STX Q2 Results and Strategy

STX Q2 Results and Strategy

STX Europe AS reported an EBITDA result for the Group of NOK 75 million for the second quarter of 2009, up from NOK 72 million in the corresponding period last year. With improved cost control and overall satisfactory operational performance, the business area Offshore & Specialized Vessels reported strong progress in the quarter with an EBITDA result of NOK 154 million, up 228 percent from the same period last year. Overall, activity levels remained high during the quarter, with the successful delivery of eleven vessels. Order intake in the quarter was NOK 3 993 million, resulting in an order backlog at the end of the first half of 2009 of NOK 35 367 million comprising 59 vessels.

In general, operations at the yards have progressed according to plan. During the first six months of 2009, STX Europe delivered a total of 22 vessels, of which eleven were delivered in the second quarter. Order intake was NOK 3 993 million in the quarter, up from NOK 592 million in the same period of 2008. The order backlog at the end of the period amounted to NOK 35 367 million comprising 59 vessels.

Within Cruise & Ferries, a negative EBITDA margin in the second quarter of -2.0 percent reflects increasing capacity costs in both Finland and France as well as costs related to staff layoffs. Furthermore, some projects have a negative impact on the results although the majority of ongoing projects within Cruise & Ferries are proceeding as expected.

Offshore & Specialized Vessels delivered a satisfying EBITDA margin of 6.5 percent for the second quarter of 2009, up from 1.7 percent in the same period of 2008.

The Board of Directors is pleased that the comprehensive improvement measures which have been implemented are starting to show results. This should result in better operational stability, despite the current challenges related to low ordering activity. The Board of Directors is committed to continue the improvement processes and to strengthen the Company’s position as the world’s premier shipyard group for construction of large cruise vessels and advanced offshore services vessels.

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During the quarter, it was announced that vessels built by STX Europe have won several prestigious awards, including Ship of the Year and the Heyerdahl Environmental Award 2009.

In May 2009, it was announced that Mr. Sang-Ho Shin had been appointed President & CEO of STX Europe. Mr. Shin came from the position as Chief Operating Officer of the company and brings with him extensive experience from thirty years in the shipbuilding industry. Sang-Ho Shin took over from Torstein Dale Sj√łtveit.

After the end of the quarter, STX Europe sold its 30 percent ownership share in Wadan Yards Group AS.

Please find enclosed the full version of the second quarter and half year report for 2009.