, Saturday, January 1, 2000
Stock Exchange Notification
REPORT FOR 3RD QUARTER 2007 - ACCORDING TO PLAN
The company demerged the offshore operations into an independent listed company, Scan Subsea ASA. The demerger has visualised the underlying values that these operations represented. At the same time the company`s concentrated focus on the
rapidly growing market for navigation and location- based services gave Blom a new and exciting dimension.
The profit and loss account for the 3rd quarter shows operating revenues of NOK 181.8 million, an increase of 14% over the corresponding quarter (GI) last year. The EBITDA result for the period was NOK 42.5 million, which corresponds to a margin of 23.3%. The company is satisfied with the development of revenue and operating margins.
The total operating revenues were NOK 520.6 million as of 30 September and show an increase of 30.8% over the corresponding period in 2006 (GI). The profit margin shows a corresponding increase from 18.7% as of 30 September 2006 to 19.7% as of 30 September 2007. Earning before tax was redused with non-recurring costs related to structural reorganisation of NOK 20 million which in time will improve the value creation for shareholders.
The completion of ongoing sales processes requires more time and resources than originally assumed. Postponement of the database sales gives therefore somewhat lower operating revenues in the quarter than the company had expected.
The company has evaluated, as previously announced, the strategy for its ownership interest in Scan Subsea ASA. Parker Hannifin Corporation has made a voluntary bid for all the shares in Scan Subsea ASA at a price of NOK 22 per share, for a total of NOK 1.4 billion. If the transaction is completed Blom receive this a total sales proceeds of NOK 515 million, and records a capital gain of around NOK 370 million.
As part of this agreement Blom has given an irrevocable advance acceptance for the voluntary bid for all of its 23,369,756 shares in Scan Subsea, corresponding to 36.7% of all the outstanding shares in the company.
The voluntary offer from Parker is contingent on the successful completion of due diligence, 90% acceptance, permits from the authorities, and no significant impairment to Scan Subsea`s operations.
For further information please contact:
CEO, Mr. Dirk Blaauw, on tel. +47 22 13 19 23 or
CFO Jan Erik Braathen on tel. +47 22 13 19 24.