Aker shipyard lands 31 million-euro deal

Norwegian group Aker, owner of two Romanian shipyards based in Braila and Tulcea, has signed a 31.3m-euro (250 million Norwegian crowns) contract to build a ship in Romania, according to Greek publication reporter.gr.

Aker Yards, one of the world”s largest ship builders, last autumn landed several deals, with values ranging between 16 and 150 million euros, for its two Romanian-based shipyards.

The local naval industry, dominated by international players, is having a very profitable year, due to soaring demand from China and India. Moreover, some ship owners are modernising their fleet, as the international safety norms for naval transportation have become stricter.

The ship, which is to be built on Aker”s Romanian yards, will be delivered to Norwegian company Volstad Shipping in February 2007, according to the above-quoted source. The ship will be 93.4-metre long, 19-metre wide and will be able to carry 5,000 tonnes. The contract also includes an option regarding the construction of another ship.

Aker Braila last year agreed to build six oil tanks, under a contract worth more than 130 million euros. The company estimates this year”s net profit to amount to 1-1.5 million euros, with turnover set to be in the vicinity of 40 million euros.

In 2004, Aker Braila turned over 20.8 million euros and broke even, logging net profit worth 0.6 million euros. Aker Kvaerner owns 69.5% in the Braila shipyard, through Scandinor AS. Another significant shareholder is SIF Moldova, with a 14.4% stake.

The company is listed on the Rasdaq Electronic Market, trading for 7 RON/share, which brings the shipyard”s market capitalisation to 5.8 million euros.

The Tulcea shipyard was built in 1975 and became part of the Aker Yards portfolio in 2000, when Aker Barttvaag bought 70% in the company. The shipyard has greatly benefited from the avalanche of orders, as it recently signed a contract worth some 150 million euros. Given the numerous orders, the company was understaffed and the management announced, early in the year, that it was ready to hire more people.