Otto Marine profit up 65.4% to $41M loss

Offshore marine group hemorrhaged less in 2Q12 but downward pressures remain.

Otto Marine revenue was up 65.8% to $203.7 million, with gross profit rising 261.3% to $12.1 million. But operational expenses also ballooned by 182% to $38.6 million, which led to the better but still-in-the-red profit results.

In its market outlook. the firm said the market situation has improved steadily during first quarter of 2012 and this improvement is expected to continue throughout 2012 and into 2013.  

"However, uncertainties remain due to the unstable global economic environment," Otto Marine said, citing factors such as a poor financing environment, the credit crisis in Europe which continues to make capital scarce and expensive, and E&P activities decline due to economic slowdown or lower oil prices.

But over the long term as exploration complexity rises, demand for higher specification rigs is expected to rise, and hence the demand for high spec OSV to be higher than for lower-spec counterparts.