After reporting two straight years of losses, and nearly 24 months without a single shipbuilding contract, Singapore-based Otto Marine has just been awarded a $27.8 million newbuild order for a pair of 5,150 bhp Anchor Handling Tug Supply vessels (AHTS).
The two contracts were awarded by “a renowned Indonesian operator” to Otto Marine’s subsidiary PT Batamec Shipyard Indonesia.
“The two AHTS will be approximately 62 metres in length and will be constructed to meet ABS class requirements,” it said.
The vessels are to be delivered in the second half of 2014.
The group said it has not been taking new orders for the last year or so because it was focusing on finishing and delivering the orders that it had on hand under its shipbuilding segment.
“We have also done some restructuring and consolidation in our yard which enhanced our efficiency and reduced the costs,” said Otto Marine’s group chief financial officer Michael See.
For instance, it restructured its shipyard to rejuvenate the repair and conversion business, and also formed a designated team to expand into fabrication starting in its previous quarter ended Dec 31, 2012.
Analysts see it as a good sign that Otto Marine has secured some new shipbuilding contracts after so long, even though they say that two vessels over two years is not likely to swing it back into the black.
The group recently concluded its second consecutive loss-making year with a US$73.7 million loss.
Analysts also found the cost per vessel of US$13.9 million to be slightly higher than is normal, but Otto Marine said the vessels have certain equipment and configuration requirements that involve specific engineering capabilities.