Operating profits (EBIT) for 2016 ended on NOK 112 million, which provides an EBIT margin of 5.6 %. After write-downs of ship values in connection with ownership shares in offshore vessels, pre-tax results come in at NOK 23 million. All companies apart from Norwegian Electric Systems delivered positive results, with Havyard Ship Technology the biggest contributor with an EBIT of NOK 64 million.
CEO Geir Johan Bakke is very pleased with these figures.
This shows that we have taken several good steps towards providing results, and I am incredibly proud and grateful for the fantastic effort of our employees in 2016. I am therefore pleased to inform that according to agreement, bonuses will be paid out to all employees, equal for everyone with adjustments only made according to actual percentage of employment and country of residence. It is easy to be leader of Havyard with the high number of skilful and motivated employees, and we have marked the course for the future where we together will create safe, profitable and exciting workplaces.
From ship technology to «maritime technology group».
Havyard started out in 2000 as a shipyard with 150 employees. From 2005 through the acquisition of Leine Maritime and the founding of Havyard Design & Solutions, and in 2007 through the establishment of Havyard Power & Systems, Havyard has developed into an international group with focus on ship technology.
Havyard developed further at sea and ashore through the formation of Norwegian Electric Systems in 2009, in 2012 by purchasing MMC and in 2013 by founding HPR.
The change from ship technology to a maritime technology group is both a description of what we are today and a signal of what way we wish to take and develop the company in the future.
Further develops the group and increases to 5 business areas
Havyard Group takes more action within its organisation, in order to strengthen its focus on profitable growth and to secure development of new competitive products and services. The growth in Havyard has been made through organic growth, mergers and acquisitions.
These are processes, after we have had a period of consolidation, which we will have an increased future focus on, in order to reach our targets of profitable growth within our priority areas.
HPR (Havyard Production & Service), which is located in Poland and is our company for sourcing and personnel, will be established as a separate business area. HPR was formerly a subsidiary of Havyard Ship Technology and has previously sold much of its capacity internally, although currently it sells its largest part of turnover externally and the aim is to increase this turnover further. HPR is going to profile itself with its own brand name HPRTM, to make the company visible in the market, and to increase the value of HPR as an independent company. HPR with Nedim Jacupovic as General Manager has 300 employees and had a turnover in 2016 of NOK 150 million, with financial results of NOK 3.5 million. The company moves into new production facilities this spring and aims to both increase turnover and financial results for 2017.
The Havyard Ship Technology shipyard (HST) in Leirvik, Norway will remain a vital part of Havyard, as a shop window and laboratory for development of new technology and equipment, together with a focus on profitable contracts in accordance with customer needs. In this context, fixed costs at the shipyard have been considerably reduced and capacity is made more flexible in order to meet fluctuations in the market. To secure an overall smoother shipyard activity, parts of both the short-term and long-term capacity have been earmarked repairs and conversions.
Havyard Power & Systems, which has previously been a subsidiary of Havyard Design & Solution, transfers across to the business area of «Power & Systems» together with Norwegian Electric Systems (51% ownership share). Tor Leif Mongstad who is currently President and CEO of Norwegian Electric Systems becomes leader of this business area. The aim by gathering resources into «Power & Systems» is to increase competitiveness of products as well as developing new ones in agreement with market changes and needs.
President and CEO Geir Johan Bakke says that these changes will help Havyard Group take another step forward and secure profitable growth in line with requirements seen in the market.
At the same time, we want to make visible the current values within the group through, in addition to profitable growth, consider development and sale of companies.
Bakke believes 2017 is going to be the most demanding year yet within the industry.
We do believe, considering all, that it will a decent year for us. As for the future, based on processes we have and projects we work on, then we are optimistic for 2018 and 2019.