Otto Marine's PATMI plummets 71% YoY for 1Q11

The shipbuilder reported a lower PATMI at S$7.0mln on the back of lower shipbuilding revenue.

In a statement, DMG Research also attributed the fall to the decline in ship chartering margin, and losses suffered by the Geophysical division, which it said “looks worrying.”

According to the analyst, the new shipbuilding order drought has led to substantial drop in revenue contribution from OM, with the current order book partly attributable to the three vessels meant for Mosvold Supply currently undergoing arbitration.

As of end Mar 2011, order book stands at S$145.9mln.

The ship chartering division also experienced a slump in 1Q11, with gross margin collapsing to 28.1% in 1Q11 compared to 63% in 1Q10 and 58% in 4Q10.