Eitzen Chemical ASA

Eitzen Maritime Services ASA
“Through dedication and innovation
we will make a difference”
1st Quarter Report 2007
Eitzen Maritime Services ASA (EMS)
Q1 2007 HIGHLIGHTS
Our focus for 1st quarter 2007 has been to grow the
business and restructure or dispose loss making entities.
• Closure of the B Shipmanagement office in Glasgow
and transfer technical management to other EMS Ship
Management offices.
• Complete the sale of Crosscomar SA in Spain.
• EMS Ship Management established a Newbuilding
and Project department in Singapore
• EMS Crew Management established crewing office in
Ukraine together with a local partner
Financial Information
• Operating income for the quarter ended at MNOK
150.2, an increase of MNOK 5.0 from previous
quarter and MNOK 9.3 from same quarter last year.
The growth in income comes from the Ship
Management and Insurance Broker segment whereas
Ship Supply segment reports flat revenue
development.
• The gross margin for the quarter ended at MNOK 63.0
an increase of MNOK 5.5 from previous quarter and
of MNOK 10.9 from same quarter last year.
• The operating result before depreciation, interest and
tax (EBITDA) ended at MNOK 4.0 up from MNOK 7.7 previous quarter and equal to same quarter last
year. The operating results includes one-time charges
related to closure of B Shipmanagement of net
MNOK 1.7
to MNOK 0.4 depreciation of customer contracts
acquired through the purchase of B Shipmanagement
and EMS Insurance Broker (Polaris) last year.
• The equity ended at MNOK 87.0 marginally down from
year end 2006. The equity ratio is 30%.
• As at March 31st EMS cash holdings are MNOK 50
down from MNOK 87 year end 2006.
Key events since the end of the 1st quarter 2007
• Letter of intent with the owners of “Provimar” to
acquire this business. An acquisition of “Provimar” will
significantly expand the global reach and operating
income of the Ship Supply division.
• Agreement with minority owner in EMS Ship
Management in Indian operations to acquire their share
holding.
• Agreement to acquire 100% of the shares in Selandia.
This acquisition strengthens EMS’ strategic position
within crew management.
• Agreement to acquire 49% share holding in Seastar and
100% share holding in Seacrest from the same minority
owners. The companies provides agency and port
services for key EMS customers across India
These acquisitions strengthen EMS’ strategic position in
the ship supply segment and provide a base for further
expansion in India for ship management.
• The operating result before interest and tax (EBIT)
ended at MNOK 2.2 up from MNOK – 8.7 previous
quarter and equal to same quarter last year. The
depreciation is higher than prior quarters. This is due
RESULTS
1Q
2006
140,9
52,1
3.8
2,2
1,0
-0,3
Total
2006
590,0
217,2
5,8
-78,7
-84,8
-93,2
Revenue and gross margin development per quarter
180
160
140
120
100
80
60
40
20
0
70
60
50
40
30
20
10
0
MNOK
Operating inc.
Gross profit
EBITDA
EBIT
Result bef. taxes
Result after taxes
1Q
2007
150,2
63,0
4,0
2,2
1,8
0,7
MNOK
Result
MNOK
1q
2q
3q
4q
1q
2q
3q
4q
1q
2005 2005 2005 2005 2006 2006 2006 2006 2007
Gross Margin
Revenue
EMS ASA’s consolidated accounts have been prepared in
accordance with IFRS. The accounts have not been audited. The
tax calculations for the period are based on provisional estimates.
The company operates under a variety of tax regimes and the
subsidiaries have different tax positions that cannot be set off
across national borders. The quarterly report has been prepared in
accordance with IAS 34.
2
MARKET DEVELOPMENTS
On February 1st 2007 Eitzen Maritime Services rebranded all business units. TESMA was re-branded to
EMS Ship Management, Stromme to EMS Ship Supply
and Polaris to EMS Insurance Broker.
Development in EMS Ship Management
Ship Management continues its positive development this
quarter. Revenues exceeded MNOK 35, up from MNOK
32 previous quarter and up from MNOK 29 same quarter
last year. The segment also reports improved EBITDA of
MNOK 4.7. The results include a negative EBITDA
contribution from B Shipmanagement of MNOK 1.7
resulting from the closure of the company’s office in
Glasgow on April 1st.
During the quarter, EMS Ship Management operated 116
vessels on technical management. At the end of 1st quarter
2007 EMS Ship Management have contracts to take over
technical management for another 14 vessels within the
end of 2007 so far.
Crew management also developed positively during the
quarter. Per the end of the quarter EMS manned 225
vessels with 2,600 seafarers out of a pool of seafarers
exceeding 4,300. The full acquisition of our existing JV
operation in India together with a new crew office in
Ukraine will be important in securing a qualified pool of
officers and crew in an increasingly tight market.
EMS Ship Management has established a Newbuilding &
Project department out of Singapore. EMS Ship
Management already has contracts for supervision of 21
new building projects. Additional services will be 3rd
party inspections for S&P, in addition to major
conversions and dry dockings.
Development in EMS Insurance Broker
The 1st quarter results were positive. There is an increase
in contracts and the unit has secured the first P&I
contracts ever in the quarter. The EBITDA contribution
was MNOK 0.9 for the quarter.
Revenue and EBITDA per quarter Ship Management &
Insurance Broker segment
Development in EMS Ship Supply
The 1st quarter results for Ship Supply are mixed. The
operating income ended at MNOK 111 which equal with
same quarter last year and previous quarter. The top-line
development conceals positive development in operating
income from Ship Supply and Logistics where the
subsidiaries in Singapore and the Netherlands are
performing well. This positive development is offset with a
negative income development from Marine Equipment and
Marine Spares.
The gross margin ended at MNOK 23.9, up MNOK 1.3
from same quarter last year. The gross margin rate reached
21.5% up from 21.2% in pervious quarter and from 20.3%
for same quarter last year
EBITDA ended at MNOK 2.0 which is an improvement
from MNOK -6.2 in previous quarter and from MNOK 0.3
for same quarter last year.
Even though the operating income from Marine Equipment
and Marine Spares was low in the quarter, the sales
activities continued to be high and the inflow of orders
during the quarter was good. The order reserve for EMS
Ship Supply is developing positively and is currently at its
highest level. It ended on MNOK 59 at the end of the 1st
quarter, up MNOK 13 from year end last year. Of the
MNOK 59, a total of MNOK 43 comes from the Marine
Equipment product area.
Development in Order book per quarter own branded
products
MNOK
Order
backlog
40,0
6,0
30,0
4,0
20,0
2,0
10,0
-
-
EBITDA
4q 2006
4Q
2006
45.8
1Q
2007
58.9
1q 2007
Revenues
10,0
8,0
6,0
4,0
2,0
(2,0)
(4,0)
(6,0)
(8,0)
150
125
100
75
1q 2006 2q 2006 3q 2006 4q 2006 1q 2007
25
EBITDA
3
50
Operating income
MNOK
8,0
MNOK
50,0
3q 2006
3Q
2006
53.7
Operating income and EBITDA development per
quarter for the Ship Supply segment
10,0
2q 2006
2Q
2006
56.2
Revenue and EBITDA per quarter Ship Supply segment
Revenue and EBITDA development for the Ship
Management and Insurance Broker segment
1q 2006
1Q
2006
52.4
CONTACT INFORMATION
CEO
Annette Malm Justad
Tel:
+47 95 20 93 96
E-mail: [email protected]
CFO
Knut Abrahamsen
Tel:
+47 92 40 10 38
E-mail: [email protected]
Lysaker, 14th May 2007
The Board of Directors of Eitzen Maritime Services ASA
4
PROFIT AND LOSS MARCH 31 2007
Val. 1 000 NOK
1Q 2007
1Q 2006
2006
111 161
111 480
468 203
39 076
29 473
121 840
Total operating income
150 237
140 953
590 043
Cost of goods sold
-87 244
-88 851
-372 820
62 993
52 102
217 223
Employee benefit costs
-35 631
-27 520
-128 207
Other operating expenses
-23 326
-20 761
-83 231
4 036
3 821
5 785
Depreciation
-1 931
-1 105
-4 742
Write downs
0
0
-79 952
96
-513
227
2 201
2 203
-78 683
-534
-448
-2 740
173
-671
-3 389
1 840
1 084
-84 811
-1 148
-1 373
-8 424
692
-289
-93 235
Majority interest
-876
-658
-2 400
Minority interest
-183
-370
-95 635
-692
-288
93 235
106 476 686
103 353 793
105 772 786
- basic
0,00
0,00
-0,90
- dilluted
0,00
0,00
-0,90
Sales
Management fee and other income
Gross result
EBITDA
Share of result of associated company
Operating profit/loss (EBIT)
Net interest
Other financial items
Profit/loss pre tax
Tax
Net profit/loss
Attributable to:
Earnings per share for profit attributable to majority
during the quarter/year (expressed in NOK per share)
Average number of shares
BALANCE SHEET MARCH 31ST 2007
Val. 1 000 NOK
1Q 2007
1Q 2006
2006
Intangible fixed assets
Tangible fixed assets
Financial assets
Total fixed assets
65 614
13 907
1 984
81 505
136 503
13 801
7 424
157 728
67 113
13 708
6 315
87 136
Inventories
Current receivables
Short term placements
Cash and bank deposits
Total operating assets
17 319
141 183
282
50 729
209 513
17 762
105 635
0
46 826
170 223
16 208
108 845
180
87 222
212 454
Total assets
291 018
327 951
299 591
185 375
-102 896
4 549
87 028
170 406
0
4 250
174 656
185 559
-101 087
3 415
87 888
Provisions
Long term liabilities
Current liabilities
Total liability
2 805
40 871
160 315
203 990
340
19 283
133 672
153 295
3 203
41 147
167 354
211 703
Total liabilities and equity
291 018
327 951
299 591
Called up share capital
Other equity
Minority shareholders' interest
Equity
6
EQUITY
NOK ’000
Equity at start of period
Share issue
Net purchase own shares
/dividend
Result for the period
Other
Change, foreign exchange rate
Equity close of the period
1 Q 2007
87,888
0
1 Q 2006
53,324
2006
174,884
11,487
-1,808
692
1,780
-1,524
87,028
0
1,760
485
-1,498
54,071
-1,838
-93,235
98
-3,509
87,888
The directors consider the company's equity to be satisfactory.
Cash flow
NOK ’000
Change from operations
Change from investments
Change from financing
Net change cash
Cash holding start of period
Cash holding end of period
1 Q 2007
-40 111
-1 853
5 472
-36 493
87 222
50 729
1Q 2006
-1,463
-1,158
5,685
3,063
43,763
46,826
2006
31,698
3,519
8,241
43,458
43,763
87,222
Primary report format: business areas
Eitzen Maritime Services ASA represents a group of international companies mainly supplying goods and services
to the marine sector. Primary report format is in the following business areas:
EMS Ship Supply –Marine Equipment and Supply/Logistics and Spare Parts
EMS Ship Management & EMS Insurance Brokers –Ship Management, Crewing and Insurance
Marine Equipment, Supply/Logistics and Spare Parts
NOK ’000
1 Q 2007
1 Q 2006
Sales income
111,169
111,615
EBITDA
1,927
382
EBIT
951
-915
2006
468,754
2,648
-80,003
Ship Management, Crewing and Insurance
NOK ’000
1Q 2007
Sales income
39,668
EBITDA
5,692
EBIT
4,738
2006
122,048
14,134
12,214
1 Q 2006
29,337
3,439
3,118
Eitzen Maritime Services ASA
Strandveien 50
P.O.Box 216
1326 Lysaker
Norway
Tel: + 47 67 11 98 40
Fax: +47 67 11 98 49
www.ems-asa.com