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Scanship revenues, EBITDA rise on cruise sales

Scanship revenues, EBITDA rise on cruise sales
Higher newbuilding activity and increased after sales business boosted Scanship revenues to 50m Norwegian kroner ($5.7m) in the third quarter, up from NOK36m ($4.2m) a year ago. EBITDA rose, too, but the company posted a small loss.

The Norway-based provider of advanced technologies for treating wastewater, food waste, solid waste and bio sludge said the cruise business continues to grow, with Saga Cruises ordering its first newbuild and the China market expected to develop rapidly. The company cited increased competition in certain of its market segments.

Scanship's EBITDA rose to NOK5.3m, up from 707,000, but the company swung to a loss of NOK2.2m, or 2 kroner per share, after its Q3 2014 profit of NOK1.9m, or 2 kroner per share.

During Q3 Scanship made deliveries to Genting Dream at Meyer Werft, Silver Muse at Fincantieri and the fourth Oasis-class ship at STX France. The first equipment deliveries were made to Norwegian Cruise Line's 2017 newbuild for China at Meyer and to MSC Meraviglia at STX France.

Equipment deliveries were completed for Norwegian Escape and commissioning work was initiated.

Scanship's order backlog at the end of the recent quarter was NOK204m, double the level at the end of Q3 last year. This includes an order for approximately NOK20m that is subject to financing until December. 

Scanship's gross margin was 37% in the recent quarter, up from 30%, mainly due to the kroner's weakening against the dollar and euro and some positive estimate revisions on on-going projects. Most orders are in euros, and Scanship uses hedging to reduce its currency exposure.