August 8, 2008
Aker Yards Board recommends STX mandatory offer
Europe's largest shipbuilder seems set to come under Korean control.
The Board of Aker Yards has recommended that shareholders "seriously consider" the mandatory offer for the company's outstanding shares made by Korea's STX.
The Board believes that the offer price values the company below the long-term value potential identified by the Board and management, but can be considered as fair in today's market conditions.
Board chairman Svein Sivertsen, who holds 15,000 shares in the company, Vice Chairman Ole Melberg, who holds 12,500 shares, CFO Ole Heggheim, who holds 26,500 shares and EVP Roy Reite, who holds 12,500 shares intend to tender their shares pursuant to the terms of the STX Mandatory Offer.
SECOND QUARTER RESULTS
Meantime, Aker Yards said there was "need for further improvement" in reporting second quarter results that showed an EBITDA result of NOK 72 million for the continuing operations, up from NOK-162 million in the same period last year. For the first half of 2008 Aker Yards had an EBITDA result of NOK 282 million. Earnings per share (EPS) were NOK -0.48 for the quarter and NOK -0.10 for the first half of 2008. With the deliveries of another three ferries during the quarter, the execution of the ferry orderbook in Finland is progressing as planned.
In the second quarter of 2008, Aker Yards' continuing operations had revenues of NOK 7 922 million, an increase of 31.4 percent compared with NOK 6 027 million in the corresponding period of 2007. The EBITDA result for the second quarter was NOK 72 million, giving an EBITDA margin of 0.9 percent. The EBITDA result in the quarter is negatively influenced by an ongoing project within Offshore & Specialized Vessels. The project, consisting of a series of ten vessels, has suffered from late and poor quality deliveries from sub suppliers affecting the results for 2008. Further, one-off charges of a total of NOK 90 million in Other Operations have affected the EBITDA result in the quarter negatively. Revised guidance for 2008 is an expected EBITDA margin for Aker Yards of two to three percent.
For the first half of 2008, revenues were NOK 15 393 million, an increase of 19.3 percent compared with NOK 12 900 million in the same period of 2007. The EBITDA result was NOK 282 million, compared with NOK 297 million in the corresponding quarter of 2007. The EBITDA margin for the first half of 2008 was 1.8 percent.
Earnings per share (EPS) were NOK -0.48 in the quarter, compared with NOK 1.97 in the same period in 2007. For the first six months of 2008, EPS were NOK -0.10, compared with NOK 4.11 in the same period in 2007.
Order intake was NOK 592 million in the quarter and NOK 1,462 million for the first half of 2008, giving an order backlog of NOK 55, 211 million comprising 92 vessels at the end of the period.