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uncertainties and other factors include, but are not limited to,
economic conditions globally, the impact of competition, political
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and regulatory developments in those countries and internationally,
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believes that its expectations and the information in this
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when they were made, it can give no assurance that those
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2
Strategy Highlights
Align focus, to position for further growth in the Ship Chartering
business – less cyclical and able to provide a steady, recurring
income stream
Now holds 90% equity interest held Go Marine Group Pty Ltd (“Go
Marine”)
Exposure to growth markets - leveraging on the extensive network
coverage of both Go Marine and Otto Ship Management (“OSM”) (OSM is
combination of Global Workboats and Otto Fleet to synergise).
Strong position in Australia and West Africa
Go Marine to expand vessel fleet with larger tonnage and eventually
owning vessels to generate better margins
More assets to win contracts - invested in a good mix of modern
vessels to better help Go secure more work. Now in a stronger
position to capitalise on growth opportunities in the Australia
O&G market
Strategy paying off as the Group witnessed strong contract winning
momentum for Ship Chartering segment (US$96.4 million announced in
2012 YTD)
Strategy Highlights
Focus on executing existing shipbuilding orders
Successfully rolled out the first 21,000 bhp AHTS in June 2011 –
attained the coveted DNV class certification. Healthy inquiries
about this vessel for use in SEA
Construction of remaining 3 similar vessels is on-going and is
expected to be completed in 2012/2013
New management in place, implementing tighter cost control
measures; improve execution capabilities to ensure timely delivery
of vessels
Conservative approach to Specialised Services business
Downsized operations at Reflect; new management in place to execute
tighter operational measures
4
16 May
AHTS
contract for Work Maintenance Vessel
21 May
capital of GO Marine
Provide logistics support to offshore service companies operating
globally in the oil & gas industry
Operates and manages a fleet of 63 offshore support vessels (36
owned, 5 joint- venture and 22 chartered/manned vessels)
PSVs, AHTS,
1 x 21,000bhp AHTS
4 x 10,800bhp AHTS
1 x 8,000bhp AHTS
1 x 7,200bhp AHTS
1 x 6,000bhp AHTS
4 x 40m AHT
1 x 75m WMV
Total: 31 vessels
Total: 5 vessels
Owns and Operates
4 x 40m AHT
4 x 6,000bhp AHTS
2 x 7,200bhp AHTS
2 x 75m WMV
1 x 16,000bhp AHTS
1 x 21,000bhp AHTS
1 x 3,000bhp Tug
1 x 8,000bhp AHTS
5 x Inshore vessels
11 x inshore vessels
Total: 22 vessels
Total: 5 vessels
2 x 21,000bhp AHTS 2 x 12,000bhp AHTS 2 x 6,000bhp AHTS
6 more joining in 2012/2013
Source: Company data, as at 30 June 2012
6
10 15
25 31
Owns and Operates Strategic Partnerships Chartered-In
Revenue Contribution (US$’million)
11 21
Platform supply vessel Other vessels
To support accommodation requirements
Utility vessels Work maintenance boats Others
Small to medium AHTS (< 14,000 bhp)
Supply & anchor handling role
Large AHTS (> 14,000 bhp)
Drilling Unit for field support and construction duties
Strategic focus on DNV-certified OSV suitable for North Sea harsh
conditions:
Own and operate PT Batamec in Batam, Indonesia
Close proximity to SEA shipbuilding hub
Access to marine expertise in Singapore and large pool of qualified
workers in Indonesia
One of the largest yards in Batam occupying land area of 64
hectares
Waterfront of 650 meters
Specialised Services
Provides marine geophysical services, 2D and 3D "high-density"
marine seismic acquisition services to the Oil & Gas
exploration industry and subsea & offshore construction
services
Niche market that commands better margins
Seismic operator – Reflect Geophysical *Scorpio
Subsea operator - Surf Subsea *Challenger
* Name of vessel owned by operator
Financial Highlights
Revenue Gross Profit Operational Expenses Loss attributable to
equity holders
65.8% US$203.7m
182.0%
261.3%
65.4%
Note: The Group’s reporting currency has changed to USD from 1 Jan
2012 onwards
1H 2012
Revenue Trend
Revenue (US$'000)
*: This is calculated for comparison purpose by using the average
rates for FY2007, FY 2008, FY2009 and FY2010 of 1.5093, 1.4143,
1.4078 and 1.3657 respectively.
10
54,129
87,170
Gross Profit Net Profit (Loss) Attributable to Shareholders
26.0% 25.5%
17.8% 15.7%
FY2007 FY2008 FY2009 FY2010 FY2011 1H2012
Gross Profit Margin Net Profit Margin
*: This is calculated for comparison purpose by using the average
rates for FY2007, FY 2008, FY2009 and FY2010 of 1.5093, 1.4143,
1.4078 and 1.3657 respectively.
Revenue Breakdown All amounts are stated in US$’000
4,793, 6%
66,169, 79%
12,900 , 15%
6,930, 20%
9,553, 28%
17,921 , 52%
47,878, 23%
131,482, 65%
24,315 , 12%
74,509, 60%
Gross Profit Breakdown All amounts are stated in US$’000
(23,593)
5,513
(2,043)
(6,255)
10,443
850
(8,215)
23,537
(3,240)
(13,522)
11,600
conversion Chartering Specialised Services
2QFY2011 2QFY2012 1HFY2011 1HFY2012
2QFY2011 2QFY2012 1HFY2011 1HFY2012
Chartering 57.7% 15.8% 60.4% 17.9%
Specialised Services (11.4%) 6.6% (19.1%) (13.3%)
Gross Profit Margin
Property, Plant and Equipment 417,740 348,875
Cash and bank balances (including fixed deposits) 49,682
81,360
Total Assets 1,293,269 1,261,410
Total Equity 292,894 277,628
Balance Sheet
**: (Total Borrowings and Debt Securities – Cash and Cash
Equivalents excluding pledged deposits) / Total Equity
US$’000 1HFY2012 1HFY2011
Net cash (used in) from investing activities (36,734) 1,731
Net cash from financing activities 14,584 63,536
Net decrease in cash and cash equivalent (29,789) (7,463)
Cash and cash equivalent at beginning of period 69,251
116,713
Effects of exchange rate changes on the balance of cash held in
foreign currencies (651) 45
Cash and cash equivalent at end of period 38,811 109,295
Consolidated Cashflow Statement
Exch rate: 1.24885
P/B 0.69
As at 16 Aug 2012
Industry Outlook
Industry Outlook
Market situation has improved steadily during first quarter of 2012
and this improvement is expected to continue throughout 2012 and
into 2013
However, uncertainties remain due to the unstable global economic
environment ([i] Poor financing environment ; credit crisis in
Europe continues to make capital scarce and expensive and [ii]
E&P activities decline due to economic slowdown or lower oil
prices) Trend moving towards higher-spec OSVs Over the long term as
exploration complexity rises, demand for higher specification rigs
is expected to rise, and hence the demand for high spec OSV to be
higher than for lower-spec counterparts.
Source: RS Platou Global Global Support Vessel Monthly Feb 2012
issue
Industry Outlook
Charter rates for both AHTS and PSV in 2011 are better than 2010
average
Source: RS Platou Global Global Support Vessel Monthly Feb 2012
issue
15
Otto Marine Limited AW Chin Leng / Michael SEE
Email:
[email protected]/michael
[email protected] Tel: (65)
6863 2366
16
Recap of Corporate Announcements
16 August 2012 – Announcement on the sale and leaseback of
vessel
16 August 2012 – Otto Marine anchors its presence in Africa with
yet another time-charter contract worth US$10.0 million
14 August 2012 – Announcement of 2Q2012 financial results
13 August 2012 – Profit warning for 2Q2012 results
18 June 2012 – Otto Marine secures time charter contract in the
Persian Gulf for its new 75 meters Work Maintenance Vessel
21 May 2012 – Otto Marine exercises option to acquire additional
interest in GO Marine
16 May 2012 – Otto Marine strengthens its position in Africa as it
secures additional US$16.6 million worth of chartering contracts
for 2 AHTS
9 May 2012 – Announcement of 1Q2012 financial results
7 May 2012 – Profit Warning for 1Q2012
7 May 2012 – Rights Issue at an issue price of S$0.08 for each
Rights Share at an allocation basis of one Rights Share for 2
ordinary shares
4 May 2012 – Change in Functional Currency to USD
For 2Q2012
