Otto Marine

Otto Marine: Posted non-stellar set of 3Q results, below consensus estimates, with Rev for 3Q10 at $80.3m, +13.1%YoY and -38.7%QoQ, while net profit at $8.7m, +10.2%YoY, -47.9%QoQ and -33% vs consensus estimates of $13m for 3Q10…

Rev for 3Q saw increased contributions from grp’s grophysical business and the increased chatering fleet size, however this was offset by lower percetange of completion rev recognition in the ship building side. Margins for ship building division (71.5% of grp’s Gross Profit) decreased slightly to 16.6% frm 17%, weighing on bottom line….

Result brings 9M10 Rev to $486.6m, +53%YoY and Net profit to $49.9m, +17.5%YoY, while 9M10 EPS at 2.7c, -25%Y. We note that at current levels, grp trades at 10.1xFY10E P/E vs peers average of 8.9x FY10E P/E, while depleting orderbook stood at $218.4m, vs FY10 Rev of $425m.