Kværner ASA: First quarter results 2012

8 May 2012 - Kvaerner had operating revenues of NOK 2 388 million in the first quarter 2012. Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to NOK 159 million, resulting in an EBITDA margin of 6.7 percent. 

"The quarter was better than we expected, but the success so far does not change our previous statements concerning the high financial uncertainty for this year. In our current project portfolio, only a few projects will run through 2012 with a limited contribution to the results and we might not reach the market's expectations this year", says Jan Arve Haugan, President & CEO of Kvaerner.

Operating revenues in the first quarter 2012 amounted to NOK 2 388 million, compared with NOK 3 722 million for the first quarter 2011. This represents a decrease of almost 36percent, or NOK 1 334 million.

In the first quarter, Kvaerner continued to experience a lower activity level as significant projects have been completed or are in the process of closing down. New projects are starting up and it will take some time before they contribute to the results.

EBITDA for the first quarter 2012 ended at NOK 159 million, down from NOK 464 million in the same quarter last year. The EBITDA for the quarter was positively influenced by release of contingencies in the Upstream segment. The EBITDA margin for the first quarter 2012 was 6.7 percent compared to 12.5 percent in the corresponding period in 2011.

The order intake in the first quarter totalled NOK 3 197 million compared to NOK 7 049 million in the first quarter 2011. At the end of the first quarter, the order backlog amounted to NOK 10 813 million, an increase of NOK 766 million from the end of fourth quarter 2011.

"For us to fully capitalise on our potential, we will continuously improve our underlying operations in order to develop even stronger financial robustness. The market opportunities are very promising and over the last months we have secured several important contracts. Faced with fierce global competition, we are sharpening our competitive edge. Regardless, 2012 is a year of transition", 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 Corporate 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.