Mighty Servant 3: Dockwise receives compensation from the sinking of the heavy transport vessel off Angola.
Dockwise boosts profit with cost control
Bermuda incorporated Dockwise posted a 83.6% increase in net profit to $8.1 million for the third quarter, thanks to tighter cost control as revenue growth slows amid a subdued market conditions.
Revenue for the third quarter grew 12.4% to $113.9 million from $101.3 million in the previous year.
Adjusted revenue including compensation for Mighty Servant 3, which sank off Angola and divestment gain went up 2.6% to $113.9 million from $110.9 million in the previous year.
Dockwise’s chief executive André Goedée said steps taken to hold down cost while growing the company’s fleet has lifted operating margin to 43% from a previous 39%.
The reported quarter was affected by the holiday season and an underlying reduction in demand related to oil and gas related transportation, Goedee said.
However, Dockwise believes the demand slump is a ‘short term development rather than a structural trend’, he said.
During the quarter, Dockwise completed a floatover project for Carigali-PTTEP Operating Company's (CPOC) B-17 gas project in the Gulf of Thailand and transportation of structures for StatoilHydro’s Gjoa project in the North Sea.
Its outstanding order book stands at $339 million, down from $367 million in the second quarter. About $72 million of the outstanding orders are to be executed in 2009.
The transportation giant has pared down its long-term debt by almost $100 million to $928 million.
It is seeking to raise $220 million to $250 million through new shares placement and a separate offer to existing shareholders. HAL, Project Holland Fonds and Sankaty Advisors.are expected to participate in the share issue.
New investors are said to have acquired private equity 3i’s shares in Dockwise and rights to participate in the subsequent share offer for a total consideration of over 464 million Norwegian krone ($82.8 million).