TTS Group posts Q4 2015 results
For the fourth quarter of 2015, TTS Group reported an operating profit before interest, taxes and depreciation (EBITDA) of MNOK 47, adjusted for non-recurring items related to offshore activities. – The marine business develops positively, where the profit from ordinary activities contributes to an EBITDA of MNOK 153 in 2015, says Björn Andersson, CEO of TTS Group ASA, the company said in its press release.
Reported earnings before tax, interest and depreciation (EBITDA) for the Group in total was MNOK 29 in the fourth quarter and MNOK 155 for 2015. Adjusted for non-recurring items, the full year EBITDA for TTS Group was MNOK 89, up from MNOK 4 in 2014.
The turnover in the fourth quarter was MNOK 842, and total order intake was MNOK 937. The total turnover in 2015 was MNOK 3,051, up from MNOK 2,454 in 2014. In light of the strong order intake, TTS Group had an order backlog at the beginning of 2016 of more than BNOK 4 - This provides a good foundation for achieving the targets set for 2016, Andersson says.
- In particular the business units Services, Container/Bulk/Tank and RoRo/Cruise/Navy contribute to the positive operating profit, while the business unit Multipurpose/General Cargo had a smaller operating loss both in Q4 and for the full year. This is partly related to the costs in connection with the establishment of the jointly 50% owned subsidiary TTS SCM in China. TTS SCM is expected to contribute positively to turnover and margins from 2016, says Andersson.
In this quarter, the business unit Offshore had non-recurring costs of MNOK 38 related to restructuring operations in Shanghai, of which MNOK 18 affects EBITDA.
The earnings before interest and tax (EBIT) were MNOK 32 in 2015. In addition to ordinary depreciation, the result is characterized by total impairment of MNOK 66, of which MNOK 46 is related to the offshore operations.
- After substantial restructuring, capacity adjustments and completion of loss-making projects, the risk of further heavy losses in the Business Unit Offshore is moderate. We currently have a cost base that is better adapted to the order book and a setup that is more flexible in case further adjustments should be needed, Andersson says.
