Kværner ASA: Fourth quarter results 2014
(Thomson Reuters ONE) -
11 February 2015 - Stable margins, positive development of competitive power.
The high activity level in Kvaerner continued in the fourth quarter. Revenues
for the full year reached a record high of NOK 17.5 billion, including
Kvaerner's share of jointly controlled entities. Simultaneously with the
execution of parallel projects, the company implemented several measures to
reduce cost level and improve competitiveness ahead of bids for key contracts in
2015. Earnings before Interest, Taxes, Depreciation, Amortisation and Impairment
(EBITDA) for the quarter were NOK 175 million, compared with NOK 180 million in
the same period 2013.
Operating revenues for the fourth quarter amounted to NOK 3 591 million,
compared with NOK 3 939 million for the fourth quarter 2013. Revenues for the
full year increased by NOK 985 million to NOK 13 945 million versus NOK 12 960
million for 2013. Revenues including incorporated joint ventures were NOK
17 531 million, an increase of 9 percent from NOK 16 091 million for the full
year 2013. The EBITDA result for the year amounted to NOK 829 million, resulting
in an EBITDA margin for the year of 5.9 percent. Goodwill impairment of NOK 266
million related to business area Contractors International recognised in the
quarter following the company's impairment test.
In line with the company's dividend policy, the Board of Directors proposes to
pay a dividend of NOK 0.67 per share in April 2015.
* The results for 2014 mirrors that Kvaerner has had a particular high
activity level on several projects in parallel. In addition to utilising the
full capacity of our own organisation, we have had a record high number of
contract staff and subcontractors assisting us in the execution of this
workload. Going forward, we are aiming for an annual activity level of NOK
10 - 11 billion. Kvaerner worked hard in 2014 to improve the results from
projects started in a different market situation compared to what we see
today. On top of this, claims related to past projects have been settled. In
total, these factors have all contributed to a positive development for the
results last year, says Jan Arve Haugan, President & CEO of Kvaerner.
Order intake in the fourth quarter 2014 was NOK 1 274 million, versus NOK 1 925
million in the fourth quarter 2013. The order backlog was NOK 16 451 million at
the end of 2014.
* The work to execute the existing order book will mainly be executed this
year and in 2016. Hence, Kvaerner's order book provides a good foundation
and momentum for further efforts to increase productivity and improve the
cost level. Through 2014, we identified opportunities to cut costs for new
projects. The signing of the EPC contract for the steel jacket substructure
for the Johan Sverdrup Riser Platform on 20 January 2015 shows that Kvaerner
documented that these improvements are implemented. We are not stopping
there. Already from the start of 2015, we are taking further, concrete steps
in cooperation with our customers to reduce costs and increase
competitiveness, says Haugan.
Kvaerner's markets are currently volatile, but the company see a fundamental,
long term demand for offshore platforms and onshore facilities with requirements
which fits well with Kvaerner's strengths. Some few, key contracts with a good
match with Kvaerner's capabilities are expected to be awarded during 2015.
* Even if the long term market fundamentals seem positive, there are only a
few important contracts to bid for in 2015. Hence, it is of great importance
to us to win key bids in 2015, to enable a continued sound development of
Kvaerner as a leading EPC contractor, Haugan concludes.
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 & Communications,
Kvaerner,
Tel: +47 67 59 50 46, Mob: +47 950 38 364, email: ir(at)kvaerner.com
Media: Torbjørn Andersen, VP Communications, Kvaerner, Mob: +47 928 85 542,
email: torbjorn.andersen(at)kvaerner.com
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 3 000 HSSE-focused and
experienced employees are recognized for delivering some of the world's most
amazing and demanding projects.
In 2014, the Kvaerner group had consolidated annual revenues of close to NOK 14
billion and the company reported an order backlog at 31 December of NOK 16.5
billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock
Exchange. For further information, please visit www.kvaerner.com.
To subscribe or unsubscribe to our press releases, please see our web page:
http://www.kvaerner.com/en/toolsmenu/Media/Subscribe-to-releases/
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
4th quarter and preliminary annual results 2014 report:
http://hugin.info/134981/R/1893416/670906.pdf
4th quarter and preliminary annual results 2014 presentation:
http://hugin.info/134981/R/1893416/670930.pdf
This announcement is distributed by GlobeNewswire on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kværner ASA via GlobeNewswire
[HUG#1893416]
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Datum: 11.02.2015 - 07:01 Uhr
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