Performance first half year confirms recovery
- Healthy order book at €1,280 million (HY 2013: €1,130 million). Major long term maintenance contracts and plant modification projects in the global Oil & Gas sector awarded.
- Revenue increase of 2.2% to €685m (HY 2013: €670 million). Organic growth being 4%1).
- Strong revenue growth particularly in the Oil & Gas sector in the Benelux, Colombia and Australia.
- Improved EBITDA2) of €34.8 million (HY 2013: €27.4 million on a comparable basis).
- Non-recurring items limited to €3.3 million relating to the implementation of the indirect cost-restructuring programme (HY 2013: €18.4 million, which included €7.3 million of project losses).
- Operating result showed solid recovery of € 23.9 million to €11.1 million (HY 2013: negative €12.8 million).
- Working capital and capex control limited the seasonal cash outflow.
- Net debt increased €28 million YoY to €330 million (HY 2013: €302 million).
Arnold Steenbakker, CEO Stork, comments:
“Our performance in the first half year of 2014 was solid and confirms the upward development that started in the second half of last year. Organic revenue growth was driven by a strong performance in Colombia, the Benelux, and Australia, where our customers in the Oil & Gas sector continue to invest in new and existing production assets. In the Industrial Services division, where it is our core business to provide asset integrity management services in each phase of the lifecycle, we have been awarded a number of key long term maintenance contracts and plant modification projects. The prospects for the remainder of the year are promising. Despite challenging market conditions, the performance of our Power Services division is stabilising. Revenue decline is bottoming out, resulting in solid EBITDA recovery. We have seen the first results of the improvement initiatives that were initiated last year. Targeted cost savings are ahead of plan. Our project management and risk control processes have been strengthened. A companywide sales improvement program has been launched in the Benelux and Colombia with other regions to follow.”
