Kvaerner maintains resilience and aims for zero dividend decision at AGM
19 March 2020 - Kvaerner is monitoring the development of the covid-19 virus development with deep concern and full commitment to apply all necessary measures to protect the life and health of our workforce, business partners and the society around us. Simultaneously, the company is implementing precautions to minimise as much as possible any negative influence of the virus situation for ongoing projects and for future business opportunities.
Kvaerner has a robust financial platform, and a very good foundation to handle the current global situation with the least possible disruption to our operations. With the subsequent rapid escalation of the virus situation, it is now vital to maintain the financial resilience and strength of the company.
The Board of Directors in Kvaerner, in full agreement with Kvaerner’s administration, presents a request to the shareholders in Kværner ASA to not approve the previously proposed dividend NOK 0.50 per share. If the Annual General Meeting on 24 March 2020 accepts this proposal, no dividend will be distributed at this time. This will support Kvaerner’s ability to handle the situation and deliver future results and values to the shareholders.
Based on the same principles, the Nomination Committee has amended its proposal to the General Meeting and is now proposing a zero increase in the compensation to the Directors of the Board. The amended proposal from the Nomination Committee is attached together with amended proposed resolutions.
Both these measures to support financial resilience and maintain the company’s flexibility are supported by the principal shareholder Aker Kvaerner Holding and its two owners, Aker ASA and the Norwegian state.
Kvaerner’s CEO Karl-Petter Løken has proposed that his annual base salary is reduced with ten percent, as one additional measure to support the company’s financial platform through this period. The Board of Director’s supports this proposal which will be implemented with immediate effect.
Kvaerner is recognised by stakeholders as a leader in the execution of energy projects, and as a company we realise values for customers and societies. Kvaerner is conscious about our interaction with the communities around us, and Kvaerner has implemented comprehensive actions to protect life and health, and to reduce the risk of spreading the virus.
Kvaerner has also decided to donate NOK 5 million to each of the municipal health authorities in Stord and Verdal. The NOK 10 million in total will support these health authorities in their fight against the spreading of the virus. The company has also donated protective equipment including protective face masks and coveralls to the municipal health authorities at Stord and Verdal. Other measures include demobilising hired-in personnel at camps at our yards in Stord and Verdal, and home office solutions are used by all personnel where this is possible. With less people meeting physically in offices and yards, this reduce the risk of virus spreading.
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For further information, please contact:
Investor Relations:
Idar Eikrem, EVP & CFO, Kvaerner, +Mob: +47 950 28 363, email: ir@kvaerner.com
Media:
Torbjørn Andersen, Head of Communications & IR, Kvaerner, Mob: +47 928 85 542, email: torbjorn.andersen@kvaerner.com
About Kvaerner:
Kvaerner is a project execution specialist and a trusted advisor for our customers. We provide engineering, procurement and construction (EPC) services and deliver advanced offshore platforms, onshore plants, floating production units (i.e. FPSOs) and renewable energy solutions.
We have offices in seven countries and approximately 2 800 employees. Health, Safety, Security and Environment (HSSE) has the highest priority in our work, and we aim to deliver technology and solutions in a safe and sustainable way. Our passion, experience and expertise realise values for costumers and societies. Kværner ASA, through its subsidiaries and affiliates ("Kvaerner"), is an international contractor and preferred partner for operators and contractors within oil and gas, renewable energy and in the field of engineering and fabrication.
In 2019, Kvaerner's Field Development segment had consolidated annual revenues of NOK 9.4 billion and the company reported an order backlog at 31 December 2019 of NOK 8.2 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com (http://www.kvaerner.com).
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