IHC Caland yard sale

Dutch offshore engineering and shipbuilding group IHC Caland has reported a half-year profit of $53.8m which is well ahead of the $34.2m made in 2003 that included losses at the van der Giessen-de Noord yard.

The company reports new orders in the six months to June 30 of a total value of just

$ 415m but has, since then, won further orders worth $440m and expects a net profit for full year 2004 of around $100m before an expected book loss on the sale of the shipbuilding division.

In a statement the company said “On 2 August 2004, the Group decided to proceed with the sale of the ?shipbuilding division? rather than to seek a separate listing. This decision was based upon several non-binding offers received from bidders who had been provided with the ?information memorandum?. A short list of bidders has been established, and each party is currently undertaking due diligence procedures. It is expected that the entire sale process will be completed during the 4th quarter 2004. Until such time no indication of the anticipated level of sales proceeds can be disclosed, except that the Group does not expect to receive net proceeds equal to the equity book value of the ?shipbuilding division?. An extraordinary shareholders meeting will be convened during the fourth quarter to approve the sale proposal.”