Otto Marine Clinches $26M Contract for a Newbuild Work Maintenance Vessel

Otto Marine Limited, (Otto Marine or the Group), a leading offshore chartering group, which owns and operates more than 50 offshore support vessels globally, and also engaged in specialized shipbuilding, repair and conversion of offshore support vessels (OSV), announced Monday that it has secured a long term bareboat charter contract worth $26 million Dec. 4.

The charter was for a 238-men, Dynamic Positioning 2 (DP2) Work Maintenance Vessel that measures 279 feet (85 meters) in length and 75 feet (23 meters) in width. It has a clear deck area of 6,835 square feet (635 square meters), and is equipped with a deck crane of 80-ton lifting capacity. The vessel is currently being built at a third-party yard, and is expected to be delivered by the end of 2015. The vessel will be deployed in the Asia Pacific Region once the charter starts.

Commenting on the secured charter contract, Michael See, Group CEO said:

“Further to the first unit of the 238-men, DP2 Work Maintenance Vessel that we took delivery and chartered out to the South East Asia region in August 2015, we are pleased to secure the charter for another vessel in the series that is on schedule for delivery. This is in line with our strategy to maintain a healthy quantity of our own vessels in the fleet, in view of the better margins they can generate. Our strategy to upgrade and renew our fleet and increase the number of younger vessels has also gradually enhanced our business fundamentals.

We have adopted a prudent and pragmatic approach in our chartering business amid the continually weak operating environment. With our tenacious effort in optimizing the deployment of our fleet, utilization rate has improved progressively. We achieved fleet utilization of approximately 82 percent for 3rd Quarter FY2015 and Year to Date fleet utilization of approximately 77 percent.

Similar with the 1st unit of 238-men accommodation work vessel which was announced in August 2015, this newly secured charter contract for the 2nd unit of accommodation work vessel is also expected to contribute positively to the Group’s financial performance in 2016 and the next few years.”

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