Gross profit (GP) rose 10% yoy to S$15.0m, mainly due to an increase in shipbuilding business, partially offset by decrease in GP from chartering and ship repair & conversion business. Overall, the Group's GP margin was down from 23.8% to 20.9% due to decrease in GP margin of chartering business from 86.4% to 49.7%. The GP margins for shipbuilding and repair & conversion rose from 15.1% to 17.6% and from 62.3% to 75.9%, respectively.
OM's order book stands at S$752 million as of 31 March 2009, comprising 19 vessels which includes 12 AHTS (Anchor Handling Tugs Supply) vessels, 4 PSVs (Platform Supply Vessel), 1 utility vessel, 1 offshore construction vessel and 1 work barge with accommodation for 300 people.
Cash deposits of 20-30% have been received. Ytd, there is no order cancellation. OM expects to grow its chartering business on the back of growth in own charter fleet from 12 in 2008 to 21 in 2009 and from 1 in 2008 to 10 in 2009 for its JV charter fleet.
OM expects constant or lower income from ship repair & conversion segment as the Group's focus has shifted to shipbuilding. OM is currently trading at 7.0x PE and 2.2x PB. As of 31 Mar 09, OM has a net gearing 0.7x.
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