Singapore-listed offshore services provider Otto Marine has redeemed preference shares from a compatriot private equity firm for SGD12 million (USD8.9 million) in cash.
According to its filing to the Singapore Exchange (SGX), the preference shares were fully redeemed by its wholly owned subsidiary, GO Marine Investments, on 2 June and the redemption was fully paid in cash.
“The above transaction is not expected to have any material financial impact on the consolidated net tangible assets per share or consolidated earnings per share of the company and the group for the current financial year ending 31 December 2015,” said Otto Marine in the filing to SGX.
Meanwhile, Otto Marine has taken tough measures in response to the downturn of the global oil industry. The company has reduced its number of staff by approximately 30% since January as part of its corporate restructuring process.
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Moreover, Otto Marine has also downsized payrolls for remaining employees, excluding junior staff, by an average of 15%, while its top management took the brunt of the pay cut with a 20% reduction.
The restructuring process aims to cut cost and translate proceeds to annual savings for the company amid the oil prices slump that depressed the overall oil and gas industry.
Previously, the company posted a loss of USD13.27 million for the first quarter that ended on 31 March, despite recording higher revenue for the period.
Otto Marine also ran into financial woe when a creditor attempted to wind it up over about USD980,000 in debt last April, sending its share prices to a two-week low.
However, Otto Marine, which has a net debt of USD509 million as of 31 December 2014, said it had paid up the sum in full.