Offshore & Specialized Vessels with record earnings and increased order backlog - Cruise & Ferries still challenging
STX Europe reported an EBITDA of NOK 88 million for the first quarter of 2010, up from NOK 6 million in the same period last year. Operating revenues amounted to NOK 5 159 million, down 41 percent compared to the first quarter in 2009. The Offshore & Specialized Vessels business area had a record high EBITDA of NOK 293 million and the Cruise & Ferries business area had an EBITDA of NOK -196 million.
In the first quarter of 2010, STX Europe posted operating revenues of NOK 5 159 million, a decrease from the NOK 8 779 million in the corresponding period of 2009. The EBITDA result was NOK 88 million, compared with NOK 6 million last year. The EBITDA margin for the first quarter of 2010 was 1.7 percent.
While the overall result for the Group is unsatisfactory, the Offshore & Specialized Vessels business area achieved a quarterly result exceeding expectations with an EBITDA margin of 11.1 percent, up from 2.3 percent in the first quarter 2009. The business area had solid operational performance and increased its order backlog during the quarter.
Within the Cruise & Ferries business area the EBITDA margin was -8.2 percent, mainly reflecting cost overruns related to certain vessels as well as capacity- and restructuring costs as a consequence of the reduced order backlog.
In March 2010, STX Europe completed a bond issue of NOK 250 million. The proceeds from the bond issue will be used for general corporate purposes. Operations at the yards largely progressed according to plan. However, within the Cruise & Ferries business area, some projects negatively influenced the results.
During the first quarter of 2010 STX Europe delivered a total of seven vessels, three of which have STX Europe's own design. The order intake was NOK 2 808 million for the quarter, giving an order backlog of NOK 22 321 million comprising 49 vessels and some smaller conversion/maintenance projects.
The Offshore & Specialized Vessels yards had good capacity utilization and managed to increase the order backlog during Q1. The business area is expected to have high utilization throughout 2010 and the outlook for the business area is considered to be good. For the Cruise & Ferries business area the medium- to long term outlook has improved. However, the reduced order backlog creates significant operational challenges and financial losses within the business area for 2010.
Please find enclosed the full version of the first quarter report for 2010.
--------------- END -----------------
STX Europe AS
Karenslyst allé 57
P.O. Box 453 Skøyen
Tel: + 47 21 02 15 00
Senior Vice President Finance
Tel: +47 21 02 15 00
Mob: +47 91 68 96 61
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 STX Europe AS and its subsidiaries and affiliates (the "STX Europe 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 STX Europe 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 STX Europe AS 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 STX Europe AS nor any other company within the STX Europe 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 STX Europe AS, any other company within the STX Europe 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.
STX Europe AS undertakes no obligation to publicly update or revise any forward-looking information or statements in the press release, other than what is required by law.
The STX Europe Group consists of many legally independent entities, constituting their own separate identities. STX Europe is used as the common brand or trade mark for most of these entities. In this press release we may sometimes use "STX Europe," "Group, "we," or "us," when we refer to STX Europe companies in general or where no useful purpose is served by identifying any particular STX Europe company.