Friday, February 18, 2011

Otto Marine down 1.6%; posts 4Q loss on one-off items

Stock Name: Otto Marine
Company Name: OTTO MARINE LIMITED
Research House: DMG

Otto Marine (G4F.SG) is down 1.6% at $0.310 after reporting a 4QFY10 loss of $9.3 million compared with a net profit of $9.8 million a year earlier, with revenue down 13.0% on-year at $93.3 million, largely due to one-off items.

DMG notes these included a reversal of profits recognized for the terminated sale contracts for vessels sold to an associate in the shipbuilding, ship repair and conversion segment, and start up costs and a suboptimal utilization rate of vessels in the subsea services segment.
“Amongst the segments, the shipbuilding segment made a gross loss of $12.1 million while geophysical and subsea services made a gross loss of $3.2 million.” 
It adds, a rise in other expenses also contributed to the losses with a forex loss at $4.2 million, and advance write off of $2.5 million. 
While the house awaits an analyst briefing later today, it places its Neutral call and $0.335 target price under review. Orderbook suggests $0.300 support. 

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