Aker Braila posts double turnover and 7-fold losses

According to a report by the shipyard’s Board of Directors, approved by the General Shareholder’s Meeting at the end of March, Aker Braila’s expenditures rose last year by 110 percent year-on-year, up to RON 284.69 mln (€76.57 mln).

The company offered several causes for the substantial losses in 2007. According to the management, half of the losses are due to late deliveries of ships, as well as excess costs due to overloading of production capacity and the financial effect of work force replacement. In 2007, the Aker Braila shipyard lost a record number of employees, and was forced to replace 22 percent of its workers. Last year, the Braila shipyard delivered 13 hulls and one fully equipped ship. At the beginning of 2008, the company’s portfolio included nine fully equipped ships and 14 hulls, with mid-2009 delivery deadlines. Aker Braila is currently negotiating a further six projects with 2010 delivery deadlines. This year, the shipyard is due to deliver 17 ships or hulls, which will require the delivery of 36,800 tons of steel, up 25 percent year-on-year. The company is forecasting a 21 percent increase in turnover in 2008 compared to net sales last year.

Aker Braila is controlled by Norwegian Aker Yards group, which is one of the worlds’ top five naval builders, with shipyards in Brazil, Finland, Romania, Germany, Vietnam and Ukraine. In Romania, Aker Yards also controls the Aker Tulcea shipyard.