Correction in revenues for the Third quarter results 2020: Strong results, increased order backlog
28 October 2020 – In an international market with corona-related volatilities, Kvaerner increased EBITDA -results, order intake and backlog during the third quarter, compared to the same period last year. Simultaneously, the company strengthened its financial platform. A positive cashflow increased the cash and bank deposits to NOK 2 029 million at the end of the quarter.
In the last quarter, Kvaerner’s total revenues, including jointly controlled entities (Field Development segment) were NOK 1 836 million, compared to NOK 2 571million in the third quarter 2019. With a corresponding quarterly EBITDA result of NOK 160 million versus NOK 138 million one year ago, the EBITDA-margin increased to 8.7 percent, up from 5.4 percent 12 months ago.
The company has this autumn taken steps to streamline the organisation. Several employees have accepted to take early retirement, and the quarterly results include a provision of NOK 69 million for gratuity pension to these.
“We have in the third quarter successfully completed some projects. We also have a project that has reached a phase where we recognize margin. This, in combination with significant effects from our efforts to reduce overhead costs has had a considerable positive impact on the results in this period” says Karl-Petter Løken, Kvaerner’s President and CEO.
The global challenges related to Covid-19 is again increasing. This may have some negative effect for the fourth quarter.
Order intake in the third quarter totalled 1 888 million, including Kvaerner’s scope of work in jointly controlled entities. This is in line with the order intake of NOK 1 830 million one year earlier. The order backlog grew with 8 percent to NOK 9 008 million after the third quarter compared to the same quarter in 2019. The order intake in the last period includes the new Kollsnes onshore project, as well as additional scope and growth in existing projects.
“Ahead, we see a market with several important opportunities. That includes prospects for oil and gas development, many with a focus on reduced climate gas emissions. Increasingly, we see customers with plans for renewable projects. Common for most of the prospects is that the upcoming merger between Kvaerner and Aker Solutions will make us an even stronger and more competitive contractor to these markets. We bring into the new organisation a proven expertise on execution of complete EPC deliveries. The strategy is to be the supplier that can help customers and societies to accelerate the transition to sustainable energy production”, says Løken.
The third quarter 2020 presentation can be downloaded from www.kvaerner.com and the links below.
ENDS
For further information, please contact:
Media inquiries:
Torbjørn Andersen, Head of IR & Communications, Kvaerner, Mob: +47 928 85 542, email: torbjorn.andersen@kvaerner.com
Investor inquiries:
Øyvind Berge, EVP & CFO, Kvaerner, Mob: +47 913 43 250, email: ir@kvaerner.com
About Kvaerner:
Kvaerner is a project execution specialist and a trusted advisor for our customers. We provide engineering, procurement and construction (EPC) services and deliver advanced offshore and onshore installations around the world.
We have offices in seven countries and approximately 2 800 employees. Health, Safety, Security and Environment (HSSE) has the highest priority in our work, and we aim to deliver technology and solutions in a safe and sustainable way. Our passion, experience and expertise realise values for costumers and societies. Kværner ASA, through its subsidiaries and affiliates ("Kvaerner"), is an international contractor and preferred partner for operators and contractors within oil and gas, renewable energy and in the field of engineering and fabrication.
In 2019, Kvaerner's Field Development segment had consolidated annual revenues of NOK 9.4 billion and the company reported an order backlog at 30 September 2020 of NOK 9 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com (http://www.kvaerner.com).
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