Otto Marine Sells AHTS for $100M, Subsidiary to Lease Vessel Upon Delivery

Otto Marine Limited, (Otto Marine or the Group), a leading offshore chartering group, which owns and operates more than 60 offshore support vessels globally, and also engaged in specialized shipbuilding, repair and conversion of offshore support vessels (OSV), reported Monday that its shipyard division has sold an Anchor Handling Tug Supply Vessel (the AHTS or the Vessel) to a renowned unrelated third party (the Buyer) for $100 million.

DNV classed and Norwegian-designed, the VS491 21,000bhp AHTS is a hybrid propulsion diesel electric driven vessel with dynamic positioning 2 (DP2) technology. It measures 3001. feet (91.5 meters) in length and 73.8 feet (22.5 meters) wide and has a bollard pull of 240 to 260 tons. The Vessel can also operate and handle large rigs in the ultra-deepwater region including the harshest environments of the North Sea region.

This AHTS is the 4th and final of the VS491 series the Group has built in this batch. It is currently under construction at Otto Marine’s shipyard in Batam, Indonesia, and is expected to be completed in 2Q 2015.

GO Offshore (L) Private Limited, a subsidiary of the Group, will charter the vessel for 8 years upon the completion of the vessel.

The $100million transaction is expected to have a positive contribution to the consolidated net tangible assets per share and earnings per share of the Group for the financial year ending Dec. 31.

Commenting on the sale of Vessel, Michael See, Group executive director said:

“While the OSV market turned increasingly competitive given the recent regional developments and the instability of oil prices, the sale of the AHTS vessel and recent delivery of a subsea IMR vessel, once again, demonstrated our shipyard capability in shipbuilding and conversion of larger and complex OSVs, as well as our reputation among customers. The Group has continued to fortify our position as a leading OSV charterer in Indonesia, Australia, Mexico, Africa and expanding, while shipyard continue to remain as an integral part of its main offshore chartering business. The shipyard has been constantly securing repairs and fabrication jobs and generated a stable income stream, and thus strengthening the overall financial position of the Group.”

In addition to the sale and leaseback of the AHTS and the recently delivered Subsea and IMR (Inspection, Maintenance and Repair) vessel currently deployed in Australia, the Group will be delivering four AHTS vessels to a renowned unrelated third party Indonesia customer in the next two months.

The Group’s net order book stood at approximately $500 million as at Sept. 30.


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.