43 KB - 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 remains profitable in 2Q2009
• Generates 2Q2009 revenue of S$175.3m and net profit of S$28.0m
• Achieves 2Q2009 gross profit margin of 15.4% and net profit margin of
16.0%
• Group to focus on growing ship chartering business in the coming
months
• Order book stands at S$646.9m as of 30 June 2009
Singapore, 13 August 2009 – Otto Marine Limited, (“Otto Marine” or the “Group”), a leading
offshore marine company which specializes in building complex offshore support vessels
and ship chartering, has reported its financial results for the three months ended 30 June
2009 (2Q2009).
Financial Highlights (S$‘000) 3 months ended 30 June Change
(%)
2Q2009 2Q2008
Revenue 175,318 209,793 (16.4)
Gross Profit 26,935 54,110 (50.2)
Profit Before Tax 28,321 33,414 (15.2)
Net Profit att. to Shareholders 28,013 32,316 (13.3)
Gross Profit Margin 15.4% 25.8% NA
Net Profit Margin 16.0% 15.4% NA
EPS (cents) – Fully Diluted* 2.53 3.31 (23.6)
Financial Highlights (S$‘000) 6 months ended 30 June Change
(%)
1H2009 1H2008
Revenue 247,059 267,095 (7.5)
Gross Profit 41,958 67,752 (38.1)
Profit Before Tax 35,171 45,309 (22.4)
Net Profit att. to Shareholders 34,563 43,922 (21.3)
Gross Profit Margin 17.0% 25.4% NA
Net Profit Margin 14.0% 16.4% NA
EPS (cents) – Fully Diluted* 2.92 4.18 (26.1)
* Based on weighted average number of shares of 1,184,733,840 for 1H2009 and 975,000,000 for 1H2008
Page 1 of 3

For 2Q2009, the Group’s revenue declined 16.4% year-on-year (yoy) to S$175.3 million. The
ongoing economic slowdown continued to have an impact on the Group’s ship building, ship
chartering and ship conversion businesses.
2Q2009
2Q2008
Change
(%)
Shipbuilding 169,847 200,982 -15.5%
Chartering 4,714 6,400 -26.3%
Ship Repair & Conversion 452 2,411 -81.3%
Leasing 305 0 NA
The Group’s shipbuilding revenue declined mainly due to the different percentage-ofcompletion
recognition of revenue. The Group’s ship chartering revenue decreased due to
reduced charter rates. The decline in the ship repair & conversion business remained in line
with the Group’s existing plan of focusing on its current shipbuilding contracts and chartering
business.
Gross profit for 2Q2009 declined by 50.2% yoy to S$26.9 million mainly due to two reasons:
Firstly, the Group incurred some write downs of costs relating to vessels contracts being
terminated in its shipbuilding business. The second reason is due to reduced charter rates in
the ship chartering business.
Consequently, the Group achieved a net profit of S$28.0 million for 2Q2009.
“The Group has not been immune to the current economic crisis. A quieter
market for new vessel orders, lower charter rates and cancellations of certain
shipbuilding contracts affected our financial performance. Nevertheless, our
focus on building made-to-order, larger and more complex offshore support
vehicles which generated sizeable order book has its benefits as we received
deposit to partially cover the vessels construction cost and we experienced
few contract cancellation.
Our order book stands at S$646.9 million as at 30 June and we are focused on
the execution and completion of these projects.”
Page 2 of 3
Mr Lee Kok Wah, Group Managing Director

“Looking forward, we see huge potential in the ship chartering business. Over
the months, we plan to increase our revenue in ship chartering with long-term,
bare-boat charters of our offshore support vessels. The steady cash flow from
the charters will compliment the cyclical shipbuilding business and provide us
with the necessary cash to accelerate our growth.”
Mr Yaw Chee Siew, Executive Chairman
---- The End ----
About Otto Marine Limited (OTML.SP)
Otto Marine Limited ("Otto Marine" or the "Company") is an offshore marine group engaged
in shipbuilding, ship repair and conversion and ship chartering, with a specialized focus on
complex, sophisticated and environment friendly offshore support vessels. Headquartered in
Singapore, the Company owns and operates what it believes to be one of the largest
shipyards in Batam, Indonesia. Its customers are primarily fleet operators who provide
logistics support to offshore services and equipment companies operating globally in the oil
and gas industry.
Otto Marine’s specialized focus has allowed it to build up its expertise in constructing high
specification offshore support vessels, improve its production quality and efficiency and
develop a competitive cost structure. The focus has also enabled the Company to gain
recognition in the construction of complex and sophisticated 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/ .
The initial public offering of the Company 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.
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
Page 3 of 3