Otto Marine swings back to profitabiity in Q2 on one-off gain after winding up unit

Otto Marine generated a net profit of US$19.39 million during the second quarter after it registered an US$18.7 million net gain from the deconsolidation of Reflect Geophysical.

In May 2013, the court ordered a winding up order to be made against Reflect. This led to the group to record a gain on deconsolidation of Reflect (US$64 million) against the doubtful debt provision for debts due by Reflect (US$45.3 million).

External revenue increased by US$63.8 million primarily contributed by the shipbuilding, ship repairs and conversion and chartering segments. The increase was partially offset by the leasing, geophysical and subsea services segments.

Other income increased by US$3.3 million primarily as a result of an increase in net foreign exchange gain (US$3.6 million) and gain arising from changes in the fair value of foreign exchange forward contracts (US$1.6 million). Share of profit of associates and joint venture decreased by US$0.5 million primarily due to lower utilisation of the associate’s vessels.