In 2010, the TTS Group ASA reported earnings before depreciation (EBITDA) of NOK 3.7 million, compared to a loss of NOK 84.3 million in the previous year. EBITDA in the fourth quarter showed a loss of NOK 13.7 million. – With regard to results, 2010 was weaker than expected. However, the market for our products is recovering. The order intake in the fourth quarter was NOK 1 467 million, which is the highest order intake for one single quarter since the third quarter of 2008. This positive trend has continued in 2011, says Johannes D. Neteland, President and CEO.
The TTS Group’s total turnover in 2010 was NOK 3 241 million, a 15 percent decrease compared to the previous year. The group reported a pre-tax loss of NOK 156.1 million, compared to a loss of NOK 311.9 million in 2009.
The net result was a loss of NOK 196.7 million, compared to a loss of NOK 248.5 million the year before. TTS’ order backlog at the end of 2010 was NOK 3 996 million, compared to NOK 4 510 million at the start of the year. The order intake in 2010 was NOK 3 291 million, of which NOK 1 467 million during the fourth quarter. The order intake in the fourth quarter of 2009 was NOK 554 million.
Positive year for the Marine division
The Marine division is supplier of equipment for cargo access and cargo handling onboard vessels. Turnover in 2010 was NOK 2 230 million, a decrease of 4 percent compared to the previous year.
The division reported an operating profit before depreciation of NOK 158.7 million, compared to 93.7 million in 2009. Operating profit for the fourth quarter was NOK 46.2 million.
The level of activity in the division increased toward the end of the year, in particular in China, which has shown a solid growth rate throughout the year. Based on an increasing share of turnover relating to service and after sales market, the profit margin of the division has improved.
The Marine division’s order backlog at the end of 2010 was NOK 2 228 million, compared to NOK 3 758 million in the previous year. These figures include 50 percent of the order backlog of the joint ventures TTS Hua Hai Ships Equipment Co Ltd. and TTS Bohai Machinery Co Ltd in China. The order intake in the fourth quarter was NOK 801 million.
Port and Logistics – a division in progress
The Port and Logistics division supplies production lines and systems for material handling in shipyards and other industries, and loading and handling systems for ports. Turnover in 2010 was NOK 299.2 million, a decrease of 10 percent compared to the previous year.
The division’s operating profit before depreciation was NOK 20.6 million, compared to NOK 19.5 million in 2009. Operating profit in the fourth quarter was NOK 1.7 million.
The level of activity in the division in 2010 was still somewhat marked by the financial crisis.
At the end of 2010, the order backlog of the Port and Logistics division was NOK 102 million, compared to NOK 242 million at the start of the year. The order intake in the fourth division was NOK 65 million.
The Energy division acquires new orders
The Energy division supplies offshore cranes and drilling equipment for offshore rigs, as well as complete drilling units for land-based drilling. Turnover in 2010 was NOK 712.1 million, a 40 percent decrease compared to 2009.
The division noted an operating loss of NOK 168.6 million, compared to a loss of NOK 192 million in the previous year. Operating profit in the fourth quarter was a loss of NOK 58.1 million. Operations were influenced by a extremely low level of activity in the offshore cranes and land rigs segment, as well as low margins on orders in progress. The division has carried out further write-offs on cancelled orders.
The activity in the market for products and services supplied by the Energy division is however on an upward trend. In November 2010, TTS entered into an agreement with the Chinese shipbuilding group Dalian Shipbuilding Industry Corporation (DSIC) regarding strategic cooperation on delivery of drilling equipment to the offshore drilling industry. Parallel to this agreement on strategic cooperation, TTS entered into an agreement with DSIC for the delivery of two drilling equipment packages for jack up rigs, ordered by Prospector Offshore Drilling, to a total value of USD 76 million. Through its offshore company DSOC, DSIC holds options for the delivery of additional three jack up rigs.
At the end of 2010, the order backlog of the Energy division was NOK 690 million, compared to NOK 540 million at the end of 2009. The order intake in the fourth quarter was NOK 600 million.
TTS’ capital situation strengthened – positive outlook
In January 2001, TTS strengthened the group’s capital situation though raising a subordinated convertible loan of NOK 200 million.
- There is still uncertainty related to future market developments, however, TTS has a higher rate of progress and improved order backlog when entering into 2011, than it had in the previous year, says Johannes D. Neteland.
About TTS Group ASA
TTS Group ASA is an international group that develops and supplies handling equipment for ships, ports and offshore oil and gas installations. Operations are organised into the business areas Marine, Energy and Port and Logistics. TTS is among the world’s leading suppliers within its market segments.
At the start of 2011, the TTS Group had 1 250 permanent employees (not including associated companies), with a primary emphasis on engineering skills. The group has operative units in 15 countries: Norway, Sweden, Finland, Germany, the Czech Republic, Italy, Greece, China, USA, Canada, Mexico, Brazil, South Korea, Vietnam and Singapore.
TTS Group ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange. Johannes D. Neteland (53) has been President and CEO of TTS since 1998.
Johannes D. Neteland, President & CEO
Tel.: +47 918 46 906
Arild Apelthun, CFO
Tel.: +47 918 19 265