Singapore's Otto Marine Sells Work Maintenance Vessel

Singapore's Otto Marine – an offshore marine group specializing in the building of offshore support vessels, ship chartering and offshore services operation – said Thursday that it has sold a 75M work maintenance vessel to an undisclosed buyer for $38 million. The vessel is used in multi-purpose offshore support operations.

The company said that it has received 10 percent of the purchase consideration, and the balance will be paid upon delivery, scheduled for end-August 2012. 
After completion of the sale, one of Otto Marine's subsidiaries will enter into an agreement with the buyer to charter the vessel for a period of five years.
"The transactions are expected to have a positive impact on Otto Marine's consolidated net tangible assets per share or earnings per share of the company for the financial year ending December 31, 2012," the company said. 
Analysts from Maybank Kim Eng and CIMB told Rigzone that they are still uncertain about the company's ability to deliver good results at the end of its fiscal year 2012 given its recent dismal earnings announcement. 
The company had disclosed on Wednesday 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.


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