TTS continues improvement of results 15.11.2016

TTS Group continues the positive development through third quarter. The company reports an operating profit (EBITDA) of MNOK 41 in the third quarter 2016, compared to a loss of MNOK 12 for the same period in 2015. The order intake was strong, up 30% compared to the same period in 2015.

TTS Group has reported gradually improving operating results in all three quarters of 2016.

- We believe that we will continue to benefit from the positive effects of our improvement program. Combining our ambition to maintain and grow market positions with our continued focus on synergies and operational efficiency, with a goal to reduce operating cost with 100 MNOK across the Group, we expect a positive development going forward, says Toril Eidesvik, CEO of TTS Group ASA.

Among what pleases Eidesvik, is a strong 3rd quarter order intake. The order intake increased 23% from last quarter and 30% compared to the same quarter one year ago. The increase is mainly in business units Container/Bulk/Tank and Shipyard Solutions.

Total turnover in the third quarter of 2016 was MNOK 741, compared to MNOK 805 in the same period in 2015. The reduction (8%) is particularly a result of reduced activity within the offshore sector.

Reduced exposure towards offshore
The third quarter confirms the improvement achieved in the business unit Offshore, which has moved from an operating loss of MNOK 80 the first three quarters last year to break even this year. This is due to closing of loss making projects in 2015, as well as the extensive downscaling activities implemented. TTS expects a weak offshore market in the foreseeable future, and the Group's exposure towards the Offshore sector, which today represents less than 10 percent of the turnover is considerably reduced.

- We continue the efforts to develop a more flexible organization that can move resources between segments, and thereby be better suited to scale activity by market changes, Eidesvik emphasis.
Challenging market
TTS has an order backlog that gives close to full capacity utilization for most business units through the remainder of 2016. In 2017, TTS expect that the weak general market outlook for the marine equipment segment will influence the company, leading to a lower level of activity. The company see particular short-term challenges within the car carrier and heavy lift segments, while the market for shipyard solutions remains strong. For the services sector, TTS see a large potential for further development of both the spare parts sales and the general service activity.

- Despite a challenging market for marine equipment, we have a strong market position, global presence and a comprehensive and diversified product portfolio. Together with committed competent colleagues, it creates a strong platform for future growth when the market improves, says Eidesvik.

Bergen, 15 November 2016

Tel: +47 55 94 74 00 /

For further information, please contact:
CEO Toril Eidesvik, M: +47 900 78 218
CFO Henrik Solberg-Johansen, M: +47 982 06 438