Otto Marine shares fall after profit warning

Otto Marine saw a dive in shares when trading opened on Wednesday after issuing a profit warning
Otto Marine shares fall after profit warning

(Reuters) - Shares of oilfield service firm Otto Marine dived when trading opened on Wednesday after the company issued a profit warning.

The Singapore-listed company warned it expected to report a loss for the year ended December 31, 2014, due to cost overrun on the construction of a vessel and low utilisation and delayed charter commencement for vessels

Its shares fell 7 per cent to a record low of 3.9 cents, its biggest daily fall in two months.

The oil and gas sector has come under pressure from weak oil prices. The FT ST Oil & Gas Index, composed of 17 Singapore-listed stocks in the energy sector, is down 3 per cent so far this year following a 25 per cent slide in 2014.

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by Tom Holmes

Marine Trader Editor

Tom Holmes is the Editor of Marine Trader and readmt.com, the official publications of the International Marine Purchasing Association (IMPA). To discuss news, features or contributing to Marine Trader please get in touch.

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