The first quarter marked an important change. While the order reserve declined in the four previous quarters, the backlog at the end of March increased to NOK 36.5 billion, up from NOK 34.6 billion three months earlier.

The order intake was NOK 10.5 billion in the first quarter, with several important orders being booked. For both Oil & Gas (O&G) and Engineering & Construction (E&C), order intake in the first quarter alone equalled that of the second half of last year.

Several significant contracts have been awarded in the second quarter. In April and May so far, contracts and letters of intent amounting to around NOK 7 billion have been announced by the Group. Meanwhile, some parts of the Group need new orders, particularly the shipyards.

All business areas delivered profits in the first quarter 2003. Earnings before interest, tax and amortisation (goodwill and pension) (EBITA) were NOK 210 million in the first three months this year, mainly from O&G and Shipbuilding. E&C reported a NOK 35 million profit, still marginal but higher than in any quarter last year. The first quarter profit included a gain of approximately NOK 60 million from sale of properties in Aberdeen.

Amortisation, including that related to the UK pension plan, amounted to NOK 166 million and net financial items were negative NOK 82 million. Loss before tax was NOK 38 million, down from previous quarters but in line with earlier outlook statements.

Working capital increased as planned by NOK 1.5 billion in the first quarter, mainly within Shipbuilding. Correspondingly, cash and short-term interest-bearing receivables were reduced to NOK 3.7 billion and net interest-bearing debt was NOK 740 million. The equity ratio remained at 27.5 per cent.

As indicated previously, profits will remain relatively weak in the first half of the year, due to weak markets and correspondingly low order intake in 2002. Profits will increase in the two last quarters of 2003 when the new orders take effect.