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STX OSV profits trimmed by Brazilian yard

Oslo: STX OSV reported falling profits and revenues in its 2012 fourth quarter and full year results.

Full year revenue in 2012 of NOK11.1bn ($1.9bn) is 10% down on 2011's NOK12.4bn and 2012 profits of NOK889m are 45% down on 2011's NOK1.6bn.

The shipbuilder's Niterói yard in Brazil is suffering from high workloads and high staff turnover which are dragging down the group's profits as the yard's productivity and delivery schedule are affected. STX OSV has a further Brazilian yard currently under construction at Promar where production is scheduled to begin in summer 2013. The new yard is due to deliver eight LPG carriers in 2014-16.

The group also reported a temporary dearth of work at some of its Norwegian yards leading to low utilisation rates.

The offshore shipbuilding sector looks to be taking the strain from the beleaguered general shipping yards as STX views the market as highly competitive due to new entrants attempting to break into the OSV sector. Following the trend of established yards focussing on more complex work when new entrants emerge, STX considers itself well positioned to fulfil orders of advanced and customised projects as well as subsea and construction vessels, such as the three offshore subsea construction vessels ordered so far this year.

At 31 December 2012 STX OSV's order book contained 48 vessels, 27 of their own design, compared with 54 vessels and 32 of their design on 31 December 2011.

On 23 January Italian state shipbuilder Fincantieri acquired 50.75% of STX OSV from former majority shareholder STX Europe.

Posted 26 February 2013

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