Red ink for STX

Order prospects are seen as improving during the course of this year by STX Europe despite higher losses and a downturn in revenue in 2009.

The Group which has 15 shipyards in Finland, France, Norway, Romania, Brazil and Vietnam is however warning of further cuts in its cruise and ferry yards in Finland and France although the outlook on the offshore and specialised vessel site is positive.

STX Europe reports a bottom line loss of NOK 782m ($131m) for 2009 compared to a net profit of NOK 40m in 2008.

The company however highlights earnings before interest, taxes, depreciation, and amortisation (ebitda) where there was a 2009 surplus of NOK 133m compared to a loss of NOK 400m in 2008.

Operating revenues for the year fell to NOK 29.1bn from NOK 31.5bn.

The fourth quarter loss was NOK 299m which is substantially up on the NOK 185m deficit of the previous quarter but a big improvement on the NOK 486m loss recorded in the final quarter of 2008.

STX Europe directors declared themselves pleased with the performance of the offshore and specialised vessel sector and describe the outlook as satisfactory.

But excess capacity in the cruiseship and ferry yards are seen as challenging and faces further restructuring costs as jobs and capacity are axed in Finland and France.

STX Europe has a cruise and ferry orderback long of eight vessels while the offshore and specialised vessels operation had a backlog of 43 vessels.

The value of the order backlog amounts to NOK 24.7bn compared to NOK 47.8bn a year earlier.

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