Otto Marine Enters Sale and Charter Agreements for Two AHTS Vessels

Otto Marine Limited, an offshore marine company which specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services, announced that it  has entered into a sale and leaseback deal with a renowned unrelated third party for 2 units of the large Anchor Handling Tug Supply Vessels for US$85 million each.

The VS491 21,000bhp vessels are currently being constructed at Otto Marine’s Batam yard, and are scheduled for completion in August and October 2013 respectively, to the new owner in Batam. Both the vessels will be chartered by the  Group for a period of 8 years.

DNV classed and Norwegian-designed, the VS491 21,000bhp AHTS are hybrid propulsion diesel electric driven vessels with dynamic positioning 2 (DP2) technology. 91.5 meters in length and 22.5 meters wide, the vessels have a bollard pull  of 240 to 260 tonnes. These vessels can operate and handle large rigs in the ultra-deepwater region including the harshest environments of the North Sea region.

“The Group is pleased to have arranged the sale and leaseback of two of its Ultra Large AHTS at US$85 million each which is supported by a few renowned independent valuers. Together with our current Rights Issue, this arrangement will contribute significantly towards improving the Group cash flow, reduce bank loans and improve its gearing ratio, thus strengthen its balance sheet,” said Executive Director & Group CFO, Mr Michael See.

Mr Michael See continue: “We have already put in place a strengthened team of key and middle management to drive the revival of our shipyard operations. With an improved financial position and the release of capacity at our Batam shipyard, the Group is now ready to  take on more jobs, including shipbuilding, ship repairs and fabrication works. We are encouraged by the buoyant offshore oil and gas industry and are determined to restore Otto Marine’s position as one of the key players in the offshore and  marine space.” 

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Otto Marine, July 29, 2013