Asia/Pacific News
Singapore Firm Diversifies Beyond OSVs on Weak Market
Singaporean ship builder Otto Marine Limited (Otto Marine) Monday announced it has secured three new shipbuilding contracts worth $23 million.
The contracts to build the tankers were said to be part of the group's efforts to diversify and expand its product portfolio beyond offshore support vessels (OSVs) in the current weak market.
"As the weak oil prices continue to weigh on oil and gas, and offshore and marine sectors, we put relentless efforts in creating revenue streams across our business segments, including diversification of our business exposure by offering extended vessel portfolio at the shipyard," said Michael See, group CEO.
"It's encouraging to secure the shipbuilding contracts as the new year unfolds, which marked a stimulating start for 2016. Our shipyard will strive to ensure timely delivery of the vessels with top-notch quality."
The contracts will see Otto Marine produce a 6,500 Long Tons Deadweight oil product tanker, which will be ABS-class, measure 109 meters in length, and have cargo oil tank capacity of 8,300 cubic meters.
The other two contracts are for two ferries with a gross tonnage of 1,200 each
The order for the product oil tanker was placed by a local Indonesian firm; the orders for the ferries were placed by an Indonesian state-owned enterprise.
The vessels are scheduled to be delivered in the fourth quarter of 2017, but will contribute to the company's financial performance in both 2016 and 2017.
In August of 2014 Ship & Bunker reported that Otto Marine had ordered four fuel efficient platform supply vessels (PSVs).
