Kvaerner ASA: 4th quarter 2016 - Solid results through predictable project execution
(Thomson Reuters ONE) -
15 February 2017 - Solid results through predictable project execution. Kvaerner
delivered an adjusted EBITDA of NOK 219 million in the fourth quarter, and NOK
680 million for 2016. "Predictable project execution coupled with cost
reductions and productivity improvements continue to be the key drivers behind
our strong performance," says Kvaerner's President & CEO Jan Arve Haugan.
Kvaerner delivered solid operational performance in fourth quarter, driven by
successful execution and completion of milestones in the projects. The effect of
better performance and improved project-portfolio mix has resulted in a higher
margin compared to last year.
In the fourth quarter 2016, total revenues, including jointly controlled
entities (Field Development segment), amounted to NOK 2 378 million, compared to
NOK 3 334 million in the fourth quarter last year. Adjusted EBITDA, including
jointly controlled entities, ended at NOK 232 million (9.7 percent EBITDA
margin), up from NOK 202 million (6.1 percent EBITDA margin) in the
corresponding quarter in 2015. Net cash inflow from operating activities was NOK
244 million in fourth quarter.
"During one and the same week in December, we flawlessly executed three very
well planned, major operations. Common for all three - Hebron GBS, Njord A and
the Johan Sverdrup riser platform jacket - was extremely high precision and safe
execution. Delivery of such important parts of the complex projects predictably
is the best possible marketing for new contracts," says Jan Arve Haugan.
Order intake in the fourth quarter was NOK 768 million. Per 31 December 2016,
Kvaerner's order backlog, including Kvaerner's scope of work of jointly
controlled entities, was NOK 6 459 million, down from NOK 8 397 million at the
end of the third quarter.
"From 2014 to 2016, we improved our cost base for new projects with about 15 to
20 percent. From 2016 and into 2017, we continue the improvements. Our ambition
is that we for new topside bids in 2017 have a cost base which is 20 to 25
percent lower than what we had three years ago. We see some important upcoming
prospects in the market. The reduced cost base combined with a predictable
delivery model will enhance our competitive position and should be seen as a
strong enabler to increase our order book," says Jan Arve Haugan.
Subsequent to the quarter, Kvaerner has been awarded a NOK 450 million contract
for offshore hook-up of the Johan Sverdrup riser platform, plus a NOK 200
million decommissioning contract.
Full year 2016 results
Total operating revenues, including jointly controlled entities, were NOK
10 364 for the full year 2016, compared with NOK 14 917 in 2015. EBITDA,
including jointly controlled entities, ended at NOK 741 million for the full
year 2016 (EBITDA margin 7.1 percent), up from NOK 613 million for the full year
2015 (EBITDA margin: 4.1 percent). At the end of the year, Kvaerner's credit
facilities were undrawn and net cash was NOK 3 billion.
The Board of Directors has proposed no dividend distribution for second half of
2016. A robust balance sheet and cash position is important to maintain
resilience through the challenging cycle and it should support the ambition to
come out of the period with an even stronger business. The solid financial
position is a competitive lever when positioning for new contracts. It also
provides flexibility to pursue selected opportunities for strategic development.
The full report and presentation can be downloaded from www.kvaerner.com and the
links below.
ENDS
For further information, please contact:
Investor inquiries:
Ingrid Aarsnes, VP Investor Relations & Communications, Kvaerner, 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 2016, the Kvaerner group had consolidated annual revenues of close to NOK 8
billion and the company reported an order backlog at 31 December 2016 of NOK
6.5 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 presentation 2016:
http://hugin.info/134981/R/2078672/782372.pdf
4th quarter results report 2016:
http://hugin.info/134981/R/2078672/782373.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: 15.02.2017 - 06:58 Uhr
Sprache: Deutsch
News-ID 524190
Anzahl Zeichen: 6162
contact information:
Town:
Oslo
Kategorie:
Business News
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