STX OSV reports strong first quarter

Singapore-listed, Norwegian headquartered shipbuilder STX OSV Holdings Limited announced results for the first quarter ended March 31, 2011 that included an increase of 21percent in operating revenue to NOK 3,192 million. EBITDA jumped 54 percent  to NOK 439 million.

New order intake for the quarter totaled NOK 1,182 million, including three new PSVs slated to be delivered from Norway as well as variation orders on existing projects.  As at March 31, 2011, STX OSV’s total order book stood at 46 vessels, 34 of them being built to STX OSV’s own design.

During the quarter, STX OSV delivered six vessels fom its shipyards in Norway, Vietnam and Brazil, with 19 vessels remaining for delivery in 2011.

Second Shipyard in Brazil

STX OSV also announced that it has obtained the environmental license for construction of the new shipyard development at Suape, Pernambuco, Brazil. Shipyard construction is expected to start in mid 2011, as planned, with construction of the first vessels estimated to start in 2012 and full operations of the yard scheduled for 2013.

Outlook

STX OSV says it is seeing an increase in the number of project inquiries as a result of a higher activity level in the offshore market. Order momentum is also expected to accelerate toward the second half of 2011, in line with industry expectations for utilization and day rates in the PSV and AHTS segments to pick up, as well as for the demand for OSCVs to improve through the year.

The trend towards deeper water exploration, which is a fundamental growth driver underpinning the industry, remains strong, and the group expects to continue capitalizing on this trend with its strong expertise in building vessels with advanced specifications. STX OSV believes it is fundamentally well-positioned to seize opportunities when the market picks up, and to reinforce its market position.

May 10, 2011