Time & date: 3 pm, 23 April 2015
Venue: Marina Mandarin Singapore
Otto Marine's management at its AGM, L-R: Leon Yee (Legal Adviser, Duane Morris & Selvam LLP), Ng Quek Peng (Independent Director, Chairman for Audit Committee), Chong Sieh Jiuan (CFO), Michael See (Group CEO), Yaw Chee Siew (Executive Chairman), Garrick Stanley (President, Shipping and Chartering), Heng Hock Cheong (Lead Independent Director, Chairman for Nominating & Remuneration Committee), Craig Pickett (Non Executive Director), Chin Yoong Kheong (Independent Director). Photo by Sim Kih
AT OTTO MARINE'S AGM, its management assured shareholders that its fleet utilization is expected to improve in 2QFY2015 in spite of the slump in demand for offshore vessels caused by the recent plunge in oil prices.
The Group secured close to US$100 million worth of third party contracts during 1QFY2015.
Below is a summary of questions raised by shareholders, and the replies provided by Executive Chairman Yaw Chee Siew, Group CEO Michael See and the legal advisor Leon Yee.
Executive Chairman Yaw Chee Siew. NextInsight file photoMr Yaw: We have not had any vessel cancellation in FY2014 but like all other operators, we had some customers coming to us to renegotiate for a lower rate.
We have some short term contracts and some long term contracts.
The slump in oil prices provides an opportunity for us to focus on our efficiency and cost.
We are focusing on cost control and efficiency this year.
Q: Is Otto Marine capable of building lift boats?
Mr Yaw: At our shipyard, we focus on fabrication and ship repair. We also have some newbuilding projects for the local market in Indonesia.
We have not built any lift boats before and this is not an area we want to focus on. I personally believe that we have over the years built vessels that are more challenging to build than lift boats.
Having said that, if someone approaches us to build a lift boat and offers a price that makes the project profitable based on our cost estimates, I believe we can accept that order and execute a lift boat newbuilding project.
