Annual Report 2010 - Scana Industrier ASA

42Annual Report 2010 Scana Industrier ASArecognised tax expense for the year amounted to NOK-34 million, which is 23 per cent of the loss before tax.Tax payable is NOK 0.3 million. The group has a losscarry-forward of NOK 152 million primarily linked tothe Norwegian operation. There is no time limit on theuse of this. Scana expects positive market trends andprofitable operation in Norway over the next few years,which will provide the opportunity to use the deficit itcan carry forward.The group’s total net loss was NOK 121 million, of whichNOK 3 million is assigned to minority interests. Thisamounts to earnings per share of NOK -0.71 comparedwith NOK 1.51 per share in 2009.Balance sheetThe balance sheet total as at 31 December 2010 wasNOK 1 815 million, which is a reduction of NOK 175million compared with 31 December 2009.The group’s net interest-bearing debt is NOK 416 milliontaking into account bank deposits and liquid assets.Gross interest-bearing debt at the end of 2010 wasrecorded at NOK 517 million, which is an increase ofNOK 21 million from 31 December 2009. Loans andshort-term credit facilities were reduced by NOK 136million.The book value of shareholders’ equity as at 31December 2010 was NOK 731 million, which isequivalent to NOK 4.4 per outstanding share andan equity ratio of 40 per cent. The book value ofshareholders’ equity was NOK 873 million and theequity ratio was 44 per cent at the end of 2009.Intangible assets as at 31 December 2010 wererecorded at NOK 138 million, of which goodwillamounted to NOK 87 million.Cash flowThe operating loss in 2010 was NOK 128 million afterdepreciation, which totalled NOK 85 million. Net cashflow from operational activities totalled NOK 129 million.Positive cash flow from operational activities is due to areduction in working capital and that the operating profitis burdened by impairments that do not have cash floweffect.Activated costs and investments in fixed assets totalledNOK 86 million. Net cash flow from investment activitiesafter sale of fixed assets totalled NOK -76 million.The net cash flow from financing activities was NOK -98million. The net cash flow in 2010 was therefore NOK-44 million. The group’s cash and cash equivalentstotalled NOK 101 million at the end of the year of whichNOK 60 million is included in the group’s cash pool. Inaddition, the group has a satisfactory level of unusedcredit facilities.Capital positionAs at 31 December 2010, Scana’s option programmesconsisted of up to 1.34 million shares, which are aimedat senior employees. Of these, 700 000 options may beredeemed in 2011 and 635 000 options from 2012.STEELThe steel area companies all specialise in differentprocesses and products. Production takes placeat Scana’s own production facilities, which includemelting plants, forges, rolling mills, foundries, andheat treatment and machining units. Production is of ahigh standard, and complies with ISO-certified qualityassurance systems.Turnover in 2010 totalled NOK 1 139 million, down16 per cent compared with 2009. The operating losstotalled NOK 42 million. Ordinary operations showa loss for the year due to strongly reduced prices inseveral market segments and an unfavourable productrange. Significant cost-saving measures implementedin the steel companies have lessened the decline inthe operating profit. Ordinary operations broke even inthe fourth quarter due to a higher level of activity andsomewhat improved product range.The order inflow for 2010 was NOK 1 065 million, up49 per cent from 2009. By the end of 2010 the orderreserve amounted to NOK 414 million. Scana won anumber of important contracts in the fourth quarter inthe marine and energy market segments. This appliesboth to highly alloyed materials for challenging oil wellsand mooring system deliveries to the oil industry. Thesteel and machinery market segment has had a positivedevelopment in order inflow throughout 2010, which isexpected to continue in 2011. Continued improvementin the product range and a higher refinement ratio isexpected to have an impact on earnings throughout2011. Within the marine segment, Scana has strengthenedits position among the company’s most importantclients but activity has been reduced considerably as aresult of fewer contracts globally. The company expectsan improved marine market through to 2013.