Kværner ASA: Improved operations - higher margins
(Thomson Reuters ONE) -
14 July 2016 - Improved operations - higher margins. Kvaerner increased the
adjusted EBITDA margin to 5.7 percent for the second quarter. This is up from
3.5 percent in the corresponding period last year, and up from 4.8 percent in
the first quarter this year. - We have focused on delivering predictably while
we are continuously improving productivity and costs. This is contributing
positively to our financial results, says Kvaerner's President & CEO Jan Arve
Haugan.
Kvaerner has over the last years worked intensely to improve costs, quality,
productivity and competitiveness. These efforts are now yielding results on the
current portfolio of projects. Many of Kvaerner's contracts include bonuses and
incentives related to good performance and for meeting key milestones, in
particular towards the end of the projects.
"We expect that improved performance in the on-going projects will have positive
impact on the results over the next quarters. We anticipate that the EBITDA
margin for the second half of 2016 and for the full year 2016 to be higher than
in the corresponding periods last year", says Haugan.
Total revenues, including jointly controlled entities (Field Development
segment) in the past quarter amounted to NOK 2 475 million compared to NOK
3 794 million in the corresponding quarter 2015. Total revenues, including
jointly controlled entities after the first six months this year were NOK 5 260
million versus NOK 7 967 million at the same time last year. The corresponding
EBITDA for the first half year was NOK 245 million both in 2016 and 2015. The
higher EBITDA margin reflects the improved performance.
As of 30 June 2016, the order backlog amounted to NOK 10 172 million, while it
was NOK 12 054 million after the first quarter 2016.
For the second half of 2016, Kvaerner expects some few projects in relevant
segments to come up for contract award. Competition remains fierce, but
Kvaerner's improvement initiatives over the last years has increased
competitiveness. Kvaerner is positioning for new prospects with expected awards
in 2016, 2017 and 2018, both in the Norwegian market and in other targeted
regions.
Kvaerner is debt free, and has more than NOK 2.4 billion in net cash. This
reflects a net increase in cash and bank deposits during the second quarter of
NOK 325 million.
"Winning new contracts to secure a sound activity level also in the next years
is a priority for us. The market may during the coming year start a careful
development in a somewhat more positive direction. Clients demand that
contractors must demonstrate both ability to deliver predictably and a
sufficient economic robustness. Kvaerner's solid financial position is a
competitive lever in the positioning for new contracts. It also provides
flexibility to pursue selected opportunities for strategic development in
connection with the ongoing market shift", says Jan Arve Haugan.
The full report and presentation can be downloaded below and at
www.kvaerner.com.
ENDS
For further information, please contact:
Investor inquiries:
Idar Eikrem, CFO & EVP, Kvaerner, Mob: +47 950 28 363
Media inquiries:
Torbjørn Andersen, Head of 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. Kvaerner 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 2 700 HSSE-focused and
experienced employees are recognised for delivering some of the world's most
amazing and demanding projects.
In 2015, the Kvaerner group had consolidated annual revenues of approximately
NOK 12 billion and the company reported an order backlog at 30 June 2016 of NOK
10.2 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.
2nd quarter results 2016 Presentation:
http://hugin.info/134981/R/2028501/754127.pdf
2nd quarter results 2016 Report:
http://hugin.info/134981/R/2028501/754120.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(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#2028501]
Unternehmensinformation / Kurzprofil:
Datum: 14.07.2016 - 06:59 Uhr
Sprache: Deutsch
News-ID 483265
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contact information:
Town:
Oslo
Kategorie:
Business News
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