Distribution of company announcements to the professional platforms, finance portals and syndication of important corporate news to a wide variety of news aggregators and financial news systems.
Dockwise Ltd (OSL:DOCK) Bermuda, October 29, 2008. Dockwise Ltd. announces five near term contracts awarded to its subsidiaries, Dockwise Shipping and Offshore Kinematics Inc (OKI), for the transportation of drilling rigs and dredging equipment, and the supply of float-over hardware. Total revenues for the contracts are USD 40 million.
In the light of current financial market conditions, Dockwise reiterates the security of its debt structure and the strength of its cash flow position. Current trading continues consistently in-line with guidance provided at interim results announcement.
2008 & 2009 Contract Awards Dockwise Shipping is to transport the drilling rig, Noble Hans Deul, from its new- build yard in China to its first assignment in the North Sea. Jack-up rig Noble Carl Norberg will be moved from West Africa to a new assignment in Mexico. On behalf of CCCC from China Dockwise Shipping will also transport three loads of dredging equipment to Nigeria and Sri Lanka. All projects are for execution in the final quarter of 2008, with total revenues of more than USD 27 million.
OKI has been contracted by the EOS / Woodside joint venture to provide float-over hardware on the North Rankin B project. For this contract, OKI is to invest USD 4 million in the world's largest test press (12,000 MT with 2 m stroke), an investment enabling OKI to secure a range of similar offshore marine projects. It will also provide for OKI to expand into several services increasingly sought by clients: rubber molding, fabrication and machining. The contract, largely for execution in 2009, has a value of almost USD 13 million.
Financial Update Dockwise's debt structure, covenants and repayment terms are unchanged and its debt facility is unaffected by the recent crisis in the banking industry. Debt has peaked at USD 1,040 million, with 75% of interest fixed at 5.05%. Cash conversion from EBITDA remains stable and consistent with previous quarters. The stated 2008 EBITDA guidance of $225m, provides for comfortable headroom for both principal covenants, leverage (Net Debt / EBITDA) and interest cover for the remainder of the financial year. .
Looking ahead to 2009, the completion of our fleet expansion and refurbishment programme will ensure substantially lower capex; some $ 50 million compared to approximately $ 240 million in 2008. This will allow the Board, as previously stated, to plan for a marked drop in financial gearing and to utilize free cash flow to deleverage the balance sheet. While the Board anticipates achieving a gearing ratio (net debt/EBITDA) of below 3x at end 2009, our covenants permit 3.85x and 3.4x for 2009 and 2010, respectively. Scheduled repayments of debt commence in 2009 ($ 10 million) and continue 2010 ($ 10 million) and 2011 ($ 12.5 million).
A summary of the ratio's will be posted on our website.
André Goedée, Chief Executive, Dockwise Ltd, said: "Progress in 2008 continues according to plan and we see encouraging signs in our markets as we look ahead into 2009. Our investment in fleet refurbishment and expansion during 2008 has equipped Dockwise well to capture growth opportunities in both traditional and new markets.
The current capex programme is nearing completion and following the final installments this winter, Dockwise will become free cashflow positive during the first quarter of 2009. We will then progressively deleverage our business and review options to develop value and reward shareholders."
Dockwise will present Q3 results on 17 November 2008.
Contact: Fons van Lith +1441 5991818 Fons.van.lith@dockwise.com
Notes for Editors: About Dockwise Ltd Dockwise Ltd. has a workforce of more than 1200 people both offshore and onshore. The company is the leading marine contractor providing total transport services to the offshore, onshore and yachting industries as well as installation services of extremely heavy offshore platforms. The group is headquartered in Bermuda with amongst others operational offices in Breda, The Netherlands. The group's main commercial offices are located in The Netherlands, the United States, China, Korea, Australia and Nigeria. The Dockwise Yacht Transport business unit is headquartered in Fort Lauderdale and has offices in France and Italy. The Dockwise Shipping network is supported by agents in Japan, Singapore, Spain, Argentina, Australia and Italy. For further information: www.dockwise.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
