Kværner ASA: 4th quarter and full year results 2017: Good results and expansion of business
8 February 2018 - Kvaerner delivered good results again, both for the fourth quarter and for the full year 2017. Total revenues in the quarter, including jointly controlled entities (Field Development segment), were NOK 1.8 billion, with an EBITDA result of NOK 234 million. This is slightly above the corresponding period in 2016, when the EBITDA was NOK 232 with corresponding revenues of NOK 2.4 billion. At the end of 2017, Kvaerner's order book was NOK 8.1 billion, up from NOK 6.5 billion one year earlier.
"The oil industry has been through three years of significant market shifts, and we are pleased that Kvaerner is one of few companies that have managed to deliver sound results every single quarter in this period. Now, we see that the marked decline is levelling out, and we expect some few, but important prospects to be decided during 2018 and 2019," says Jan Arve Haugan, Kvaerner's President & CEO.
With a market at a lower level than three years ago and continued hard competition, it is important for Kvaerner to continue improvements of costs and productivity. The Board of Directors has proposed no dividend at this point. A robust balance sheet and cash position is important to maintain resilience and provide flexibility to pursue selected opportunities for strategic development.
"We have said that we would strategically develop Kvaerner in segments adjacent to our traditional markets where we can leverage our leading expertise and facilities. We have now established an expanded operation in growth segments as additional legs for Kvaerner's business. Our long term ambition is to grow Kvaerner's activities even further," says Haugan.
Order intake in the fourth quarter 2017 was NOK 1.7 billion, compared to NOK 768 million in fourth quarter last year. Subsequent to the quarter, Kvaerner has been awarded two disposal contracts. The EBITDA margin for the Field Development segment ended at 12.7 percent for the fourth quarter 2017, up from 9.7 percent for the corresponding quarter in 2016.
Full year 2017 results
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the Field Development segment for the full year 2017 was NOK 846 million, up from NOK 741 million in 2016. Total operating revenues were NOK 7.6 billion in 2017 versus NOK 10.4 billion in 2016. The EBITDA margin for the full year 2017 was 11.1 percent, up from 7.1 percent in 2016.
The 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, Tel: +47 950 38 364, email: ir@kvaerner.com
Media inquiries:
Torbjørn Andersen, Head of Communications, Kvaerner, Tel: +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 around the world. Kværner 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 2 700 HSSE-focused and experienced employees are recognised for delivering some of the world's most amazing and demanding projects.
In 2017, Kvaerner's Field Development segment had consolidated annual revenues of NOK 7.6 billion and the company reported an order backlog at 31 December 2017 of NOK 8.1 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com.