Otto Marine has reported a wider loss in 2015 compared to 2014 as revenue fell on the back of a challenging oil and gas market.

Singapore-listed Otto Marine posted a 2015 loss of $62.75m, extending from its loss of $41.66m in 2014.

Revenue also fell by 31.3% year-on-year to $244.44m due to lower shipbuilding and ship repair and conversion revenue, as well as low contributions from subsea services.

“It is unlikely that market conditions in the oil and gas sector will improve significantly over the next 12 months,” Otto Marine said.

“Amidst the persistent challenging market conditions, the group is focused on sustaining the vessels utilisation by stepping up efforts in improving its orderbook, while also concurrently rationalising its cost structure to remain competitive and relevant in the market,” it added.

As part of its effort to improve its orderbook, OSV builder Otto Marine recently diversified into the tanker segment by winning a deal to build one product oil tanker.