“Operationally, optimising OSV utilization over daily charter rates (DCR) remains key this year. While we expect the company to deliver profits in 2016-17, its cost rationalisation exercise appears to be behind its peers in the market while its aging OSV fleet poses a risk to earnings,” said Maybank Research, which is maintaining its ‘sell’ recommendation for Alam Maritim
with a fair value of 30 sen.
According to Maybank Research, both the OSV and underwater services operations were loss making during the fourth quarter of last year (4QFY15) due to lower utilization, impairment of vessels and losses at the OSV associate level.
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