Aker Yards ASA reported an EBITDA result of NOK 72 million for the second quarter of 2008 for the continuing operations, up from NOK -162 million in the same period last year. For the first half of 2008 Aker Yards had an EBITDA result of NOK 282 million. Earnings per share (EPS) were NOK -0.48 for the quarter and NOK -0.10 for the first half of 2008. With the deliveries of another three ferries during the quarter, the execution of the ferry orderbook in Finland is progressing as planned.
In the second quarter of 2008, Aker Yards' continuing operations had revenues of NOK 7 922 million, an increase of 31.4 percent compared with NOK 6 027 million in the corresponding period of 2007. The EBITDA result for the second quarter was NOK 72 million, giving an EBITDA margin of 0.9 percent. The EBITDA result in the quarter is negatively influenced by an ongoing project within Offshore & Specialized Vessels. The project, consisting of a series of ten vessels, has suffered from late and poor quality deliveries from sub suppliers affecting the results for 2008. Further, one-off charges of a total of NOK 90 million in Other Operations have affected the EBITDA result in the quarter negatively. Revised guidance for 2008 is an expected EBITDA margin for Aker Yards of two to three percent.
For the first half of 2008, revenues were NOK 15 393 million, an increase of 19.3 percent compared with NOK 12 900 million in the same period of 2007. The EBITDA result was NOK 282 million, compared with NOK 297 million in the corresponding quarter of 2007. The EBITDA margin for the first half of 2008 was 1.8 percent.
Earnings per share (EPS) were NOK -0.48 in the quarter, compared with NOK 1.97 in the same period in 2007. For the first six months of 2008, EPS were NOK -0.10, compared with NOK 4.11 in the same period in 2007.
Order intake was NOK 592 million in the quarter and NOK 1 462 million for the first half of 2008, giving an order backlog of NOK 55 211 million comprising 92 vessels at the end of the period.
In June, STX Norway AS acquired 1 318 350 shares in Aker Yards ASA, taking their total shareholding to 45 883 710 shares. As a consequence of this acquisition, a mandatory offer to acquire all remaining Aker Yards shares was launched by STX Norway AS on 18 July 2008.
After the end of the reporting period, Aker Yards and FLC West completed the transaction announced in March in which FLC West comes in as a 70 percent shareholder in three shipyards in Germany and Ukraine. The transaction strengthens Aker Yards' liquidity, and improves the potential for further development of the three involved yards. The final transaction price is EUR 248.9 million, providing a net gain for Aker Yards of NOK 800 to 850 million compared to book value. The completion of the transaction will affect the third quarter results.
Please find enclosed the full version of the second quarter and first half year report for 2008 and a summary in Norwegian.
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Aker Yards ASA
Karenlyst allé 57
P.O. Box 453 Skøyen
0213 Oslo, Norway
Tel: + 47 21 02 15 00
SVP Corp. Communications and IR
Tel: + 47 21 02 15 30
Mob: + 47 92 88 55 42
Vice President Investor Relations
Tel: +47 21 02 15 19
Mob: +47 95 14 11 47
This press release includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Yards ASA and its subsidiaries and affiliates (the "Aker Yards Group") lines of business. These expectations, estimates, and projections are generally identifiable by statements containing words such as "expects," "believes," "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the Aker Yards Group's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although Aker Yards ASA believes that its expectations and the information in this Press release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Press release. Neither Aker Yards ASA nor any other company within the Aker Yards Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Press release, and neither Aker Yards ASA, any other company within the Aker Yards Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Press release.
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