Kværner ASA: 4th quarter and preliminary annual results 2011
14 February 2012 - Kvaerner had operating revenues of NOK 3 004 million in the fourth quarter 2011. Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to NOK 249 million, resulting in an EBITDA margin of 8.3 percent. The Board of Directors proposes a dividend of NOK 1.00 per share for 2011.
"The fourth quarter has been a good quarter both operationally and financially", says Jan Arve Haugan, President & CEO of Kvaerner.
Operating revenues in the fourth quarter 2011 amounted to NOK 3 004 million, compared with NOK 3 932 million for the fourth quarter 2010. This represents a decrease of 24 percent, or NOK 928 million. The decrease in operating revenues compared to last year is a reflection of a lower activity level within parts of the business during the quarter. Full year operating revenues totalled NOK 13 295 million, on the same level as in 2010.
In the fourth quarter the Kollsnes project was completed, the Longview project achieved Substantial Completion and the Sakhlin-1 GBS reached Mechanical Completion.
EBITDA for the fourth quarter 2011 ended at NOK 249 million, an increase of NOK 104 million compared to NOK 145 million in the same quarter last year. The EBITDA for the quarter was positively influenced by completion of projects. The EBITDA margin for the fourth quarter 2011 was 8.3 percent, up from 3.7 percent in the same period in 2010.
Full year EBITDA ended at NOK 1 073 million with an EBITDA margin of 8.1 percent compared with an EBITDA of NOK 488 million with an EBITDA margin of 3.7 percent for the full year 2010. The improved margin is mainly due to contributions from projects being completed during 2011.
The order intake in the fourth quarter totalled NOK 1 136 million compared to NOK 1 282 million in the fourth quarter 2010. At 31 December 2011, the order backlog amounted to NOK 10 046 million, a decrease of NOK 1 808 million from 30 September 2011.
Cash and bank deposits at the end of fourth quarter amounted to NOK 2 418 million. Undrawn committed long-term credit facilities amounted to NOK 2.5 billion, giving access to liquidity totalling to NOK 4.9 billion.
"2012 will be a year of uncertainty with regards to the final financial outcome. The results will be influenced by uncertainty connected to the commercial closing of major projects, representing both a potential upside as well as a downside. There is also uncertainty with regards to on-going projects. Additionally, the portfolio for 2012 will consist of several projects where profit not will be recognised in 2012 due to the fact that they not will reach 20 percent completion before year end", says Haugan
"The market outlook is very promising and we have a significant number of upcoming prospects in our target markets which fit well with our technology platform and project execution model", Haugan concludes.
The full report and presentation can be downloaded below and from www.kvaerner.com.
ENDS
For further information, please contact:
Investor relations: Ingrid Aarsnes, SVP Investor Relations, Kvaerner, Tel: +47 67 59 50 46, Mob: +47 950 38 364
Media: Mariken Holter, SVP Communications, Kvaerner, Tel: +47 67 52 74 35, Mob: +47 917 87 358
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 at 31 December 2011 of more than NOK 10 billion. 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.