Eitzen Maritime Services Fourth Quarter 2006

Business Reports: Eitzen Maritime Services ASA 4th Qu 2006

EMS 4th quarter result 2006
Q4 Highlights

Our focus for 2006 has been to grow the business and restructure or dispose loss making entities.

Acquisition of 100 % of the shares in Blystad Ship Management renamed B Shipmanagement and thereby increased number of vessels managed by 20.

Completed restructuring of our Ship Supply activities in the Netherlands.

Sold Crosscomar SA in Spain to focus our strategy on ship supply and marine products within the Ship supply area.

Started the process of closing the Ship Management office in Glasgow.

Q4 results reflect this with improved Gross Margin but high one-time charges and year-end charges.

Financial Information
Operating revenues for the quarter ended at MNOK 145, a reduction of MNOK 13 from previous quarter but at the same level compared to 2005*. The reduction is within the Ship Supply segment whereas the Ship Management segment shows an increase

Operating income for the year ended at MNOK 590, an increase of MNOK 104* (+21%) from 2005. The increase includes EMS Insurance Broker revenues of MNOK 5.3 and B Shipmanagement revenues of MNOK 2.7

The gross margin for the quarter ended at MNOK 57.5 an increase of MNOK 2.8 from previous quarter and of MNOK 9.5* from same quarter 2005.

The operating results before depreciation (EBITDA) ended at MNOK -7.7 down from MNOK 4.9 previous quarter and from MNOK 3.8* in same quarter 2005. The operating results includes one-time charges related to restructuring of MNOK 8.5 in addition to costs related to performance bonuses, recruitment costs and pension costs of MNOK 4.0

The operating result (EBIT) for the quarter ended at MNOK - 8.7 down from MNOK 3.8 in previous quarter but up from MNOK -135.6* from same quarter 2005. The results include extraordinary write off of MNOK 2.0 of our IT system in the Netherlands

The equity ended at MNOK 95.1 down MNOK 16 from previous quarter. The equity ratio is 31.0%, however the ratio is partly due to the extraordinary high cash position in our Ship Management unit

As at December 31st 2006, EMS cash holdings are MNOK 93, up from MNOK 53 on September 30th 2006 and from MNOK 43 on December 31st 2005.

* proforma 2005 results

For full report, please click on link: EMS Q4 2006 Report