For the first half, EBITDA was MNOK 59, an increase from MNOK 34 in the corresponding period last year.
– In line with first quarter, our results demonstrate that our improvement program is on track. One hundred percent focus on operational efficiency and synergies across the Group is the key to a positive development going forward, says Toril Eidesvik, CEO of TTS Group ASA.
For the second quarter of 2016, the business units RoRo/Cruise/Navy and Services reported slightly weaker operating profit compared to the same period last year. However, this is compensated by improved results from the business units Shipyard Solutions and Container/Bulk/Tank.
– The first half year result shows significant improvement in the business unit Offshore, which has moved from an operating loss of MNOK 32 last year to break even this year. The major losses in offshore should be a closed chapter, says Eidesvik.
Total revenue in the second quarter of 2016 was MNOK 822, which is in line with the same period last year. After first half of 2016, the revenue was close to BNOK 1.6, up from BNOK 1.4 at the first half of 2015.
Second quarter order intake was weaker than in the corresponding period last year. TTS experienced a lower amount of orders from the car carrier market, the offshore market and the market for heavy lift cranes. However, this is to some extent compensated by strong order growth in the market for ship lifts. TTS reported orders for the delivery of ship lifts of MNOK 242 in the first half, and the positive trend has continued into the third quarter with further orders of MNOK 135.
The order backlog at the end of the second quarter was BNOK 3.3, a decrease from BNOK 4 in the corresponding period 2015.
Outlook
The TTS Group has an order backlog that indicates close to full capacity utilization for most business units through 2016. Like all other players in the marine equipment segment, TTS is nonetheless prepared for a somewhat lower level of activity in the international shipping market in 2017.
– For offshore, we expect a continued weak market in the foreseeable future, but today this business unit represents less than 10 percent of our revenue.
An overall diversified portfolio makes us less vulnerable to fluctuations in individual segments, and development of a more flexible organization will allow us to scale activity by market changes, Eidesvik emphasis.
– After Palfinger Marine GmbH decided not to complete the planned acquisition of TTS, we have closed the strategic process initiated in 2015. We will now fully concentrate our forces on further developing TTS as an independent and sound company. With an annual revenue base of approximately BNOK 3, I am confident that our strong market position, broad product portfolio and committed competent colleagues make us well positioned to meet the future, says Eidesvik.