Quarterly Report • Feb 27, 2015
Quarterly Report
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HAVYARD GROUP ASA is a fully integrated Ship Technology company and delivers products and services within the complete value chain from vessel design to support of vessels in operation. We focus on having the best competence within all the vital segments of the value chain.
Our vision is Improving Life At Sea and the motivation for our employees is to add value to and improve the situation for all who use our products.
Havyard Group delivers ship designs, ship equipment and construction of advanced vessels for offshore oil production, fishing and fish farming for shipyards and shipowners worldwide.
P.O.Box 215 6099 Fosnavåg Norway
Visiting address: Havilahuset, Mjølstadnesvegen, 6092 Fosnavåg, Norway
Phone: +47 70 08 45 50 [email protected]
HAVYARD DESIGN & SOLUTIONS AS, dep. Fosnavåg HAVYARD DESIGN & SOLUTIONS AS, dep. Stavanger HAVYARD DESIGN & ENGINEERING Poland HAVYARD DESIGN & ENGINEERING Rijeka d.o.o HAVYARD South America ltda. HAVYARD China
HAVYARD SHIP TECHNOLOGY AS, dep. Fosnavåg HAVYARD SHIP TECHNOLOGY AS, dep. Leirvik HAVYARD SHIP TECHNOLOGY AS, dep. Turkey
HAVYARD POWER & SYSTEMS AS, dep. Ålesund HAVYARD PRODUCTION & SERVICE Sp. z o.o.
HAVYARD MMC FISH HANDLING AS, dep. Fosnavåg HAVYARD MMC REFRIGERATION AS dep. Vigra HAVYARD MMC REFRIGERATION AS dep. Tromsø HAVYARD MMC REFRIGERATION AS dep. Haugesund MMC GREEN TECHNOLOGY AS
| MNOK | 2014 | 2013 | Q4 14 | Q4 13 |
|---|---|---|---|---|
| Operating revenues | 2 411 | 1 987 | 737 | 480 |
| Cost of sales | 1 764 | 1 352 | 591 | 338 |
| Payroll expences | 415 | 312 | 117 | 87 |
| Other operating exp. | 165 | 124 | 38 | 37 |
| Operating expences | 2 344 | 1 788 | 746 | 462 |
| EBITDA | 67 | 199 | -9 | 18 |
| Depreciation | 21 | 18 | 4 | 5 |
| EBIT | 461 | 181 | -131 | 13 |
| Net financial | 0 | 9 | -2 | 3 |
| Profit before tax | 46 | 190 | -15 | 16 |
1 The EBIT for 2014 includes cost for the IPO of approx. NOK 15 million
| 2014 | 2013 | Q4 14 | Q4 13 | |
|---|---|---|---|---|
| Operating revenue | 2 411 | 1 987 | 737 | 480 |
| EBITDA | 67 | 199 | -9 | 18 |
| EBIT | 462 | 181 | -13 | 13 |
| EBIT-margin | 1.9 %3 | 9.1 % | -1,8 % | 2.7 % |
| Profit before tax | 46 | 190 | -15 | 16 |
| Earnings per share | 1.38 | 6.13 | -0.52 | 0.45 |
| NIBD | 167 | 8 | 167 | 8 |
| Working Capital | 164 | 102 | 164 | 102 |
2 The EBIT for 2014 includes cost for the IPO of approx. NOK 15 million 3 Adjusted EBIT-margin excluding the IPO costs is 2.5 %
The operating revenue for the Group in the fourth quarter of 2014 was NOK 737.4 million, compared to NOK 479.7 million in the corresponding period of 2013. The increase is mainly due to increased activity at the yard in Leirvik. There have been up to four vessels for outfitting at the same time in the fourth quarter 2014. The operating revenue of 2014 was NOK 2 410.8 million, compared to NOK 1,986.9 million in the corresponding period in 2013.
For the fourth quarter of 2014, the Group recorded earnings before interest and tax (EBIT) of NOK – 13.0 million, while the EBIT for the fourth quarter of 2013 was NOK 12.8 million. The EBIT margin in the fourth quarter of 2014 is -1.8 % compared to 2.7 % in the fourth quarter of 2013. The EBIT in 2014 was NOK 46.1 million compared to NOK 180.6 million in 2013. The EBITmargin for 2014 is 1.9 % compared to 9.1 % in 2013.
The margins for 2014 and for fourth quarter especially, were negatively affected by a higher than normal portion of the activity being related to construction of vessels with new designs. These designs typically have higher production costs than repeat construction of existing and well-known designs. Some of the contracts executed had also been entered into in a more challenging market environment and had lower margins as effect thereof. The Ship Technology segment has had very high activity, and this combined with a complex order backlog that includes several prototypes is the main explanation of the negative results. It was primarily the Havyard 535 fishing vessel and the first Havyard 832 SOV vessel that contributed to the negative EBIT-result in the fourth quarter of 2014. All known and expected losses have been taken into account as of the fourth quarter of 2014.
Another explanation of the weak development in the fourth quarter of 2014 is that the Fish Handling and refrigeration segment have had significant cost overruns on a few larger projects that are in their final phase at the end of 2014. All known and expected losses have been taken into account as of the fourth quarter of 2014.
The income statement for 2014 is also negative influenced by costs regarding the Initial Public Offering (IPO). These costs include fees to the facilitators, fees to Oslo Børs, legal costs and costs to consultants. Total costs in 2014 related to the IPO are approximately NOK 15 million.
The EBIT-margin for the Group excluding the IPO costs is 2.5 %.
The total assets in the Group have increased from NOK 1,532.5 million to NOK 1,740.6 million from the year end 2013 to the end of 2014. The increase is mainly due to increased activity at the balance date which gives higher amount of work in progress and construction loans.
The total equity has decreased from NOK 668.4 million to NOK 599.8 million mainly due to total dividend of NOK 95 million. The equity ratio has decreased from 44 % in the end of 2013 to 34 % in the fourth quarter of 2014 mainly due to the increase in total assets and payment of dividends.
Investments in financial assets and investments in associates decreased from NOK 423.5 million at year end 2013 to NOK 349.5 million at the end of 2014, mainly reflecting the sale of the Groups share in Forland Subsea AS and the realization of a loan to a customer. Investments in property, plant and equipment of NOK 42.6 million are conducted in 2014, and are related to new administration building in Leirvik and investments to keep the production facilities up to date.
Current assets have increased from NOK 803.5 million in the end of 2013 to NOK 1,043.7 million in the fourth quarter of 2014. The reason is higher activity at the ship yard, and thereby higher amount of work in progress in the balance sheet.
Total liabilities are NOK 1,140.9 million in the fourth quarter of 2014, compared to NOK 864.1 million in 2013. The main reason for the increase is higher construction loans following increased activity.
Aggregate cash flow from operating activities is negative with NOK 144.9 million in the first to fourth quarter of 2014, compared to a positive cash flow of NOK 320.3 million in 2013. The reason for the reduction is mainly that for several of the projects under construction in 2014, the prepayments have been received in previous periods but the main parts of the work have been conducted in 2014. The order intake in 2013 was high, giving many projects in early stages and significant advances from customers at the year end of 2013. There was only one ship under outfitting at the ship yard in Leirvik at the end of 2013. The advances and low values on work in progress gave a positive cash flow from operating activities in 2013 and a negative effect in 2014. These periods and effects have to be seen in relation to each other. For Q4 14 the cash flow is negative with NOK 57.5 million.
Aggregate cash flow from investing activities was positive with NOK 68.9 million in Q1-Q4 of 2014, compared to a negative cash flow NOK 140.5 in 2013. The cash flow from investments in 2014 is mainly a result of the following factors:
For the fourth quarter of 2014 the cash flow from investing activities is positive with NOK 38.1 million. It is first and foremost the repayment of the loan from P/f 6. September and Skansi Offshore of approx. 56 million that contributes to the positive cash flow from investing activities. Investments in production facilities are affecting the cash flow from investing activities negatively with NOK 10 million in the fourth quarter of 2014.
Aggregate cash flow from financing activities are negative with NOK 10.9 million in Q1-Q4 of 2014, compared to a negative cash flow of NOK 24.7 million in 2013. The cash flow is mainly a result of the placement of an unsecured bond loan of NOK 150 million on the Nordic ABM. The cash flow from financing activities is negative affected by repayment of long term debt of NOK 43 million, payment of dividend of NOK 95 million and the purchase of the minority shares in Havyard MMC of NOK 25 million.
The order book is approximately NOK 2,770 million as of the fourth quarter of 2014. This is a satisfactory level at the present moment. NOK 1 570 million are related to work in 2015, while NOK 1 200 million are related to 2016.
In the fourth quarter of 2014, the Group has signed contracts a new contract for building of two Havyard 843 Icebreakers for the existing customer Femco. The total contract value of this contract is approximately NOK 1,000 million.
In addition, a contract for building of another Havyard 832 SOV to the existing customer ESVAGT was signed in December 2014.
Two vessels were finalized during the fourth quarter of 2014:
For 2015 and 2016, the order backlog includes one PSV, three Service Operation Vessel (SOV), three AHTS Icebreakers, one fishing vessel and one live fish carrier.
In addition to this, the order backlog includes design contracts and equipment packages, both to domestic and foreign costumers for vessels built at yards worldwide.
Deliveries from the segments Fish Handling and Refrigeration and Power & Systems are also included in the order backlog. These orders include design, engineering and equipment for live-fish carriers, refrigeration systems, and control and automation systems for ships.
More information regarding the order backlog and status is found under each segment.
Order backlog
The operating revenue was NOK 1 958.0 million in 2014, compared to NOK 1 479.8 million in 2013. This significant increase in operating revenue reflects very high activity at the ship yard in Leirvik with 7 vessels in the outfitting phase during 2014. The operating profit (EBIT) 2014 was NOK 13.2 million, a significant decline from NOK 77.5 million in 2013. The EBIT margin has been reduced from 5.2 % in 2013 to 0.7 % in 2014. The revenue in the fourth quarter of 2014 was NOK 602.9 million, with a negative EBIT result of NOK 14.4 million. This corresponds to a negative EBIT-margin of 2.4 %.
The following vessels have been docked in the ship yard in Leirvik for the outfitting phase during 2014:
The rebuild of Havila Phoenix has also contributed to the revenue in 2014. Hull no. 121 a fishing vessel of the Havyard 535 design and Hull no. 124 a live fish carrier of the Havyard 587 design also has result effect.
Havyard 587, Havyard 535, the windmill support vessel and the 832 Wave Edition are prototype vessels, and the production of these prototypes has contributed to a significant part of the EBIT margin decline in 2014 compared to 2013. The reason for this decline is partly that such designs are sold at a lower price to introduce them to new and existing markets, and partly that these designs are more complicated
than conventional designs. The introduction of the prototype vessels are a part of a diversification strategy in Havyard, and must be considered a long term investment in the future competitiveness of the Group.
For 2014, the fourth has a significant weaker result than in the previous quarters. Very high activity combined with a complicated order book with prototypes is the main explanation for the margin decline. In the fourth quarter, the Havyard 535 fishing vessel and the first Havyard 832 SOV windmill support vessel is the primary contributors to the negative result. All known and expected losses are taken into account as of the fourth quarter of 2014.
The order backlog as of the fourth quarter of 2014 is NOK 2 570 million. The order backlog includes one PSV, three Service Operation Vessel (SOV), three AHTS Icebreakers, one fishing vessel and one live fish carrier.
The fourth quarter of the Design & Solution segment was characterized by close to full capacity utilization on both internal and external projects. The progression in the projects is overall satisfactory. Some of the prototype projects have higher time consumption than budgeted, and some of the external projects are below budgeted time consumption.
The deliveries and EBIT-contribution of equipment packages are larger in the fourth quarter than in the previous quarters, and the operating revenue in the fourth quarter is therefore as high as NOK 79 million.
For 2014, the operating revenue is NOK 236.5 million. This is a decline of NOK 26.0 million from 2013. The reason for this is mainly higher value on deliveries of equipment packages in 2013 than in 2014.
The operating result (EBIT) for 2014 is NOK 39.4 compared to NOK 55.7 in 2013. The EBIT-margin has declined from 21.3 % in 2013 to 16.7 % in 2014. The main reason for the decline in EBIT and EBIT-margin is a lower share of work on external projects than in 2013.
The operating result (EBIT) for the fourth quarter of 2014 is NOK 10.6 million, and the EBIT-margin is 13.4 %. This is significant lower than the previous quarters and also lowers than in the corresponding period of 2013. The reason for the lower margin in Q4 2014 is mainly higher activity in equipment deliveries than in previous periods and higher hour consumption on prototype projects than in previous quarters.
Total order backlog for this segment is approximately NOK 170 million, where approximately NOK 30 million is internal deliveries. Total external order backlog is NOK 140 million.
The Power & Systems segment has increased the operating revenue by NOK 37.8 million to NOK 246.1 million in 2014 compared to NOK 208.3 million in 2013. This reason for the increase in revenue is mainly the increasing activity in the subsidiary Havyard Production & Service (HPR). This company supplies Ship Technology with electricians, plumbers and other types of labor needed in ship outfitting. The growth of HPR is a part of the strategy in Havyard to take control over larger parts of the value chain. Of the total segment revenue of NOK 246.1 million, HPR contributes with NOK 165.6 million.
The operating profit (EBIT) is NOK 20.0 million compared to NOK 40.9 million in 2013. This reflects the lower margins in the expanding Havyard Production & Service subsidiary compared to the other parts of the Power & Systems segment, and explains the drop in EBIT margin from 19.7% in 2013 to 8.1 % in 2014. Another explanation the the margin decline is a restructuring in 2014, where electro installation is moved to the Ship Technology segment. The EBIT-margin in this part of the operations was relatively high in 2013.
In the fourth quarter of 2014, the operating revenue was NOK 67.5 with an operating profit of NOK 3.5 million. This corresponds to an EBIT-margin of 5.2 %. The main reason for the lower EBIT-margin is cost overruns on two prototype projects.
The order backlog for the Power and systems segment is NOK 150 million, where NOK 130 million is internal deliveries to the Ship Technology and Design & Solution segments. The external order backlog is NOK 20 million.
The operating revenue has decreased from NOK 325.4 million in 2013 to NOK 296.1 in 2014. The decrease of NOK 29.3 million is mainly related to the Peruvian branch office. The figures from Peru was included in the 2013 figures, but are not included in the 2014 figures due to divestment and likely wind up of the branch office.
The operating profit (EBIT) of NOK 2.5 million in 2014 and is a significant decline from 2013. In 2013 the operating profit was NOK 10.0 million and this corresponds to a decline of NOK 7.5 million. In 2014 the EBIT-margin is 0.8 %, compared to 3.1 % in 2013.
Operating revenue in the fourth quarter of 2014 is NOK 65.1 million, and this is approximately at the same level as the previous quarters. The operating result is negative with NOK 7.2 million. This corresponds to a negative EBIT-margin of 11.1 % in the fourth quarter.
The main explanation of the weak result in the fourth quarter is related to the Fish Handling division. The division has experienced significant cost overruns in a few larger projects that are in their last phase. These projects are investments to develop new products to the fish farming industry, and this development work is expected to give positive contribution to future earnings in Havyard. All known and expected losses on these projects have been taken into account as of the fourth quarter of 2014.
The Refrigeration division has been through a restructuring process which has given a positive effect in 2014, and this positive effect is expected to continue during the coming periods. Costs have been reduced and the services provided is more focused towards the parts of the market segment which has higher margins.
The order backlog for the Fish Handling and Refrigeration segment is approximately NOK 80 million, where NOK 40 million is internal deliveries to the Ship Technology segment. External order backlog is approximately NOK 40 million.
The Groups total sick leave is 3.17 % as of Desember 2014, with an YTD average of 3.43 %. The sick leave has been steadily decreasing during 2013 and 2014. The reduction is a result of a long term focus on Inclusive working condition, job presence during sick leave and occupational health care.
During the last 12 months the Group has had a total of 15 injuries resulting in absence from work. This figure includes the subcontractors at the ship yard in Leirvik. An extensive action plan is implemented with the target of reducing injuries both for own employees and subcontractors, and this has reduced the number of injuries.
In addition to health and safety the Group is focusing on quality. Internal audits in accordance with ISO 9001/ISO 14001, several supplier audits and audits from costumers are performed in 2014. Quality deviations are measured, documented in action lists and handled as quickly and effectively as possible.
PRINCIPAL RISKS AND UNCERTANTIES
Havyard Group defines operational risk as the ability to deliver at the right time, with the right quality and at the right cost. The delivery of vessels, design packages and equipment in accordance with these parameters are a substantial risk element, and is the most significant factor that affects Havyard Group´s financial results.
Other risk factors are interest rates, exchange rates and our customers' ability to meet its obligations.
Havyard Group works systematically with risk management in all its segments and subsidiaries. All managers are responsible for risk management and internal control within their business segment. Reference is made to the annual report for 2013 for a further description of risk factor and risk management.
Fosnavåg, 26 February 2015 The Board of Directors and CEO Havyard Group ASA
Havyard Group ASA
| (NOK 1,000) | 2014 | 2013 | 2014 Q4 | 2013 Q4 |
|---|---|---|---|---|
| (unaudited) | (unaudited) | |||
| Sales revenues | 2 401 597 | 1 982 679 | 732 995 | 477 790 |
| Other operating revenues | 9 208 | 4 253 | 4 445 | 1 876 |
| Operating revenues | 2 410 805 | 1 986 932 | 737 440 | 479 666 |
| Cost of sales | 1 763 601 | 1 352 109 | 591 360 | 337 657 |
| Payroll expenses etc. | 415 410 | 312 077 | 116 943 | 86 891 |
| Other operating expenses | 164 659 | 124 230 | 37 737 | 37 250 |
| Operating expenses | 2 343 670 | 1 788 415 | 746 040 | 461 798 |
| Operating profit before depreciation and amortization - EBITDA | 67 134 | 198 517 | -8 601 | 17 868 |
| Depreciation | 21 064 | 17 942 | 4 384 | 5 109 |
| Operating profit - EBIT | 46 071 | 180 575 | -12 984 | 12 759 |
| Financial income | 20 256 | 21 666 | 11 732 | 8 940 |
| Financial expenses | 32 344 | 16 922 | 17 042 | 6 421 |
| Share of profit/loss of associate | 11 665 | 4 196 | 3 465 | 1 049 |
| Profit before tax | 45 648 | 189 515 | -14 829 | 16 327 |
| Income tax expense | 12 584 | 49 055 | -1 524 | 4 226 |
| Profit for the period | 33 063 | 140 460 | -13 306 | 12 101 |
| Attributable to : | ||||
| Equity holders of parent | 31 045 | 138 100 | -11 821 | 10 176 |
| Non-controlling interest | 2 018 | 2 360 | -1 485 | 1 925 |
| Total | 33 063 | 140 460 | -13 306 | 12 101 |
Earnings per share (NOK) 1.38 6.13 -0.52 0.45
Havyard Group ASA
| (NOK 1,000) | 2014 | 2013 | 2014 Q4 | 2013 Q4 |
|---|---|---|---|---|
| (unaudited) | (unaudited) | |||
| Profit for the period | 33 063 | 140 460 | -13 306 | 12 101 |
| Other comprehensive income | ||||
| Items that will not be reclassified to income statement | ||||
| Total | - | - | - | - |
| Items that will be reclassified to income statement | ||||
| Translation differences | 5 213 | 5 213 | ||
| Fair value adjustment available-for-sale financial assets | 19 993 | 19 993 | ||
| Total | - | 25 206 | - | 25 206 |
| Other comprehensive income | - | 25 206 | - | 25 206 |
| Total comprehensive income | 33 063 | 165 666 | -13 306 | 37 307 |
| Attributable to : | ||||
| Equity holders of parent | 31 045 | 162 882 | -11 821 | 34 959 |
| Non-controlling interest | 2 018 | 2 783 | -1 485 | 2 348 |
| Total | 33 063 | 165 666 | -13 306 | 37 307 |
(NOK 1,000)
| 2014 | 2013 | |
|---|---|---|
| (unaudited) | ||
| Non current assets | ||
| Goodwill | 23 918 | 23 918 |
| Licenses, patents and R&D | 59 912 | 41 483 |
| Property, plant and equipment | 263 549 | 240 167 |
| Investment in associates | 93 820 | 84 143 |
| Loan to associates | 14 817 | 15 185 |
| Investment in financial assets | 172 071 | 205 294 |
| Other non current receivable | 68 828 | 118 839 |
| Total non current assets | 696 915 | 729 030 |
| Current Assets | ||
| Inventory | 40 673 | 38 872 |
| Accounts receivables | 79 123 | 82 122 |
| Other receivables | 88 225 | 139 551 |
| Construction WIP in excess of prepayments | 641 142 | 261 574 |
| Cash and cash equivalents | 194 562 | 281 381 |
| Total Current Assets | 1 043 725 | 803 500 |
| TOTAL ASSETS | 1 740 640 | 1 532 530 |
| 2014 | 2013 | |
|---|---|---|
| (unaudited) | ||
| Equity | ||
| Share capital | 1 126 | 1 126 |
| Share premium reserve | 5 462 | 5 462 |
| Treasury shares | -7 | -16 |
| Retained earnings | 587 171 | 640 865 |
| Non-controlling interest | 6 010 | 21 002 |
| Total equity | 599 762 | 668 438 |
| Long term liabilities | ||
| Deferred tax liability | 50 215 | 45 227 |
| Loans and borrowings, non-current | 208 515 | 98 123 |
| Other long-term liabilities | 2 142 | 19 107 |
| Total long term liabilities | 260 872 | 162 457 |
| Current liabilities | ||
| Accounts payables | 149 267 | 128 278 |
| Taxes payable | 3 960 | 57 903 |
| Provision for dividend | - | - |
| Public duties payables | 19 196 | 16 916 |
| Construction loans | 515 540 | 134 788 |
| Loans and borrowings, current | 38 230 | 43 183 |
| Prepayments in excess of construction WIP | 53 164 | 232 802 |
| Other current liabilities | 100 646 | 87 766 |
| Total current liabilities | 880 006 | 701 635 |
| Total liabilities | 1 140 878 | 864 092 |
| Equity per end of period | 599 762 | 668 438 |
|---|---|---|
| Changes in equity through the period | -68 675 | 142 034 |
| Other changes | -6 741 | 26 366 |
| Dividends | -94 997 | -24 792 |
| Net profit for the period | 33 063 | 140 460 |
| Equity at the end of previous year | 668 438 | 526 404 |
| 31.12.14 | 31.12.13 | |
| (NOK 1,000) |
TOTAL EQUITY AND LIABILITIES 1 740 640 1 532 530
| (NOK 1,000) | 2014 | 2013 | 2014 Q4 | 2013 Q4 |
|---|---|---|---|---|
| (Unaudited) | (Unaudited) | |||
| CASH FLOW FROM OPERATIONS | ||||
| Profit/(loss) before tax | 45 648 | 189 515 | -14 829 | 16 327 |
| Taxes paid | -57 903 | -55 890 | -30 982 | -15 322 |
| Depreciation | 21 064 | 17 942 | 4 384 | 5 109 |
| Share of (profit)/loss from associates | -11 666 | -4 196 | -3 466 | -1 045 |
| Changes in inventory | -1 801 | 17 514 | -4 884 | 1 643 |
| Net changes in construction loans | 380 752 | -129 297 | -144 533 | -214 648 |
| Changes in accounts receivables/construction WIP | -376 570 | 184 018 | 108 549 | 208 351 |
| Changes in accounts payable | 20 989 | -18 612 | 38 909 | 28 235 |
| Changes in prepayments from customers | -179 638 | 170 688 | -18 692 | 76 114 |
| Changes in other current receivables/liabilities | 14 181 | -49 466 | 8 064 | 27 360 |
| Net cash flow from/(to) operating activities | -144 943 | 320 287 | -57 479 | 132 124 |
| CASH FLOW FROM INVESTMENTS | ||||
| Investments in property, plant and equipment | -42 585 | -30 369 | -9 710 | -3 886 |
| Investment in intangible assets | -20 290 | -22 994 | -9 618 | -11 313 |
| Investment in/disposal of financial assets | 136 824 | -49 421 | 56 201 | -46 012 |
| Changes in long term receivables | -4 968 | -37 740 | 1 191 | 33 568 |
| Net cash flow used in investing activities | 68 981 | -140 524 | 38 064 | -27 643 |
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| New long term debt | 146 400 | 16 845 | - | 2 305 |
| Repayment long term debt | -43 069 | -18 754 | -2 019 | -4 689 |
| Purchase/sale of treasury shares | 5 999 | 2 000 | - | 2 000 |
| Purchase of minority shares in Havyard Fish Handling & Refrigeration | -25 191 | - | - | |
| Dividends | -94 996 | -24 792 | -70 000 | -24 792 |
| Net cash flow from/ (used in) financing activities | -10 857 | -24 701 | -72 019 | -25 176 |
| Net change in cash and cash equivalents | -86 819 | 155 063 | -91 434 | 79 306 |
| Cash and cash equivalents at start of the period | 281 381 | 126 319 | 285 996 | 202 077 |
| Cash and cash equivalents from purchase of subsidiaries | ||||
| Cash and cash equivalents at end of the period | 194 562 | 281 381 | 194 562 | 281 381 |
| Restricted bank deposits at the end of the period | 114 377 | 148 206 | 114 377 | 148 206 |
| Available cash and cash equivalents at the end of the period | 80 184 | 133 175 | 80 184 | 133 175 |
Havyard Group ASA is a public limited company based in Norway, and its head office is located in Fosnavåg, Herøy. The group in total employs 800 people as of 31 December 2014, of whom approximately 700 are employed in Norway. Havyard Group ASA was incorporated as a public limited company 25 February 2014, and was listed on the Oslo Stock Exchange 1 July 2014.
The Interim Condensed Consolidated Financial Statements for the period ended 31 December 2014 have been prepared in accordance with IAS 34 Interim Financial Reporting. The Interim Condensed Consolidated Financial Statements are not subject to audit, and do not include all the information and disclosures required in the annual Financial Statements. It should be read in conjunction with the Group's annual Financial Statements as of 31 December 2013.
The same use of estimates has been applied as in the Financial Statements for 2013.
| 2014 | ||||||
|---|---|---|---|---|---|---|
| (NOK 1,000) | Ship Technology |
Design & Solution |
Power & Systems |
MMC | Elimination / Other |
Havyard Group |
| Total operating revenue | 1 958 019 | 236 498 | 246 122 | 296 084 | (325 918) | 2 410 805 |
| Operating profit /loss EBITDA | 25 183 | 42 821 | 20 421 | 7 352 | (28 642) | 67 134 |
| Depreciation | 11 960 | 3 370 | 429 | 4 863 | 442 | 21 063 |
| Operating profit/(loss) EBIT | 13 223 | 39 451 | 19 992 | 2 489 | (29 084) | 46 071 |
| Net financial items | (199) | (6 658) | 1 918 | (5 955) | (1 195) | (12 089) |
| Share of profit/(loss) from associate | - | - | - | - | 11 666 | 11 666 |
| Profit/(Loss) before tax | 13 024 | 32 793 | 21 910 | (3 466) | (18 613) | 45 648 |
The Elimination/Other segment includes IPO costs of NOK 15 million
| 2013 | ||||||
|---|---|---|---|---|---|---|
| (NOK 1,000) | Ship | Design & | Power & | MMC | Elimination | Havyard |
| Technology | Solution | Systems | / Other | Group | ||
| Total operating revenue | 1 479 811 | 262 500 | 208 306 | 325 393 | (289 078) | 1 986 932 |
| Operating profit /loss EBITDA | 83 651 | 57 282 | 41 340 | 15 008 | 1 236 | 198 517 |
| Depreciation | 6 165 | 1 545 | 461 | 5 027 | 4 744 | 17 942 |
| Operating profit/(loss) (EBIT) | 77 486 | 55 737 | 40 879 | 9 981 | (3 508) | 180 575 |
| Net financial items | 3 089 | (313) | 343 | (6 212) | 7 837 | 4 744 |
| Share of profit/(loss) from associate | - | - | - | - | 4 196 | 4 196 |
| Profit/(Loss) before tax | 80 575 | 55 424 | 41 222 | 3 769 | 4 329 | 189 515 |
"Elimination / Other" contains parent company items and elimination of intra-group transactions.
| 2014 Q4 | ||||||
|---|---|---|---|---|---|---|
| (NOK 1,000) | Ship Technology |
Design & Solution | Power & Systems |
MMC | Elimination / Other |
Havyard Group |
| Total operating revenue | 602 895 | 78 989 | 67 515 | 65 052 | (77 010) | 737 440 |
| Operating profit /loss EBITDA | (11 221) | 11 417 | 3 645 | (7 120) | (5 321) | (8 601) |
| Depreciation | 3 149 | 827 | 156 | 77 | 175 | 4 384 |
| Operating profit/(loss) (EBIT) | (14 370) | 10 590 | 3 489 | (7 197) | (5 496) | (12 984) |
| Net financial items | 1 116 | (4 601) | 1 927 | (986) | (2 767) | (5 311) |
| Share of profit/(loss) from associate | - | - | - | - | 3 466 | 3 466 |
| Profit/(Loss) before tax | (13 254) | 5 989 | 5 416 | (8 183) | (4 797) | (14 829) |
| Company | Ownership share/ voting share |
Business office |
Equity as of last year (100%) |
Result as of last year (100%) |
Carrying amount |
|---|---|---|---|---|---|
| P/F 6. September 2006 | 10.9% | Faroe Island | 526 668 | 134 107 | 61 818 |
| Vestland Offshore Invest AS | 16.8% | Torangsvåg | 482 540 | -14 614 | 80 187 |
| Other non-current financial investments | 63 289 | ||||
| Carrying amount as of 31.12.13 | 205 294 |
2013
| Company | Ownership share/ voting share |
Business office |
Equity as of last year (100%) |
Result as of last year (100%) |
Carrying amount |
|---|---|---|---|---|---|
| P/F 6. September 2006 | 10.9% | Faroe Island | 61 818 | ||
| Vestland Offshore Invest AS | 16.8% | Torangsvåg | 450 595 | 6 402 | 80 187 |
| Other non-current financial investments | 30 066 | ||||
| Carrying amount as of 31.12.14 | 172 071 |
| 2014 | 2013 | |
|---|---|---|
| Number of ordinary shares | 22 528 320 | 1 126 416 |
| Par value (NOK) | 0.05 | 1.00 |
| Share capital (NOK) | 1 126 416 | 1 126 416 |
All shares have equal rights.
The General meeting held 26.03.14 decided to split the shares in the ratio 1:20. After the split, the number of shares is 22 528 320. The nominal amount is NOK 0.05.
The Group has paid a dividend of NOK 60.0 million in October 2014, and NOK 10.1 million in December 2014. In addition, the Group has paid dividend of MNOK 24.8 based on the 2013 financial statement.
The share capital was 1 126 416 at a nominal amount of NOK 1.00.
| Shareholders as of 30.09.2014 | Controlled by | Number of shares | Ownership |
|---|---|---|---|
| Havila Holding AS | 14 300 000 | 63.5 % | |
| Geir Johan Bakke AS | Geir Johan Bakke (CEO) | 1 202 250 | 5.3 % |
| Nominee | 562 500 | 2.5 % | |
| Nominee | 494 600 | 2.2 % | |
| Nominee | 489 308 | 2.2 % | |
| Nominee | 471 883 | 2.1 % | |
| Other shareholders (<2 %) | 5 007 779 | 22.2 % | |
| Number of shares | 22 528 320 | 100.0 % |
Ultimate controlling company of the Group is Havila Holding AS. Boardmembers Hege Sævik Rabben and Vegard Sævik have indirect ownership in the group through their ownership in Havila Holding AS.
Parent company Havila Holding AS is a limited company based in Norway, and its head office is located in Fosnavåg, Herøy.
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