OSLO, Norway, Nov. 2, 2001 (PRIMEZONE) -- CorrOcean (OSE:COR) HIGHLIGHTS
--No loss on operations for 3rd quarter, but a loss for the quarter
due to high financial expenses and high development costs
--Investing in product development prepares MOT Monitoring
Technology for future frame agreements with 2-3 oil
companies / oil service companies
--Technology development expenses totaling NOK 4.5 million charged
to the accounts for this quarter.
-- New record for orders received, which totaled NOK 114 million for
3rd quarter.
--Delayed orders for MOT Monitoring Technology, but total backlog is
at record heights for the company at NOK 172 million, up 41
million compared with 2nd quarter.
RESULTS
CorrOcean had consolidated revenues as at September 31, 2001 totaling NOK 204.9 million, an operating result of NOK 7.1 million and a pre-tax profit of NOK 4.1 million. This is an improvement over last year of NOK 19.5 million for the operating result and 14.8 million in profits, respectively. In the 3rd quarter, the Company had revenues of 72.9 million and a loss of NOK 2.9 million. The operating result for the period was +0.2 million. The loss of NOK 2.9 million for the period is following capital expenses of NOK 3.1 million, equally divided between interest expenses and disagio. The NOK 1.5 million disagio is mainly due to a falling dollar relative to Norwegian Kroner. Depreciations total NOK 6 million as at the end of the quarter.
The Company's two divisions for technology services and consultancy, AIS Advanced Integrity Services and Safetec Risk Management (SRM), both had lower activity in July and August due to the holidays, but had a strong increase in orders for September, resulting in revenues and operating result at the end of 3rd quarter of respectively NOK 105.0 million and 8.3 million for AIS, and 38.7 million and 2.3 million for SRM. The product division MOT Monitoring Technology had a loss for the period. Because of the excellent order situation, good profitability is expected in the AIS and SRM divisions for 4th quarter and 1st quarter of next year.
Revenues and operating result for MOT after 3rd quarter are NOK 61.2 million and (3.6) million, respectively. With 3rd quarter revenues of NOK 21.4 million, the result was (4.2) million NOK. This is primarily due to a high activity level in product development, where expenses for the 3-month period were NOK 4.5 million. Furthermore the loss is due to delayed orders, which has immediately led to reduced profitability. The high development expenses are, in addition to the FSM-IT technology, related to finalizing technology for a number of subsea projects which the Company is competing for, including possible frame contracts, one in the North Sea and one in the Gulf of Mexico. The Company is consequently of the opinion that profitability will improve again as soon as 4th quarter and 1st quarter next year.
Orders received in the period of January-to-September 2001 totals NOK 296.0 million. For 3rd quarter, orders received for the Company is NOK 114.1 million. The Company's order backlog is NOK 172.1 million, i.e. an increase of NOK 41 million from the end of 2nd quarter. This is again a new record for the Company and represents a good basis for improved profitability in the two service divisions for the coming quarters. The order backlog is divided with NOK 18.3 million, 29.6 million and 124.2 million for the three divisions MOT, SRM and AIS, respectively.
The tables for this report can be found at the following link: http://reports.huginonline.com/839016/96296.pdf