STX OSV's net profit crashed 80.6% to NOK124m

Check out what to blame.

According to OCBC Investment Research, STX OSV reported a weak set of results with FY12 net profit coming in at NOK902m, 13% below its expectations and 15% below consensus. 4Q revenue and net profit were NOK2.5b (-18.8% YoY) and NOK124m (-80.6%), respectively.

Here's more:

Lower-than-expected order intake resulted in temporarily lower utilizations in some yards in Norway. Its Niteroi shipyard in Brazil also impacted the group’s performance negatively.

STX OSV is working on mitigating the effects of high workload and high staff turnover there and has taken measures to ensure the delivery of its order-book in Niteroi.

On a positive note, most of its major construction works for its new Promar yard are in place with shipbuilding activities scheduled for summer 2013, in line with previous estimates.

After two consecutive quarters of low order intake (1Q12:NOK2.3b; 2Q12:NOK5.0b; 3Q12:NOK0.9b; 4Q12:NOK1.3b), the market appears to be picking up.

In particular, the OSCV (Offshore Subsea Construction Vessel) market remains robust. Since the beginning of 2013, the group has secured three such
contracts worth an estimated NOK2-2.8b.

We believe this should ease order-book concerns. Management also noted signs of improvement in the segment of large and ultra-large AHTS.

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