The pre-tax profit amounted to NOK 190 million (NOK 215 million in 2012), which means a net profit ratio of 10% on a turnover of NOK 1,987 million (NOK 1,427 million in 2012).
In connection with the process relating to the stock exchange listing of the company, the accounting principles have been changed in order to satisfy IFRS (International Financial Reporting Standard) requirements. This applies to the financial statements for 2013 and the comparative figures for 2012.
Investment in product development
Large investments were made in developing new products in 2013. During the year, contracts were signed for, among other things, the building of seven newbuilds for customers in Norway, Denmark, Iceland, Nigeria, India and Russia. All the newbuilds were of Havyard designTM and will be used in the offshore petroleum industry, fisheries, fish farming, operations in the Arctic and in offshore wind power production. As many as four of the designs were new developments.
'Product development is an investment in the future,' says President & CEO Geir Johan Bakke of Havyard Group ASA. 'Havyard's vision is "improving life at sea"', he continues, 'and in order to live up to that vision and increase our competitive advantage, we need to continuously improve and develop new products. We mostly expense the costs of developing new designs, which reduces the net profit ratio compared with capitalisation. This means that a 10% ratio is regarded as an excellent result. However, we expect that the investment in product development and new customers will form the basis for further growth and development of the Group.' The Havyard Group is an integrated ship technology group that has products and expertise in large parts of the value chain – from design to building and support for ships in operation – and this gives us a sound foundation and possibilities for further development,' Bakke says.
The offshore market is very dependent on the oil price and the cost level in the oil and gas industry. At present, the macro-outlook is strong for investments in big subsea vessels as a result of the high oil price. The outlook for the near future is still good. It is influenced by the key factors price and demand for oil and gas, willingness to invest and the political and economic climate in general.
The development in the willingness to invest among companies on the Norwegian continental shelf has received wide coverage of late. The growth in investments is expected to continue, although at a lower pace, but the Havyard Group's assessment is that the activity level in the sector as a whole will remain high.
In the ship technology and shipbuilding industry, growth and demand for fishing and aquaculture vessels is affected by the key factors seafood consumption and technological development. The UN's Food and Agriculture Organisation (FAO) estimates that, in 2030, seafood production from aquaculture will have increased from 45 million tonnes to 85 million tonnes. The technology for catching and producing fish is undergoing continuous change because of innovation and renewal processes. This, in turn, creates opportunities for growth in the markets for Havyard's design, equipment and shipbuilding products.
Stock exchange launch
The company's shareholders have initiated a process that will culminate in Havyard Group ASA being listed on the Oslo stock exchange in Q2 2014. As part of this process, the company plans to raise NOK 100 million in new share capital, and the current principal owner Havila Holding is willing to reduce its holding. This will have a positive effect on the company both in relation to potential customers who have shown reluctance because of Havila Holding's holding in Havila Shipping and because it will boost the possibility of growth through the infusion of new capital.
Geared for growth in all business areas
The Havyard Group consists of four business areas and delivers products and services to many segments of the maritime industry. 'The fact that the group can deliver ship designs, ship equipment and build ships for both the oil industry and the fishing industry is a big advantage,' says CEO Bakke. 'Most sectors of the maritime industry are cyclical. This means that the need for products and services will vary from year to year. What we find, however, is that the activity in different sectors does not fluctuate in step, with the result that the overall demand from the maritime industry does not fluctuate as much, which is good for us. Live Fish Carriers for the aquaculture industry and service vessels for offshore wind power production are among the products we have developed recently and that we believe strongly in going forward,' CEO Bakke concludes.
Havyard Ship Technology
This business area's main activity is the building and completion of ships at our own yard in Leirvik in Sogn Norway. The business area's key expertise is the development of ship technology, project management and production control systems (ISO 9001-certified). The hulls are built under supervision at our partner yard in Turkey. Fitting out, completion, commissioning, testing and delivery of complete vessels is carried out at our yard in Leirvik. In addition, the business area delivers ship technology expertise to external yards that build Havyard designTM.
The following vessels were delivered in 2013
28 February 2013
15 June 2013
31 August 2013
15 November 2013
The business area had a turnover of NOK 1,480 million in 2013 and recorded a pre-tax profit of NOK 80.6 million. The EBITDA amounted to NOK 83.7 million.
The Group had orders worth NOK 3,300 million on its books at the beginning of 2014, with orders for nine ships at its own yard, the last of which is scheduled for delivery in the third quarter 2015.
Havyard Design & Solutions
This business area is engaged in the development, sale and delivery of ship designs and engineering and system packages to the Group's yard and to external yards and shipping companies worldwide. Since 2005, the business area has developed 22 types of design and, as of today, it has sold 71 design packages with Havyard designTM in worldwide.
The business area's turnover was NOK 263 million in 2013, while its pre-tax profit amounted to NOK 55.4 million. The EBITDA amounted to NOK 57.2 million.
Havyard Power & Systems
This business area has specialised in the design, engineering and installation of electrical systems and in the development and delivery of control and automation systems for ships. The business area delivers its own products and systems for integrated automation systems, integrated bridge systems and navigation and communication packages. This system also includes Havyard Production & Service Sp Zoo («HPR»), which is a significant supplier of labour to Havyard Ship Technology and Havyard Power & Systems.
The Power & Systems segment had a turnover of NOK 208 million and recorded a pre-tax profit of NOK 41.2 million. The EBITDA amounted to NOK 41.3 million.
Havyard Fish Handling & Refrigeration
At the end of 2012, Havyard expanded its portfolio to include equipment for fishing and aquaculture. This business area develops, sells and delivers equipment and systems for handling fish on board fishing vessels, Live Fish Carriers and on onshore facilities.
The segment had a turnover of NOK 325 million in 2013, while the pre-tax profit was NOK 3.8 million. The EBITDA amounted to NOK 15 million.Return to articles Share Facebook