Kvaerner ASA: 3rd quarter results 2016 - Solid operational performance in challenging market
(Thomson Reuters ONE) -
19 October 2016 - Solid operational performance in challenging market. Kvaerner
increased the adjusted EBITDA margin to 12.6 percent for the third quarter, up
from 5.2 percent in the same period last year and 5.7 percent in the previous
quarter. "The margin reflects our improvements and ability to deliver
predictably, which affected the results positively through reaching planned
milestones on several projects," says Kvaerner's President & CEO Jan Arve
Haugan.
Kvaerner's efforts to improve costs, quality, productivity and competitiveness
are currently yielding results on the current portfolio of projects. During the
third quarter, two jackets and the topside for Johan Sverdrup passed 20 percent
completion, and accumulated profit for these projects has been recognised.
Additionally, the results were positively impacted by final account and
performance bonus of NOK 50 million for a recently completed project.
In the third quarter, total revenues, including jointly controlled entities,
amounted to NOK 2 727 million compared to NOK 3 615 million in the same quarter
2015. Adjusted EBITDA ended at NOK 265 million, compared to NOK 166 million in
the third quarter last year. Net operating cash inflow was NOK 407 million in
the quarter. This reflects positive results, including insurance recovery of USD
19 million related to the Longview Power project.
"Our market position and financial platform give resilience to manage the
current volatile market cycle. Simultaneously, this strength allows us to
consider structural measures to grow and create an even more robust Kvaerner,"
says Jan Arve Haugan.
As of 30 September 2016, Kvaerner's order backlog was NOK 8 397 million, down
from NOK 10 172 million at the end of the second quarter. Order intake was NOK
1 049 million in the third quarter, including the NOK 350 million pre-EPC call
off for preparations and docking of the Njord A platform at Kvaerner's Stord
facilities.
The oil and gas market remains challenging, but Kvaerner is well prepared for a
market with continued volatility. The company will continue to reduce costs and
strengthen its competitive power. Kvaerner expects some few projects in relevant
segments to come up for contract award in 2016, 2017 and 2018. There are several
signals of upcoming prospects, including FPSOs as well as unmanned wellhead
platforms with tie-backs to existing infrastructure. The improvements over the
last few years mean that Kvaerner can deliver such projects at a cost which is
attractive even with oil prices at levels around USD 50 per barrel.
"Oil companies with plans for new projects seem to put more emphasis on
selecting contractors based on safe and predictable delivery connected to
schedule, quality and total price. The timing of new projects remains uncertain.
We are pursuing prospects to secure an effective capacity utilisation during
2017," 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:
Ingrid Aarsnes, VP Investor Relations & Communications, Kvaerner, Tel:
+47 67 59 50 46 , Mob: +47 950 38 364
email: ir(at)kvaerner.com
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 September 2016 of
NOK 8.4 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.
3rd quarter results 2016 Presentation:
http://hugin.info/134981/R/2049762/766589.pdf
3rd quarter results 2016 Report:
http://hugin.info/134981/R/2049762/766579.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Kværner ASA via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.10.2016 - 06:58 Uhr
Sprache: Deutsch
News-ID 501341
Anzahl Zeichen: 5712
contact information:
Town:
Oslo
Kategorie:
Business News
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