Canada: ShawCor Releases Third Quarter Results

ShawCor Ltd. Announces Third Quarter 2011 Results.

* Third quarter revenue of $271 million declined by 4% from the $283 million reported in the third quarter of 2010 but was marginally higher than the $265 million reported in the second quarter of 2011.

* EBITDA in the third quarter was $12.5 million, 78% lower than the $55.7 million reported in the third quarter of 2010 and 65% lower than the $35.3 million reported in the second quarter of 2011.

* The significant decline in year over year EBITDA was due to lower gross margin in the Pipeline segment, foreign exchange losses of $6.5 million and a $9.6 million increase in the allowance for doubtful accounts. This increase results from a contract dispute that is currently under negotiation with a client and for which the Company will continue to aggressively pursue all avenues to recover the amounts owed.

* Net loss in the third quarter was $3.1 million (or a loss of $0.04 per share diluted) compared with net income of $32.1million (or $0.45 per share diluted) in the third quarter of the prior year.

“ShawCor’s third quarter financial results reflect reduced project activity and lower margins in the Pipeline segment compared with the prior year. This, when combined with a foreign exchange loss of $6.5 million and a one time charge of $9.6 million to increase the allowance for doubtful accounts, led to the net loss result” said Bill Buckley, President and CEO of ShawCor Ltd.

Mr. Buckley added “The Company is increasing production at its major pipe coating facilities which are expected to result in higher revenue and facility utilization in the fourth quarter of this year. In addition, we have recently announced major contract awards which combined with the $1.5 billion in outstanding firm project bids provides the potential for strong growth in revenue and income in 2012.”

ShawCor

Source: ShawCor Ltd, November 10, 2011

Share this article

Follow Subsea World News

Events>

<< Mar 2020 >>
MTWTFSS
24 25 26 27 28 29 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

9th Annual Submarine Power Cable and Interconnection Forum

This year’s Advance Submarine Power Cable and Interconnection conference will focus on the cutting edge thinking that is emerging across…

read more >

The 24th Annual PNEC Conference & Exhibition

The 24th annual PNEC Conference and Exhibition  will bring together the industry thought leaders and technology providers that enable the management…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

M&CCE Expo Marine & Coastal Civil Engineering 2020

This conferences, events, demos, and competitions provide a productive background buzz throughout M&CCE…

read more >