Kvaerner grows decommissioning capacity

14 March 2018 - Kvaerner has signed an agreement to acquire GMC Decom, a decommissioning business located at Stord, Norway. The acquisition gives Kvaerner access to additional land as well as equipment that will improve efficiency and safety at Kvaerner’s decom facilities at Eldøyane, Stord.

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While EPC projects are at the heart of Kvaerner’s business strategy, the company has identified decommissioning as one of selected adjacent growth segments where the company sees additional business opportunities for many decades ahead.

The acquired demolition site is the neighbouring site to Kvaerner’s current facility at Eldøyane, Stord. The additional land will increase Kvaerner’s deconstruction area with 35 percent.

“Although small in a financial perspective, the acquisition of GMC Decom will provide us with valuable competence, equipment and land area to further increase our capacity and competitiveness in this identified growth segment for Kvaerner,” says Hans Petter Mølmen, EVP Concrete & New Solutions in Kvaerner.

Moreover, Kvaerner will this autumn have a large capacity stationary shear in operation, capable of cutting up to eight metre long steel structures with a thickness of 150 millimetres.

Last year, Kvaerner won two decommissioning projects that are currently ongoing. In addition, Kvaerner has recently won contracts for disposal of two offshore platforms, the recycling of the Varg A installation and the topside and bridge of the Valhall QP platform.

Kvaerner recently also announced a NOK 370 million investment in a new quay at the company’s facility at Stord. One of the advantages with the new quay is that it will provide Kvaerner with an alternative loading area for structures bound for its demolition facility at Eldøyane.

“This quay investment will enable Kvaerner to execute a larger amount of large and small projects in parallel. It will also provide us with added flexibility and opportunities to target potential new markets,” adds Mølmen.

ENDS

For further information, please contact:

Media inquiries:
Odd Naustdal, Head of Communications West Norway, Kvaerner, Mob: + +47 905 76 079

Investor inquiries:
Ingrid Aarsnes, VP Investor Relations & Communications, Kvaerner, Mob: +47 950 38 364

About Kvaerner:
Kvaerner is a leading provider of engineering, procurement and construction (EPC) services, and delivers offshore installations and onshore 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 2 700 HSSE-focused and experienced employees are recognised for delivering some of the world's most amazing and demanding projects.

In 2017, Kvaerner's Field Development segment had consolidated annual revenues of NOK 7.6 billion and the company reported an order backlog at 31 December 2017 of NOK 8.1 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com