Three months into 2008, TTS Marine ASA once again beat all previous records regarding results, turnover and order backlog. The company’s earnings before depreciation were NOK 60.1 million, compared to NOK 32.6 million in the same period last year.
For the first quarter of 2008, turnover was NOK 871 million, compared to NOK 510 million at the same time in 2007. Since the start of the year, the total order backlog has increased with NOK 746 million to NOK 7 695 million at the end of March.
- We are pretty much on target in all five divisions, and we expect an even better second quarter, says Johannes D. Neteland, President and CEO. – We still regard it as likely that TTS’ will continue to report positive results in the long term. A somewhat lower level of activity in the markets for shipbuilding and construction of offshore installations will have an auspicious effect on our purchasing of sub supplies and, accordingly, improve our opportunity for making a profit. All in all, we have an optimistic view of the future, maintains the head of TTS.
The TTS Group’s total turnover for the first quarter of 2008 was NOK 871 million, a 71 percent increase compared to the same period in 2007.
TTS Marine ASA’s pre-tax profit following the first quarter of 2008 was NOK 40.2 million (NOK 27.4 million) and net profit was NOK 28.6 million (NOK 19.5 million).
At the end of the first quarter, TTS had a total order backlog of NOK 7 695 million, including 50 percent of the joint venture companies in China. This is a 263 percent increase from the end of the first quarter of 2007, and an 11 percent increase since the start of 2008.
Dry Cargo Handling Division
Through its activities in the Dry Cargo Handling division, TTS is a leading supplier of cargo handling systems for ships; side loading systems, Ro-Ro equipment, hatch covers and special equipment for yachts and cruise ships.
The Dry Cargo Handling division reported a turnover for the first quarter of 2008 of NOK 270 million, an increase of 20 percent compared to the same period last year. Earnings before depreciation were NOK 23.1 million, compared to NOK 26.6 million in 2007. This decrease in profit is caused by the fact that a considerable part of the division’s deliveries are finished steel structures for the production of hatch covers, and margins here are lower than for other services and deliveries.
In the second quarter, the division signed a contract worth about NOK 400 million for the delivery of ships equipment for a new generation of RoRo vessels, four in all. The vessels, which will be the world’s largest RoRo vessels, will be delivered by the summer of 2012.
The capacity of this new type of ship is considerably greater than any of our previous deliveries, and operation will be electric rather than hydraulic. The contract consolidates the division’s position as leading supplier of equipment for car carriers.
At the end of the first quarter, the Dry Cargo Handling Division reported an order backlog of NOK 2 725 million. This is a 207 percent increase from the end of the first quarter of 2007, and a 4 percent increase since the start of 2008. The figures include 50 percent of the order backlog of the joint venture company in China, TTS Hua Hai Ships Equipment Co Ltd. In general, the markets for the division’s products remain brisk.
Marine Cranes Division
TTS’ Marine Cranes division develops and supplies marine cranes, and is the world’s leading supplier of hose handling cranes. The division is furthermore a major supplier of provisions cranes and cargo cranes. For the offshore sector, the division supplies cranes and other handling equipment for offshore support vessels.
The Marine Cranes Division’s positive development continued in the first quarter. Turnover for the quarter was NOK 255 million, a 65 percent increase compared to the same period in 2007. Earnings before depreciation were NOK 14.2 million, compared to NOK 6.8 million at the end of the first quarter last year.
At the end of the first quarter of 2008, the order backlog of the Marine Cranes Division was NOK 2 606 million. This is a 300 percent increase since 31 March 2007, and a 7 percent increase since the start of the new year. These figures include the order backlog of the joint venture company TTS Bohai Machinery Co Ltd. In China, as these contracts are entered into by by TTS.
Port and Material Handling Division
The Port and Material Handling division supplies shipyard production systems and systems for onshore handling containers.
The division reported a turnover for the first quarter of 2008 of NOK 69 million, an increase of 19 percent compared to the same period of 2007. Earnings before depreciation were NOK 4.9 million compared to NOK 2.2 million at the end of the first quarter of 2007. This period has seen a particularly high level of activity related to deliveries of production equipment, and margins here are lower than for port equipment.
At the end of the first of 2008, the order backlog of the Port and Material Handling division was NOK 315 million. This is an increase of 7 percent since 31 March 2007, and an increase if 46 percent since the start of the new year. The market outlook for the division’s products remains good.
Deck Machinery Division
The Deck Machinery division supplies anchor handling and mooring winches for ships.
In the first quarter of 2008, the division reported a turnover of NOK 71 million, a 3 percent decrease compared to the same period of 2007. Earnings before depreciation were NOK 4.8 million, compared to a deficit of NOK 2.8 million in 2007. The division has achieved very good results in its work with restructuring its operations.
The order intake of the Deck Machinery division was at a very high level, and the market outlook is still good. The order backlog at the end of the first quarter of 2008 was NOK 705 million. This is an increase of 42 percent since 31 March 2007, and a 4 percent increase since the start of the new year.
Drilling Equipment Division
TTS Marine AS established the Drilling Equipment division in connection with its takeover of Sense EDM in May this year. Since TTS became owner, the company has entered into contracts for the delivery of two complete packages with equipment for jack-up rigs offshore. Furthermore, the company, which changed its name to TTS Sense AS effective as of 1 May this year, will deliver nine large drilling rigs as well as two smaller work-over rigs for onshore use to Ability Drilling ASA. Work on developing the patented land rig concept has been demanding, but the concept is expected to have a significant market potential. For the first quarter of 2008, the Drilling Equipment Division reported a turnover of NOK 207 million and earnings before depreciation of NOK 12.1 million.
As of 31 March 2008, the Drilling Equipment division had an order backlog of NOK 1 344 million. This is a 34 percent increase since the start of 2008.
Johannes D. Neteland, President and CEO of TTS is pleased that all of TTS’s divisions are showing healthy results. – Our greatest challenge in the day-to-day management securing all of the components necessary to deliver according to the provisions of our contract. We have orders that give us a near full utilisation of capacity until the end of 2009, and the sale of deliveries over the next few years is excellent. We maintain our strategy of growing organically and through the acquisition of new companies, emphasises the head of TTS.
About TTS Marine ASA
TTS Marine ASA is an international group that develops and supplies handling equipment for ships, ports and offshore installations. Operations are organised into the following five divisions: Dry Cargo Handling, Marine Cranes, Ports and Material Handling, Deck Machinery and Drilling Equipment. The TTS Group is among the world’s leading suppliers within its market segments.
The TTS Group has around 1 250 employees (including associated companies), with a primary emphasis on engineering skills. The group has a total of 26 operative units in 12 countries; Norway, Sweden, Finland, Germany, the Czech Republic, Italy, China, USA, Canada, South Korea, Vietnam and Singapore.
TTS Marine ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange. Johannes D. Neteland (50) has been President and CEO of TTS since 1998.
Contact:
President & CEO Johannes D. Neteland, TTS Marine ASA
Phone: +47 55 94 74 02 Mobile: +47 918 46 906
Email: johannes.neteland@tts-marine.no
Financial Director Olav Bruåsdal, TTS Marine ASA
Phone: +47 55 94 74 25 Mobile: +47 915 61 152
Email: olav.bruasdal@tts-marine.no