Otto Marine: The buyer of AHTS Vessel “Deep Sea 1” is negotiating a 2nd extension to pay the deposit of US$9m. The first extension of 2 wks was sought on the 13 Sep 2011 to pay the deposit, which should have been due yesterday. Otto is currently considering whether to extend the date for the payment of the deposit. This contract is worth US$90m and was first announced on the 12 of Aug.
The repeated delays might either indicate a problem on financing on the buyer’s side or a view that the vessel might not be commercially viable. Either alternative is not positive for Otto Marine.
Otto is trading at 14.5x current P/E after reporting losses in latest Jun results. Comparatively, peers ASL Marine trade at 6.4x with Marco Polo at 8.0x
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