Bergen Group (OSE: BERGEN) warned that hull delivery delays from Poland and Ukraine will result in losses from delays and additional work costs. The delivery first hull for two Fjord line cruise ferries from Poland was delayed several times and finally delivered with a lower degree of completion than originally planned. The second one has also been flagged for delay, now estimated to come three months later than initially planned.
A smaller offshore vessel hull from Ukraine also missed its initial delivery date by now and appears to be running couple months late. For this one Bergen group aims to keep the delivery date toward customer, presumably meaning some extra hours at Bergen yards later on. The delays have led to low capacity utilization in the beginning of the year on affected Bergen Group yards. All in all Shipbuilding will have a negative EBITDA of 40-50 million NOK in Q1 2012, with those accounts due on May 15th.
The company said that Shipbuilding will have high activity later this year and expects operating profit in line with last year. The segment was EBITDA negative for most of last year and the large order backlog for this year was assumed to mean a much improved result. This coupled with the fact that Offshore-segment that has been delivering positive results in the last year or two will have slightly lower activity in 2012, means this profit warning is rather significant. The company says that the customer and Bergen Group are both happy with the quality from the hull yards, but that more control needs to be exerted on this part of the value chain later going forward to improve punctuality.
No comments:
Post a Comment