Otto Marine's second-quarter results were hit hard by the termination of sales contracts worth S$21m ($17.3m) for two AHTS vessels, Seatrade Asia online reports. The offshore ship construction firm posted a net loss of S$40.94m in the quarter as against a net profit of S$17.3m in the same period of last year.
Revenue also declined significantly to S$41.73m compared to S$129.67m a year earlier, it announced to the Singapore Exchange.
Otto attributed the poor results largely to a reduction in revenue from its shipbuilding, ship repair and conversion segment, reversal of profit recognised for the termination of the sales contracts for two AHTS vessels, and a loss-making position in the geophysical segment due to lower utilisation of the seismic vessels.
“Global economic conditions as well as the general environment of the shipbuilding industry remain challenging,” Otto said.
Revenue also declined significantly to S$41.73m compared to S$129.67m a year earlier, it announced to the Singapore Exchange.
Otto attributed the poor results largely to a reduction in revenue from its shipbuilding, ship repair and conversion segment, reversal of profit recognised for the termination of the sales contracts for two AHTS vessels, and a loss-making position in the geophysical segment due to lower utilisation of the seismic vessels.
“Global economic conditions as well as the general environment of the shipbuilding industry remain challenging,” Otto said.