Singapore: Otto Marine Sells Work Maintenance Vessel Oranda 1

Otto Marine Limited, a leading offshore marine company which specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services, announces that the Group has sold Oranda 1, a 75-meter Work Maintenance Vessel, to an unrelated party for US$38.0 million.

After accounting for US$21.2 million worth of net carrying value of Oranda 1, the Group will book in estimated realized gain of US$16.8 million in its upcoming financial period ending 30 September 2012 (“3QFY2012”).

Oranda 1 is an ABS-classed 4,200bhp Work Maintenance Vessel that has completed 4 projects in South East Asia since May 2010. Contemporaneous with the sales transaction, the Group’s subsidiary, Karp Marine Limited, has bareboat chartered back Oranda 1 for a period of 5 years. Oranda 1 is currently executing general topside platform maintenance works in the Gulf of Mexico under a 450-day time charter contract worth US$14.9 million.

This contract was the Group’s maiden voyage into the Mexican waters and was announced back in 19 March 2012.

“Proceed from this sale transaction will be utilized towards repayment of bank loans, thereby improving the Group’s liquidity and working capital. This is very much in line with the Group’s strategy to lighten its balance sheet to optimize operations going forward”, said Aw Chin Leng, Executive Director and Deputy President.

The transaction took into consideration the proper market value of the vessel. This transaction is expected to contribute positively to the Group’s 3QFY2012 financial performance.

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Press Release, September 19, 2012