Adjusting to a new market environment

(Hareid, 24 November 2009): Revenues for the third quarter came to NOK 457.2 million, down by 10.7 per cent from the corresponding period of 2008. EBITDA was NOK 35.6 million, compared with NOK 99.3 million in third quarter 2008. The EBITDA margin reached 7.8 per cent, down by 11.6 percentage points from the corresponding period of 2008.

The margin was negatively affected by two pioneering Subsea & Deepwater Installation projects, and by lower activity in the Offshore Service Vessels business area. The order backlog stood at approximately NOK 1.3 billion at 30 September after an order intake of NOK 344 million in the third quarter. The board has resolved to change to more conservative financial reporting principals. As a consequence, the order backlog is reduced by NOK 320 million, corresponding to the value of the ODIM Smart AHTS anchor handling contract from Havyard announced in June. However, ODIM is vigorously working to get the contract in place without conditions. "We are not satisfied with the project execution in the third quarter and consequently we have implemented an improved execution model with the aim to improve cost control and profitability in large and complex projects," comments acting CEO and CFO Arild Hatløy. "Several segments ODIM operates in still show signs of excess capacity and cost cut programmes. However, we see clear signs of market improvement. Through high competence, good operational flexibility and a sound financial position, ODIM is prepared for growth when market improvement sets in," says Hatløy.