Oslo - Turnover and profits increased in second-quarter 2008, shipbuilding group Aker Yards said Friday attributing the development to increased activity at its yards.

Earnings before interest, taxes, depreciation and amortization (EBITDA) totalled 72 million kroner (13.8 million dollars). In the corresponding business period of 2007 the group posted a loss of 162 million kroner.

Turnover for continuing operations was 7.92 billion kroner, up 31 per cent on the corresponding business period 2007.

Shipbuilder STX of South Korea last year bought a controlling stake in Aker Yards that operates 15 shipyards and has some 16,000 employees in Brazil, Finland, France, Norway, Romania and Vietnam.

In a related development the board of Aker Yards Friday recommended shareholders to "consider" an offer from STX to buy outstanding shares in Aker Yards although the offer was below the group's "long-term potential."

The mandatory offer made last month ends August 15 and was "fair in today's market conditions," the board statement said.

Aker Yards said that on July 29 it had completed a deal to sell a 70-per-cent stake of three shipyards in Germany and Ukraine to Russian investment group FLC West.

The deal, concluded after the April-June period covered by the second-quarter report, was worth 248 million euros.

"Activity will continue to be high both within Aker Yards' operations and in the shipbuilding industry in general during the second half of 2008," Aker Yards said in its outlook.

The group noted that high demand could result in problems delivering ships on time as well as cost increases.

Aker Yards also Friday said it had signed a contract worth some 360 million euros with P&O Ferries to build two large car-passenger ferries for the Dover-Calais service.

The ferries, due for delivery in 2010 and 2011, were to be built at its Rauma yard in Finland.

Aker Yards builds cruise ships, ferries, merchant vessels and offshore vessels. (dpa)