Otto Marine, the offshore marine company which specialises in building offshore support vessels, ship chartering and specialised offshore services, says PATMI for the three months ended 31 March 2011 (1Q2011) fell 71% y-o-y to $7 million.
Decline in gross profit year-on-year from the shipbuilding operations, chartering and geophysical segments pushed the overall gross profit lower by 65% to $16.2 million in 1Q2011. The gross profit margin decreased from 16.8% in 1Q2010 to 14.3% in 1Q2011.
Group revenue decreased 59% to $113.2 million in 1Q2011 mainly due to lower shipbuilding revenue recognised, offsetting the revenue increases in the chartering and leasing segments.
The shipbuilding, ship repair and conversion segment registered a 66% decline in both revenue and gross profit in 1Q2011 to $86.5 million and $12.9 million respectively. The decline was mainly due to less milestones achieved and recognised based on the percentage completion method in 1Q2011 when compared with 1Q2010.
Chartering revenue increased 52% in 1Q2011 to $6.4 million as the group increased its fleet size, but the gross profit declined by 35% to $1.8 million and the gross profit margin reduced from 66.3% to 28.1% due to lower utilisation rates.
The geophysical segment that comprises primarily the business of a subsidiary, Reflect, had maintained a constant revenue of $10.5 million in 1Q2011 but registered a gross loss of $5.3 million due to a combination of factors including sub-optimal vessel utilisation rates, pricing pressure, premature termination of a contract and costs incurred in preparation of a vessel for particular work.
The new subsea segment, that started operations in the later part of FY2010, registered a revenue and gross profit of $3.8 million and $0.8 million respectively for 1Q2011.
