In the course of 2002 Aker Kvaerner strengthened its position significantly in many areas. The Group's equity capital was increased through issues and the combination with Aker Maritime companies. In parallel the loan agreements were renegotiated. At the end of 2002 the sum of cash reserves and short-term interest bearing receivables had risen to NOK 4 924 million. The Group's debt situation had been transformed into a net interest-bearing receivable of NOK 613 million. The equity ratio was 27.6 per cent.

From an industrial perspective the merger with the Aker Maritime companies represented the most significant event. In its wake Aker Kvaerner has a more complete offering for its customers in the oil and gas sector, and a presence in the world's most important offshore areas. In shipbuilding Aker Kvaerner and Aker Yards initiated a wide-ranging operational co-operation which has given good results in the form of both savings and new contracts.

Throughout the Group measures to achieve increased efficiency and reduced costs have been given high priority. This makes it possible for the Group to adjust rapidly, when market conditions change. During 2002 the number of employees in the Group was reduced by about 2 700 to 32 863. This was due partly to improved efficiency and partly to lower activity levels.

Although some business units have slim order books, the order situation for the Group as a whole is satisfactory in the light of the uncertainty, which has affected Aker Kvaerner's markets. During 2002 the order intake was NOK 42.1 billion and the order reserve at the end of the year was NOK 34.6 billion, compared with NOK 36.6 billion a year earlier.

Aker Kvaerner does not expect any further significant deterioration of its main markets. The Group is financially and structurally well prepared for continued uncertainty, and will be well positioned when the market rebounds.

In the first half of 2003 the group's overall quarterly results will be weaker than in the preceding quarters. The Oil and Gas business area will continue to deliver good results, while the profits in shipbuilding will be weaker as a result of lower activity levels in Finland. Engineering & Construction and Pulp & Paper will still return weak profits due to the low order intake in recent quarters.

ENDS

 

 

Further information
The following supplementary information is available on both Aker Kvaerner's home page www.akerkvaerner.com and on the Oslo Stock Exchange www.ose.no.

Detailed tables with key figures for fourth quarter 2002 as well as full year 2002. These tables are also available below if you read this press release as pdf-version.

A preliminary version of the full Board of Directors report for 2002

Presentation material used in today's analyst meeting (available from 10 a.m Norwegian time)

The full press release including tables can be downloaded from the enclosed link.

The full report including tables can be downloaded from the enclosed link.