O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX

Additionally, our associated company, WAIL, has a 100.0% shareholding interest in Otto 1 Ltd., which in
turn owns Otto 1, a work barge with accommodation for 300 people which is chartered to third parties. See
“— Our Operations — Ship Chartering”.
Capacity and Utilisation Rates of Our Shipyard
We own and operate our shipyard through our subsidiaries, PT Lestari and PT Batamec. Our yard
presently operates on one eight-hour shift per day, six days a week. We have not experienced any material
production interruption, whether due to labour disputes, power interruptions, fire or other causes.
The docking facilities in our shipyard consist of a Syncrolift» and graving dock. The table below
summarises the annual production capacity of our yard for each of the last three financial years:
Berth
Days
FY2005 FY2006 FY2007
%of
Capacity (1)
Berth
Days
%of
Capacity (1)
Berth
Days
%of
Capacity (1)
Syncrolift»
Berthing area A
(seven berths)
Maximum capacity ...................... 2520 2520 2520
Occupied berth days ..................... 2074 82% 2097 83% 1323 53%
Maintenance period ..................... 149 6% 101 4% 135 5%
Vacant days ........................... 297 12% 322 13% 1062 (2)
42%
Berthing area B
(four berths, increased to six berths since
September 2007)
Maximum capacity ...................... 1440 1440 1668 (3)
Occupied berth days ..................... 1176 82% 826 57% 1600 96%
Maintenance period ..................... 53 4% 193 14% 48 3%
Vacant days ........................... 211 14% 421 29% 20 1%
Graving Dock
Maximum capacity ...................... 365 365 365
Occupied berth days ..................... 345 94% 352 96% 347 95%
Maintenance period ..................... 13 4% 9 3% 14 4%
Vacant days ........................... 7 2% 4 1% 4 1%
Notes:
(1) Our maximum capacity for each berthing area is calculated based on the total number of berth days available
in respect of all of the berths in that particular berthing area for each financial year, where one berth
day represents one vessel being berthed in a particular berth for one day. In relation to the berthing areas,
the number of berth days available for each financial year is 360 days and in relation to the graving dock,
the number of available days for each financial year is 365 days. Our production capacity utilisation rate
for each berthing area is calculated by having the total number of occupied berth days divided by the maximum
capacity for that berth.
(2) Berthing area A was vacant for 820 berth days for upgrading works.
(3) The increase in maximum capacity is as a result of increase in the number of berths within berthing
area B.
In the shipyard industry, the utilisation rate of a yard is generally not a meaningful indicator of
performance. This is primarily because the capacity of a shipyard varies according to many factors, including
the availability of raw materials, equipment and other supplies, the type and size of vessels berthed in the yard
and the type of work being undertaken. In order to minimise these variables as far as possible, we have
measured the utilisation rates of our shipyard in terms of the proportion of the total number of available berth
days in the yard. The number of berth days may fluctuate depending on the type of vessel we produce and our
product mix changes. In addition, it is possible for us to alter the working hours of our production by
subcontracting some of the assembly work to external subcontractors and thereby influencing the capacity and
utilisation rates of our facilities.
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