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Continued strong order intake and further profit and balance sheet improvements

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Cash, bank deposits and interest-bearing short-term receivables increased correspondingly to NOK 5.6 billion, and the group had net interest-bearing receivables of NOK 1.4 billion at the end of the third quarter.


The order reserve continued to grow and reached NOK 39.4 billion at the end of the third quarter. Order intake in the three-month period was NOK 12.6 billion.


The combined value of awards announced after the third quarter and contracts and letter of intents, which are likely to be booked in the coming quarters, amounted to approximately NOK 6 billion. An option for a second Ultra-Voyager cruise vessel is not included in this number.


Operating profit before interest, tax, goodwill and pension amortisation (EBITA) in the third quarter was NOK 216 million compared with a loss of NOK 125 million in the previous quarter. EBITA for the first nine months this year was NOK 301 million.


Net loss in the third quarter was NOK 48 million. This included NOK 174 million in non-cash goodwill and pension amortisation and NOK 87 million net financial items including interest costs.


EBITA in the Oil & Gas segment continued to improve and reached NOK 139 million in the third quarter. This is 25 per cent up from the previous quarter.


Engineering & Construction EBITA was NOK 78 million in the third quarter, up from NOK 36 million in the previous quarter.


Within Shipbuilding Kvaerner Masa-Yards continued to perform strongly. It reported a NOK 187 million EBITA for the third quarter. The Kvaerner Philadelphia Shipyard, which had a NOK 440 million negative EBITA in the second quarter, reported another NOK 105 million loss in the third quarter, taking the combined shipbuilding EBITA in the third quarter to NOK 82 million, and NOK 4 million negative for the first nine months.


The positive trend in EBITA in Oil & Gas and Engineering & Construction is expected to continue in the fourth quarter and in 2004, supported by continued strong order intake. Within Shipbuilding profits are expected to decline sharply until the new orders come into effect at Kvaerner Masa-Yards in the middle of 2004.


Net current operating assets are expected to increase slightly towards the end of 2003. Cash and net interest-bearing receivables are expected to decline correspondingly.
ENDS
Contacts:
Media: Geir Arne Drangeid, Senior Vice President, Group Communications, Aker Kværner ASA:
+47 67 51 30 36
Investor Relations: Tore Langballe, Vice President, Group Communications, Aker Kværner ASA: +47 67 51 31 06
Further information

Key figures, detailed tables and other supplementary information is available on both Aker Kvaerner's home page www.akerkvaerner.com and on the Oslo Stock Exchange www.newsweb.no:
  • A complete version of the Quarterly Report for 3Q 2003
  • Presentation material used in today's analyst meeting (available from 9.30 a.m CET)
  • Web-cast of Helge Lund's presentation will also be available on the company's home page from 9.30 a.m CET.

A conference call is being held today at 4 p.m CET. The dial-in number is +44 (0)20 7162 0186, password "Aker Kvaerner".
Aker Kværner ASA
is, through its subsidiaries and affiliates ("Aker Kvaerner"), a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner spans a number of industries, including Oil & Gas production, Refining & Chemicals, Pharmaceuticals & Biotechnology, Mining & Metals, Power, Pulping and Shipbuilding. Aker Kvaerner has aggregated annual revenues of approximately USD 6 billion and employs around 29,000 employees in more than 30 countries.




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This Press release includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Kværner ASA and its subsidiaries and affiliates (the "Aker Kvaerner Group") lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the Aker Kvaerner Group's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although Aker Kværner ASA believes that its expectations and the information in this Press release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Press release. Neither Aker Kværner ASA nor any other company within the Aker Kværner Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Press release, and neither Aker Kværner ASA, any other company within the Aker Kværner Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Press release.

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