Otto Marine Limited, a leading offshore marine company that specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services, has announced their financial results for the three months and for the nine months ended 30 September 2015.
The Group posted US$282.2 million in revenue for 9M 2015. This represented a 1.3% decrease year- on-year compared with 9M-2014 mainly attributed to the decrease in revenue from the Subsea services segment due to lower charter rates despite higher utilization, and attributed to the Shipping and Chartering segments due to a reduced fleet size, partially offset by an increase in shipyard revenue. Gross profit decreased 41.2% in 9M-2015 to US$25.6 million with gross profit margin at 9.1%.
This decrease was mainly due to lower margin projects undertaken by the Shipyard segment, and the decrease in revenue and increase in depreciation arising from the capitalized dry-docking costs in 2014. Moreover, as the Group’s vessel ownership increased to 34 vessels as at 30 September 2015 compared to 21 Vessels as at 30 September 2014, it was able offset lower daily charter rates. Thus, the Group’s gross profit margin for 3Q-2015 remained relatively constant at 15.0% compared to 15.4% for 3Q-2014.
Selling and administrative expenses reduced by 23.1% to US$22.4 million and other expenses reduced by 57.0% to US$1.8 million for 9M-2015. The former decreased due to the Group’s cost rationalization measures and the latter decreased as a result of the absence of foreign exchange losses. However, finance costs increased from US$19.1 million in 9M-2014 to US$27.8 million in 9M-2015. This was mainly due to interest incurred on certain loan facilities drawn down after 1H-2014 and the finance costs arising from held-for-sale liabilities.
As a result of the above factors, the Group reported a net loss attributable to shareholders of US$21.4 million for the period 9M-2015. Nonetheless, the Group registered positive operating cashflow (since FY2012) which saw an increase of 54.4% to S$89.8 million for 9M-2015 with an EBITDA of approximately US$38.2 million.