Ferry Delivery Schedule Revised; Offshore spin-off Mulled

Tuesday, December 18, 2007
As a result of the continued very heated situation in the shipbuilding industry, and continued high loading in the Finnish operations, the delivery program for ferries in Finland has been further revised. Several of the projects will be delivered some weeks or months later than planned. As when the delivery plan is been shifted, the project estimates have been revised accordingly, and results for 2007 and 2008 will be impacted. Further, the Board of Directors has decided to evaluate a possible spin-off of the business area Offshore & Specialized Vessels in order to enhance shareholder values. The Finnish operations of Aker Yards have taken losses in 4Q on its order book by NOK 400 million, lowering the expected result for Aker Yards in 2007 to approximately NOK 500 million EBITDA. The net profit is estimated at about NOK 350 million. The losses in Finland will have a diluting effect on margins in 2008. The margin level on cruise vessels in Finland has also been revised downwards. The combined effect gives an estimated EBITDA margin for the Group for 2008 at around 4 percent. The main reason for the revised estimates lies in the previously communicated heavy load in the Finnish operations. The very high level of growth in activity level at the same time as the market is booming has lead to a lack of resources giving a knock-on effect on the total backlog in Finland. For this reason, the deliveries had to be adjusted to a more significant degree than previously anticipated. Towards summer 2008 loading will gradually be coming down. In order to enhance shareholder values, the Board of Directors has decided to evaluate a possible spin-off of the business area Offshore & Specialized Vessels. Several alternative routes will be evaluated, including spinning the business area off to existing shareholders, by a separate stock listing, or other alternatives that will be attractive to all shareholders. This measure should contribute to identifying the underlying values of the Group.
Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MARAD to Host Meeting on Proposed Delfin LNG License

MARAD Announces Public Scoping Meetings for Proposed Delfin Liquefied Natural Gas Deepwater Port Export Facility.   On July 29, the Maritime Administration

Substantial Demand Underscores Need for TIGER Grants

U.S. Transportation Secretary Anthony Foxx has announced that applications to the U.S. Department of Transportation for its seventh round of Transportation Investment

Maritime Museum Christens San Salvador Replica

The Spanish ship San Salvador is the embodiment of California’s origin story. The ship’s voyage in 1542, with Juan Rodríguez Cabrillo at the helm, established California

Shipbuilding

Bollinger Delivers 14th FRC to USCG

Bollinger Shipyards has delivered the 14th Fast Response Cutter (FRC), Heriberto Hernandez, to the United States Coast Guard (USCG). The 154-foot patrol craft

Maritime Museum Christens San Salvador Replica

The Spanish ship San Salvador is the embodiment of California’s origin story. The ship’s voyage in 1542, with Juan Rodríguez Cabrillo at the helm, established California

Brazilian Police to Probe Nuclear Submarine Program

Brazilian federal police are investigating potential irregularities in a military program that aims to build a nuclear-powered submarine in partnership with France by 2023, newspaper Folha de S.

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2075 sec (5 req/sec)