STX OSV reports growth in revenues and profit

stxosvworkersSTX OSV reports third quarter results that include growth in revenue and operating profit of 57 percent and 52 percent respectively, compared with the same period last year, reaching NOK 3.4 billion and NOK 557 million respectively.

Margin increases were attributed to continued stable operations, successful project execution, improved productivity, and favourable business environment, as well as on-time deliveries of highly complex projects.

In the third quarter, STX OSV secured new contracts for three fishing trawlers for Aker Seafoods ASA. The total new order intake in the quarter amounted to NOK 809 million. Since the end of the quarter, six more contracts have been secured --two firm contracts and four still subject to financing approvals. New order intake for the first nine months of 2011 totaled 14 vessels worth NOK 5,090 million.

Of 24 vessels scheduled for delivery in 2011, 13 had been delivered as at end of the third quarter, with five more delivered sincethen. As of September 30, the company had an order book of 50 vessels, 37 of which will be of STX OSV's own design.

New order intake in the third quarter fell short of expectations, mainly attributed to macroeconomic uncertainties. While the general economic environment remains volatile, STX OSV says it is still getting a healthy level of order inquiries and expects to profit from a strong fundamental market outlook for its key products and markets.

STX OSV's project for the development of a new shipyard at Suape in the state of Pernambuco, Brazil, has commenced preparatory work for construction, with land leveling and dredging of the new harbour basin which began in October. Major works contracts have been signed. Even though the shipyard construction period is expected to last from this year to into first quarter 2014, shipbuilding projects are being scheduled to be ramped up from first half 2013.

Contracts for the construction of eight LPG carriers for Transpetro will be made effective on or around November 17, 2011, triggering first down payments and the start of the construction and delivery schedules for these vessels.

Mr Roy Reite, Executive Director and Chief Executive Officer of STX OSV, commented, "Despite the unstable global economic environment, our core markets Norway and Brazil remain fundamentally strong and continue to demonstrate high activity levels."

November 14, 2011

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