Aker Yards – 3rd Quarter 2007 – Results as Anticipated in a Heated Environment

Aker Yards ASA reported an EBITDA result of NOK 200 million for the third quarter of 2007. The fast growth in the heated environment has, as previously announced, resulted in operational challenges. Significant operational improvement measures are under implementation. The very high loading will continue until next summer, and will gradually be taken down to a more normalized level. Both revenues and profit are expected to increase in the fourth quarter, mainly as a result of normal seasonal fluctuations between the quarters.

Aker Yards had revenues of NOK 7 508 million in the third quarter of 2007, an increase of 15.4 percent compared with NOK 6 505 million in the corresponding period of 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. As announced in the second quarter, the operations in Finland are suffering from high pressure on subcontractors, and demand a careful follow up in order to reduce delays on projects and cost overruns. In Florø, operations are still challenging, with a tight delivery program in a heated environment. A stretched suppliers market causes delays, and a number of deliveries from suppliers are still suffering from unacceptable quality. The challenges are as described in earlier quarters, and no new major operational challenges have surfaced during the quarter.

Aker Yards had an EBITDA result of NOK 200 million in the third quarter of 2007, compared with NOK 304 million in the corresponding quarter of 2006. The EBITDA margin for the third quarter of 2007 was 2.7 percent.

Earnings per share (EPS) were NOK 0.16 for the quarter, compared with NOK 1.02 in the same period in 2006.

Order intake in the third quarter was NOK 4 459 million, giving an order backlog of NOK 80 821 million at the end of the quarter, comprising 138 vessels.

The result for the fourth quarter is anticipated to be higher, and revenues will increase as a result of normal fluctuations between the quarters.

After the end of the third quarter, the STX Group of Korea announced it had acquired a 39.2 percent stake in Aker Yards.

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