Kværner ASA: Third quarter results 2013

25 October 2013 - Kvaerner reported operating revenues of NOK 3 383 million in the third quarter 2013, compared to NOK 2 430 million in the third quarter of 2012. Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to NOK 166 million, compared to NOK 109 million in the same quarter last year. The EBITDA margin was 4.9 percent, up from 4.5 percent in the third quarter 2012. The order backlog amounted to NOK 26.9 billion at the end of the third quarter.

"The activity in the third quarter has been very high on all projects. Our main focus is to deliver these projects as agreed with our customers. We have completed the last part of the Nordsee Ost project, which included 48 steel jackets for offshore windmills. Our capacity utilisation is very good through 2013 and into the first quarter of 2014," says Jan Arve Haugan, President & CEO of Kvaerner.

Order intake in the third quarter 2013 totalled NOK 1 690 million, including the scope of work of jointly controlled entities. This compares to NOK 1 438 million in the third quarter 2012. As of 30 September 2013 the order backlog, including the scope of work of jointly controlled entities, amounted to NOK 26.9 billion.

In addition to the high activity within project execution, Kvaerner is also in the process of implementing a series of initiatives to further strengthen efficiency and competitiveness.

"I see strong commitment within the organisation for our improvement processes. Firstly, we are attacking our own productivity through concrete improvement measures. Secondly, we are putting efforts on this with our partners and subcontractors. Through this, we are strengthening our ability to deliver higher value solutions to the customers than they get from our competitors, while at the same time improving our own effectiveness and costbase. We expect to see results of these efforts in the next round of bids, both in Norway and internationally," Haugan concludes.

In line with the dividend policy, a cash dividend of NOK 0.58 per share was paid in October 2013.

The full report and presentation can be downloaded below and at 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:
Odd Naustdal, VP Communications, Kvaerner, Tel: +47 53 41 81 03, Mob: +47 905 76 079.

About Kvaerner:
With approximately 3 000 HSSE-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 2012, the Kvaerner group had consolidated annual revenues of close to NOK 11 billion and the company had an order backlog at 30 September 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