The financial target of an EBITDA of NOK 1.75 billion in 2006 which was set in April 2004 is expected to be reached already in 2005, one year ahead of the plan. Aker Kvaerner considers that also the targets to strengthen the financial robustness of the group and to establish a stable dividend capacity have been reached.

The new financial target will be to reach an EBITDA margin of 6.5 - 7.0 per cent by the end of 2007.  The long term target for equity to total asset-ratio will be 20 - 25 per cent.

Dividend payment for 2005 will be evaluated based on Aker Kvaerner reaching its financial targets, potential alternative use of funds, need for further strengthening of the balance sheet and being in compliance with covenants in the loan agreements.

Aker Kvaerner stated in the annual report 2004 (note 14) that a subsidiary of Aker Kværner ASA incurred a tax loss of NOK 2,940 million in the restructuring of the group in 2004. Due to uncertainties with regard to the outcome of discussions with tax authorities, only NOK 320 million of the NOK 823 million (28 per cent of the incurred tax loss) were recorded in the 2004 accounts. Aker Kvaerner's tax positions have now been further clarified, and the company expects to recognize the full tax assets in the fourth quarter 2005.

ENDS

 

Media:
Torbjørn Andersen, SVP Group Communications, Aker Kvaerner. Tel: +47 67 51 30 36, Mob: +47 928 85 542

Investor relations:
Lasse Torkildsen, Vice President, Aker Kvaerner, Group Comms. 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 comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting 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. Aker Kvaerner has aggregated annual revenues of approximately NOK 35.6 billion and employs approximately 22,000 people in more than 30 countries.

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com