Kværner ASA: Fourth quarter results 2013

14 February 2014 - Kvaerner experienced growth in revenues and margins in the fourth quarter of 2013 compared to the fourth quarter 2012. Also for the year 2013, Kvaerner improved compared to 2012. A strong order backlog leads to high activity at the start of 2014. Kvaerner continues to prioritise effective execution of on-going projects, while positioning for future projects. The company is already implementing a number of defined improvements, and aims at reducing costs by 15 percent.

Following the sale of its North American construction business in December, Kvaerner has recognised a net gain of NOK 272 million. The gain is presented within discontinued operations.

Operating revenues in fourth quarter amounted to NOK 3 939 million, up from NOK 2 669 million in the last quarter of 2012. The EBITDA result (earnings before interest, tax, depreciation and amortisation) for the fourth quarter 2013 was NOK 180 million, resulting in an EBITDA margin of 4.6 percent. This represents a growth from fourth quarter 2012, with EBITDA and margin of NOK 118 million and 4.4 percent.

For the full year 2013, total revenues were NOK 12 960 million, a significant growth from 2012 restated revenues of NOK 8 867 million. The EBITDA result for 2013 was NOK 636 million, up from an EBITDA of NOK 417 million in 2012. This resulted in an EBITDA margin of 4.9 percent for 2013, versus a 4.7 percent EBITDA margin for the previous year.

In line with the dividend policy, the Board of Directors proposes to pay a semi-annual dividend of NOK 0.61 per share in April.

- The fourth quarter results as well as the full year figures reflect that we experience high activity levels and good resource utilisation. We continue the work to reduce costs  in order to improve competitiveness, and this continues into 2014, says Jan Arve Haugan, President & CEO of Kvaerner.

The order backlog at the start of 2014 was NOK 22 809 million. This is more than NOK 2 billion higher than one year ago. Order intake in fourth quarter was NOK 1 925 million.

- Our main priority remains firm. It is to execute and safely deliver on-going projects predictable and according to the customers' specifications. We have a strong order book for our operations, except for our Jackets business. We are currently assessing various opportunities for our yard in Verdal and we need to conclude this process very soon, says Haugan.

Already in February 2012, Kvaerner announced the start of a comprehensive improvement process, using industrialisation of the project execution models as one of the key factors for reducing the cost base and enhancing the productivity. Kvaerner's aim is that the improvements will yield a 15 percent reduction of costs.

- We are pleased to note that the subject of improvements and the focus on industrialisation and standardisation have become shared priorities among all players in this industry, says Jan Arve Haugan.

The full report and presentation can be downloaded below and at www.kvaerner.com.

Note: Following the sale of the North American construction business, remaining legacies within the Downstream & Industrial segment are presented as discontinued operations and comparative numbers have been restated accordingly.

ENDS

For further information, please contact:

Ingrid Aarsnes, SVP Investor Relations & Communications, Kvaerner, Tel: +47 67 59 50 46 , Mob: +47 950 38 364

Torbjørn Andersen, Communications, Mob: +47 928 85 542

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. 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 2 800 HSSE-focused and experienced employees are recognized for delivering some of the world's most amazing and demanding projects.

In 2013, the Kvaerner group reported consolidated annual revenues of close to NOK 11 billion and the company reported an order backlog at 31 December of almost NOK 27 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. 

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