Third quarter results 2019: High revenues and activity level

28 October 2019

Kvaerner had high revenues and order intake in the third quarter, compared to the same period one year ago. The company has financial strength and a market outlook with key prospects, which together support the company’s long term strategy to grow its business, including expansion in new segments.

In the third quarter 2019, Kvaerner’s total revenues including jointly controlled entities (Field Development segment) were NOK 2 571 million, versus the third quarter last year when the comparable figure was NOK 1 709 million. The corresponding EBITDA was NOK 138 million for the last period, against NOK 90 million in the same period one year ago. The EBITDA-margin was 5.4 percent in the third quarter this year, while it was 5.2 percent in the third quarter last year.

In the past quarter, the order intake was NOK 1 830 million, compared to an order intake of NOK 1 149 million last year. As of 30 September 2019, the order reserve was NOK 8 337 million, against NOK 10 638 million in the corresponding period in 2018.

“The revenue level in the third quarter reflects that several projects are in a period with a high activity level. When evaluating Kvaerner, it is relevant to not only consider individual quarterly results, but primarily look at the longer lines in the company’s performance. Hence, I am pleased to say that we are on track with our strategy for expansion of Kvaerner’s business to annual revenues above NOK 10 billion. However, we expect that revenues and margins will decrease for the full year 2020 compared to 2019, before we anticipate to see the start of the planned growth from 2021 and onwards”, says Kvaerner’s President and CEO Karl-Petter Løken.

Kvaerner has no interest bearing debt and has in the past quarter successfully renewed its NOK 2 billion credit facilities in the finance market at attractive terms. Cash and bank deposits at the end of the third quarter were approximately NOK 2.4 billion.

“Kvaerner’s strategy focuses on winning projects in three clearly defined market segments where there are opportunities for contracts that support our growth ambitions. Within all these three segments, we are currently bidding for new contracts, and we are in dialogue with customers for coming projects. We expect that some projects will be decided this fall, and in addition we expect several important projects to pass key decision in 2020 and 2021”, says Løken.

The third quarter 2019 presentation can be downloaded from www.kvaerner.com and the links to the left.

ENDS

For further information, please contact:

Media inquiries:

Torbjørn Andersen, Head of IR & Communications, Kvaerner, Mob: +47 928 85 542, email: torbjorn.andersen@kvaerner.com

Investor inquiries:

Idar Eikrem, EVP & CFO, Kvaerner, Mob: +47 950 28 363, email: ir@kvaerner.com

About Kvaerner:
Kvaerner is a project execution specialist and a trusted advisor for our clients. We provide engineering, procurement and construction (EPC) services and deliver advanced offshore and onshore installations around the world.

We have offices in seven countries and approximately 2 800 employees. Health, Safety, Security and Environment (HSSE) has the highest priority in our work, and we aim to deliver technology and solutions in a safe and sustainable way. Our passion, experience and expertise realise values for clients and societies. Kværner ASA, through its subsidiaries and affiliates (“Kvaerner”), is an international contractor and preferred partner for operators and contractors within oil and gas, renewable energy and in the field of engineering and fabrication.

In 2018, Kvaerner’s Field Development segment had consolidated annual revenues of NOK 7.3 billion and the company reported an order backlog at 30 September 2019 of NOK 8.3 billion. Kvaerner is publicly listed with the ticker “KVAER” at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com (http://www.kvaerner.com). To subscribe or unsubscribe to our press releases, please see our web page: https://www.kvaerner.com/investors/news-and-stock-exchange-announcements/subscribe-to-releases/