Annual Report 2010 - Scana Industrier ASA

46Annual Report 2010 Scana Industrier ASAposition with world-leading customers. A higher degreeof completion and more complete project responsibilityare expected to add value for both customers andScana.Few new contracts globally have gradually reduced thelevel of activity in the Marine business area in 2010, butcost adaptations have provided good results. Scanahas strengthened its sales and marketing efforts andis increasing its presence in emerging markets. It alsowon important new contracts in the fourth quarter. Theshort order horizon will result in greater variation in ourquarterly revenues and earnings than in previous years.In recent years, the focus on service and after sales hasresulted in higher revenues and had a positive effect onearnings. Scana expects this development to continue.The group has developed several advanced productsand systems in the Oil & Gas business area in recentyears. Multi-disciplinary training, leading expertise withinmaterials technology and the capability for in-houseproduction of special components translates into futureopportunities. The order inflow increased throughoutthe last part of 2010 as a result of the group’s increasedfocus on marine risers and subsea components in theworld’s most active oil and gas markets. The formationof Scana Subsea simplifies the customers’ businessprocesses for specialised equipment, and providesScana with considerable business opportunities ona global basis. An upturn is expected in the FPSOmarket as we approach 2013. Scana is dependenton larger projects in the FPSO market if it is toachieve satisfactory results in this business area. Thecontracts that have been negotiated in Brazil representan important start. Additional measures will beimplemented to ensure future profitability.Scana has implemented extensive measures to adaptits capacity and consumption of resources to lowerdemand and reduced prices. In addition, Scana hasalso freed up working capital and introduced a strictprioritisation of its operational and investment resources.In addition to focusing on optimum daily operations,Scana is also working on strategic measures tostrengthen the group’s size and creation of value. Scanais also considering disposing of assets that are notconsidered to be part of the core operations. This is inorder to increase our financial scope for manoeuvre andour focus on the value-adding portion of our business.APPROPRIATION OF EARNINGSThe net loss assigned to the owners of the parentcompany was NOK 118 million, giving earnings pershare of NOK -0.71. The parent company, ScanaIndustrier ASA, posted a net loss of NOK 64.5 million.The Board will propose to the AGM that it will not payout dividends for 2010 and that NOK –64.5 million istransferred to other equity.Stavanger, 12 April 2011frode AlhaugChairman of the Boardjohn Arild ErtvaagMari Skjærstad Martha Kold Bakkevig Bjørn Dahle Rolf RoverudCEO