TTS Group posts Q1 2016 results
The TTS Group reported an operating profit before interest, taxes and depreciation (EBITDA) of MNOK 26 for the first quarter of 2016, compared to a zero result for the same period last year. For this quarter the Group reported a profit before tax of MNOK 10.
Following the completion of large loss-generating projects, substantial cost cuts and restructuring, we have reduced the losses in the offshore business unit. At the same time, we see a positive development for several of our marine segments. The order book of our marine segments gives the group a firm foundation for future profitable growth, says Toril Eidesvik, CEO of TTS Group ASA.
The business units RoRo/Cruise/Navy, Shipyard Solutions and Services delivered positive earnings in line with the Group's expectations, while business unit Multipurpose/General Cargo reported a small operating loss in this quarter. Business unit Container/Bulk/Tank contributed positively, even after write-down of a receivable of MNOK 6 from an older project.
Total Group revenue for the first quarter was MNOK 766, up from MNOK 593 in first quarter of 2015. The increase is mainly due to the consolidation of TTS Hua Hai, which had revenue of MNOK 207 in the first quarter. Revenue in the group's other businesses decreased slightly compared to the first quarter of 2015.
Overall order intake for the Group in the first quarter amounted to MNOK 530; up from MNOK 300 in the same period last year. Primarily new contracts for deliveries to car carriers and cruise ships contribute to the increase, in addition to new orders of MNOK 63 at TTS Hua Hai.
The total order backlog as of first quarter was MNOK 3,615.
In April 2016 TTS signed two major orders with a total value of approximately MNOK 195, through the business units Shipyard Solutions and Container/Bulk/Tank. The orders for deliveries of a ship lift to Turkmenistan and hatch covers for containerships and multipurpose vessels under construction at Chinese ship yards, will contribute to a significantly increased activity in the business units for the coming quarters.
Toril Eidesvik was appointed as new CEO of TTS Group ASA in April 2016. Eidesvik has extensive experience from the international maritime industry through her positions as CEO of two listed companies, Green Reefers ASA and EMS Seven Seas, and through different board memberships. She also has been a member of the Board of Directors of TTS Group ASA for three years, where she chaired the audit committee.
Eidesvik follows Björn Andersson, CEO of TTS Group ASA since November 2013. Andersson is appointed to a central position linked to TTS' growing business in China.