Singapore: Otto Marine Sells Two AHTS Vessels for USD 43.4 Million

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 its shipbuilding arm and wholly-owned subsidiary, Otto Offshore Limited has entered into a sales agreement to sell two 8,000 bhp AHTS to a third party at a market price of US$43.4 million (approximately S$54.8 million equivalent).

These two vessels are currently under construction and the Group expects it to be completed this year. Subsequent to the delivery of these two vessels, Redfish 3 Pte. Ltd., a unit of the Group will charter and deploy the  vessels for 7 year.

“This is a good start to our new financial year 2011. Optimism in the offshore marine and oil and gas industry appears to be building up as a series of new rig orders were placed with major players recently. This could lead to  an increase in the demand for support vessels. We have also witnessed recently a healthy increase in enquiries for new vessels. We are cautiously optimistic that this momentum will continue.” Mr Lee Kok Wah, President cum Group Chief Executive Officer said.

The above transaction will contribute positively to the profits of the Group for the financial year ending 31 December 2011. None of the Directors or substantial shareholders of Otto Marine has any interest, direct or  indirect, in the aforesaid transaction save for their shareholdings in the Company.

About Otto Marine Limited

Otto Marine Limited (“Otto Marine” or the “Company”) is an offshore marine group engaged in specialized shipbuilding of offshore vessels for primarily Deep Sea applications.

The OTTO MARINE LIMITED shipbuilding includes ship repair and conversion. In addition, Otto Marine is chartering out its own fleet of sophisticated and environmentally friendly (clean/comfort class) Anchor Handling  Tugs and Offshore Supply vessels for mainly Deep Sea applications. In continuation of its expansion strategy, Otto Marine is the majority shareholder in the seismic operator, Reflect Geophysical.

Headquartered in Singapore, the Company owns and operates one of the largest shipyards in Batam, Indonesia – one of the most sophisticated yards in Asia Pacific. The yard is building to DNV and Norwegian class standards. Its customers are primarily deep sea and offshore operators and equipment companies who provide logistics support and offshore services to companies operating globally in the oil and gas industry.

Otto Marine’s specialized approach has allowed it to build up its expertise in constructing high specification deep sea and offshore support vessels, improve its production quality and efficiency and develop a competitive cost structure.

[mappress]

Source:Otto Marine, March 31, 2011;