ROVworld Subsea Information

Warning of weakened ODIM margin
Date: Tuesday, September 01, 2009 @ 13:00:00 EDT
Topic: GENERAL NEWS


Warning of weakened ODIM marginODIM ASA has issued a warning that its margin weakened during the second quarter. After a preliminary review of figures for the period, sales look likely to total NOK 565 million while EBITDA will be NOK 51 million. That corresponds to an EBITDA margin of nine per cent.



The weakening in the margin can primarily be attributed to the following factors: - a negative trend for a couple of major subsea projects - high-margin contracts in the seismic survey sector were a smaller share of sales than in previous quarters - increased resources devoted to sales work without a corresponding order intake during the quarter - more time taken and higher costs related to the introduction of a new enterprise resource planning (ERP) system in the group - weak progress in the naval part of the Naval & Power business area.

ODIM also maintained a strong focus on product development during the period, which is expected to make the group less dependent on the seismic market over time. A detailed review of all the factors affecting profit developments in the second quarter will be provided during the announced presentation of ODIM's consolidated interim results. This is scheduled for 08.30 on Wednesday 12 August in Oslo's Felix conference centre.







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