Norway: STX OSV Expects Benefit from Renewed Demand for Larger Vessel

STX OSV Holdings Limited (STX OSV), together with its subsidiaries, a major global designer and shipbuilder of offshore and specialized vessels headquartered in Norway, reports robust order intake for the first quarter ended 31 March 2012 (1Q 2012) amounting to NOK 2.34 billion (USD 394.85 million). As at 31 March 2012, STX OSV’s total order book of 53 vessels is worth NOK 16,036 million.

The robust order intake signals a possible rebound in order activity for high-end offshore support vessels, which experienced a slowdown during the third and fourth quarters of 2011, although the Group has yet to witness a sustained higher level of new order intake. Operating revenues were slightly lower than for the same period last year (1Q 2011), due to normal fluctuations in the project portfolio, and amounted to NOK 2,811 million. The Group’s EBITDA margin (EBITDA to total revenue) held steady at 14.0% compared to EBITDA margin of 13.8% for 1Q 2011.

During 1Q 2012, four new vessel orders amounting to NOK 2,342 million were secured, and five vessels were delivered, bringing STX OSV’s total order book to 53 vessels worth NOK 16,036 million as at 31 March 2012. Of these, 29 are of STX OSV’s own design. Notably, the new orders for the quarter comprise two Offshore Subsea Construction Vessels (OSCVs) and two large Anchor Handling Tug Supply Vessels (AHTS), all complex projects with contract values above the average of 2011 orders. Since the end of 1Q 2012, STX OSV has secured three additional contracts which include two OSCVs and one AHTS.

Mr Roy Reite, Chief Executive Officer and Executive Director of STX OSV, said, “Despite persistent macroeconomic uncertainty, we believe the financing climate has somewhat improved, and funding is available to the strongest customers and the best projects. We see renewed demand for larger, more complex and customized vessels, which caters perfectly to STX OSV’s core capabilities. We remain confident in our ability to seize opportunities in a market upturn, and will continue to invest in technology to reinforce our competitive edge in the industry.”

In Brazil, the existing shipyard is operating at very high load in order to ensure successful execution of projects in the existing order book, and development of the new yard is progressing. Vietnam reports stable operations and on-time delivery of the final vessel in the initial series of six.