Singapore's Otto Marine – an offshore marine group specializing in the building of offshore support vessels, ship chartering and offshore services operation – plunged deeper into the red with the announcement Tuesday evening of a 2Q 2012 net loss of $33.6 million as compared to a loss of $32.4 million in the same period last year.
This is the fifth consecutive quarter in which the company is reporting a loss.
The company's selling and administrative expenses skyrocketed to $29 million, up $21.7 million from the same period last year. The allowance for doubtful debts and staff costs were among the reasons cited for the rise in selling and administrative expenses.
Otto Marine also mentioned that revenue for its shipbuilding, ship repair and conversion division had suffered due to slower progress of work on existing vessels and a smaller order book.
"The company has not seen new orders in its shipyard, and the utilization rate of its seismic vessel is not as high as it had projected," CIMB Securities vice president Yeo Zhi Bin told Rigzone.
In an opinion statement to Rigzone, Maybank Kim Eng's Analyst Yeak Chee Keong said that "the company basically has not been delivering good results."
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