Otto Marine sold WMV for $38.0m
Otto Marine Limited, (“Otto Marine” or the “Group”), a leading offshore marine company which specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services, is pleased to announce that the Group has sold Oranda 1, a 75-meter Work Maintenance Vessel, to an unrelated party for US$38.0 million, the Group's press release said.
After accounting for US$21.2 million worth of net carrying value of Oranda 1, the Group will book in estimated realized gain of US$16.8 million in its upcoming financial period ending 30 September 2012 (“3QFY2012”).
Oranda 1 is an ABS-classed 4,200bhp Work Maintenance Vessel that has completed 4 projects in South East Asia since May 2010. Contemporaneous with the sales transaction, the Group’s subsidiary, Karp Marine Limited, has bareboat chartered back Oranda 1 for a period of 5 years. Oranda 1 is currently executing general topside platform maintenance works in the Gulf of Mexico under a 450-day time charter contract worth US$14.9 million.
This contract was the Group’s maiden voyage into the Mexican waters and was announced back in 19 March 2012.
Aw Chin Leng, Executive Director and Deputy President comments: “Proceed from this sale transaction will be utilized towards repayment of bank loans, thereby improving the Group’s liquidity and working capital. This is very much in line with the Group’s strategy to lighten its balance sheet to optimize operations going forward.”
The transaction took into consideration the proper market value of the vessel. This transaction is expected to contribute positively to the Group’s 3QFY2012 financial performance.
About Otto Marine Limited
Singapore-headquartered Otto Marine Limited is an offshore marine group engaged in specialized shipbuilding of offshore vessels for Deep Sea applications, ship repair and conversion. Otto Marine is chartering out its own fleet of clean/comfort class Anchor Handling Tugs and Offshore Supply vessels. Otto Marine is the majority shareholder in the seismic operator, Reflect Geophysical. The Company owns and operates one of the largest shipyards in Batam, Indonesia. Otto Marine 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.