DOCKWISE: Strong backlog

Dockwise this morning released a strong set of 3Q11 numbers.

Revenues are reported at $ 112.9m, up 3.4% sequentially and 3.7% y/y. We were looking for revenues of $ 110m. Vessel utilisation amounted to 70%, down from 85% in the previous quarter and in-line with the same period last year (73%). While there was no significant change in prices, delivery of the Bongkot project, better quality cargoes on higher class vessels and a specific variation helped revenues and margins.

During the quarter, Dockwise acquired for $ 135m in new contracts. This brings the backlog at $ 512m up from $ 471m at the end of June. We were expecting a backlog “close to $ 500m”. Of the backlog, about $ 58m is for execution this year, $ 186m relates to projects for next year with the balance ($ 268m) for execution in 2012 and later.

EBITDA was $ 40.4m, up 15.1% sequentially and down 12.4% y/y. We were looking for an EBITDA of $ 36.3m. EBITDA was boosted by an immediate contribution of settlement of disputes and the benefit of variation orders. While the exact impact is undisclosed, we understand it to be at the upper hand of the $ 5 to $ 10m range.

EBIT was reported at $ 19.0m (up 39.2% sequentially, down 20.4% y/y) and net profit at $ 8.0m (up from $ 2.6m in 2Q11 and down from $ 13.1m in same period last year). We have been looking for an EBIT of $ 13.9m and net profit of $ 3.3m.

Net financial debt increased from $ 462.5m at the end of June to $ 511.3m, largely reflecting the payment of $ 70m instalments related to the Dockwise Vanguard.

Conditions in the short term not improved quarter-on-quarter and Dockwise continues to see subdued revenues in the conventional Heavy Marine Transport market persisting into 2012. 8.010 121416182022

Conclusion:
Results are ahead of expectations. However, this is mainly to be explained by the settlement of disputes and the benefit of variation orders.

Conference call at 14:00 CET .