CORRECTION FROM SOURCE/Davie Yards Inc. Releases Fourth Quarter and Year End Results: 2007-A Year of Revitalization of Shipbuilding
This release replaces the one issued this morning at 8h26 AM ED
LEVIS, QUEBEC–( EMWNews – March 31, 2008) – Davie Yards Inc. (“Davie” or the “Company”) (TSX:DAV) today released its financial and operating results for the three month and twelve month periods ended December 31, 2007.
Revenue for the three months ended December 31, 2007 was USD 10.02 million and USD 46.8 million for the full year. EBITDA for the fourth quarter was negative with USD 12.4 million, and negative with USD 15.4 million for the full year. Net loss was USD 10.7 million for the fourth quarter and USD 15.2 million for the full year. The order backlog as of December 31, 2007 was USD 591.6 million, consisting of three Offshore Construction Vessels and two Multipurpose Accommodation Vessels.
The Company has in 2007 had its first full operational year with the first contracts secured in Feb. 2007. These contracts have enabled Davie to mobilize and restart the idle ship yard to a fully operating facility. Employment has increased from 30 to 765 employees (as of 25 March 2008), and production has increased significantly. Over the past months the Company has put the foundation in place for a continued success by strengthening the financial position through a CAD $47.3 million IPO and recruiting a CEO and CFO with significant maritime experience.
The Company is currently benefitting, from a strong demand for offshore service vessels due to an expansion in offshore exploration and production, as well as a replacement of an ageing fleet. The market outlook for the construction of complex offshore vessels is currently strong, and Davie anticipates securing additional construction contracts in fiscal 2008.
The Company has taken a provision in the fourth quarter regarding the weakening of the US dollar and additional costs related to the ramp up of the yard.
Davie Yard’s newly appointed CEO, Mr. Steinar Kulen, said “I am delighted to join Davie Yards and look forward to capitalizing on the capabilities of this impressive yard in Quebec.” Mr. Kulen brings 20 years of experience from the maritime industry.
About Davie Yards Inc.
Davie Yards Inc. owns and operates the Davie Shipyard. With over 180 years of operating experience, the Davie Shipyard is the largest in Canada and among the most sophisticated shipbuilding facilities in North America. The company has a primary focus on building complex and technologically advanced vessels for the offshore oil exploration and production services sector. Its shares are traded on the Toronto Stock Exchange (DAV). News and information are available at www.davie.ca.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information within the meaning of applicable Canadian securities legislation. These statements include those relating to the expectations of the Company regarding additional contracts in fiscal 2008 and other statements that are not historical facts, and reflect the current intentions, plans, expectations and beliefs of Davie’s management (“Management”). Such forward-looking statements reflect Management’s current beliefs and are based on information currently available to Management. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside Management’s control. A number of factors could cause actual results of Davie to differ materially from the results predicted in the forward-looking statements, including, but not limited to, risks associated with a downturn in economic conditions, competition and sensitivity to the oil and gas industry and other factors referred to under “Narrative Description of the Business – Risk Factors” in Davie’s Annual Information Form dated March 25, 2008.
Although the forward-looking statements contained herein are based upon what Management believes to be reasonable assumptions, Management cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained in this news release include Management’s assumptions regarding market outlook for the construction of complex offshore vessels as well as the assumptions that the Corporation will be able to realize on certain options and other contingent contracts, deliver new vessels on schedule and attract and retain key personnel in key positions. These forward-looking statements are made as of the date of this release, and Management assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements. For additional information with respect to certain of these and other assumptions and risks, please refer to the Company’s Annual Financial Statements for the year 2007, Management’s Discussion and Analysis for the same period and the Company’s Annual Information Form dated March 25, 2008.
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