Otto Marine

[thor666]

http://infopub.sgx.com/Apps?A=COW_CorpAn...227ee491d7

To live another day. Still, pretty bad that creditor had to haul them to court.

OTTO MARINE LIMITED (Company Registration Number 197902647M) (Incorporated with limited liability in the Republic of Singapore on 5 September 1979) UPDATE ON WINDING UP APPLICATION Unless otherwise defined, all capitalised terms shall have the same meanings ascribed to them in the announcement made by the Company on 25 April 2015 at 01:22:58 under the title “Winding Up Application”.

Following the announcement made on 25 April 2015, Otto Marine Limited (the “Company”) wishes to announce that the Company has fully paid up the Debt of USD 200,000 and EUR 900,000 to the Creditor, and the Creditor has undertaken to withdraw the Application. The Company has taken all reasonable care to ensure that the facts stated in this announcement are fair and accurate in all material aspects as at the date hereof and that no material facts have been omitted from this announcement. The event is not expected to have a material impact on the financials of the Company for the financial year ending 31 December 2015.

Submitted by Chong Sieh Jiuan Chief Financial Officer and Joint Company Secretary 27 April 2015

Sent from my D5503 using Tapatalk

[dydx]

It appears operating cash flow is getting tight and more troubles looming..

[thor666]

http://www.fool.sg/2015/04/27/otto-marin...n-the-way/

By Chong Ser Jing - April 27, 2015 |More on: ES3G4F^STI

Shipbuilder and offshore support vessels owner Otto Marine Ltd (SGX: G4F) saw its shares fall some 9.5% today to S$0.038 after the company made a curious announcement on Saturday morning.

As the Business Times reported, “a creditor had filed a court application to wind up the company over about US$1.2 million in debt.” In the official announcement regarding the matter, Otto Marine stated that it “is not disputing the Debt” and that it’s currently in negotiations with its creditor in order to resolve the issue.

This is an unusual development because Otto Marine’s latest financials (for the three months ended 31 December 2014) showed that it had some US$16.47 million in cash and bank balances and US$13.15 million in fixed deposits.

Its total borrowings might be high (some US$539 million worth of debt if we include finance leases), but it shouldn’thave been a problem for Otto Marine to repay roughly US$1.2 million in debt given its last-known figures.

We might never fully know what went wrong between Otto Marine and its creditor in question. But that could be the least of worries at the moment for investors of Otto Marine.

More trouble ahead

This incident with Otto Marine and its creditor has two important implications for the company.

Firstly, there’s the possibility that Otto Marine has seen a severe deterioration in its finances between 31 December 2014 and today. After all, if there had been the impression of some trouble in stumping up US$1.2 million, it does not take a giant leap of faith to wonder if the firm may be in some serious trouble.

Secondly, this episode might still indirectly wreak some havoc going forward even if there’s 1) nothing wrong with Otto Marine’s business in the first place, and/or that 2) the firm actually has legitimate reasons to not repay the borrowings in question.

I have to make clear that Otto Marine is currently nowhere near being insolvent as it has shareholder’s equity that’s worth some US$263 million as of 31 December 2014. But, the firm has the potential to run into liquidity problems.

As my colleague John Maxfield describes, liquidity issues happen when “creditors lose faith in a company and stop accepting its assets as collateral for lines of credit.” As of 31 December 2014, Otto Marine has US$135.1 million worth of borrowings from financial institutions and US$307.4 million in trade payables that are due by 31 December 2015 (or could be called back easily by that date).

If Otto Marine’s other creditors (both the financial institutions and the suppliers that are owed the trade payables) lose faith in the company because of the paltry US$1.2 million in debt that sparked the furore, it could easily result in some messy liquidity problems for the firm given its less-than-stellar (though certainly still solvent) balance sheet.

A Fool’s take

At Otto Marine’s current price, it looks like a really cheap share given its price-to-book (PB) ratio of just 0.46. For some perspective, the SPDR STI ETF (SGX: ES3) – an exchange-traded fund which tracks Singapore’s market barometer, theStraits Times Index (SGX: ^STI) – has a PB ratio of 1.4 at the moment.

But, given what we’ve seen – the possibility of a seriously deteriorating business over the past few months and/or the potential for liquidity issues – Otto Marine’s share price may see even more pain down the road.

Existing shareholders of the company and bargain hunters who are interested in the firm by virtue of its cheap valuation would need to be cognizant of the risks involved.

To add some twists to the issue, here are some interesting facts:

Otto Marine revealed in a seemingly separate announcement, also made on Saturday morning, that a similar winding-up court filing has also been made against Go Offshore Pty Ltd. Go Offshore Pty Ltd is a wholly-owned subsidiary of Go Marine Pty Ltd, which happens to be a subsidiary of Otto Marine. This time, the sum claimed against Go Offshore by an unnamed creditor amounted to only US$118,000.At 6:20pm today, Otto Marine made an announcement that it has “fully paid up” the debt of around US$1.2 million that made its creditor want to take the company to court. In response, the creditor has decided to withdraw the winding up application against Otto Marine.

Investors of Otto Marine might want to keep a close watch on new developments, if any, in this whole saga.



Sent from my D5503 using Tapatalk

[butcher]

That's fast. Paid up immediately when the creditor chased for payments and filed application.


http://ottomarine.listedcompany.com/news...ZQBM.1.pdf

Unless otherwise defined, all capitalised terms shall have the same meanings ascribed to them in
the announcement made by the Company on 25 April 2015 at 01:22:58 under the title “Winding Up
Application”.

Following the announcement made on 25 April 2015, Otto Marine Limited (the “Company”)
wishes to announce that the Company has fully paid up the Debt of USD 200,000 and EUR
900,000 to the Creditor, and the Creditor has undertaken to withdraw the Application.

The Company has taken all reasonable care to ensure that the facts stated in this
announcement are fair and accurate in all material aspects as at the date hereof and that
no material facts have been omitted from this announcement.

The event is not expected to have a material impact on the financials of the Company for
the financial year ending 31 December 2015.

Submitted by

Chong Sieh Jiuan

Chief Financial Officer and Joint Company Secretary

[CityFarmer]

More and more cockroaches in the kitchen? After the winding-up application, it seems more biz disputes are popping out...

(not vested)

Otto Marine in arbitration over alleged breach of pact to buy vessels

SINGAPORE (May 7): Otto Marine ( Financial Dashboard) has been accused of breaching an agreement to acquire a pair of offshore support vessels from two companies, which have commenced arbitration proceedings against the shipbuilder and are seeking to claim US$8.9 million ($11.8 million) in losses.

The first arbitration meeting was held on May 4, Otto Marine disclosed in a regulatory filing today. It did not name the claimants but said one was a holding company while the other was this company's wholly-owned unit.

Otto Marine signed a term-sheet agreement with both companies in September last year to acquire and operate the two vessels.

It also gave a loan of US$650,000 to the holding company, which was required to repay this amount by Dec 20 last year if the vessels were not transferred to a joint-venture company by then. The joint venture was supposed to secure financing to acquire the vessels.

Otto Marine said it decided to terminate the term-sheet agreement as the vessels were not delivered on time and that the joint venture had failed to obtain financing.

The loan has yet to be repaid.

The claimants had earlier issued a writ of summons against the company over the alleged breach of agreement, but Otto Marine said it was successful in its application to the court for legal proceedings to be stayed in favour of arbitration.

"The company has been advised by its lawyers that the claim is vexatious, the likelihood of the entire amount of the claim being successful is low, the claimants cannot justify or meaningfully quantify the full amount of the claim, and the company has more than an even chance of successfully defending the arbitration," Otto Marine said.
...
http://www.theedgemarkets.com/sg/article...uy-vessels

[Behappyalways]

not vested

Profit Guidance
http://infopub.sgx.com/FileOpen/Otto_Pro...eID=348961

[thor666]

Strange, but I am generally wary of companies announcing on weekends.

(not vested, tend to read sgx announcements on weekdays)

Sent from my D5503 using Tapatalk

[butcher]

Otto Marine Secures Charter for Its Second Unit of
New 238-Men DP2 Work Maintenance Vessel for US$26 Million
• Charter secured for the second unit of the 238-men, DP2 work maintenance vessel in
the series, after its sister vessel being delivered and chartered out in August 2015
• The vessel is built in a third-party yard and is expected to be delivered by end of
2015
• Group’s strategy to add owned and newer vessels to fleet, among other efforts, has
supported consistent improvement in fleet utilization in 2015
• This new charter contract is expected to contribute positively to the Group’s financial
performance in 2016 and next few years
Singapore, 7 December 2015 – Otto Marine Limited, (“Otto Marine” or the “Group”), a
leading offshore chartering group, which owns and operates more than 50 offshore support
vessels globally, and also engaged in specialized shipbuilding, repair and conversion of
offshore support vessels (“OSV”), announced today that it has secured a long term bareboat
charter contract worth US$26 million on 4 December 2015.
The charter was for a 238-men, DP2 Work Maintenance Vessel that measures 85 meters in
length and 23 meters in width. It has a clear deck area of 635 m2
, and is equipped with a
deck crane of 80-ton lifting capacity. The vessel is currently being built at a third-party yard,
and is expected to be delivered by the end of 2015. The vessel will be deployed in the Asia
Pacific Region once the charter starts.
Commenting on the secured charter contract, Mr. Michael See, Group CEO said,
“Further to the first unit of the 238-men, DP2 Work Maintenance Vessel that we took
delivery and chartered out to the South East Asia region in August 2015, we are
pleased to secure the charter for another vessel in the series that is on schedule for
delivery. This is in line with our strategy to maintain a healthy quantity of our own
vessels in the fleet, in view of the better margins they can generate. Our strategy to
OTTO MARINE LIMITED
(Company Registration Number 197902647M)
(Incorporated with limited liability in the Republic of Singapore on 5 September 1979)


Page 2 of 3
upgrade and renew our fleet and increase the number of younger vessels has also
gradually enhanced our business fundamentals.
We have adopted a prudent and pragmatic approach in our chartering business amid
the continually weak operating environment. With our tenacious effort in optimizing
the deployment of our fleet, utilization rate has improved progressively. We achieved
fleet utilization of approximately 82% for 3rd Quarter FY2015 and Year to Date fleet
utilization of approximately 77%.
Similar with the 1st unit of 238-men accommodation work vessel which was
announced in August 2015, this newly secured charter contract for the 2nd unit of
accommodation work vessel is also expected to contribute positively to the Group’s
financial performance in 2016 and the next few years.”

---- The End ----

http://ottomarine.listedcompany.com/news...Z0VX.1.pdf






Otto Marine seems to be getting more and more charter contracts. Will the company turn around soon?

[CY09]

Taking about share consolidation and still in danger of failing to reach MTP still is another candidate - Otto Marine.

Despite a share consolidation of 20 to 1, the company is now selling at 21 cents.

What is worse is that from FY 15 results, despite have a positive cashflow before WC changes, the bank interest alone wipes out the entire positive cashflow generated, resulting in an overall negative cash flow. With 200 mil debts repayable within a year and cash balance of 22 mil, it is inevitable equity raising/asset sale will be done for this company in the O&G sector.

IMO, it is likely more impairment on its vessel/PPE will be done. This puts question to the worth of its 600 mil PPE. How much is it actually worth and how will it affect overall NAV.

[butcher]

should be end of the road