Kværner ASA: 3rd quarter results 2017 - Solid quarterly results and more new prospects

27 October 2017 - Kvaerner delivered solid results also for the third quarter of 2017. Total revenues, including jointly controlled entities (Field Development segment) were NOK 1 727 million, with an EBITDA result of NOK 262 million. One year ago, the revenues were NOK 2 727 million and the EBITDA was NOK 265 million. The EBITDA margin was 15.1 percent in the third quarter this year, compared to 9.7 percent one year earlier. The results reflect that ongoing projects are on track, as well as significant positive effects from achieved incentives and close out activities.

"We are pleased to present yet another quarter with solid performance. The oil and gas market has been volatile for three years. Still, Kvaerner's robust order backlog in combination with comprehensive improvements has enabled us to sustain sound results through this cycle", says Kvaerner's President & CEO Jan Arve Haugan.

Kvaerner's order backlog was NOK 8 207 million at the end of the third quarter, about the same level as one year ago. Cash and bank deposits at 30 September 2017 were NOK 2.6 billion, versus NOK 2.8 billion at the same time last year. Excluding negative working capital, net cash was 2 billion. Kvaerner is currently positioning for several new prospects of various sizes. The company expects to see the outcome of some contract awards in late 2017 and throughout 2018.

"We now see a market with several prospects, which represent important opportunities to refill the order book. This is perfect timing for operators planning to start new projects: We can deliver high productivity and low cost when we can offer warm teams directly from one completed project to starting on the next project", says Haugan.

The third quarter 2017 presentation, including financial appendix can be downloaded from www.kvaerner.com and the link 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 September 2017 of NOK 8.2 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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