AKER YARDS INTERIM REPORT QUARTER New Aker Yards reports by kyliemc

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									AKER YARDS - INTERIM REPORT 1ST QUARTER 2004
“New” Aker Yards reports an EBITA margin in the first quarter of 6.1 percent, despite a fall
in operating revenues relative to both previous quarter as well as the corresponding
quarter 2003. Order intake in the first quarter was NOK 3 104 million, resulting in an order
reserve at the end of the first quarter was NOK 18 282 million compared to NOK 18 246
million at year-end 2003. The process of listing Aker Yards shares on the Oslo Stock
Exchange is proceeding according to plan. The aim is to list the shares within May 2004.

Highlights for the quarter
     Aker Yards had operating revenues of NOK 2 645 million in the first quarter of 2004,
     compared to NOK 4 038 million in the corresponding period in 2003.
     The order intake in the first quarter was NOK 3 104 million compared to NOK 126 million in
     the first quarter in 2003. The order reserve at the end of the first quarter was NOK 18 282
     million compared to NOK 18 246 million at year-end 2003.
     Aker Yards achieved an EBITA of NOK 162 million in the first quarter of 2004, relative to
     NOK 287 million in the corresponding quarter last year. The EBITA margin for the first quarter
     in 2004 was 6.1 percent.
     Aker Yards foresees operating revenues for the group of NOK 11 - 12 billion for 2004 and
     expects to achieve an EBITA margin above 3 percent for the full year (excluding non-
     recurring items.)

Key Financial Figures
                                                  Quarterly results                        Full Year
All figures in MNOK                 Q1 03    Q2 03       Q3 03        Q4 03    Q1 04     2002          2003
Operating revenues                   4 038    4 309      4 005         3 513    2 645   18 386     15 865
EBITDA                                352      515         458          285      225     1 372         1 610
EBITA                                 287      449         393          218      162     1 095         1 347
Goodwill and intangible assets
amortization                           -26      -26         -26          -48      -29      -92          -127
EBIT                                  261      423         366          170      133     1 002         1 220
Profit/loss after financial items     213      408         340          185      140      843          1 146
Net profit/loss                       190      283         255          173       89      694           901
Total assets                        14 369   14 525     14 838        12 460   11 701   13 427     12 460
Equity                               4 571    5 317      5 539         4 395    4 453    4 222         4 395
Equity ratio (%)                    31.8 %   36.6 %     37.3 %        35.3 %   38,1 %   31.4 %     35.3 %
Net interest bearing debt             943      366        -786          -538   -1 272     281           -538
Cash & short-term interest
bearing recoverable                  2 617    2 764      3 935         2 348    3 178    3 215         2 348
Net working capital                  1 704    1 793        978          182      -618     916           182
Order intake                          126      947       8 631         4 256    3 104    8 968     13 960
Order reserve                       14 970   11 549     17 016        18 246   18 282   18 010     18 246
Number of employees                 15 193   14 739     14 613        14 235   13 955   12 838     14 235
GROUP FINANCIALS
The discussion of the financial results should        Offshore Service Vessels had an order
be seen in regards to the financial results           backlog of NOK 1 225 million at the end of the
presented on page 4                                   first quarter. This represents a reduction of
                                                      NOK 297 million, relative to year end 2003.
Financial results - first quarter 2004
                                                      Cruise & Ferries
Aker Yards had operating revenues in the first
quarter of 2004 of NOK 2 645 million                  The Cruise & Ferries business area achieved
compared to NOK 4 038 million in the                  operating revenues in the first quarter of NOK
corresponding period in 2003. This represents         1 111 million. This is a reduction of NOK 922
a reduction in revenue of NOK 1 393 million.          million relative to the corresponding quarter
Operating revenue in the first quarter of 2004        last year. The cruise and ferries business
was lower due to the market segments Cruise           area is characterized by large fluctuations in
& Ferries and Offshore Service Vessels.               operating revenue and order intake as a result
                                                      of the contract size and timing.
In the first quarter of 2004 Aker Yards
achieved an EBITA of NOK 162 million. This            Even with a large decrease in volume, Aker
represents a reduction of NOK 125 million             Yards managed to uphold a profitable EBITA
relative to the corresponding quarter previous        level of NOK 138 million. Relative to the
year. The reduction in EBITA is a result of           corresponding quarter last year it represents a
lower operating revenues.                             reduction of NOK 18 million and NOK 82
                                                      million relative to the fourth quarter in 2003.
Aker Yards managed to uphold an EBITA
margin of 6.1 percent during the first quarter        Cruise and Ferries booked new orders of
of 2004. The EBITA margin is mainly a result          NOK 35 million in the first quarter of 2004.
of cost reduction programs implemented to             Compared with previous quarter, this
adapt cost levels to market conditions.               represents a reduction of NOK 114 million
                                                      and is a result of the low activity in this
Aker Yards profit before tax for the first            market. However, Aker Yards is currently
quarter was NOK 140 million. This represents          working on several projects and expects the
a reduction of NOK 73 million. Relative to            activity in this market to gradually increase.
previous quarter it represents a reduction of
NOK 45 million.                                       At the end of the first quarter the cruise and
                                                      ferries business area had an order backlog of
Segment information                                   NOK 6 864 million.

                                                      Merchant Vessels
Offshore Service Vessels
                                                      The business area for Merchant Vessels had
The business area Offshore Service Vessel
                                                      operating revenues of NOK 689 million, an
had operating revenues in the first quarter of
                                                      increase of NOK 50 million compared with the
NOK 580 million. This represents a halving of
                                                      first quarter last year, and a reduction of NOK
operating revenues in this business area
                                                      202 million relative to the previous quarter.
relative to the corresponding quarter last year.
Compared with the fourth quarter 2004,                At the end of the first quarter merchant
Offshore Service Vessels experienced an               vessels had an EBITA of NOK 23 million,
increase in operating revenues of NOK 103             compared to NOK 16 million in the
million.                                              corresponding quarter in 2003 and NOK 6
                                                      million in the previous quarter.
Offshore Service Vessels achieved an EBITA
of NOK 72 million in the first quarter of 2004.       The Merchant Vessels business area booked
This is a reduction of NOK 36 million                 new orders of NOK 2 129 million in the first
compared with previous quarter and a halving          quarter of 2004. This represents a decrease
relative to the first quarter last year               of NOK 925 million compared with the fourth
                                                      quarter of 2003.
Order intake for the first quarter is significantly
higher than the corresponding period last year
reflecting higher market activity.

                                               Page 2 of 8
The order back log is strong with NOK 8 831          was NOK 734 million less than at year end.
million, and represents an increase of NOK           The reduction is primarily due to a positive
1 138 million compared with year end.                cash flow from operations as a result of
                                                     reduced working capital.
Other Complex Vessels
Other Complex Vessels had operating                  Cash Flow and financial status
revenues of NOK 51 million in the first              Cash Flow from operations in the first quarter
quarter. This reflects a decrease of NOK 46          was NOK 1 340 million. This represents an
million relative to fourth quarter 2003, but         increase of NOK 2 203 million relative to the
represents an increase compared with the             first quarter 2003 and is mainly due to a
first quarter last year.                             reduction in net working capital of NOK 2 326
The business area achieved an EBITA of               million from March 31, 2003.
NOK 2 million, compared with NOK 11 million          Aker Yards had an equity ratio as at March
in the last quarter in 2003 and NOK 3 million        31, 2004 of 38 percent.
in the first quarter 2003
Other Complex Vessels booked new orders in           Other matters
the first quarter of NOK 351 million. In the
                                                     Aker Yards is in the process of listing its
fourth quarter 2003 the business area booked
                                                     shares on the Oslo Stock Exchange. As a
new orders of NOK 897 million.
                                                     consequence of the restructuring and the
The order back log reflects the new orders           establishment of Aker Yards the nomination
received in the quarter and is increased from        committee of Kværner has proposed the
NOK 732 million at year end to NOK 1 184             following directors for Aker Yards Board of
million at the end of the first quarter.             Directors: Leif-Arne Langøy (Chairman),
                                                     Rebekka Glasser, Yngve Hågensen, Ole
Financial investments                                Melberg and Svein Sivertsen.

The net working capital reflects how much            Outlook
capital the company has contributed into the
projects. The level of net working capital can       The management of Aker Yards expects 2004
vary significantly. For example, when a large        to be a temporarily weak year compared with
vessel is delivered the capital that has been        previous years.
contributed by the yard into the project will be
                                                     Even in a weak market Aker Yards is
realized, and the net working capital will
                                                     confident the company will be able to show
decrease.
                                                     positive figures, based on the company’s
The net working capital as of March 31 2004          competitive ability.
was NOK -618 million which is NOK 810
                                                     As a result of this, Aker Yards foresees
million less than at year end 2003. The
                                                     operating revenues for the group of NOK 11 -
reduction from year end to the end of the first
                                                     12 000 million for 2004. In the same period
quarter can be explained by less capital tied
                                                     Aker Yards expects to achieve an EBITA
up in projects, due to fewer vessels under
                                                     margin of 3 percent or better (excluding non-
production.
                                                     recurring items).
The net interest bearing debt at the end of the
                                                     Aker Yards expects a growth in both
first quarter was NOK -1 272 million which
                                                     operating revenues and profits in 2005.



                                         Oslo, April 27, 2004




                                             Page 3 of 8
TABULAR INFORMATION
Profit and loss statements
                                                         Quarterly results                                     Full Year
All figures in MNOK              Q1 03         Q2 03         Q3 03         Q4 03         Q1 04         2002          2003
Operating revenues                  4 038         4 309         4 005          3 513        2 645        18 386        15 865
Operating costs                     -3 686        -3 794        -3 547        -3 228        -2 420      -17 014        -14 255
EBITDA                                   352           515           458           285           225      1 372            1 610
Ordinary depreciation                    -65           -66           -66           -67           -63          -278          -263
EBITA                                    287           449           393           218           162      1 095            1 347
Goodwill amortization                    -26           -26           -26           -48           -29           -92          -127
EBIT                                     261           423           366           170           133      1 002            1 220
Net financial items                      -48           -15           -27            16             7          -159           -74
Profit before tax                        213           408           340           185           140          843          1 146
Tax                                      -23       -125              -84           -12           -51          -149          -245
Profit after tax                         190           283           255           173            89          694            901


Segment figures
Offshore Service Vessels (OSV)
                                                         Quarterly results                                     Full Year
All figures in MNOK               Q1 2003       Q2 2003       Q3 2003        Q4 2003      Q1 2004             2002          2003
Revenues                            1 192         1 296         1 014              477           580      4 894            3 979
EBITA                                    147           131            99           108            72          402            485
Order Intake                             126           121      1 110              156           469      1 382            1 513
Order Backlog                       3 000         1 800         1 700          1 522        1 225         3 904            1 522


Cruise and Ferries (CF)
                                                         Quarterly results                                     Full Year
All figures in MNOK               Q1 2003       Q2 2003       Q3 2003        Q4 2003      Q1 2004             2002          2003
Revenues                            2 033         2 074         1 865          1 856        1 111        10 405            7 828
EBITA                                    156           247           262           220           138          719            884
Order Intake                               -             -      4 745              149            35      4 814            4 894
Order Backlog                       8 070         6 449         9 416          8 173        6 864         9 223            8 173


Merchant Vessels (MV)
                                                         Quarterly results                                     Full Year
All figures in MNOK               Q1 2003       Q2 2003       Q3 2003        Q4 2003      Q1 2004             2002          2003
Revenues                                 639           901      1 069              891           689      2 755            3 500
EBITA                                     16            40            47             6            23          (13)           109
Order Intake                               -           826      2 776          3 054        2 129         2 772            6 656
Order Backlog                       3 900         3 300         5 900          7 693        8 831         4 883            7 693




                                                  Page 4 of 8
Other Complex Vessels (OCV)
                                                      Quarterly results                        Full Year
All figures in MNOK               Q1 2003       Q2 2003    Q3 2003        Q4 2003   Q1 2004   2002         2003
Revenues                                   29       42          75            97        51    328           243
EBITA                                       3       13            4           11         2     32            31
Order Intake                                -         -           -          897       351       -          897
Order Backlog                               -         -           -          732      1 184      -          732


Other (eliminations and not distributed)
                                                      Quarterly results                        Full Year
All figures in MNOK               Q1 2003       Q2 2003    Q3 2003        Q4 2003   Q1 2004   2002         2003
Revenues                               146           -4         -18          191       214      5           315
EBITA                                  -35          18          -19          -126       -73    -46         -163
Order Intake                                -         -           -             -      120       -            -
Order Backlog                               -         -           -          126       178       -            -




                                                  Page 5 of 8
Balance sheet
Assets
                                         31.03.03    30.06.03     30.09.03   31.12.03   31.03.04
All figures in MNOK
Deferred tax assets                           51            48         55         52         44
Goodwill and other intangible assets       1 491          1 496     1 490      1 540      1 516
Total intangible assets                    1 542          1 544     1 545      1 592      1 560
Tangible fixed assets                      2 378          2 493     2 472      2 495      2 485
Other long-term receivables                   47            35         14         11         17
Interest-bearing long-term receivables       179           177        178        146        149
Long-term investments                         57            52         35         43         55
Total financial assets                       283           264        227        200        221
Total fixed assets                         4 204          4 301     4 244      4 287      4 253
Interest-bearing current assets            1 886          2 094     2 298         76         70
Non-interest-bearing current assets        7 548          7 460     6 659      5 825      4 259
Total receivables and other current
assets                                     9 434          9 554     8 957      5 901      4 329
Total cash and bank deposits                 731           670      1 637      2 272      3 108
Total current assets                      10 165         10 224    10 594      8 173      7 436
Total assets                              14 369         14 525    14 838     12 460     11 701



Equity and liabilities
                                         31.03.03    30.06.03     30.09.03   31.12.03   31.03.04
All figures in MNOK
Equity                                     4 523          5 252     5 487      4 336      4 419
Minority interests                            48            64         52         59         34
Total equity                               4 571          5 317     5 539      4 395      4 453
Deferred tax liability                       125           138        193        113        146
Other long-term liabilities                  269           274        276        499        319
Total long-term liabilities                  394           412        469        612        465
Interest-bearing long-term debt            1 473           854        953      1 780      1 841
Total long-term debt                       1 867          1 266     1 422      2 392      2 306
Short term interest-bearing debt           2 087          1 940     1 888         30         65
Construction loans                         1 852          1 568     1 255      1 399        992
Other current operating liabilities        3 992          4 434     4 734      4 244      3 885
Total current liabilities                  7 931          7 942     7 877      5 673      4 942
Total liabilities                          9 798          9 208     9 299      8 065      7 248
Total equity and liabilities              14 369         14 525    14 838     12 460     11 701




                                           Page 6 of 8
Cash Flow
                                                      Quarterly results                            Full Year
All figures in MNOK                  Q1 2003    Q2 2003    Q3 2003         Q4 2003    Q1 2004     2002           2003
CF from operating activities            -863        451       1 214            728      1 340    1 731          1 530
CF from investing activities             -56        -37          -57           -31       -139     -272           -181
CF from financing activities             -23       -514         -222          -137       -343    -1 098          -896
Net increases (decrease) in
cash and cash equivalents               -942       -100         935            560        858      361            453
Effect of FX rate changes                 47         39          32             75        -23      -72            193
Cash and cash equivalents at
beginning of period                    1 626        731         670          1 637      2 272    1 337          1 626
Cash and cash equivalents at
end of period                            731        670       1 637          2 272      3 108    1 626          2 272


Working capital
                                                       Quarterly results                            Full Year
All figures in MNOK                  Q1 2003    Q2 2003     Q3 2003        Q4 2003    Q1 2004     2002           2003
Short term non int bearing assets      7 548      7 460       6 659          5 825      4 259     6 221         5 825
- Short term non int bearing debt      -3 992     -4 098      -4 426         -4 244     -3 885   -3 371         -4 244
- Construction loans                   -1 852     -1 568      -1 255         -1 399      -992    -1 935         -1 399
= Net working capital                  1 704      1 793         978            182       -618      916            182
+ Cash and bank deposits                 731        670       1 637          2 272      3 108     1 626         2 272
+ Short term int bearing assets        1 886      2 094       2 298             76         70     1 589            76
= Total working capital                4 321      4 557       4 913          2 530      2 560     4 131         2 530


Net interest bearing debt
                                                       Quarterly results                            Full Year
All figures in MNOK                  Q1 2003    Q2 2003     Q3 2003        Q4 2003    Q1 2004     2002           2003
Long term interest bearing debt        1 473      1 190       1 261          1 780      1 841     1 449         1 780
+ Short term interest bearing debt     3 939      3 508       3 143          1 429      1 057     3 982         1 429
- Construction loans                   -1 852     -1 568      -1 255         -1 399      -992    -1 935         -1 399
- Short term int. bearing assets       -1 886     -2 094      -2 298           -76        -70    -1 589           -76
- Cash and bank deposits                -731       -670       -1 637         -2 272     -3 108   -1 626         -2 272
= Net interest bearing debt              943        366         -786          -538      -1 272     281           -538


Changes in shareholder equity
                                                      Quarterly results                            Full Year
All figures in MNOK                  Q1 2003    Q2 2003    Q3 2003         Q4 2003    Q1 2004     2002           2003
Equity at the beginning of the
period                                 4 222      4 571       5 317          5 539      4 395    4 990          4 222
Net profit (loss)                        190        283         255            173         89      694            901
New share capital                           -       230            -             -          -         -           230
Group contribution/dividend                                                   -842               -1 675          -842
Effect of foreign exchange
changes                                  159        232          -33          -475        -31      213           -116
Equity at end of the period            4 571      5 317       5 539          4 395      4 453    4 222          4 395



                                                  Page 7 of 8
Definitions
The report is consistent with NRS 11
EBITDA = Earnings before interest, tax, depreciation and amortization
EBITA = Earnings before interest, tax and goodwill/intangible assets amortization
EBIT = Earnings before interest, tax

Contact information:
Aker Yards ASA
Fjordalleen 16
P.O.Box 1523 Vika
0117 Oslo
Tel: + 47 24 13 00 00

Investor relation:
Leif Borge, CFO
Tel: + 47 24 13 01 26




                                           Page 8 of 8

								
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