ODIM: Adjusting to a new market environment

Tuesday, Nov 24, 2009

The margin was negatively affected by two pioneering Subsea & Deepwater Installation projects, and by lower activity in the Offshore Service Vessels business area.

The order backlog stood at approximately NOK 1.3 billion at 30 September after an order intake of NOK 344 million in the third quarter. The board has resolved to change to more conservative financial reporting principals. As a consequence, the order backlog is reduced by NOK 320 million, corresponding to the value of the ODIM Smart AHTS anchor handling contract from Havyard announced in June. However, ODIM is vigorously working to get the contract in place without conditions.

"We are not satisfied with the project execution in the third quarter and consequently we have implemented an improved execution model with the aim to improve cost control and profitability in large and complex projects," comments acting CEO and CFO Arild Hatløy.

"Several segments ODIM operates in still show signs of excess capacity and cost cut programmes. However, we see clear signs of market improvement. Through high competence, good operational flexibility and a sound financial position, ODIM is prepared for growth when market improvement sets in," says Hatløy.

For further information, please contact:
Arild Hatløy, acting CEO, and CFO, ODIM ASA, +47 909 93 216
Øyvind Olsen, vice president communications, ODIM ASA, mobile +47 911 85 817

About ODIM ASA
ODIM is a global technology group that engineers and produces advanced and complete automated handling solutions in the offshore oil & gas, naval and power generation markets. ODIM seeks the position as the No. 1 partner in customer critical operations, and has established leading positions in its selected markets. ODIM has made a dedicated commitment to the very promising deepwater sector.