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 November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Shipbuilding

Damen Outfitting First of Nine Bahamas Patrol Boats

The first of nine Damen Stan Patrol 3007s ordered by the Royal Bahamas Defense Force has arrived at Damen Shipyards Gorinchem in the Netherlands for outfitting.

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

New Chinese Shipyard Launches First Ship

The new shipyard facility of Honghua Offshore Oil & Gas Equipment Company in Jiangsu, China, has launched its first ship, an IMT982 Platform Supply Vessel. The vessel,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2229 sec (4 req/sec)