Kværner ASA: 1st quarter 2017 - Steady performance, solid order intake
8 May 2017 - Kvaerner maintained steady performance and delivered a solid order intake in the first quarter of 2017. The company delivered an adjusted EBITDA of NOK 105 million, versus NOK 106 million in the same quarter last year. In spite of the challenging market, the order intake in first quarter amounted to NOK 6.6 billion. With that, the order backlog has increased to NOK 10.8 billion. "We have a predictable performance in all segments of our business, we have strengthened our competitiveness and we have an order book which provides improved visibility. Kvaerner is well positioned to pursue further opportunities in the market we see ahead", says Kvaerner's President & CEO Jan Arve Haugan.
Kvaerner's EBITDA margin increased in the first quarter this year, compared to the corresponding quarter last year. The revenues for the first quarter 2016 were NOK 2 228 and the adjusted EBITDA was NOK 106 million, resulting in an EBITDA margin of 4.8 percent. In the first quarter 2017, the revenues were NOK 1 554 million while the adjusted EBITDA was upheld at NOK 105 million, resulting in an increased EBITDA margin of 6.8 percent. The positive margin development is an effect of enhanced performance, reduced cost base and phasing of projects.
In the first quarter, total revenues, including jointly controlled entities (Field Development segment), amounted to almost NOK 2.1 billion, with EBITDA of NOK 120 million.
Since the oil price started a decline in 2014, the market for both new investment projects and for operation of existing facilities has been turbulent. Kvaerner sees signals that the decline may now start to level out. The company has identified a growth in the number of relevant prospects which oil companies expect to be sanctioned over the next years. Some few of these prospects may end up as projects of a large size, while the majority of the prospects represent projects of a moderate size.
"Throughout this market shift, Kvaerner has continued its high activity level and delivered solid results. Our activity is now lower for a period, as an effect of a market with few contracts to bid for over the last two years. However, much of this effect is compensated by the fact that our current projects are in phases where a large degree of the value creation is delivered by Kvaerner's own internal resources", says Jan Arve Haugan.
The first quarter presentation and financial appendix can be downloaded from www.kvaerner.com and the links below.
ENDS
For further information, please contact:
Investor inquiries:
Ingrid Aarsnes, VP Investor Relations & Communications, Kvaerner, Mob: +47 950 38 364, email: ir@kvaerner.com
Media inquiries:
Torbjørn Andersen, Head of Communications, Kvaerner, Mob: +47 928 85 542, email: torbjorn.andersen@kvaerner.com
About Kvaerner:
Kvaerner is a leading provider of engineering, procurement and construction (EPC) services, and delivers offshore installations and onshore plants for upstream oil and gas production around the world. Kvaerner ASA, through its subsidiaries and affiliates ("Kvaerner"), is an international contractor and preferred partner for oil and gas operators and other engineering and fabrication contractors. Kvaerner and its approximately 2 600 HSSE-focused and experienced employees are recognised for delivering some of the world's most amazing and demanding projects.
In 2016, the Kvaerner group had consolidated annual revenues of close to NOK 8 billion and the company reported an order backlog at 31 March 2017 of NOK 10.8 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com.
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