Acergy Posts 4Q and Full-Year 2009 Financial Results

Acergy has reported its results for the fourth quarter and audited accounts for the full year which ended on November 30, 2009.

Fourth Quarter

Revenue from continuing operations for the fourth quarter was $622 million (Q4 2008: $568 million) primarily reflecting good activity levels in West Africa and Asia Pacific partly offset by lower activity levels in the North Sea and Brazil, as anticipated.

Gross profit was $167 million (Q4 2008: $145 million) reflecting good project execution and increased vessel utilization partly offset by lower activity levels and the current portfolio mix with fewer major deepwater projects in installation phase or completed during the quarter compared to 2008, and the recognition of a $30 million pension credit in the fourth quarter of fiscal year 2008. Administrative expenses were $67 million (Q4 2008: $68 million).

Acergy's share of results of associates and joint ventures was $14 million (Q4 2008: $26 million) reflecting positive albeit lower contributions from NKT Flexibles and Seaway Heavy Lifting, and a positive contribution from SapuraAcergy.

The Adjusted EBITDA margin from continuing operations for the three months was 26.3% (Q4 2008: 23.8%). The Adjusted EBITDA margin from total operations for the three months was 25.9% (Q4 2008: 18.9%).

Other gains were $13 million (Q4 2008: $35 million) primarily reflecting the effect of foreign exchange translation on short-term inter-company and cash balances.

Income before taxes from continuing operations for the fourth quarter was $119 million (Q4 2008: $136 million) reflecting good operational performance and increased vessel utilization. This was partly offset by anticipated lower activity levels, particularly in the North Sea, a lower contribution from associates and joint ventures and a lower contribution from other gains due to foreign exchange movements.

Taxation for the quarter was $40 million (Q4 2008: $46 million) resulting in an effective tax rate for the quarter of 34% (Q4 2008: 34%) reflecting the current geographical portfolio mix of our business. Income from continuing operations for the fourth quarter was $79 million (Q4 2008: $90 million). Net income from total operations for the fourth quarter was $81 million (Q4 2008: $91 million).

Full Year

Revenue from continuing operations for fiscal year 2009 was $2,209 million (2008: $2,522 million) primarily reflecting lower activity levels in the North Sea, West Africa and Brazil, as anticipated, partly offset by good activity levels in Asia Pacific and the Gulf of Mexico.

Gross profit was $525 million (2008: $648 million) reflecting the lower activity levels and the current portfolio mix with fewer major deepwater projects in installation phase or completed during the year, compared to 2008 and the recognition of a $30 million pension credit in fiscal year 2008. This was partially offset by good project execution, high vessel utilisation and a good contribution from Sonamet. Administrative expenses were $231 million (2008: $254 million) reflecting favourable exchange rate movements and the effect of cost reduction initiatives.

Acergy’s share of results of associates and joint ventures was $49 million (2008: $63 million) reflecting lower contributions from NKT Flexibles of $22 million (2008: $46 million) due to ongoing challenging market conditions, and Seaway Heavy Lifting of $15 million (2008: $30 million) reflecting a particularly strong contribution from SHL in fiscal year 2008, partially offset by a positive contribution from SapuraAcergy of $10 million (2008: loss of $15 million) due to good project performance and Sapura3000 being available for the full year allowing higher utilization.

The Adjusted EBITDA margin from continuing operations for the twelve months was 22.1% (2008: 22.7%). The Adjusted EBITDA margin from total operations for the twelve months was 21.7% (2008: 19.4%).

Income before taxes from continuing operations for fiscal year 2009 was $361 million (2008: $492 million) reflecting anticipated lower activity levels, particularly in the North Sea and a lower contribution from associates and joint ventures, partly offset by good operational performance across all regions.

Taxation for the fiscal year was $103 million (2008: $163 million) resulting in an effective tax rate for the full year of 28% (2008: 33%) reflecting the current geographical portfolio mix of our business and partly offset by a net provision release relating to the resolution of a number of ongoing audits.

Income from continuing operations for fiscal year 2009 was $259 million (2008: $330 million). Net income from total operations for fiscal year 2009 was $266 million (2008: $307 million). The cash and cash equivalents position at the year end was $908 million (2008: $573 million) due to strong operational cash generation. Deferred revenue at the year end stood at $280 million (2008: $306 million).

At November 30, 2009 Acergy S.A. held directly 10,867,809 treasury shares representing 5.57% of the total number of issued shares, as well as indirectly holding 879,121 treasury shares, representing 0.45% of the total number of issued shares. Total shares in issue were 194,953,972, including treasury shares.

The Board proposes to increase the dividend by 5% to $0.23 per share (2008: $0.22 per share), subject to shareholder approval at the 2010 Annual General Meeting.

Backlog

Backlog for continuing operations as at November 30, 2009 was approximately $2.8 billion, of which approximately $1.7 billion is expected to be executed in the fiscal year 2010. This backlog figure does not include the backlog relating to associates and joint ventures.

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