During 2008, TTS Marine ASA will exceed a turnover of NOK 4 billion. – We had the ambition to increase our turnover by 45 percent.
Presently TTS’s growth will exceed 60 percent, and our turnover will continue to increase in the years to come, says Johannes D. Neteland, President and CEO of TTS Marine ASA. He notes that so far this year, TTS has once again beaten all previous records with regard to results, turnover and order backlog.
Earnings before depreciation totalled NOK 123.7 million, compared to NOK 76 million in the same period last year. Turnover for the first half of 2008 was NOK 1 945 million, compared to NOK 1 126 million for the same period of 2007. Since the start of the year the total order backlog has increased by NOK 1 281 million to NOK 8 230 million. – This growth is beyond expectations, and on the bottom line we are delivering as predicted. During 2008, a substantial part of the activity is related to deliveries of hatch covers and cargo cranes for bulk carriers, where the rising cost of steel has negatively affected our margins. For 2009, the extent of such deliveries will lessen, which in turn will have a positive effect on profits, says Neteland.
Pretax profit of TTS Marine ASA following six months operations was NOK 82.4 million (NOK 58.2 million) and net profit was NOK 60.2 million (NOK 42.2 million).
The order backlog has increased 100 percent since the first six months of 2006, and increased by 18 percent since the start of 2008. The order intake for the third quarter is at a very healthy level.
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 offshore vessels, yachts and cruise ships.
The Dry Cargo Handling division had a turnover of NOK 628 million in the first six months of 2008, an increase of 26 percent compared to the same period in 2007. Operating profit before depreciation was NOK 50.9 million, compared to NOK 46.8 following the first six months of 2007.The progression of profit is influenced by the fact that a major part of the division’s deliveries are finished steel structures for the production of hatch covers, in which margins are lower than for other services and deliveries. The share of such deliveries will diminish in the second part of 2009. As regards the margins for deliveries to Ro-Ro vessels and for other ships equipment, these remain good.
Six months into 2008, the Dry Cargo Handling Division reported an order backlog of NOK 3 263 million, an increase of 132 percent from the same time in 2007 and an increase of 25 percent since the start of 2008. 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 provision cranes and cargo cranes. For the offshore sector, the division supplies cranes and other handling equipment for vessels and installations related to drilling and the production of oil and gas.
The Marine Cranes Division reported a turnover for the first half of 2008 of NOK 553 million, an 87 percent increase compared to the same period in 2007. Earnings before depreciation were NOK 22.1 million, compared to NOK 12.2 in the first half of 2007. NOK 6 million has been allocated in the accounts as allowance for an increase in steel prices related to the deliveries of cargo cranes for bulk carriers. The progression of profit is expected to improve during the second half of 2008, also for cargo cranes.
Six months into 2008, the order backlog of the Marine Cranes Division was NOK 2 560 million. This is a 155 percent increase since 30 June 2007, and a 5 percent increase since the start of the new year.
Port and Material Handling Division
The Port and Material Handling division supplies shipyard production systems and systems for container handling. So far in 2008, the division has reported a high order intake and improved its results.
During the first half of 2008, the division’s turnover was NOK 168 million, a 0.8 percent decrease compared to the same period in 2007. Earnings before depreciation were NOK 12.0 million, compared to NOK 9 million after the first half of 2007.
At the end of the first half of 2008, the order backlog of the Port and Material Handling division was NOK 388 million. This is an increase of 24 percent since the first half of 2007, and an increase of 80 percent since the start of the new year. The market outlook for the division’s products remains excellent.
Deck Machinery Division
The Deck Machinery division supplies anchor handling and mooring winches for ships. This became a new business segment for TTS about three years ago, following the acquisition of Kocks in Germany. Restructuring of operations have yielded exceptional results.
In the first half of 2008, the division reported a turnover of NOK 165 million, a 28 percent increase compared to the same period of 2007. Earnings before depreciation were NOK 13.4 million, compared to a deficit of NOK 1.1 million six months into 2007.
The order intake of the Deck Machinery division is at a very high level, and the market outlook is excellent. The order backlog at the end of the first half of 2008 was NOK 766 million. This is an increase of 37 percent since the same time in 2007, and a 12 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 last 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, TTS Sense 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 delayed, but TTS and Ability Drilling are working on a new delivery schedule.
For the first half of 2008, the Drilling Equipment Division reported a turnover of NOK 431 million and earnings before depreciation of NOK 25.1 million. The margins are negatively affected by the large land rigs, while the other results remain satisfactory.
Six months into 2008, the Drilling Equipment division reported an order backlog of NOK 1 254 million. This is a 44 percent increase from the same time last year, and a 26 percent increase since the start of 2008. So far in the third quarter, the division has secured contracts for deliveries to a value of about NOK 500 million.
- We are showing healthy results in all five divisions, and our total growth in turnover and order backlog has been formidable. The trends in our markets indicate an even higher level of activity in the years to come, and prospects of further growth in profits remain excellent, says Johannes D. Neteland, President and CEO of TTS. He emphasises that TTS maintains its strategy of growing organically and through the acquisition of new companies.
About TTS Marine ASA
TTS Marine ASA is an international group that develops and supplies handling equipment for ships, ports and for the oil and gas industry. Operations are organised in 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 1 300 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