Otto Marine reports third quarter earnings - anticipates slowdown if oil price remains lowCompany News // November 14, 2014
Otto Marine Limited†has†reported its financial results for the three months ended 30 September 2014.
The groupís earnings declined by 50.9 per cent to US$2.0 million year-on-year, primarily due to a one-off gain from disposal of assets registered in the corresponding quarter last year.
Group revenue increased by US$13.9 million, or 16.8 per cent yoy to US$96.8 million in the third quarter. Shipyard revenue increased US$4.4 million, boosted by more repairs and fabrication orders. Offshore chartering revenue increased US$8.8 million supported by higher daily charter rate. Subsea services revenue increased US$0.8 million due to the addition of one vessel.
Gross profit increased by 9.6 per cent to US$14.9 million, primarily supported by the higher revenue and gross profit from offshore chartering.
The company said the third quarter†saw a strengthening orderbook for the offshore chartering segment and stronger demand for the groupís larger vessels. On the smaller OSVs, the group has begun the process of divesting out of this tonnage to focus on its larger tonnage vessels that enjoy higher utilization and returns.
"Over the longer term, the recent decrease in the oil price from above US$100 to US$80 per barrel has created significant uncertainty for new exploration and development activities," said the company. "Any prolonged slowdown in investment in E&P activities will ultimately affect the OSV market."