2nd Quarter 2004 Results - On a steady course
Good progress on several large projects resulted in a relatively strong first six months this year.
Profits increased in the three-month period, taking earnings before interest, tax, depreciation and amortisation for the first six months of the year to NOK 659 million, up from NOK 403 million in the same period last year.
Order intake was NOK 10.3 billion, and the order reserve at the end of June was a two-year record high NOK 32.4 billion. Generally, all main markets have developed favourably this year. Early phase study work has picked up and bidding activity is high.
Cash flow from operating activities for the first six months this year was negative NOK 104 million, reflecting a NOK 0.7 billion increase in net current operating assets. Cash and bank deposits at the end of June remained at a comfortable NOK 3.3 billion.
In the second quarter, all segments reported earnings in line with, or better than, the first quarter this year, while year-to-date profits were significantly better than last year. The year-to-date profits for 2003 included special gains of NOK 30 million and NOK 37 million from property sales in MMO and SPT respectively.
This positive development is the result of a general market improvement in addition to a strong focus on improving operational efficiency, project execution, and of various change programmes which have been implemented throughout the Aker Kvaerner group. Competitiveness has been strengthened resulting in a healthy and well-balanced order reserve. The overall predictability and robustness of the group are improving.
Aker Kvaerner continues on its steady course towards its stated financial targets: An EBITDA in the first part of 2005 of approximately NOK 1.5 billion on an annualised basis, and 2006-EBITDA of NOK 1.75 billion.
ENDS
For further information, please contact:
Media:
Geir Arne Drangeid, SVP Group Communications, Aker Kværner ASA Tel: +47 913 10 458
Geir Arne Drangeid, SVP Group Communications, Aker Kværner ASA Tel: +47 913 10 458
Investor relations:
Lasse Torkildsen, VP Investor Relations, Aker Kværner ASA, Tel: +47 67 51 30 39
Lasse Torkildsen, VP Investor Relations, Aker Kværner ASA, Tel: +47 67 51 30 39
AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner span a number of industries, including Oil & Gas production, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. Aker Kvaerner has aggregated annual revenues of approximately USD 4.5 billion and employs around 21,000 employees in more than 30 countries.
The Aker Kvaerner group consists of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities. The parent company in the group is Aker Kværner ASA.
This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com