European steel industry still heavily loss-making and Nordic steel companies aren’t faring a whole lot better. Their fourth quarter results were brutal and so far there has been little improvement in market conditions during Q1. Below is an illustration just how weak a market we are in. The numbers are from Q4 2012.
Outokumpu (OMXH: OUT1V)
Operating result -76 million
Net result -309 million
SSAB (OMX: SSAB A)
Operating result of -665 million SEK (-80 million €)
Loss after financial items of -842 million (-101M€)
Net result of -227 (-27M€)
Rautaruukki (OMXH: RTRKS)
Operating profit -58 million
Net result -56 million
Scana Industrier (OSE: SCI)
Operating result -99 million NOK (-13M€)
Net profit of -132 million NOK (-17.5M€)
Now granted some of these numbers contain one-off items and at least the former three had positive operating cash flow. SSAB and Rautaruukki plan to pay a small dividend of 1 SEK and EUR 0.20 respectively. Out of the said companies SSAB has been making decent money in the United States as of late and New Outokumpu does begin to have a presence in other geographies as well but it is further away and Rautaruukki is even later to the party. Even still the Nordic industry is content to hear that EU might be considering protective measures and other types of support mainly due to companies to the south struggling even more.
Scana Industrier has nearly burned out its recent stock offering and looks to be in a bad shape. Outokumpu hinted it may have to tap into equity financing once more as well unless it finds other ways to strengthen balance sheet. It updated on the much anticipated Terni mill sale couple weeks back, merely stating that numerous parties have expressed interest.
Showing posts with label SCI. Show all posts
Showing posts with label SCI. Show all posts
Friday, 8 March 2013
Thursday, 10 May 2012
Scana Industrier disappoints again
Norwegian special steel maker Scana Industrier (OSE: SCI) has been promising a turnaround ever since the financial crisis subject to fair development in the global economy. Investors have been buying that as well. That is why yet another quarter in the red isn’t going down well. The stock has sold off almost 15% for the day.
First quarter 2012 revenue of 559 million NOK is 15% higher than last year. The negative EBITDA of 4 million is a slight improvement from a year ago. Profit before taxes was -35 million NOK. The company is now restructuring and still aims to provide larger, more advanced and more complete products, which would increase pricing power. Despite providing niche-oriented products, the company hasn’t been able to charge big mark-up compared to peers. Strengthening Norwegian and Swedish currencies make a big dent as well.
The company gathered more cash in a rights issue few months ago, and also renewed multi-currency loan. This now looks like it was done at a decent time. Marine market, particularly concerning offshore and advanced vessel deliveries, is now supposed to recover from 2013. This is important for earnings going forward. Last year the company was guiding for improvement in 2012. Scana is aiming to grow services business to dull the effect of business cycles.
Scana Leshan is reported separately. The company is located in Southern Sichuan, Southwestern China . It is quite normal that local officials in the region are involved in business decisions and this company is a joint-venture 80% owned by Scana. Scana said that ownership discussions have been ongoing and those have affected orders, showing some internal turmoil.
The location is somewhat unusual as well. Leshan is more of a tourist city known from its giant Buddha statue. While there is a river going through, it does not allow for shipping and the city is quite far off (several hour drive) logistically from the giant hubs in the region. The heavy industry concentrations in the province are in other places such as Panzhihua and Deyang. The company envisions itself as the leading manufacturer of rolls and has an annual capacity of 20,000 tonnes of rolls and cast products. It does have some nice references from years past.
First quarter 2012 revenue of 559 million NOK is 15% higher than last year. The negative EBITDA of 4 million is a slight improvement from a year ago. Profit before taxes was -35 million NOK. The company is now restructuring and still aims to provide larger, more advanced and more complete products, which would increase pricing power. Despite providing niche-oriented products, the company hasn’t been able to charge big mark-up compared to peers. Strengthening Norwegian and Swedish currencies make a big dent as well.
The company gathered more cash in a rights issue few months ago, and also renewed multi-currency loan. This now looks like it was done at a decent time. Marine market, particularly concerning offshore and advanced vessel deliveries, is now supposed to recover from 2013. This is important for earnings going forward. Last year the company was guiding for improvement in 2012. Scana is aiming to grow services business to dull the effect of business cycles.
Scana Leshan is reported separately. The company is located in Southern Sichuan, Southwestern China . It is quite normal that local officials in the region are involved in business decisions and this company is a joint-venture 80% owned by Scana. Scana said that ownership discussions have been ongoing and those have affected orders, showing some internal turmoil.
The location is somewhat unusual as well. Leshan is more of a tourist city known from its giant Buddha statue. While there is a river going through, it does not allow for shipping and the city is quite far off (several hour drive) logistically from the giant hubs in the region. The heavy industry concentrations in the province are in other places such as Panzhihua and Deyang. The company envisions itself as the leading manufacturer of rolls and has an annual capacity of 20,000 tonnes of rolls and cast products. It does have some nice references from years past.
Monday, 12 March 2012
Some marine segment related engineering news from the past week
Wärtsilä’s (OMX: WRT1V) Southeast Asian offering continues to increase. The Finnish firm agreed to acquire Singapore-based MMI Boiler Management. It has a solid market position in the region particularly within offshore segment with 2011 net sales at around 5.3 million Euros and 138 employees. All the employees including the owners continue with Wärtsilä. The value of the deal, which is expected to be concluded in Q1, was not disclosed.
MMI Boiler Management is active in both marine & land industries and has steam raising plants and ships as well as rig owners as customers. It has manufacturing capabilities for various products such as boiler water wall membrane panels, exhaust gas boilers, heater elements, various pressure retaining ancillaries, loose tubes, pipes and steel components and pressure vessel tanks among others. The main focus is to provide services for repair & erection of boilers.
Bergen Group’s (OSE: BERGEN) crane and lifting equipment supplier Bergen Group Dreggen landed several contracts worth close to 50 million NOK on aggregate in the past week. Scana Industrier (OSE: SCI) said its subsidiary Scana Propulsion has doubled its order book for service activities in the last two months. This should help keeping earnings acceptable despite low global contracting levels within shipbuilding industry.
MMI Boiler Management is active in both marine & land industries and has steam raising plants and ships as well as rig owners as customers. It has manufacturing capabilities for various products such as boiler water wall membrane panels, exhaust gas boilers, heater elements, various pressure retaining ancillaries, loose tubes, pipes and steel components and pressure vessel tanks among others. The main focus is to provide services for repair & erection of boilers.
Bergen Group’s (OSE: BERGEN) crane and lifting equipment supplier Bergen Group Dreggen landed several contracts worth close to 50 million NOK on aggregate in the past week. Scana Industrier (OSE: SCI) said its subsidiary Scana Propulsion has doubled its order book for service activities in the last two months. This should help keeping earnings acceptable despite low global contracting levels within shipbuilding industry.
Thursday, 12 January 2012
Frame agreement for Scana from Rolls-Royce
Scana Industrier ASA’s (OSE: SCI) Scana Steel Björneborg has scored a three-year supply agreement with Rolls-Royce for propellers and shaft lines for different types of vessels. Piping, liner, composite and welded cladding installation will also be provided. The annual value of the contract is approximately 75 million SEK.
Scana held an Extraordinary General Meeting on Monday. Three new board members were elected in Knut Øgreid, Per Ravnestad and Kristin Malonæs. This means that the share is now trading ex-subscription rights and the large number of new shares coming some weeks later is still affecting the way the stock’s value is perceived. Scana was initially up strongly but fell back and closed in the red.
Scana held an Extraordinary General Meeting on Monday. Three new board members were elected in Knut Øgreid, Per Ravnestad and Kristin Malonæs. This means that the share is now trading ex-subscription rights and the large number of new shares coming some weeks later is still affecting the way the stock’s value is perceived. Scana was initially up strongly but fell back and closed in the red.
Friday, 16 December 2011
Plenty of news, Nordic stocks in the black on Thursday
H & M Hennes & Mauritz AB (STO: HM B) November 2011 sales decreased by 1% in comparable units. Total sales were up by 9%. In one year the company added 266 new stores to bring the number up to a total of 2472. Fourth quarter sales were over 36.1 billion SEK including VAT (unaudited, 30.9 billion VAT excluded). The numbers were below expectations. Retailers have blamed warmer than expected weather for sluggish sales as of late. H&M gained 1% in today’s session on high volume.
CEO Magnus Hall of Swedish paper firm Holmen (OMX: HOLM B) told Reuters news agency that orders for paperboard and printing paper remain weak and may fall further in the short term, where as market for timber is already so weak that Hall does not think it can get much worse.
Metso Corporation (OMX: MEO1V) will supply world’s first commercial installation of LignoBoost technology to Domtar’s Plymouth North Carolina pulp mill in USA. LignoBoost separates and collects lignin from pulping liquor and Metso feels this order is an important breakthrough for the adobtation of the technology.
Biotechnology company NorDiag ASA (OSE: NORD) more than doubled its stock market value in a day. The news that its US subsidiary NorDiag Inc entered into a five-year distribution agreement with AutoGen Inc, wherein AutoGen will distribute NorDiag’s products to North American Life Science market was the catalyst. Financial details weren’t disclosed but NorDiag expects a significant sales impact from 2012 and beyond.
As a continuation of the news from the other day on confirmed Pancreas Disease in Central Norway, Salmar ASA (OSE: SALM) said a confirmed detection of the disease has been made in one of its sites. The site has 2 million fish, with around half a million of them vaccinated against PD, and a book value of 50 million NOK. Salmar’s stock price was down slightly.
Scana Industrier (OSE: SCI) shot down 20% after a trading halt this morning. The company announced plans for a fully guaranteed rights issue for 120 million new shares. The existing shareholders shall have pre-emptive rights with non-tradable rights. Eight largest shareholders and two other shareholders are behind the full guarantee. The company is also negotiating on a new three year bank facility to replace the outstanding multi-currency term loan and revolving credit facility from 2007 with maturity in October 2012. The price action in the past couple of months suggests this did not come as a terrible surprise. Scana recovered in late trading to finish the day down by 4%.
Electromagnetic Geoservices ASA (OSE: EMGS) and world’s largest oilfield service company Schlumberger intend to enter into a cooperative agreement from January 3 2012 onwards. The parties will offer their expertise in marine electromagnetic related fields of processing, advanced modelling and earth model building and Schlumberger will withdraw from the ongoing patent disputes. The companies will cross-license patents relevant to the CSEM acquisition business. EMGS ended the day up by more than 12%.
Christmas sales reports from Nordic countries are mixed, with some chains already offering discounts that traditionally start after holidays. Finnish retailing conglomerate Kesko (OMX: KESB) managed to grow sales by 7.4% in November.
CEO Magnus Hall of Swedish paper firm Holmen (OMX: HOLM B) told Reuters news agency that orders for paperboard and printing paper remain weak and may fall further in the short term, where as market for timber is already so weak that Hall does not think it can get much worse.
Metso Corporation (OMX: MEO1V) will supply world’s first commercial installation of LignoBoost technology to Domtar’s Plymouth North Carolina pulp mill in USA. LignoBoost separates and collects lignin from pulping liquor and Metso feels this order is an important breakthrough for the adobtation of the technology.
Biotechnology company NorDiag ASA (OSE: NORD) more than doubled its stock market value in a day. The news that its US subsidiary NorDiag Inc entered into a five-year distribution agreement with AutoGen Inc, wherein AutoGen will distribute NorDiag’s products to North American Life Science market was the catalyst. Financial details weren’t disclosed but NorDiag expects a significant sales impact from 2012 and beyond.
As a continuation of the news from the other day on confirmed Pancreas Disease in Central Norway, Salmar ASA (OSE: SALM) said a confirmed detection of the disease has been made in one of its sites. The site has 2 million fish, with around half a million of them vaccinated against PD, and a book value of 50 million NOK. Salmar’s stock price was down slightly.
Scana Industrier (OSE: SCI) shot down 20% after a trading halt this morning. The company announced plans for a fully guaranteed rights issue for 120 million new shares. The existing shareholders shall have pre-emptive rights with non-tradable rights. Eight largest shareholders and two other shareholders are behind the full guarantee. The company is also negotiating on a new three year bank facility to replace the outstanding multi-currency term loan and revolving credit facility from 2007 with maturity in October 2012. The price action in the past couple of months suggests this did not come as a terrible surprise. Scana recovered in late trading to finish the day down by 4%.
Electromagnetic Geoservices ASA (OSE: EMGS) and world’s largest oilfield service company Schlumberger intend to enter into a cooperative agreement from January 3 2012 onwards. The parties will offer their expertise in marine electromagnetic related fields of processing, advanced modelling and earth model building and Schlumberger will withdraw from the ongoing patent disputes. The companies will cross-license patents relevant to the CSEM acquisition business. EMGS ended the day up by more than 12%.
Christmas sales reports from Nordic countries are mixed, with some chains already offering discounts that traditionally start after holidays. Finnish retailing conglomerate Kesko (OMX: KESB) managed to grow sales by 7.4% in November.
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