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Aker Yards ASA (OSL:AKY) STX Europe ASA reported an EBITDA result of NOK 45 million for the third quarter of 2008 for the continuing operations, down from NOK 138 million in the same period last year. While the revenues grew with 14.2 percent and new order intake amounted to NOK 7 344 million, an ongoing project within Offshore & Specialized Vessels for A.P. Moller - Maersk AS continued to negatively influence the EBITDA result also in the third quarter. The transaction with FLC West was completed at the end of July. This resulted in a profit from discontinued operations of NOK 791 million and increased the equity ratio to 22 percent.
In the third quarter of 2008, STX Europe's continuing operations had revenues of NOK 6 999 million, an increase of 14.2 percent compared with NOK 6 128 million in the corresponding period of 2007. The EBITDA result for the third quarter was NOK 45 million, giving an EBITDA margin of 0.7 percent.
As communicated in the report for the second quarter 2008, several ships in a series of ten vessels for A.P. Moller - Maersk have suffered from delays and poor quality. This project constitutes a significant part of the ongoing projects within the business area Offshore & Specialized Vessels. The problems have continued in the third quarter, and will negatively affect the results for the remainder of 2008.
While measures to improve the project execution for the A.P. Moller - Maersk vessels have been introduced, the impact of this ten vessel delivery program will negatively impact the group results for 2008. As a result, the Board has revised its guidance. The revised guidance for 2008 is an EBITDA margin of one to two percent.
Earnings per share (EPS) were NOK 6.47 in the quarter, compared with NOK 0.16 in the same period in 2007.
During the third quarter, STX Europe delivered a total of twelve vessels. Order intake was NOK 7 344 million in the quarter, giving an order backlog of NOK 56 991 million comprising 86 vessels at the end of the period.
In July, STX Norway AS, already a 40.39 percent shareholder at the time, launched a mandatory offer to acquire all remaining shares in STX Europe. After the offer expired 15 August 2008, STX Norway AS holds 88.39 percent of the total issued shares and 92.46 percent of the voting shares in STX Europe. At an extraordinary general meeting on 3 September, the company's name was changed from STX Europe ASA to STX Europe ASA as a reflection of the new ownership structure.
Being a part of the STX Business Group presents a potential for synergies and sharing of best practices within the group. Benefiting from synergies with STX has already started, within areas such as sourcing, engineering, construction methods, project execution, benchmarking and marketing. Sharing best practices and taking advantage of potential synergies is vital in improving the operations and further develop STX Europe's market position.
During the third quarter, Torstein Dale Sjøtveit took up the position as President & CEO of STX Europe ASA.
Please find enclosed the full version of the third quarter report for 2008.
Disclaimer 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 ASA 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 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 STX Europe ASA 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 ASA, 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 ASA 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.
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