Attachment 1 - Otto Marine Limited

OTTO MARINE LIMITED
(Company Registration Number 197902647M)
(Incorporated with limited liability in the Republic of Singapore on 5 September 1979)
MEDIA RELEASE – FOR IMMEDIATE RELEASE
Otto Marine successfully charters
out its MT6009 PSV; the first vessel
of its kind to be built in Asia
• The specialised vessel will be chartered to Reflect, a marine geophysical
service provider, on a bare boat charter for a 10-year period
• Vessel to be delivered by May 2010
• The successful charter marks the commencement of Otto Marine’s new
specialised services division
Singapore, 6 January 2010 – Otto Marine Limited, (“Otto Marine” or the “Group”), a leading
offshore marine company which specialises in building complex offshore support vessels
and ship chartering, is pleased to announce that it has successfully found a charter for its
MT6009 PSV, named “OTTO EXPLORER”. The vessel will be chartered out to the Group’s
subsidiary, Singapore-based Reflect Geophysical Pte Ltd (“Reflect”), on a bare boat charter
for a contract term of 7+1+1+1 years.
OTTO EXPLORER
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The MT6009 PSV, a Multi Purpose Field Support Vessel (Hull 7037), is the toast of Asia as
she is the first of her kind to be built in this part of the world on a turnkey basis. The MT6009
PSV is a DNV Class, diesel-electric propelled vessel that is environmentally friendly and
provides its crew with comfort class specifications. The 3,200 DWT vessel is built with thin
shell plates that allow cargo carrying capacity to be optimised. The MT6009 PSV is capable
of operating in the harshest of deep-sea conditions including the challenging North Sea. The
vessel measures 74.7 meters in length and has a deck space of approximately 600 square
meters.
Reflect will take delivery of the vessel in May 2010 and will utilise it for seismic information
gathering. The seismic ready vessel is currently being outfitted with the necessary seismic
equipment at Otto Marine’s Batam shipyard. Reflect is expected to deploy the vessel for
seismic information gathering in 2H2010.
New Business Segment
The successful charter of the MT6009 PSV marks the commencement of Otto Marine’s new
specialised services division. In this new business segment, Otto Marine intends to be a
service and vessel provider to higher margin niche markets, such as the lucrative seismic
and subsea segments.
The Group will now have 3 complementary business segments:
o
o
o
Shipbuilding & Ship Repair and Conversion
Ship Chartering
Specialised Offshore Services
OTTO EXPLORER is the first vessel that is owned by the Group that will be chartered out to
the end user in the Oil and Gas exploratory services. One of the key advantages Otto Marine
will enjoy compared to other vessel owners, is a relatively faster payback period for the
vessel, due to the Group being able to build the ship at cost at its Batam shipyard. This is
unlike the other vessel owners that have to purchase the vessels at market price.
“The MT6009 meets with both DNV and North Sea Classifications and is
capable of being deployed in all waters. The construction of such a complex
vessel in our yard is in itself a milestone for us. In addition, we are pleased to
charter out OTTO EXPLORER to Reflect, marking the commencement of our
new specialised services business segment.
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This new business segment will allow us to leverage on our distinct cost
advantage of being a shipbuilder as well as be competitive in the higher
margin sector servicing the oil and gas industry.
Mr Lee Kok Wah, President and Group Chief Executive Officer
The Group does not expect a material or significant impact in the Financials for this financial
year from its subsidiary, Reflect. However, Reflect is expected to contribute positively to the
Group’s Financials in FY2010. In addition, the Group expects positive contributions from the
chartering out of the MT6009 PSV from FY2010 onwards.
---- The End ----
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About Otto Marine Limited (OTML.SP)
Otto Marine Limited ("Otto Marine" or the "Company") is an offshore marine group engaged in specialized
shipbuilding of offshore support vessels for primarily Deep Sea applications. The shipbuilding includes ship repair
and conversion. In addition, Otto Marine is chartering out its own fleet of specialized and environmentally friendly
(clean/comfort class) Anchor Handling Tugs and Offshore Supply Vessels for mainly Deep Sea applications. In
continuation of its expansion strategy, Otto Marine is the majority shareholder in the seismic operator, Reflect
Geophysical.
Headquartered in Singapore, the Company owns and operates one of the largest shipyards in Batam, Indonesia
– considered one of the most technically sophisticated yards in Asia Pacific. The yard is building to DNV and
Norwegian class standards. Its customers are primarily deep sea and offshore operators and equipment
companies who provide logistics support and offshore services to companies operating globally in the oil and gas
industry.
Otto Marine’s specialized approach has allowed it to build up its expertise in constructing high specification deep
sea and offshore support vessels, improve its production quality and efficiency and develop a competitive cost
structure. This quality and level of technical sophistication has enabled the Company – as one of the few in Asia
– to gain recognition in the construction of complex and sophisticated deep sea and offshore vessels.
Otto Marine was successfully listed on the Main Board of Singapore Exchange Securities Trading Limited (the
“SGX-ST”) on 28 November 2008.
For more information, please visit the Company’s website at http://www.ottomarine.com
About Reflect Geophysical Pte Ltd.
Reflect Geophysical Pte Ltd is a company established in Singapore providing a range of proprietary and nonexclusive
Multi-client marine geophysical services. Reflect was founded by a number of the most experienced
people in the geophysical industry, who have spent a large number of years in very senior positions within the
largest Geophysical companies in the world. The focus and drive of Reflect is HSE and to bring new modern
vessels into the industry and establish a new player in this market.
All of the founders of the company, and all key staff, have strengths that are highly flexible and adaptable and
have the proven track records to handle any project.
Our main offices are located in Singapore and Aalesund, Norway. Reflect has a global reach but currently
specialises in activities in the Asia Pacific region.
The range of services offered by Reflect for the proprietary and non-exclusive Multi-client markets include long
offset 2D, shallow water 3D, 4D, Multi-azimuth and Wide-azimuth data acquired using the latest seismic
equipment. In addition we offer technical and operational support for other companies venturing into the Asia
Pacific region.
Issued for and on behalf of Otto Marine Limited
For more information please contact:
Financial PR Pte Ltd
Kathy ZHANG, kathy@financialpr.com.sg
Executive Director
Tel: (65) 6438 2990
Fax: (65) 6438 0064
Kamal SAMUEL, kamal@financialpr.com.sg
Manager
_____________________
The initial public offering of Otto Marine Limited was sponsored by United Overseas Bank Limited and
Credit Suisse (Singapore) Limited (the ‘Issue Managers’). The Issue Managers assume no
responsibility for the contents of this announcement.
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