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Nekkar Interim / Quarterly Report 2010
3669_rns_2010-08-19_0ded940a-c509-4a08-b1e0-d148f9fc9ea1.pdf
Interim / Quarterly Report
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TTS
KVARTALSRAPPORT 2. KVARTAL 2010
INTERIM REPORT TO 30 JUNE 2010
Marine Port and Logistics Energy
TTS GROUP ASA
INTERIM REPORT FOR 2ND QUARTER AND FIRST HALF OF 2010
STATUS 30.06.2010
The EBITDA for TTS Group shows an improvement compared to previous quarters and is in line with the EBITDA in Q2 2009.
Marine og Port and Logistics divisions report improved or similar earnings as for same period last year and first quarter of 2010.
The Energy division reports improved earnings compared to first quarter but continue to have low activity and low margins on ongoing projects.
For the group in total the EBITDA improved with approx. MNOK 29 compared to first half of last year. All divisions show improved earnings.
The group reports growth in order intake during Q2. The growth stems mainly from the Marine division.
The group's backlog at the end of 2nd quarter is MNOK 3 789.
Earnings per share was NOK -0,05 in Q2. For the first half of 2010 earnings per share was NOK -0,43.
KEY FIGURES 2ND QUARTER AND 1ST HALF OF 2010
KEY FIGURES SECOND QUARTER 2010
| MNOK | 2. Quarter | PR. 2. Quarter | Year | ||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Turnover | 859 | 963 | 1 678 | 2 027 | 3 825 |
| EBITDA | 21,6 | 21,2 | 22,7 | -6,3 | -84,3 |
| EBITDA margin (%) | 2,5 | 2,2 | 1,4 | -0,3 | -2,2 |
| Orderintake* | 759 | 382,2 | 1 214 | 913 | 1 201 |
| Order backlog* | 3 789 | 5 615 | 3 789 | 5 615 | 4 510 |
| EPS (NOK) | -0,05 | -0,39 | -0,43 | -5,56 | -5,72 |
(*) order intake and order backlog is adjusted for the MIPPSA contract that was cancelled in Q4 2009 (MNOK 321). The order backlog includes joint ventures.
TOTAL ASSETS AND DEBT
The total assets of the group was MNOK 3 633 at the end of 2nd quarter while the equity ratio was 24,8 %.
In July the group conducted a share issue towards Scana Industrier ASA for a total of MNOK 42 in order to strengthen the balance sheet of the company. If adjusted for the share issue the equity ratio would have been 25,9 %.
The covenants related to the debt facility from bank syndicate headed by Nordea is an equity ratio of 25 %. The company has recived waiver for the equity ratio for Q2.
The covenant related to the "bond loan" (400 MNOK) is an equity ratio of 22.5%.
At the end of the 2nd quarter net interest bearing debt was MNOK 884,5 compared to MNOK 875,2 at the end of Q1. This compares to MNOK 1037,9 at the end of 2nd quarter of 2009. The group continues it's efforts to reduce working capital.
ACCOUNTING PRINCIPLES
The company has prepared the accounts on the same basis as the annual accounts for 2009. In preparing the quarterly results, the group adhered to IAS 34.
GENERAL ASSEMBLY
On the 3rd of June the Annual General Assembly was held in TTS Group ASA.
Dividends
It was decided not to pay dividends for the year ending 31.12.2009.
New board of directors
The General Assembly unanimously appointed the following board of directors:
| Name | Status |
|---|---|
| Trym Skeie | Re-elected |
| Anne Breive | Re-elected |
| Kjerstin Fyllingen | Not up for election |
| Bjarne Skeie | Re-elected |
| Rune Selmar | Newly elected |
In addition to the shareholders representatives, the board also includes two employee representatives:
Olav Smeland
Anne-Karin Bedringås
The board elects its own chairman. Trym Skeie was re-elected Chairman.
BUSINESS AREAS
Marine division
| MNOK | 2. Quarter | PR. 2. Quarter | Year | ||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Turnover | 638,6 | 518,2 | 1 248,6 | 1 061,4 | 2 325,7 |
| EBITDA | 33,9 | 26,6 | 68,6 | 59,5 | 93,7 |
| EBITDA margin (%) | 5,3 | 5,1 | 5,5 | 5,6 | 4,0 |
In general the Marine division showed high activity and stable margins in most of its areas of operation. The activity was especially high within the product group Cargo Access, while the activities in the Service market was somewhat lower. A good market position in China and high activity in this market contribute significantly to the profitability of the division.
The order backlog inclusive of joint ventures was MNOK 3 166 at the end of 2nd quarter.
Port and Logistics division
| MNOK | 2. Quarter | PR. 2. Quarter | Year | ||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Turnover | 83,4 | 77,2 | 158,9 | 142,4 | 331,0 |
| EBITDA | 6,2 | 0,6 | 11,7 | 5,2 | 19,6 |
| EBITDA margin (%) | 7,4 | 0,8 | 7,4 | 3,7 | 5,9 |
Port and Logistics division had an high activity level during the quarter, especially relating to linkspans and equipment to the shipbuilding industry. During the quarter 3 large projects were successfully delivered.
The order backlog at the end of the second quarter was MNOK 156.
Energy division
| MNOK | 2. Quarter | PR. 2. Quarter | Year | ||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| Turnover | 137,3 | 367,9 | 270,1 | 820,9 | 1 180,4 |
| EBITDA | -16,8 | -5,6 | -55,4 | -70,9 | -192,0 |
| EBITDA margin (%) | -12,2 | -1,5 | -20,5 | -8,6 | -16,3 |
The activity level within drilling- and offshore equipment has been low during the 2nd quarter. This combined with low margins on ongoing projects result in a loss this quarter. The division was reorganized during the second quarter to optimize operations and reduce costs. During the quarter a contract for a complete drilling package to Vietnam was signed.
The order backlog for the division at the end of second quarter was MNOK 467.
Expectations going forward
There are still uncertainties related to the future market development.
The market for the Marine division has developed favourably with an increase in number of newbuilds. The market for Port and Logistic division shows a continued high activity.
For the Energy division, 2010 will be a challenging year. Despite signs of improvement in the market, the division expects low earnings in 2010 due to the low order backlog.
Responsibility statement
We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2010 has been prepared in accordance with IAS 34 – Interim Financial Reporting and gives a true and fair view of the Company's and the Group assets, liabilities, financial position and profit as a whole. We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties transactions.
Bergen, 18. august 2010
Board of Directors, TTS Group ASA
Trym Skeie
Chairman
Bjarne Skeie
Board member
Anne Breive
Board Member
Kjerstin Fyllingen
Boardmember
Olav Smeland
Board Member
Rune Selmar
Board Member
Anne-Karin Bedringås
Board member
Johannes D. Neteland
President
TTS Group ASA Q2 2010
| NOK 1 000 | Ikke Unaudited | revidert/ Unaudited | Ikke Unaudited | revidert/ Unaudited | Ikke Unaudited | Revidert/ Audited |
|---|---|---|---|---|---|---|
| RESULTAT / PROFIT AND LOSS ACCOUNT | PR. 30.06.10 | PR. 30.06.09 | 2.KV 2010 | 2.KV 2009 | PR. 31.12.09 | |
| Driftsinntekter/Turnover | 1 663 781 | 2 016 981 | 849 010 | 958 958 | 3 784 085 | |
| Andre driftsinntekter/Other operating income | 13 815 | 9 881 | 10 194 | 4 355 | 41 232 | |
| Sum driftsinntekter/Total operating income | 1 677 596 | 2 026 863 | 859 204 | 963 313 | 3 825 317 | |
| Varekostnad/Raw materials and consumables used | 1 309 511 | 1 599 754 | 657 096 | 753 219 | 3 089 789 | |
| Andre driftskostnader/Other operating costs | 358 664 | 442 404 | 187 728 | 193 395 | 841 434 | |
| Resultat fra JV (- er inntekt)/ Result from JV (- is income) | -13 328 | -9 040 | -7 189 | -4 461 | -21 641 | |
| Driftsresultat før avskrivninger/EBITDA | 22 749 | -6 255 | 21 569 | 21 160 | -84 265 | |
| Avskrivninger/Depreciation | 26 543 | 20 946 | 12 497 | 10 709 | 47 278 | |
| Andre avskrivninger/nedskrivninger/other depreciation/wittedowns | 0 | 99 257 | 0 | 0 | 99 257 | |
| Driftsresultat/Operating profit | -3 794 | -126 458 | 9 072 | 10 451 | -230 800 | |
| Finansinntekter/Financial income | 37 391 | 12 607 | 27 221 | 1 817 | 42 439 | |
| Finanskostnader/Financial expense | 81 987 | 51 833 | 46 451 | 25 017 | 123 581 | |
| Resultat før skattekostnader/Profit/loss before tax | -48 390 | -165 684 | -10 158 | -12 749 | -311 942 | |
| Skattekostnad/Tax | -19 470 | -19 176 | -7 070 | -2 600 | -63 460 | |
| Periodens resultat/Net profit/loss for the period | -28 920 | -146 508 | -3 088 | -10 149 | -248 482 | |
| Oppstilling av totalresultatet | ||||||
| Periodens resultat/Net profit/loss for the period | -28 920 | -146 508 | -3 088 | -10 149 | -248 482 | |
| Omregningsdifferanser/ Translation differences | -7 342 | -7 251 | -1 412 | 3 606 | -41 337 | |
| Totalresultat/ Comprehensive income | -36 262 | -153 759 | -4 500 | -6 543 | -289 819 | |
| Fortjeneste pr. aksje (NOK)/Earnings per share (NOK) | -0,43 | -5,65 | -0,05 | -0,39 | -5,72 | |
| Uhannet fortjeneste pr. aksje (NOK)/Diluted earnings per share (NOK) | -0,43 | -5,65 | -0,05 | -0,39 | -5,72 | |
| BALANSE / BALANCE SHEET | PR. 30.06.10 | PR. 30.06.09 | PR. 31.12.09 | |||
| Immaterielle eiendeler/Intangible assets | 1 320 982 | 1 206 241 | 1 309 814 | |||
| Varige driftsmidler/Tangible assets | 127 227 | 127 672 | 129 784 | |||
| Finansielle anleggsmidler/Financial assets | 121 153 | 120 920 | 111 157 | |||
| Sum anleggsmidler/Total fixed assets | 1 569 363 | 1 454 833 | 1 550 755 | |||
| Varer/Inventories | 368 989 | 322 340 | 420 495 | |||
| Andre fordringer/Other debtors | 1 498 932 | 2 188 556 | 1 526 318 | |||
| Sum fordringer/Total debtors | 1 867 921 | 2 510 896 | 1 946 814 | |||
| Bankinnskudd/kontanter/Bank deposits/cash | 196 055 | 219 711 | 191 907 | |||
| Sum omløpsmidler/Total current assets | 2 063 976 | 2 730 607 | 2 138 720 | |||
| Sum eiendeler/Total assets | 3 633 339 | 4 185 440 | 3 689 474 | |||
| Aksjekapital/Share capital | 33 935 | 12 888 | 33 935 | |||
| Sum opptjent egenkapital/Retained earnings | 865 687 | 822 409 | 901 948 | |||
| Sum egenkapital/Total equity | 899 621 | 835 297 | 935 883 | |||
| Avsetning for forpliktelser/Provisions | 25 271 | 22 887 | 22 339 | |||
| Annen langsiktig gjeld/Other long-term liabilities | 469 068 | 587 326 | 430 537 | |||
| Langsiktig gjeld/Long term liabilities | 494 339 | 610 213 | 452 876 | |||
| Kortsiktig gjeld/Current liabilities | 2 239 379 | 2 739 931 | 2 300 715 | |||
| Sum gjeld/Total liabilities | 2 733 718 | 3 350 144 | 2 753 591 | |||
| Sum egenkapital og gjeld/Total equity and liabilities | 3 633 339 | 4 185 440 | 3 689 474 | |||
| EK-andel/Equity to assets ratio | 24,8% | 20,0% | 25,4% |
| EGENKAPITAL / EQUITY | PR. 30.06.10 | PR. 30.06.09 | PR. 31.12.09 |
|---|---|---|---|
| Egenkapital IB/Equity OB | 935 883 | 989 056 | 989 056 |
| Egne aksjer/ Own shares | - | - | 625 |
| Emisjon/Share issue | - | - | 230 583 |
| Totalresultat/ Comprehensive income | -36 262 | -153 759 | -289 819 |
| Opsjonsplaner/Options cost | - | - | 5 437 |
| Egenkapital UB/Equity CB | 899 621 | 835 297 | 935 883 |
| KONTANTSTRØMSANALYSE / ANALYSIS OF CASHFLOW | PR. 30.06.10 | PR. 30.06.09 | PR. 31.12.09 |
| EBITDA/EBITDA | 22 749 | -6 255 | -84 265 |
| Endring i netto omløpsmidler /Change in net current assets | -15 088 | -454 181 | -274 564 |
| Kontantstrøm fra operasjonelle aktiviteter/Cash from operations | 7 661 | -460 436 | -358 829 |
| Kjøp av varige driftsmidler/Aquisition of tangible fixed assets | -18 458 | -23 920 | -44 674 |
| Andre investeringsaktiviteter/Other investing activities | -626 | -7 492 | -65 268 |
| Kontantstrøm fra investeringsaktiviteter/Cash from investments | -19 084 | -31 412 | -109 942 |
| Opptak og nedbetaling av lån/New loans and repayment | 58 192 | 481 525 | 253 611 |
| Innbetaling av egenkapital/Paid-in equity | - | - | 231 208 |
| Netto betalte renter/Net interest paid | -40 903 | -33 460 | -77 737 |
| Kontantstrøm fra finansieringsaktiviteter/Cash from financing | 17 289 | 448 065 | 407 082 |
| Endring i kontantbeholdning/Change in cash | 5 866 | -43 783 | -61 689 |
| Kontantbeholdning IB/Cash position OB | 191 907 | 267 231 | 267 231 |
| Valutaeffekt på kontanter og kontantekvivalenter/Foreign currency effect on cash | -1 718 | -3 738 | -13 635 |
| Kontantbeholdning UB/Cash position CB | 196 055 | 219 710 | 191 907 |
Notes to unaudited interim financial statement 2nd quarter 2010
Note 1 Segment information
From 01.01.10 TTS Group ASA reports on new segments according to the new organisation. Figures from 2009 have been revised.
| Marine | Port&Logistics | Energy | Others | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| Turnover | 1 248,6 | 1 061,4 | 158,9 | 142,4 | 270,1 | 820,9 | 0,0 | 2,1 | 1 677,6 | 2 026,9 |
| EBITDA | 68,6 | 59,5 | 11,7 | 5,2 | -55,4 | -70,9 | -2,2 | -0,1 | 22,7 | -6,3 |
Q2
| Marine | Port&Logistics | Energy | Others | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| Turnover | 638,6 | 518,2 | 83,4 | 77,2 | 137,3 | 367,9 | 0,0 | 0,0 | 859,2 | 963,3 |
| EBITDA | 33,9 | 26,6 | 6,2 | 0,6 | -16,8 | -5,6 | -1,7 | -0,5 | 21,6 | 21,2 |
Note 2 General information
TTS Group ASA is registered and domiciled in Norway, and the head office is located in Bergen.
The consolidated financial statement cover TTS Group ASA with its subsidiaries and part of joint ventures.
The consolidated financial statement for the year ended 31 December 2009 is available at www.tts-group.com.
Note 3 Accounting principles
TTS Groups' financial reports are prepared in accordance with International Financial Reporting Standards (IFRS)
The consolidated financial statements for Q2 2010 have been prepared in accordance with IAS 34 for Interim Financial Statements. The interim accounts do not include all the information required for a full financial statement and should therefore be read in connection with the consolidated financial statements of 2009.
The accounting principles applied are the same as those described in the consolidated financial statements of 2008.
This consolidated 2nd quarter results of 2010 was approved by the Board at 18th of August 2010.
Note 4 Estimates
The preparation of the interim accounts requires the use of valuations, estimates and assumptions that affect the application of accounting principles and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these consolidated interim financial statements, the significant judgements made by the management in applying the group's accounting principles and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the financial year ended 31 December 2009.
Note 5 Related parties
Note 19 in the consolidated financial statement of 2009 describe the transactions with related parties. During 2010 there have been no material changes or transactions that have significance for the financial position and profit for the period.
Note 6 Deferred tax assets
The group has recognised deferred tax assets primarily related to the Norwegian companies. The following criteria have been employed to estimate that it is probable that future taxable profit will be available against which unused tax losses can be utilised.
- The Group has sufficient temporary differences
- Tax losses result from particular identifiable causes
Note 7 Financial risk management
The Group's objectives and principles of financial risk management is consistent with what is stated in the consolidated financial statements for fiscal year 2009. There have been no material changes in the groups financial exposure compared to year-end 2009.
The group has completed negotiations of the repayment of MNOK 200 to the bank syndicated by Nordea An instalment of MNOK 50 is due in Q3 2010 and the remainder is due in Q4 2010. The group efforts to reduce working capital continues.
Note 8 Events subsequent to the balance sheet day
5th of July 2010 TTS Group signed an agreement with Scana Industrier ASA to issue 6,722,920 shares in TTS Group ASA through a private placement at a price of NOK 6.30 per share. This represents a premium of 5% compared to closing price. The share issue represents 9.9% of the share capital of the company. The shares were registered at the 13th of July 2010.
TTS Group's subsidiary TTS-LMG Marine Cranes GmbH in Lübeck, Germany, has in Q3 signed a contract worth approximately NOK 50m for delivery of 4 shipsets of cargo cranes, 3 cranes for each vessel.
Note 9 Goodwill
At 31.12.2009 the group conducted an assessment of impairment losses for each cash generating unit based on requirements and policies in IAS 36. In 1 half of 2010, there has been no material matters that indicate a change in the assessments made.
Note 10 Contingencies – Ability
There is an ongoing mediation TTS and the bankrupt estate of Ability Drilling regarding the dispute of cancellation of landings. The trial is scheduled January the 10th 2011.
We also refer to note 26 of the Annual Report for 2009.