Eitzen Maritime Services sees double-digit growth

Eitzen Maritime Services ASA today reported its second quarter 2007 results. The Company had total sales of NOK 162.1 million in the second quarter, corresponding to an 11 per cent sales growth over last year’s second quarter. The EBITDA result for the quarter came in at NOK 3.5 million, compared to NOK 4.8 million last year.

EMS’ business segments had a positive development in the second quarter and delivered improved EBITDA results. The overall EBITDA is however affected by non recurring restructuring costs.

Net sales for the Company’s ship supply business area in the second quarter were slightly up from last year’s second quarter. Net sales in the business area amounted to NOK 124.3 million with a gross profit of NOK 25.2 million and an EBITDA of NOK 4.2 million, which represent a significant increase from the first quarter of this year. Order flow was strong in the second quarter, which ended with a record order backlog of NOK 62 million for the Ship Supply business.

In the Ship Management and Ship Insurance business areas sales increased by 33 per cent in the second quarter compared to last year. Net sales for the quarter were NOK 39.9 million with an EBITDA of NOK 5.1 million. The business area experienced increased volumes in the second quarter, e.g. the number of ships under EMS crew management grew by 13 ships to a total of 238 vessels.

For the first half of 2007 Eitzen Maritime Service’s sales increased by 9 per cent to a total of NOK 312.4 million. EBITDA for the first half is NOK 7.5 million, slightly down from last year’s first half mainly due to non recurring restructuring costs.

EMS’ acquisition of Spain’s Provimar Group was completed in the second quarter and took effect from 1 July. The acquisition more than doubles EMS’ revenue, making the Company a global leader in ship supply. EMS also acquired its partners’ minority interests in a number of smaller maritime services companies based in India and Bermuda in the quarter.

EMS’ chief executive, Ms Annette Malm Justad, said: “We are pleased with the performance in all our business areas in the second quarter. We are gradually improving operational efficiency and releasing synergies. The acquisition of Provimar Group will further enhance this development.”

Eitzen Maritime Services last year introduced a unique business model, combining ship supply services, ship management, crewing and ship insurance brokerage. The Company has identified an outsourcing trend in the shipping industry, where ship owners are increasingly susceptible to one-stop-shopping offerings. EMS expects continued growth and improved margins going forward.