Q2 2009, Strong Improvement in OSVs

STX Europe AS reported an EBITDA result for the Group of $12.3m for the second quarter of 2009, up from $11.08m in the corresponding period last year. With improved cost control and overall satisfactory operational performance, the business area Offshore & Specialized Vessels reported strong progress in the quarter with an EBITDA result of $25.3m, up 228 percent from the same period last year. Overall, activity levels remained high during the quarter, with the successful delivery of eleven vessels.

In general, operations at the yards have progressed according to plan. During the first six months of 2009, STX Europe delivered a total of 22 vessels, of which eleven were delivered in the second quarter.
 
Within Cruise & Ferries, a negative EBITDA margin in the second quarter of -2.0 percent reflects increasing capacity costs in both Finland and France as well as costs related to staff layoffs. Furthermore, some projects have a negative impact on the results although the majority of ongoing projects within Cruise & Ferries are proceeding as expected.
 
Offshore & Specialized Vessels delivered a satisfying EBITDA margin of 6.5 percent for the second quarter of 2009, up from 1.7 percent in the same period of 2008.
 
The Board of Directors is pleased that the comprehensive improvement measures which have been implemented are starting to show results. This should result in better operational stability, despite the current challenges related to low ordering activity. The Board of Directors is committed to continue the improvement processes and to strengthen the Company's position as the world's premier shipyard group for construction of large cruise vessels and advanced offshore services vessels. 
 
During the quarter, it was announced that vessels built by STX Europe have won several awards, including Ship of the Year and the Heyerdahl Environmental Award 2009.
 
In May 2009, it was announced that Sang-Ho Shin had been appointed President & CEO of STX Europe. Shin came from the position as Chief Operating Officer of the company and brings with him extensive experience from thirty years in the shipbuilding industry. Sang-Ho Shin took over from Torstein Dale Sjøtveit.
 
After the end of the quarter, STX Europe sold its 30 percent ownership share in Wadan Yards Group AS.
 
(www.stxeurope.com)