SMIT hits EUR75 million

The result includes a net contribution of EUR10 million (USD14.94 million) from the financial settlement of the "Thunderhorse" project. The net profit shows a decrease compared with the corresponding period in 2008. The decrease is caused mainly by a drop in revenues of the Harbour Towage and Transport & Heavy Lift Divisions. In contrast, the Terminals and Salvage Divisions realised sharp increases in their results. EBITDA (including the income contributed by "Thunderhorse" and the results from associated companies) rose slightly compared with last year.

Ben Vree, SMIT's CEO, comments, "Despite the current recession, we have proved capable of maintaining our financial results at a reasonable level, by reallocating harbour tug vessels to new areas. During the third quarter we saw a slight recovery in the number of towage movements. However, the cyclical activities of the Transport & Heavy Lift Division generated lower returns. The profit forecast for the whole of 2009 is still in line with our earlier announcements."

In the Transport & Heavy Lift Division results were slightly below the results for the first six months of the year, the primary reason being that the vessels operating on the spot market generated lower returns. As a result, the accumulated results for 2009 are below last year's level. 

Owing to the currently unfavourable market conditions, the "Taklift 4" sheerleg is undergoing substantial modification during the latter half of the year to increase its capacity and extend its useful life. As a result of this and other factors, income from the Heavy Lift activities for the second half of the year will be below the level of the first six months.

Smit International and Royal Boskalis Westminster have reached agreement on a full merger of the two companies, whereby all the activities of Smit will be continued in the combined company - see earlier news item for further information.