Aker Yards ASA reported an EBITDA result of minus NOK500 million ($96 million) for the fourth quarter of 2007. The EBITDA result for 2007 was NOK 16 million, down from NOK1 443 in 2006. Earnings per share (EPS) were minus NOK2.81 for the quarter, and NOK0.95 for the full year 2007.

Fast growth in the very heated environment has, as previously announced, resulted in operational challenges in the quarter, and affected the 2007 results negatively. Loss provisions have been made for several projects. The loading in ferries will gradually come down to a more normalized level by the end of 2008. The guidance for 2008 is maintained at an EBITDA margin level of around 4 percent.

Order intake in the fourth quarter was NOK 5.45 billion, giving an order backlog of NOK78.96 billionat the end of the quarter, comprising 140 vessels. Aker Yards had revenues of NOK 9 683 million in the fourth quarter of 2007, an increase of 23.9 percent compared with NOK 7 815 million in the corresponding period of 2006.

Aker Yards had an EBITDA result of NOK -500 million in the fourth quarter of 2007, compared with NOK 401 million in the corresponding quarter of 2006. The EBITDA margin for the fourth quarter of 2007 was -5.2 percent. A loss provision of around NOK 600 million has been made related to the Finnish operations in the fourth quarter. A further loss provision in Florø of NOK 150 million has also been made in the quarter.

Earnings per share (EPS) were NOK -2.81 for the quarter, compared with NOK 4.35 in the same period in 2006. The operational environment in the entire shipbuilding industry is still very heated.

Access to qualified personnel is a key focus area in most of the countries in which Aker Yards operates. The operations in Finland are still suffering from high pressure on subcontractors. A stretched suppliers market causes delays, and a number of deliveries from suppliers are still suffering from unacceptable quality. These challenges have been addressed through specific improvement measures, which are gradually taking effect.

The loading in ferry construction is gradually coming down towards a more normalized level.

In October, the Korean shipbuilding group STX acquired a 39.2 percent ownership stake in Aker Yards. The EU competition authorities are currently evaluating the acquisition of the shares. The Board of Directors proposes not to pay any dividend for 2007.

Tags: Aker Yards