Ferret's Stock to Watch: ADSTEAM MARINE LIMITED
09:07, Monday, 15 May 2006
AUSTRALIA'S TUG BOAT FLEET STRETCHING ACROSS THE GLOBE
Sydney - Monday - May 15: (RWE Aust Business News)
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OVERVIEW
********
If you climb aboard an Adsteam Marine (ASX:ADZ) tugboat you will
finish up on the other side of the world.
A market signal to have a closer look at Adsteam was the
announcement on Friday that Peter Dexter has been appointed as a
non-executive director of the company.
Now Mr Dexter is no ordinary business director, he is also
chairman of Wallenius Wilhelmsen Oceania and Wilh. Wilhelmsen Investments
Pty Ltd and the Honorary Consul General (NSW) for Norway.
His worth is measured by remarks from Adsteam Marine chairman
Bruce Corlett, who said: "Peter has a long history within the shipping
and maritime industry and brings a wealth of knowledge with him to assist
Adsteam Marine.
"His career, initially with ANL, and then Wallenius Wilhelmsen
and its subsidiary companies, is first rate and my fellow directors and I
expect him to make a substantial contribution to the strategic direction
and governance of the company," Mr Corlett declared, who is no slouch in
business acumen himself.
Mr Dexter's appointment is immediate.
Mr Dexter said, he was excited about joining the board of Adsteam
Marine and his experience within the shipping and logistics industry
provided a good fit with Adsteam Marine's business.
"Adsteam has a long history in towage and Australian shipping and
is highly regarded within the shipping world. I look forward to this
opportunity," he said.
Mr Dexter is also a director of a number of other companies
associated with the Wilhelmsen Group in Oceania and serves as a director
of The Australian National Maritime Foundation.
SHARE PRICE MOVEMENTS
*********************
Shares of Adsteam Marine on Friday slipped 2c to $2. Rolling high
for the year has been $2.27 and low $1.63. Dividend is 5.8 per cent to
yield 2.9 per cent. Earnings per share is 11.9c and price/earnings ratio
16.81. The company has 272.7 million shares on issue with a market cap of
$551 million.
Net profit for the six months ended December 31 was $21.2
million, up a modest 5 per cent on the previous comparable period.
Managing director John Moller the result reflected the improved
fitness in the Australian business and the significant progress in
workplace reform.
"The result is slightly up on last year and includes some of the
further improvements made within the business that will begin to flow in
the second half, particularly in the UK," he said.
Highlights of the interim result include:
* Fully franked interim dividend of 3.9c per share, up from 2.4
cents per share from the previous corresponding period;
* Revenue of $159 million and EBITDA $48.7 million;
* Improved Australasian earnings with EBITDA of $30.2 million
(before one-off and non-core items), up 12 per cent on last year on a
like-for-like basis;
* EBITDA for the UK (before one-off and non-core items) of $15.4
million, down $3.1 million on a like-for-like basis, and
* Net profit before tax of $23.4 million, up 14 per cent on last
year.
During the period, Adsteam incurred significant items relating to
redundancy and restructuring activities of $4.8 million after tax.
These costs were primarily incurred in the UK and will result in
ongoing annualised cost savings of about $3.5 million per annum with a
net saving of approximately $1 million expected to be realised in the
second half of the 2006 financial year.
Mr Moller said, "Adsteam maintains its leading position in the
Australian towage industry and has benefited from increased shipping
activity during the period.
"As a result, we improved our tug utilisation and delivered 6 per
cent growth in tug jobs in Australia," he added.
In March, Adsteam's Thames and Medway operation took delivery of
two new state-of-the-art Damen 2411 tugs.
Adsteam Warden and Adsteam Harty were brought in to meet the
demands of the growing LNG market on the Medway and is part of the
company's ongoing upgrading of its UK fleet.
The tugs, which have been named after local villages near their
operational base at Sheerness, have recently finished rigorous trials in
Vietnam and Rotterdam before being sailed to the UK.
These are the second and the third 2411s to join the UK fleet in
the last 12 months, with a further two new tugs scheduled for delivery
this year.
"These two tugs will prove to be a great asset to our Thames and
Medway operation, said Stephen Eastwood, CEO of Adsteam Europe.
"The expanding LNG market has provided us with the opportunity to
invest in unrivalled technology, which will enhance the service to all
our customers, not just LNG.
"Gas consumption has doubled in the UK over the last 10 years and
given dwindling North Sea reserves, the importation of gas into the UK
was inevitable," he said.
The Medway operation is the first of several LNG developments
planned for the UK over the next few years and this investment in new,
more powerful tugs will prove vital in maintaining Adsteam's position as
first choice LNG towage provider on the Medway.
Adsteam UK is the country's leading supplier of towage services,
with operations at seven key ports: Thames and Medway, Felixstowe, Hull,
Immingham, Liverpool and Southampton.
One of the longest-established ship-assist specialists, the
company has been operating on the Thames and Medway for over a century.
BACKGROUND
**********
Principal operations are located in Australia and the United
Kingdom and cover major container, bulk and general cargo ports in
Australia, the South Pacific and the UK.
With activities including towage, line running/mooring, workboat
and offshore services, vessel management, salvage, emergency response and
ships' agency, Adsteam Marine is a leading international provider of
maritime services.
The group serves a global customer base with a fleet of about 150
tug boats plus barges, workboats and launches.
The company continues to invest in new tugs in order to maintain
its fleet at the highest level.
Adsteam Marine is a leading international provider of harbour
towage and related marine services.
The company has a number of divisions: Adsteam Australasia,
Adsteam UK, Adsteam Agency, United Salvage.
Adsteam's services comprise harbour towage Lines and moorings,
bunkering operations, oil tanker berth assistance, oil terminal support
services, port management, remote port management, pilotage, pilot boat
services, workboat services, marine industry support, crew transfer
operations, tug barging, offshore oil and gas industry support services,
ships agency, salvage, emergency response, ocean towage, diving support
and project management.
ENDS
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