STX OSV Announces 4Q 2011 Results

STX OSV Holdings Limited, a major global designer and shipbuilder of offshore and specialized vessels headquartered in Norway,  announces its results for the fourth quarter (“4Q 2011”) and fullyear ended 31 December 2011 (“FY 2011”).

STX OSV generated operating revenue of NOK 3.11 billion in 4Q 2011 and NOK 12.40 billion for FY 2011 with the successful delivery of 23 vessels during the year. The Group’s 4Q 2011 operating profit more than doubled from a year ago to NOK 820 million and grew by 83% to NOK 2.21 billion for the full year.

EBITDA increased to NOK 876 million for 4Q 2011 and NOK 2.36 billion for FY 2011, yielding an EBITDA margin (EBITDA to total operating revenues) of 19.0% for the full year. Earnings per share came in at NOK 1.35 (SGD 29.3 cents). The increase from FY 2010 was largely due to the Group’s stable operating performance, improved productivity levels and well-utilized yards.

Successful project deliveries and the release of risk contingencies to profit at the end of complex projects contributed to the exceptional financial results.Cash and cash equivalents increased to NOK 3.06 billion as of 31 December 2011 as the Group continued generating positive operating cash flow, while the draw-down on construction loans was reduced at the same time.

Net asset value as at 31 December 2011 was up 48% to NOK 3.51 billion (SGD 761 million). Based on the Group’s exceptional financial performance in 2011, the Board of Directors expects to recommend STX OSV to pay a final dividend of SGD 10 cents per share for FY 2011. The recommended dividend for FY 2011 will be announced in early April for approval at the Annual General Meeting in late April 2012.

Over the year, the Group has demonstrated sustained strong operational performance due to improvements in productivity as well as key health, safety and environment (“HSE”) indicators. Norway and Romania are registering excellent performance, good yard utilization and high rate of ontime deliveries. The existing Brazil yard is operating at maximum capacity, and is facing some constraints in the subcontractor market. Developments at the Group’s newest yard in Vietnam continue on a positive path, with two out of three vessels in 2011 being delivered ahead of time.

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Offshore Wind Staff , February  15, 2012; Image: stxosv