O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX
O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX
O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX
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OUR BUSINESS<br />
Introduction<br />
We are an offshore marine group engaged in shipbuilding, ship repair and conversion and ship chartering.<br />
Our customers are primarily fleet operators who provide logistics support to offshore services and equipment<br />
companies operating globally in the oil and gas industry.<br />
We are headquartered in Singapore and we own and operate what we believe to be one of the largest<br />
shipbuilding yards in Batam, Indonesia. Our location provides us with a strategic advantage as a result of<br />
Singapore’s position as a hub for the regional marine and offshore industry and enables us to tap into a ready<br />
supply of workers from Indonesia and management talent and marine and offshore support and expertise from<br />
Singapore. Our shipyard has a well-organised infrastructure along with comprehensive facilities, advanced<br />
equipment and an experienced team of engineers.<br />
We build a range of small, medium and large offshore support vessels at our shipyard in Batam, Indonesia<br />
and outsourced third party shipyards in China. Our strategic focus is on building offshore support vessels such<br />
as AHTS vessels and PSVs which comply with the technical specifications required to operate in the North<br />
Sea, including the requirements of Norwegian Maritime Directorate and Det Norske Veritas. We also construct<br />
other types of offshore support vessels including work barges with accommodation for 300 people as well as<br />
work maintenance boats and plan to build offshore construction vessels. In addition, we provide ship repair<br />
and conversion services primarily for offshore support vessels. We have recently signed agreements to build<br />
offshore construction vessels.<br />
Our specialised focus has allowed us to build up our expertise in constructing high-specification offshore<br />
support vessels, to improve our production quality and efficiency and to develop a competitive cost structure.<br />
It has also enabled us to gain recognition in the construction of complex and sophisticated offshore support<br />
vessels.<br />
We retain ownership and charter out some of the vessels that we build. In addition, through our associated<br />
companies, we hold minority interests in some of the vessels that we sell to our strategic partners for<br />
chartering purposes.<br />
Over the last three financial years ended 31 December 2007, our revenue grew at a compounded annual<br />
growth rate of 139.6% per annum, from S$54.7 million in FY2005 to S$314.0 million in FY2007. Over the<br />
same period, the profit attributable to our Shareholders grew from S$3.1 million in FY2005 to S$41.9 million<br />
in FY2007. For the five months ended 31 May 2008, our revenue and profit attributable to our Shareholders<br />
was S$219.5 million and S$32.7 million, respectively, compared to revenue and profit attributable to our<br />
Shareholders of S$86.3 million and S$9.0 million, respectively, for the same period in 2007.<br />
As at 8 August 2008, our order book was S$937.1 million.<br />
Our Strengths and Strategies<br />
Strengths<br />
We have a history in shipbuilding and ship repair and conversion dating back to the early 1980s. Since<br />
2004, we have specialised in the building of offshore support vessels. We believe that we benefit from a<br />
number of strengths that together differentiate us from our competitors in the offshore marine industry. They<br />
include the following:<br />
Specialised focus on complex, sophisticated and environment friendly offshore support vessels<br />
We focus on the construction and engineering of complex, sophisticated and environment friendly<br />
offshore support vessels which comply with technical specifications required to operate in the North<br />
Sea, including the requirements of Norwegian Maritime Directorate and Det Norske Veritas. This focus<br />
has been beneficial to us as these vessels have generally produced higher margins for us than less<br />
complex vessels.<br />
We believe that the demand for offshore support vessels will continue to shift towards vessels that are<br />
larger and more sophisticated in terms of their engine capacity, bollard pull and navigational equipment,<br />
as the search for and production of offshore oil and gas become more demanding both in terms of<br />
increasing water depths and severe weather conditions. In addition, current industry trends call for<br />
vessels with improved design on stability capabilities and inherently safer and environment friendly<br />
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