Monday, February 21, 2011

Otto Marine

Otto Marine: Following grp’s mismay results, DMG downgrade to Sell with $0.25 TP from $0.335, a sharp loss in 4Q. 4Q10 plunged into a loss of $9.3m on lower rev of $93.3m, -12.9%YoY and reversal of profit from cancellation of vessel related to global settlement with GC Rieber, and forex losses….

In view of prolonged drought in new shipbuilding order wins, and possible threat of cancellations of Mosvold Supply’s (MS) 3x 21k bhp AHTS in the future, house downgrades to sell based on 10x FY11F PE

Similarly, BNP maintain Reduce on Otto Marine with $0.34, noting of continuous disappointment, increasing working capital needs on 'build to charter' model and resources being spread widely, with risk profile worsening.

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