Significant Improvements in STX Europe 3Q Results

STX Europe reported an EBITDA of NOK 367 million for third quarter 2010 which is an increase from NOK 96 million in the third quarter 2009. The year-to-date EBITDA is NOK 660 million compared with NOK 177 million in the same period 2009. The result before tax in the third quarter 2010 was NOK 195 million compared with NOK -159 million in the same period last year. During the third quarter 2010 STX Europe received orders for NOK 4 413 million and increased its order backlog by NOK 486 million to NOK 29 279 million. The initial public offering of shares in STX OSV Holdings Limited on the Main Board of Singapore Exchange Trading Limited (SGX) was completed on 12 November 2010. STX OSV is the first Norwegian headquartered company with a primary listing in Singapore. STX Europe AS will maintain a majority stake in STX OSV after the IPO.

In the third quarter 2010, STX Europe had revenues of NOK 3,905 million compared with NOK 6,426 million in the corresponding period last year. The EBITDA result was NOK 367 million, compared with NOK 96 million in the third quarter 2009. The year-to-date EBITDA as per third quarter 2010 was NOK 660 million compared with NOK 177 million for the same period 2009. STX Europe delivered a total of five vessels during the third quarter 2010.

For the third quarter of 2010, the Offshore & Specialized Vessels business area posted an EBITDA result of NOK 409 million compared with NOK 163 million in the same period last year. The year to date EBITDA was NOK 1,000 million compared with NOK 392 million in the corresponding period last year. During the first nine months 2010, the business area delivered 16 vessels. The year to date order intake was NOK 9,766 million, of which NOK 4,173 million in the third quarter, giving an order backlog of NOK 17,532 million comprising 48 vessels at the end of the period.

The Cruise & Ferries (C&F) business area posted an EBITDA result of NOK -45 million in the third quarter 2010 compared with NOK -39 million in the same period last year. The year to date EBITDA was NOK -333 million compared with NOK -104 million in the corresponding period last year. The losses are mainly caused by low capacity utilization at the shipyards in Finland and France.

In 2010 STX France has been awarded contracts for two large cruise vessels for its Saint-Nazaire shipyard. After the end of third quarter 2010, STX Finland signed a preliminary agreement with Viking Line for the construction of an environmentally friendly, new generation cruise ferry. On 28 October 2010 Allure of the Seas was delivered from STX Finland's Turku shipyard to Royal Caribbean International. Following the delivery of Allure of the Seas the activity level at the Turku shipyard will be  materially reduced until expected start of production in second half 2011, under the preliminary agreement with Viking Line.