TTS posts Q3 2016 results
TTS Group reports an operating profit (EBITDA) of MNOK 41 in the third quarter 2016, compared to a loss of MNOK 12 for the same period in 2015. The order intake was strong, up 30% compared to the same period in 2015.
The order intake increased 23% from last quarter and 30% compared to the same quarter one year ago. The increase is mainly in business units Container/Bulk/Tank and Shipyard Solutions.
Total turnover in the third quarter of 2016 was MNOK 741, compared to MNOK 805 in the same period in 2015. The reduction (8%) is particularly a result of reduced activity within the offshore sector.
The third quarter confirms the improvement achieved in the business unit Offshore, which has moved from an operating loss of MNOK 80 the first three quarters last year to break even this year. This is due to closing of loss making projects in 2015, as well as the extensive downscaling activities implemented. TTS expects a weak offshore market in the foreseeable future, and the Group's exposure towards the Offshore sector, which today represents less than 10 percent of the turnover is considerably reduced.
TTS has an order backlog that gives close to full capacity utilization for most business units through the remainder of 2016. In 2017, TTS expect that the weak general market outlook for the marine equipment segment will influence the company, leading to a lower level of activity. The company see particular short-term challenges within the car carrier and heavy lift segments, while the market for shipyard solutions remains strong. For the services sector, TTS see a large potential for further development of both the spare parts sales and the general service activity.
