Kværner ASA: 2nd quarter and half year results 2017 - Strong performance, strong results
13 July 2017 - Kvaerner delivered strong results for the second quarter of 2017. The numbers reflect both solid performance in all on-going projects and achieved incentives related to some projects in a completion phase. The adjusted EBITDA result was NOK 216 million in the quarter, compared to NOK 106 million in the same quarter last year. Kvaerner now sees a market with more prospects and has a high bidding activity.
All projects in Kvaerner's portfolio are on track. During the second quarter, significant projects such as the Hebron concrete substructure, the Nyhamna Expansion project and the steel jacket substructure for the Johan Sverdrup Riser platform reached their final phases.
"We are also this year completing some of the industry's most demanding projects, at agreed quality and in line with agreed plans. Kvaerner's business is characterised by few, large projects. Many of our contracts include bonuses for delivering good quality and for meeting key milestones, in particular towards the end of the projects. This means that we in some quarters see significant fluctuations in our results. In second quarter, the results are influenced by both such bonuses and by the effect of how quality improvements are reducing our costs." says Kvaerner's President & CEO Jan Arve Haugan.
In the second quarter last year, Kvaerner's total revenues including jointly controlled entities (Field Development segment) were NOK 2 475 and the EBITDA was NOK 122 million, resulting in an EBITDA margin one year ago of 4.9 percent. In the second quarter 2017, the corresponding revenues were NOK 1 986 million while the EBITDA grew to NOK 230 million, resulting in an EBITDA margin of 11.6 percent.
Kvaerner's order book stood at NOK 9 041 million at the end of the second quarter, compared to NOK 10 172 million one year earlier. Cash and bank deposits at 30 June 2017 were more than NOK 2.9 billion, versus NOK 2.4 billion at the same time last year.
"Our order backlog is a good foundation for pursuing further contracts. We now see more prospects to bid for, compared to the market one year ago. Kvaerner can offer the customers very effective, industrialised project execution when we can maintain a relative stable workload. We have solid market positions for our main services and products, and consider investments in further development of core expertise, facilities and products", says Jan Arve Haugan.
The second quarter and half year 2017 report and presentation 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 30 June 2017 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.
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