Otto Marine

Otto Marine: Dismal set of results missing Street expectations. Revenues declined 10% to US$374m; earnings declined 41% to a loss of $74m. Sales missed Street estimates by 3%, and earnings missed by 40%. Shipbuilding, ship repair and conversion segments decreased US$49.2m as a result of slower progress of shipbuilding work on existing vessels sold and no new shipbuilding order being secured. Global economic conditions as well as the general environment of the shipbuilding industry remain challenging. Additionally, the shipyard is under‐utilized due to lower order intake. Company trades at 0.7x P/B.