Kværner ASA : Second quarter results 2012
10 August 2012 - Kvaerner had operating revenues of NOK 3 billion in the second quarter 2012. Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to NOK 85 million, resulting in an EBITDA margin of 2.8 percent. The order backlog amounted to 23 billion, an increase of 12 billion since last quarter.
"The strong order intake of NOK 15.2 billion this quarter gives us a record high order backlog and provides us with a solid foundation for growth the next years", says Jan Arve Haugan, President & CEO of Kvaerner.
Operating revenues in the second quarter 2012 amounted to NOK 3 billion, compared to NOK 3.9 billion for the second quarter 2011. The reduction from last year's comparative period is due to a significant decrease in operating revenues from Kvaerner's international business. However, the revenues increased by 612 million compared to the first quarter as a result of higher activity in both the Upstream and the Downstream segments.
EBITDA for the second quarter 2012 ended at NOK 85 million, down from NOK 192 million in the same quarter last year. The EBITDA for the quarter was influenced by the phasing of projects, as some projects are in the process of closing down while others are in an early phase prior to recognition of margin. The EBITDA margin for the second quarter 2012 was 2.8 percent compared to 4.9 percent in the corresponding period in 2011.
Kvaerner still expects the activity level for 2012 to be on the low side of what has been seen historically and there are no changes in the company's EBITDA expectations for the remainder of 2012.
"This quarter's results reflect our previous comments about the uncertainty of our financial results for 2012. In order to give a predictable dividend growth for our shareholders and balancing out the volatility of our earnings, the Board of Directors has approved a new dividend policy with payment of semi-annual dividends. A dividend of NOK 0.53 is proposed to be paid in October 2012 with an ambition to increase by 10 percent annually", Haugan says.
Kvaerner has introduced a share purchase programme and 19 per cent of the eligible employees and managers have taken long-term active ownership in the company.
Operationally, a substantial milestone was reached in June with the delivery and installation of the Sakhalin - 1 gravity-based structure (GBS) at the field offshore Northeast Sakhalin.
Kvaerner views the market as very strong in its target regions.
" In order to take advantage of this market and at the same time ensure that we meet our clients' expectations, we have a selective market approach and we work on increasing our own capacity and improve our performance", Haugan concludes.
The full report and presentation can be downloaded from www.kvaerner.com and the links below.
ENDS
For further information, please contact:
Media: Mariken Holter, SVP Corporate Communications, Kvaerner, Tel: +47 67 52 74 35, Mob: +47 917 87 358.
Investor relations: Ingrid Aarsnes, SVP Investor Relations, Kvaerner, Tel: +47 67 59 50 46, Mob: +47 950 38 364
About Kvaerner:
With more than 3 200 HSE-focused and experienced employees, Kvaerner is a specialised provider of engineering, procurement and construction (EPC) services for offshore platforms and onshore plants. Kværner ASA, through its subsidiaries and affiliates ("Kvaerner"), is an international contractor that plans and realises some of the world's most demanding projects as a preferred partner for upstream and downstream oil and gas operators, industrial companies and other engineering and fabrication contractors.
In 2011, the Kvaerner group had aggregated annual revenues of more than NOK 13 billion and the company had an order backlog of more than NOK 23 billion on 30 June 2012. Kvaerner was publicly listed with the ticker "KVAER" at the Oslo Stock Exchange on 8 July 2011. For further information, please visit www.kvaerner.com.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.