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Friday, February 13, 2009

Record profits for Eitzen Maritime Services

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Friday, 13 February 2009
Total operating revenue was USD 408.2 million. This is an increase of USD 227.3 million from 2007. The increase is primarily due to revenues from the acquired companies Provimar and Seven Seas Shipchandlers (the first included from July 1st 2007 and the latter included from 1st June 2008). EBITDA was USD 18.8 million, an increase from USD 0.6 million last year. The operating result (EBIT) was USD12.2 million against a loss of USD 1.4 million in 2007. Net profit before tax was USD 8.8 million against a loss of USD 5.5 million in 2007.
Net tax is reported with a gain of USD 3.0 million, consisting of USD 2.4 million in payable tax and a tax credit of USD 5.4 million. Net profit ended at USD 11.5
million, an increase of USD 14.9 million from 2007.
FINANCIAL INFORMATION Q4 2008
Total operating revenue for the fourth quarter 2008 amounted to USD 126.0 million, an increase of USD 53.1 million from the fourth quarter 2007 and a
reduction of USD 1.3 million from the previous quarter.
The EBITDA was USD 5.4 million, an increase of USD 7.5 million from the fourth quarter 2007 and a reduction of USD 0.9 million from the previous quarter. The operating result (EBIT) came in at USD 3.2 million, an increase
of USD 6.1 million from the fourth quarter 2007 and a reduction of USD 0.7 million from the previous quarter.
Net financial items ended with a gain of USD 0.1 million, this includes net interest costs of USD 1.7 million and net currency and hedging profits of USD 1.8 million.
Net profit was USD 5.5 million, an increase of USD 8.0 million from the fourth quarter 2007 and of USD 3.3 million from the previous quarter.
Eitzen Maritime Services had total equity of USD 85.4 million at the end of the quarter, an increase of USD 9.1 million from the previous quarter. Included in the increase is a share issue in November of USD 5.0 million.
Cash holdings were USD 20.5 million, a reduction of USD 43.8 million from the previous quarter. This reduction is due to (acquisition) payments to the owner of Seven Seas in November and December.
IMPORTANT EVENTS AFTER Q4
In January 2009 EMS secured contracts for 2009 delivery to a total value of USD 82 million, of which USD 52 million were renewal of existing contracts and USD 30 million were new contracts.
EMS Ship Supply
EMS Ship Supply presents another solid quarter with operating revenues in line with the previous quarter, reaching an EBITDA margin in excess of 5%. As expected, we have seen slightly reduced activities at the end of the quarter due to the holiday season. The weakening shipping marked has not affected operating revenue significantly; however we have identified higher credit risks and have increased provisions for doubtful debts. The activities in the other market segments; like offshore and military, remain firm.
EMS Ship Supply’s fourth quarter operating revenues amounted to USD 117.1 million, a reduction of USD 1.9 million from the previous quarter and an increase of USD 52.2 million from fourth quarter 2007.
EBITDA amounted to USD 6.8 million, an increase of USD 0.4 million from the previous quarter and an increase of USD 5.9 million from fourth quarter 2007. The EBITDA margin for the quarter is 5.8%. This includes an extraordinary gain from a military contract of USD 2.8 million.
Full year revenue reached USD 373.8 million from USD 153.2 million in 2007, an increase of USD 220.6 million. Full year EBITDA reached USD 21.0 million versus USD 3.4 million in 2007. This gives us an EBITDA ration of 5.6%.
In the fourth quarter EMS Ship Supply (excluding Provimar and Seven Seas) achieved operating revenues of USD 14.9 million, Provimar USD 38.8 million and Seven Seas Shipchandlers USD 63.3 million.
The fourth quarter results and the 2008 full year results prove that EMS, through its acquisitions in Spain and Dubai, has managed to establish a global ship supply entity with a solid earning base. The integration of EMS and Provimar continued according to the plan. As of October 1st, all previously Provimar branded operations were rebranded to EMS Ship Supply as well as a world wide key account sales organization has been established to improve
customer interface. Towards the end of the quarter, after the closing, the Seven Seas organization was included in these activities and the entity is now quite well positioned moving into 2009.
EMS Ship Management
The fourth quarter results from the ship management segment are weaker than third quarter and than expected. The operating revenues developed as anticipated, but operating costs was too high. One-off costs of USD 0.7
million have been included in this quarter.
EMS Ship Management’s fourth quarter operating revenues ended at USD 8.9 million, an increase from the previous quarter of USD 0.6 million and an increase of USD 0.9 million from the fourth quarter 2007.
EBITDA ended at USD 0.3 million, a reduction of USD 0.9 million from the previous quarter, although an increase of USD 2.3 million from the fourth quarter 2007. The EBITDA margin for the quarter was 3.7% Full year revenue reached USD 34.6 million from USD 28.4 million in 2007, an increase of USD 6.2 million. Full year EBITDA reached USD 3.7 million versus USD 0.7 million in 2007. This gives us an EBITDA ration of 10.7%.
During the quarter the Ship Management segment had on average 107 vessels on technical management, 3 vessels less than in the previous quarter.
2008 has been a year of transition for Ship Management. The company structure and the cost base have been significantly changed with the consolidation of the ship management operation to three technical offices, and the centralizing of vessel accounting and purchasing function to India. EMS Ship Management will now be focusing on improving the overall quality of service to meet our own high standards. This will be the highest priority going forward into 2009 for the EMS Management.
Outlook
The world’s shipping industry is facing challenging times with difficult financial markets, reduced volumes and lower freight rates.
For EMS Ship Supply, a potential reduction in overall volumes might be partly offset by improved operational efficiency, improved purchasing power and the market’s need for more cost-effective suppliers. In addition, the division has significant activities in the military and off shore segment, which are less influenced by the current situation.
The ship management business is well positioned to benefit from ship owners looking for cost-effective outsourcing solutions. And be the area of highest priority for EMS Management in 2009.

Source: Eitzen Maritime Services
Posted by Editor at 1:35 PM
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