Otto Marine, the builder and charterer of offshore support vessels, says it posted a 40.4% fall in net profit to $16.7 million for the second quarter ending June 30 2010 (2QFY2010) versus $28 million for 2QFY2009. Revenue fell 26% to $129.7 million compared to $175.3 million.

The decrease in 2Q revenue was primarily due to the percentage-of-completion recognition achieved in the shipbuilding business and reduced utilisation rates of the group’s chartering of tugs and barges. This decrease was partially offset by the increase in geophysical business procured by the group’s 81.6% owned company, Reflect Geophysical.

Group gross profit in 2Q2010, on the other hand, increased 60.4% y-o-y to $43.2 million. This was primarily due to the recognition of revenue from the building of higher margin vessels, more offshore vessels chartered and increased activity for the geophysical business.

While Otto Marine says it kept a tight lid on expenses during the quarter, the group booked an unrealised revaluation of forex loss of $19.7 million due mainly to weakening EUR/USD rate. Consequently, net profit attributable to shareholders fell.