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Scana — Interim / Quarterly Report 2013
Feb 19, 2014
3736_rns_2014-02-19_3240a2a4-081e-43c0-80c1-bfb5e0e4f7c2.pdf
Interim / Quarterly Report
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Interim report 4th quarter 2013 and preliminary annual accounts
Scana Industrier ASA is a Nordic industrial group whose key business is supplying products and system solutions to energy-related businesses. This encompasses oil and gas, other forms of energy and marine activities for the offshore area. Scana also provides servicing, maintenance and repairs for customers in the same markets.
Scana's technology, unique expertise in engineering materials and extensive production experience form the basis of the group's competitiveness. Scana's aim is to be the preferred supplier for leading companies within our market segments. The majority of Scana's customers are located in Europe, America and South East Asia.
Scana Industrier ASA has subsidiaries in Norway, Sweden, China, the USA, Poland, Singapore, Brazil and South Korea. The Group's head office is in Stavanger.
Significant write-downs, reduced interest bearing debt
- Operating revenue amounted to NOK 518 million in the fourth quarter of 2013, compared with NOK 494 million in the fourth quarter of 2012.
- EBITDA was NOK -18 million compared to NOK -33 million in 2012.
- Revenues of NOK 1,874 million and an EBITDA of NOK -50 million for 2013.
- In the fourth quarter, NOK 103 million was charged to the accounts in writedowns and provisions.
- The underlying operation gives and EBITDA of NOK 0 million.
- Order inflow was NOK 479 million compared with NOK 468 million for the same period in 2012.
- The total order inflow for 2013 is NOK 1,770 million.
- The sales proceeds from the Share Purchase Agreement associated with the sale of Leshan Scana Machinery was received in January 2014.
- The Group's interest bearing debt was repaid by almost NOK 90 million in December 2013 and January 2014.
- Positive order inflow within sections of offshore.
Financial performance
The Scana's total revenue was NOK 518 million in the fourth quarter of 2013, compared with NOK 494 million for the corresponding period in 2012, a rise of 5 per cent.
EBITDA was NOK -18 million in the fourth quarter of 2013, which is equivalent to an EBITDA margin of -3 per cent compared with -7 per cent for the corresponding period in 2012.
The Group's total revenue for 2013 is NOK 1,874 million.
The total EBITDA for 2013 was NOK -50 million, which is equivalent to an EBITDA margin of -3 per cent compared with -1 per cent in 2012.
At the end of the fourth quarter the income statement was charged with a total of NOK 103 million in non-recurring costs associated with write-downs.
Net order inflow was NOK 479 million in the fourth quarter, compared with NOK 468 million for the same period in 2012. The order reserve at the end of the fourth quarter of 2013 was NOK 1,034 million, the same level as at the end of 2012.
The net order inflow for 2013 was NOK 1,770 million.
Net financial items were NOK -8 million for the fourth quarter of 2013, compared with NOK -10 million for the fourth quarter of 2012. Interest expenses amounted to NOK - 10 million, net agio items amounted to NOK 7 million, interest income amounted to NOK 1 million and other financial expenses amounted to NOK -7 million for the quarter.
Net financial items for 2013 in total amounted to NOK -43 million.
Scana has a policy of hedging all major contracts in foreign currency and hedging all ongoing net exposure. The change in value is recognised in accordance with IFRS under financial items.
Tax expenses for the fourth quarter are NOK 1 million. The total tax expenses for 2013 are NOK -10 million.
Changes in values of effective hedging instruments that satisfy IFRS criteria for hedge accounting appear under Other revenues and costs. In the fourth quarter, such instruments had a rise in value of NOK 6 million.
Earnings per share were NOK -1.67 for the fourth quarter of 2013 and NOK -3.87 for the whole of 2013.
| Quarters | Full Year | Full Year | ||||||
|---|---|---|---|---|---|---|---|---|
| NOK million | 04 13 | 04 12 | Q3 13 | 02 13 | Q1 13 | 2013 | 2012 | 2012 |
| Operating revenue | 518 | 494 | 438 | 460 | 458 | 1874 | 1 906 | 1 906 |
| EBITDA | -18 | $-33$ | -7 | -9 | -16 | -50 | -14 | -14 |
| Operating profit EBIT | $-125$ | -86 | $-27$ | $-28$ | -35. | $-215$ | -123. | $-123$ |
| Operating margin % | -24 % | -17 % | $-6%$ | $-6%$ | -8 % | -11 % | $-6%$ | $-6%$ |
| Profit before tax | -134 | -95 | -41 | -31 | -53. | $-259$ | -163 | $-163$ |
| Order inflow | 479 | 468 | 424 | 439 | 428 | 1 770 | 1845 | 1845 |
| lOrder reserve | 1 034 | 1 033 | 1089 | 1 107 | 1 110 | 1 034 | 1 033 | 1 033 |
Performance of key figures:
The figures have been revised in comparable periods due to the sale of Leshan Scana Machinery Co. Ltd, the de-merger decided at Scana Steel Stavanger AS and the sale of Scana Industrial Products AS.
Cash flow
Net cash flow from operating activities amounted to NOK 29 million in the fourth quarter.
Net cash flow from investing activities was NOK 38 million. The sale of companies and investment in non-current assets constitute a large part of the cash flow when considering the quarter as a whole.
Net cash flow from financing activities was NOK -58 million.
Net cash flow in the fourth quarter was accordingly NOK 9 million.
Net cash flow for the whole of 2013 was NOK 49 million: NOK -115 million from operational activities, NOK 31 million from investment activities and NOK 133 million from financing activities.
Balance sheet and capital position
The balance sheet total at the end of the fourth quarter of 2013 was NOK 1,585 million, a reduction of NOK 166 million compared with the end of 2012. The group's net
interest-bearing debt was NOK 470 million. A carrying amount for equity of NOK 451 million corresponds to NOK 6.01 per share and an equity ratio of 28 per cent.
Scana has been granted a waiver for covenants at the fourth quarter and relevant financial covenants were met at the end of the fourth quarter.
On 15 October, Scana entered into an agreement with the bank syndicate and three of the company's main shareholders concerning a loan facility of NOK 75 million. Parts of this lone facility were paid off in December.
During January 2014, Scana repaid a bullet loan of USD 8.7 million relating to Leshan Scana.
Share price trend
The closing price for shares in Scana was NOK 1.91 at the end of the fourth quarter. The closing price at the end of 2012 was NOK 8.19. Scana's holds 10,508 of its own shares. Scana has a Market Maker agreement to increase the liquidity of its shares and ensure listing on the Oslo Børs Match list.
Strategic initiatives
In July 2013, Scana entered into an agreement with Leshan Zhi Yuan Gao Di Mining Co. Ltd. on the sale of Scana's 80 per cent ownership in Leshan Scana Machinery Co. Ltd. The new owner assumed responsibility for the company's daily operations as well as the existing organisation. The new owner also assumed responsibility for the company's obligations. This sale is part of Scana's activity to strengthen the company's capital base.
Scana has hired consultants to assess various strategies for the Scana Energy business area's further growth and development. Scana Energy is Scana's biggest business area with a revenue of between NOK 800 million and NOK 1,500 million in recent years.
Scana is trying to further develop the strategic position of the Scana Propulsion business area. This work has mainly focused on strengthening the product range through own development and/or development together with other industry players.
Scana owns a significant amount of property, most of which is in Norway and Sweden. In the long term the board of directors sees considerable potential added value in the property base. Scana has disposed of some smaller properties in Strand Municipality in Rogaland.
In the fourth quarter, Scana Industrial Products were sold for about NOK 30 million to local investors in the Stavanger region.
To assist in taking out this loan and to strengthen the work in developing strategic options for the company, the board of directors of Scana Industrier have hired financial advisors.
BUSINESS AREAS
Scana Energy
This business area includes Scana Steel Björneborg, Scana Steel Söderfors, Scana Subsea, Scana Steel Booforge and Scana Machining, all of which are based in Sweden.
Operating revenue was NOK 231 million in the fourth quarter of 2013. This is an increase of 7 per cent on the corresponding period in 2012. EBITDA for the fourth
quarter was NOK 6 million, which is equivalent to a 3 per cent EBITDA margin, compared with -1 per cent for the corresponding period in 2012.
The operating revenue for the whole of 2013 amounts to NOK 798 million and EBITDA constitutes NOK 6 million.
Orders
The business area's net order inflow was NOK 194 million in the fourth quarter. The order reserve amounts to NOK 351 million compared with NOK 339 million at the same point in 2012.
There was a weak increase in the order inflow in the fourth quarter. The market for simpler products has continued to be demanding, with low demand and considerable price pressure. A considerable effort is being made in the work to ensure the basic activity through tonnage products. Individual niches show a somewhat more positive trend than previously. Order inflow for Subsea has not developed as expected.
Operations
The operations show improvement in October and November. December was characterised by low revenue following seasonal variations and because the steel companies were closed during the Christmas and New Year period.
Results for Scana Steel Söderfors are weak. Cost-reducing measures have been implemented and further action will be taken. The business model for the company will be evaluated.
Considerable cost-reducing measures were implemented in the steel companies and new measures will be implemented if necessary to adapt the cost of the activity and competitive situation.
Market
Scana has experienced a weak improvement in the European market but the energy market continues to be characterised by price pressures and strong competition. It is expected that the weakness of the Norwegian and also Swedish kroner will gradually strengthen competitiveness.
A normalisation of the marine market will have a great impact on the profit performance of this business area. Global activity within oil and gas continues to be high but the activity level fluctuates and Scana Energy is experiencing lower tender activity and order inflows from offshore customers than in previous periods. Scana Energy delivers products such as riser components for field expansions in very deep water.
Analyses of the steel market indicate weak growth in 2014.
Scana Propulsion
Reporting for this area includes the production units of Scana Volda and Scana Mar-El as well as the service and sales offices in Poland, Singapore, China, Brazil and the USA.
Operating revenue totalled NOK 73 million in the fourth quarter of 2013. This is a fall of 35 per cent from the corresponding period in 2012. EBITDA for the fourth quarter was NOK -12 million, which is equivalent to a -17 per cent EBITDA margin, compared with - 4 per cent for the corresponding period in 2012.
The operating revenue for the whole of 2013 amounts to NOK 347 million with EBITDA of NOK -6 million.
Orders
Order inflow was NOK 79 million in the fourth quarter. The order reserve was NOK 155 million, compared with NOK 211 million at the same point in 2012 – a fall of 27 per cent.
The order inflow in the quarter is weak and the order reserve continues to be low. This business area has entered into important new sales contracts in the fourth quarter and with that has strengthened its market position. Pressure continues to be applied to the margins of the contracts due to low global activity and the free capacity of equipment suppliers.
Operations
The production companies within Propulsion still need new orders to satisfy the capacity for the second half of 2014. Scana Mar-El has excellent order reserves, but Scana Volda needs additional orders for deliveries in the second half of 2014.
The restructuring of the business in Poland has been completed. Scana Zamech has been converted to a purely sales and service company, while the production of thrusters has been transferred to Scana Volda. Commissioning of thruster production in Volda has somewhat reduced the margin, but is now increasing in new deliveries.
The service market was weak in the fourth quarter, especially within retrofitting and reconstructions, but is expected to pick up in 2014.
A new propeller system for supply ships (PSV) was delivered from Scana Propulsion to Kleven/Ugland and will be commissioned in Q1 2014. The propeller system is a counter-rotating type with two propellers driven by effective permanent magnet motors that rotate independently of one another on the same axle. There are great expectations in terms of fuel savings and lower emissions which could give this concept a strong position in the offshore market.
Market
The market for Scana Propulsion's core products continues to be weak. However, the company has an interesting list of prospects and has increased its market efforts, especially in China where several new sales contracts have been concluded during the quarter. Scana Propulsion's core market within anchor handling vessels is expected to pick up again in 2014. The market for service and spare parts is expected to experience positive growth in the future.
Scana Offshore
Reporting for this area includes the companies Scana Offshore Vestby, Scana Steel Stavanger, Scana Offshore Technology, Scana Offshore Services in Houston and Singapore, and Scana Skarpenord. Scana Korea Hydraulic (Scana 49 per cent ownership) is also included in this business area, but is not consolidated in these figures.
Operating revenue amounted to NOK 217 million in the fourth quarter of 2013. This is an increase of 22 per cent on the corresponding period in 2012. EBITDA for the fourth quarter was NOK -5 million, which is equivalent to a -2 per cent EBITDA margin, compared with -12 per cent for the corresponding period in 2012.
The operating revenue for the whole of 2013 amounts to NOK 733 million with EBITDA of NOK -29 million.
Orders
The order inflow was NOK 206 million in the fourth quarter. The order reserve amounts to NOK 528 million compared with NOK 483 million at the same point in 2012.
Operations
Scana Steel Stavanger has experienced a weak fourth quarter and a low order inflow. Lay-offs and dismissals have been made and additional measures will be assessed on an on-going basis. The business model is being evaluated.
Scana Offshore Vestby is experiencing a positive trend in activity levels even though the results for the fourth quarter have been quite negative. The underlying operation in the company has improved considerably compared with the same quarter in 2012. The main reason for the positive development in the company is increased activity in the workshop combined with new engineering projects. The company is also competing for interesting new building projects. The project in Brazil with Engewix has been delayed somewhat due to the customer's total progression in the project. The project margin is unchanged.
Scana Offshore Services in Houston has won several contracts and is experiencing an increase in activity after moving into the new workshop in the second quarter. The company delivers satisfactory margins.
In the fourth quarter, Scana Offshore Technology experienced delays in some large projects, something which resulted in deficiencies in revenue and corresponding weak results.
Market
The global oil and gas market is expected to remain important for Scana. It is particularly interesting for Scana that the FPSO market looks like it will experience positive development. This is important for profitability at Scana Offshore Vestby and the business area as a whole.
Scana Steel Stavanger has taken up a strong position in the market for pre-cast components for the global offshore market. However, the company is facing challenges associated with ensuring sufficient continuity in the order inflow, something which results in unstable activity and challenges in terms of profits.
Scana Offshore Services and Scana Offshore Vestby are both expected to continue their positive development within the oil and gas market, something which is expected to affect both revenue and the profit trend.
Outlook
The main focus for Scana is to generate profitability within its business areas. In addition, Scana will continue to perform strategic initiatives with its full strength in order to strengthen the balance and improve the group's financial robustness.
The group expects that the Super Senior loan facility established in October will be paid in full in the first quarter of 2014. Loans of USD 8.7 million is paid in full in January 2014.
The proceeds relating to the Share Purchase Agreement associated with the sale of Leshan Scana Machinery were received in full in January 2014. Remaining payments related to the sale of Leshan about NOK 64 million are expected to be received during 2014 and 2015.
The group has tight liquidity and the group's Board of Directors have therefore focused intensely on strategic initiatives that may increase Scana's robustness. A realisation plan for the assets is part of this.
Switching production to more complete products and components for the energy market (including oil and gas) is a good development and will strengthen Scana's competitiveness in the long term.
Scana will continue to practice a very careful investment policy. Combined with the sale of individual assets, the Board of Directors believe this will stabilise the liquidity situation and allow a stronger focus on value-adding activities.
Scana still expects a challenging market throughout the first quarter of 2014. This applies in particular to simpler steel products and marine equipment. A recovery of growth in the European market and increased global growth combined with an acceptable currency situation is expected to have an immensely positive effect on Scana's further trend in profit.
Stavanger, 19 February 2014 The Board of Directors and the Group CEO Scana Industrier ASA
Profit and Loss Account - Group
| Quarters | Full Year | ||||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 13 | Q4 12 | Q313 | Q 2 13 | Q113 | 2013 | 2012 |
| Restated | |||||||
| Total operating revenues | 518 | 494 | 438 | 460 | 458 | 1874 | 1906 |
| Raw materials and consumables | 106 | 166 | 137 | 141 | 150 | 535 | 642 |
| Change in stocks and FG and WIP | 70 | 12 | 15 | $-6$ | $-13$ | 66 | 20 |
| Wages and NI contributions | 198 | 188 | 154 | 191 | 189 | 733 | 702 |
| Other operating costs | 161 | 161 | 139 | 144 | 148 | 591 | 556 |
| Depreciation/amortization/writedowns | 108 | 53 | 19 | 19 | 18 | 165 | 109 |
| Total operating costs | 643 | 579 | 465 | 488 | 493 | 2089 | 2029 |
| Operating profit / (loss) - EBIT | $-125$ | -86 | $-27$ | $-28$ | $-35$ | $-215$ | $-123$ |
| Interest income | $\mathbf{1}$ | 0 | 1 | 1 | $\mathbf 0$ | 3 | $\overline{2}$ |
| Interest expense | $-10$ | $-7$ | $-8$ | $-9$ | $-7$ | $-33$ | $-26$ |
| Net currency gain / loss (-) | 7 | $-1$ | -6 | 6 | $-5$ | $\overline{2}$ | $-10$ |
| Other financial income / expense (-) | $-7$ | $-2$ | $-1$ | $-0$ | $-7$ | $-16$ | $-7$ |
| Net financial income / expense (-) | $-8$ | $-10$ | $-14$ | $-3$ | $-18$ | $-43$ | $-41$ |
| Profit / (loss) before taxes | $-134$ | $-95$ | $-41$ | $-31$ | $-53$ | $-259$ | $-163$ |
| Taxation | $\mathbf{1}$ | 17 | $-5$ | $-1$ | $-5$ | $-10$ | 1 |
| Net profit / (loss) - continued operation | $-135$ | $-112$ | $-36$ | $-30$ | $-48$ | $-249$ | $-164$ |
| Net profit / (loss) - discontinued operation | 10 | $-17$ | 10 | $-1$ | 2 | 21 | $-30$ |
| Net profit / (loss) | $-125$ | $-129$ | $-26$ | $-30$ | $-46$ | $-228$ | $-195$ |
| Attributable to: | |||||||
| Equity holders of the parent | $-125$ | $-126$ | $-26$ | $-31$ | $-47$ | $-230$ | $-187$ |
| Minority interests | $\overline{0}$ | $-3$ | 0 | $\overline{2}$ | $-8$ | ||
| Earnings per share - continued operation | $-1,67$ | $-4,40$ | $-0,34$ | $-0,55$ | $-1.64$ | $-3,87$ | $-6,85$ |
| Diluted earnings per share - continued operation | $-1,67$ | $-4,40$ | $-0,34$ | $-0,55$ | $-1,64$ | $-3,87$ | $-6,85$ |
| Other comprehensive income | |||||||
| Net movement in value of cash flow hegdes | 3 | $\overline{\mathbf{2}}$ | 4 | $-1$ | 3 | 9 | $-1$ |
| Net gain /loss on hegde of net investment | $-1$ | 3 | $-12$ | $-0$ | -9 | $-21$ | $\overline{2}$ |
| Exchange difference on translations of foreign operations | 3 | $-7$ | $-18$ | $\overline{7}$ | 17 | 9 | $-12$ |
| Other comprehensive income | 5 | $-2$ | $-26$ | 6 | 12 | $-3$ | $-11$ |
| Total comprehensive income | $-120$ | $-131$ | $-52$ | $-25$ | $-34$ | $-230$ | $-206$ |
| Key Figures: | |||||||
| EBITDA | $-18$ | $-33$ | $-7$ | -9 | $-16$ | $-50$ | $-14$ |
| EBITDA margin - % | $-3%$ | $-7%$ | $-2%$ | $-2%$ | $-4%$ | $-3%$ | $-1$ % |
| EBIT margin - % | $-24%$ | $-17%$ | $-6%$ | $-6%$ | $-8%$ | $-11%$ | $-6%$ |
| Order intake - continued operation | 479 | 468 | 424 | 439 | 428 | 1770 | 1845 |
| Order reserve - continued operation | 1 0 3 4 | 1 0 3 3 | 1 0 8 9 | 1 1 0 7 | 1110 | 1 0 3 4 | 1 0 3 3 |
Balance Sheet - Group
| NOK million | 31.12.13 | 31.12.12 | 30.09.13 | 30.06.13 | 31.03.13 | 31.12.13 | 31.12.12 |
|---|---|---|---|---|---|---|---|
| Intangible fixed assets | 93 | 101 | 96 | 96 | 104 | 93 | 101 |
| Deferred tax assets | 18 | 23 | 17 | 18 | 23 | 18 | 23 |
| Property, pland and equipment | 572 | 758 | 663 | 650 | 769 | 572 | 758 |
| Shares in associated companies | 17 | 14 | 20 | 20 | 19 | 17 | 14 |
| Total fixed assets | 700 | 896 | 796 | 783 | 915 | 700 | 896 |
| Inventory | 275 | 352 | 329 | 347 | 376 | 275 | 352 |
| Trade debtors | 544 | 489 | 550 | 464 | 527 | 544 | 489 |
| Derivates | 1 | 2 | 2 | 1 | 1 | 1 | |
| Cash and cash equivalents | 63 | 13 | 54 | 13 | 18 | 63 | 13 |
| Assets held for sale | $\overline{0}$ | O | n. | 259 | $\Omega$ | $\Omega$ | 0 |
| Total current assets | 884 | 854 | 935 | 1084 | 922 | 884 | 854 |
| Total assets | 1585 | 1750 | 1732 | 1868 | 1837 | 1585 | 1750 |
| Paid-in capital | 612 | 478 | 613 | 612 | 479 | 612 | 478 |
| Other equity | $-161$ | 71 | $-41$ | 10 | 36 | $-161$ | 71 |
| Minority interests | 0 | 20 | 0 | 22 | 21 | 0 | 20 |
| Total shareholders' equity | 451 | 570 | 571 | 645 | 536 | 451 | 570 |
| Interest bearing loans and borrowings | 17 | 15 | 15 | 16 | 13 | 17 | 15 |
| Derivates | 9 | 14 | 7 | 8 | 11 | g | 14 |
| Deferred tax | 32 | 47 | 42 | 45 | 46 | 32 | 47 |
| Other non-current liabilities | $\overline{2}$ | 5 | 5 | 5 | 5 | $\overline{2}$ | 5 |
| Total non-current liabilities | 60 | 81 | 70 | 74 | 74 | 60 | 81 |
| Interest bearing loans and borrowings | 517 | 437 | 557 | 459 | 553 | 517 | 437 |
| Derivates | 11 | 15 | 5 | 11 | 11 | 11 | 15 |
| Liabilities held for sale | $\overline{0}$ | 0 | n | 89 | $\Omega$ | n | 0 |
| Other current liabilities | 545 | 647 | 529 | 590 | 664 | 545 | 647 |
| Total current liabilities | 1073 | 1099 | 1090 | 1 1 4 9 | 1227 | 1073 | 1099 |
| Total liabilities and shareholders' equity | 1585 | 1750 | 1732 | 1868 | 1837 | 1585 | 1750 |
| Key Figures: | |||||||
| Equity ratio | 28% | 33% | 33% | 35% | 29% | 28% | 33% |
| Gross debt | 534 | 452 | 572 | 475 | 566 | 534 | 452 |
| Net debt | 470 | 439 | 518 | 463 | 547 | 470 | 439 |
| Gearing (gross debt divided by shareholders' equity) | 1,2 | 0.8 | 1,0 | 0.7 | 1,1 | 1,2 | 0,8 |
Cash Flow Statement - Group
| Quarters | Full Year | |||
|---|---|---|---|---|
| NOK million | Q4 13 | Q4 12 | 2013 | 2012 |
| Restated | ||||
| Profit / (loss) before tax | $-134$ | -95 | $-259$ | $-163$ |
| Profit / (loss) before tax - discontinued operation | 10 | $-14$ | 21 | $-33$ |
| Tax paid | 3 | 4 | $-1$ | 2 |
| Gain / loss - discontinued operation | -7 | 0 | $-13$ | $-2$ |
| Currency exchange differences and gain/loss on sale of fixed assets and non cash element | $-26$ | 5 | $-24$ | 17 |
| Depreciation/amortization/writedowns | 108 | 56 | 168 | 117 |
| Net interest expense | 8 | 31 | 28 | |
| Change in net working capital | 68 | 31 | $-39$ | 31 |
| Net cash flow from operating activities | 29 | $-5$ | $-115$ | $-2$ |
| Proceeds from sale of property, plant and equipment | $\Omega$ | 0 | 12 | 6 |
| Purchase of property, plant and equipment | $-10$ | $-18$ | $-51$ | $-87$ |
| Proceeds from sale of shares | 53 | 0 | 94 | 0 |
| Cash disposed as a part of discontinued operation | -4 | Ω | $-20$ | Ω |
| Investments in business | $\overline{0}$ | 0 | $-4$ | 0 |
| Net cash flow from investing activities | 38 | $-17$ | 31 | $-80$ |
| Proceeds from long-term borrowings | n | 0 | n | 349 |
| Repayment of long-term borrowings | $-1$ | -1 | -1 | $-396$ |
| Net increase/(decrease) in short-term borrowings | $-45$ | 19 | 38 | $10^{-1}$ |
| Paid-in capital | 0 | 0 | 131 | 141 |
| Paid dividend | 0 | n | $\Box$ | n. |
| Paid other finance cost | $-5$ | $-11$ | $-17$ | |
| Net paid interest | $-7$ | $-8$ | $-25$ | $-28$ |
| Net cash flow from financing activities | $-58$ | 11 | 133 | 58 |
| Net cash flow | 9 | $-12$ | 49 | $-24$ |
| Cash and cash equivalents at beginning of period | 54 | 26 | 13 | 38 |
| Net foreign exchange difference | n | -1 | -1 | |
| Cash and cash equivalents at end of period | 63 | 13 | 63 | 13 |
Statement of change in shareholders equity - Group
| Issued capital |
shares | Own Other paid- in capital |
Retained earnings |
Currency translation reserves |
in value | Reserves Total equity for change ex. minority interests |
Minority | interest Total equity | |
|---|---|---|---|---|---|---|---|---|---|
| Equity at 1 January 2012 | 210 | 124 | 258 | 28 | -17 | 602 | 28 | 630 | |
| Total comprehensive income current period | $-187$ | $-10$ | -1 | $-198$ | -8 | $-206$ | |||
| Share option programme | |||||||||
| Paid in capital | 150 | -6 | 144 | 144 | |||||
| Equity at 31 December 2012 | 360 | 0 | 119 | 71 | 18 | -18 | 549 | 20 | 570 |
| Issued capital |
shares | Own Other paid- in capital |
Retained earnings |
Currency translation reserves |
in value | Reserves Total equity for change ex. minority interests |
Minority | interest Total equity | |
|---|---|---|---|---|---|---|---|---|---|
| Equity at 1 January 2013 | 360 | 0 | 119 | 71 | 18 | -18 | 549 | 20 | 570 |
| Total comprehensive income current period | $-229$ | -12 | 9 | $-232$ | $-230$ | ||||
| Share option programme | 0 | 0 | |||||||
| Minority - discontinued operation | ۵ | $-22$ | $-22$ | ||||||
| Paid in capital | $-285$ | 418 | 134 | 134 | |||||
| Equity at 31 December 2013 | 75 | 0 | 537 | $-158$ | 6 | -9 | 451 | 0 | 451 |
Scana
Notes - Consolidated financial statements
$\star$ Scana
Note 1 - Overall information
The consolidated financial statements for Scana Industrier ASA for the fourth quarter of 2013 were approved by the Board on 19 February 2014. The
accounting figures have not been fully audited. The quarterly report has bee
The figures have been rearranged into comparable periods due to the sale of Leshan Scana Machinery Co. Ltd, the de-merger decided at Scana
Steel Stavanger AS and the sale of Scana Industrial Products AS.
| Note 2 - Segment information | ||||||||
|---|---|---|---|---|---|---|---|---|
| Quarters | Full year | |||||||
| NOK million | Q4 13 | Q4 12 | Q3 13 | Q 2 13 | Q113 | 2013 | 2012 | |
| Restated | ||||||||
| Energy: | ||||||||
| Turnover | 231 | 216 | 178 | 186 | 202 | 798 | 851 | |
| EBITDA | 6 | $-2$ | $-5$ | 5 | $-0$ | 6 | 34 | |
| EBITDA margin | 3% | $-1%$ | $-3%$ | 2% | 0% | 1% | 4% | |
| Order intake | 194 | 203 | 146 | 173 | 171 | 683 | 822 | |
| Order reserve | 351 | 339 | 386 | 394 | 415 | 351 | 339 | |
| Propulsion: | ||||||||
| Turnover | 73 | 111 | 82 | 95 | 98 | 347 | 358 | |
| EBITDA | $-12$ | $-4$ | $-2$ | 4 | 3 | $-6$ | 6 | |
| EBITDA margin | $-17%$ | $-4%$ | $-2%$ | 5% | 3% | $-2%$ | 2% | |
| Order intake | 79 | 81 | 99 | 63 | 49 | 291 | 351 | |
| Order reserve | 155 | 211 | 147 | 131 | 164 | 155 | 211 | |
| Offshore: | ||||||||
| Turnover | 217 | 179 | 180 | 170 | 165 | 733 | 715 | |
| EBITDA | $-5$ | $-21$ | 6 | $-18$ | $-12$ | $-29$ | $-24$ | |
| EBITDA margin | $-2%$ | $-12%$ | 3% | $-11%$ | $-7%$ | $-4%$ | $-3%$ | |
| Order intake | 206 | 184 | 180 | 203 | 207 | 796 | 672 | |
| Order reserve | 528 | 483 | 555 | 583 | 531 | 528 | 483 | |
| Other Business: | ||||||||
| Turnover | 1 | 2 | 1 | 2 | 1 | 4 | 2 | |
| EBITDA | $\overline{0}$ | 2 | 1 | 1 | 0 | $\overline{2}$ | $-0$ | |
| Order intake | 0 | 0 | $\mathbf 0$ | 0 | 0 | $\overline{0}$ | 0 | |
| Order reserve | $\overline{0}$ | 0 | 0 | 0 | 0 | $\mathbf{0}$ | 0 | |
| Property: | ||||||||
| Turnover | 2 | 0 | 1 | 12 | 1 | 15 | 0 | |
| EBITDA | $\mathbf{1}$ | 0 | $\mathbf 0$ | 10 | 1 | 12 | 0 | |
| Other / Elimination: | ||||||||
| Turnover | $-6$ | $-15$ | $-3$ | $-5$ | -9 | $-23$ | $-20$ | |
| EBITDA | $-8$ | $-8$ | $-7$ | $-11$ | -9 | $-35$ | $-30$ | |
| MOLG 7 - IIIIGI GSL-NGGI IIIN AGNI | ||
|---|---|---|
| Per 31.12.13 | Current | Long-term |
| Total interest-bearing debt | 517 047 | 16 651 |
| Per 31 12 12 | Current | -ona-term |
Total interest-bearing debt 436753 14 9 54 The syndicate loan is a three-year loan for SEK 348 million and a rolling credit facility totalling NOK 280 million divided into an overdraft facility with a
nominal value of NOK 130 million and a bank guarantee facility of NOK 150 million. The syndicate loan of SEK 348 million has a half-yearly instalment
profile from January 2013. The loan is secured with a first priority ple at 31 December 2013
On 15 October, Scana entered into an agreement with the bank syndicate and three of the company's main shareholders concerning a loan facility of NOK 75 million. Parts of this lone facility were paid in December.
A bullet loan for USD 8,666,667 has been arranged to replace previous loans from DNB and Handelsbanken to Scana's operations in China. The loan was acknowledged in January 2014.
Note 4 - Impairment test
Made Williams and American State
Property, plant and equipment and intangible assets are written down to the recoverable amount where the recoverable amount is lower than the recognised value of the asset. The utility value is the present value of future cash flows which are expected to arise from an asset or cash-generating in the group also uses a sensitivity analysis which tests the impairment tests for reasonable changes in the key assumptions. For Scanal Industries until the contraction of the contract of the contract of the contract of t this applies to operating margin, the discount rate and rate of growth for the period 2014-2018. This means that there will be uncertainty in the outcome of the calculations.
The group performed write-downs in the fourth quarter of 2013. Reduced values associated with property, plant and equipment of NOK 64 million in the group have been identified through the use of impairment tests
In addition, the group wrote down non-current assets amounting to NOK 24 million in the fourth quarter.
Note 5 - Sale of business in fouth quarter
Scana sold its subsidiary Scana Industrial Products AS (SIP) to a group of employees and external investors. Employees will own 49% of Scana Industrial Products after the acquisition. Scana Industrial Products is a leading supplier of road maintenance blades in the Nordic region and also has maso market shares in the rest of Europe, North America and Asia. At the time of the transaction, Scana Industrial Products AS had seven employees
In Jørpeland outside Stavanger. The sale amount less transaction costs was company was moved from Scana Offshore during third quarter to Scana Other Assets. The overview below shows the P&L related to SIP
| Quarters | Full year | ||||||
|---|---|---|---|---|---|---|---|
| NOK million | Q4 13 | Q4 12 | Q313 | Q213 | Q113 | 2013 | 2012 |
| Total operating revenues | ш | 33 | |||||
| Total operating costs | 6 | 24 | |||||
| Operating profit / (loss) - EBIT | 5 | -0 | 8 | ||||
| Net profit / (loss) - distribution - discontinued operation | 5 | -0 | 8 | ||||
| Gain og disposal of the discontinued operation | 11 | 0 | 11 | ||||
| Net profit / (loss) - disontinued operation | 13 | n | 5 | -0 | 19 | ||
| Cash disposed as a part of discontinued operation. | -4 | 0 | -4 | ||||
| Nota 6 - Other comprehensive income |
The table shows a change in value associated with cash flow hedging relating to hedging electricity prices in the business activities in Sweden and Scana Steel Stavanger AS and cash flow hedging of the interestrate for parts of the group financing. In addition, hedging of the net investment associated with Swedish business activities and translation differences are presented. All of these items may be reclassified in the profit and loss section in later periods
Note 7 - Tax
Tax is calculated based on profit/loss before tax with associated taxrates in countries where the business activities are located. The group has tax loss carry forward in several countries. The tax loss carry forwards are included in deferred tax asset to the extent it is expected that sufficient revenue will be generated within the deadlines that apply in each individual country. Deferred tax assets are partly written down for the Norwegian and Chinese parts of the group. This is because of a valuation based on previously achieved results and uncertainty associated with future earnings.
Note 8 - Earning per share
| Full year | |||||||
|---|---|---|---|---|---|---|---|
| NOK | Q4 13 | Q4 12 | Q3 13 | Q2 13 | Q113 | 2013 | 2012 |
| Earnings per share - continued operation | $-1.80$ | $-3.90$ | $-0.48$ | $-0.52$ | $-1.67$ | $-4.20$ | $-6,03$ |
| Diluted earnings per share - continued operation | $-1,80$ | $-3,90$ | $-0.48$ | $-0.52$ | $-1,67$ | $-4,20$ | $-6,03$ |
| Earnings per share - discontinued operation | 0,13 | $-0.50$ | 0.13 | $-0.03$ | 0.04 | 0,32 | $-0.82$ |
| Diluted earnings per share - discontinued operation | 0,13 | $-0.50$ | 0,13 | $-0,03$ | 0,04 | 0,32 | $-0,82$ |
| Earnings per share | $-1.67$ | $-4.40$ | $-0.34$ | $-0.55$ | $-1.64$ | $-3.87$ | $-6.85$ |
| Diluted earnings per share | $-1,67$ | $-4.40$ | $-0.34$ | $-0.55$ | $-1.64$ | $-3,87$ | $-6,85$ |