You are here

Less vessel usage, lower charter rates to lead to Q1 net loss: Otto Marine

Offshore marine group Otto Marine on Sunday issued a profit guidance saying that it expects to report a net loss for its first quarter ended March 31, 2015.

"The company believes that the expected losses in the consolidated losses attributable to owners...was primarily attributable to the following reasons: decrease in vessels utilisation and lower charter rates amidst the current challenging market conditions particularly for the oil and gas industry; and provision and impairment.

"The company has since the beginning of this year taken steps and is continually implementing cost cutting measures across the group in response to the market conditions," it said.

Its shares last closed at S$0.031 on Friday. They have more than halved from its peak of S$0.078 last July.

The company will release its first quarter financial results on May 14, 2015 after trading hours.