MOSCOW. Dec 7 (Interfax-AVN) - The Severnaya Verf shipyard, specializing in mass production of destroyer, frigate and corvette types of surface ships will undoubtedly has its earnings in 2006 increased.
"The intermediate accounts in nine months show that the company's profit will grow. We expect to earn at least $520 million in 2006," Sergei Yurchuk, the shipyard's director for economy and finance, said during a meeting with bankers and financial analysts in Moscow on Thursday.
He noted that the company is receiving so-called long-term payments under the Chinese order, which will continue in 2007. "We expect that about $40-50 million VAT returns will be secured by the company in 2007 under the Chinese order," he said.
The debt burden has reduced significantly this year, Yurchuk noted. "Whereas in 2006 we had a debt of $488 million, now it amounts to $300-320 million," he said.
The debt of the company will increase a little early next year, and will then stand at the fixed level at about $350 million, he noted.
Yurchuk said that the shipyard now has enough funding to build ships under the state defense order. "If a new export contract is signed, we will need additional funding. We are going to increase the order portfolio in 2007," he said.
Among the priorities of the company, the state defense order implementation is the main, according to Yurchuk, which envisages the construction of a long-range frigate, four short-range corvettes and a special liaison boat and fast boats.
The company's profit in 2005 was about $457 million, mostly derived from foreign contracts ($384 million), the state defense supplies ($65 million), commercial shipbuilding ($3 million) and other orders ($4 million). The company's EBITDA reached 15.7%. "This is quite a high figure for defense companies," he said.
The company's net profit in 2005 was $7 million, Yurchuk said.