Otto Marine returns to profit in Q2

In the quarter ended 30 June 2014, Singapore-listed Otto Marine posted a profit of $16.86m, as against a loss of $14.91m in the first quarter. But the offshore services firm saw second quarter profit drop 13.1% compared to $19.39m in the same period of 2013.

Revenues fell 15.9% year-on-year to $111.97m mainly impacted by a decline in shipyard and shipping segments, partially offset by the revenue increase in the subsea services segment.

Garrick Stanley, executive director and group ceo of Otto Marine, believed that the upcoming quarters are looking more promising with more than $400m worth of new contracts secured in the first half of 2014, and more than $450m in forward orders as at 30 June 2014.

“The group remains focused on fleet enhancement and upgrades to meet the needs and demands of our clients,” Stanley said.

With E&P expenditure forecast to reach a record high of $723bn in 2014, according to Barclays, Otto Marine is seeing more of long term contracts and marginal increases in charter rates.

“With the improved liquidity through the successful issuance of medium term notes of SGD70m ($60m), Otto Marine is poised to fund new capital expenditure and seize opportunity in the growing market by acquiring new offshore vessels with charter contracts with good clientele,” Stanley said.