Otto Marine 'aggressively' seeking more orders

Offshore services firm Otto Marine is currently “aggressively” looking for more orders as its shipbuilding segment took a hit in the first quarter. The Singapore-based firm's shipbuilding, ship repair and conversion segment registered a 66% decline in both revenue and profit in the first quarter to S$86.5m ($70.4m) and S$12.9m respectively.


“For the shipbuilding business, as we have large vessels on the order book so the revenue and profits may vary from quarter to quarter due to the milestone recognition of work achieved based on the percentage-completion method,” said Lee Kok Wah, president and group ceo of Otto. Otto previously embarked on a strategy to avoid over-reliance on the shipbuilding side and started growing the chartering, leasing and specialised offshore services segments.


Poor performance on the shipbuilding segment resulted in lower revenue and net profit in the first quarter. Revenue plunged 59% to S$113.2m while net profit plummeted 71% to S$7m in the quarter, Otto announced to the Singapore Exchange on Wednesday. It is looking to tap on the increased activities in Australia and West Africa, where it has inked partnerships with Go Marine and Global Workboats to expand into those two markets.
(Source:http://www.seatrade-asia.com)