First quarter results 2019: Solid first quarter performance, expects increased annual revenues

The results for the first three months in 2019 is the 31st quarter in a row where Kvaerner delivers solid, positive results. Per 31 March, the revenues were NOK 2 158 million including joint ventures. The corresponding EBITDA was NOK 137 million, and the EBITDA margin was 6.3 percent. The first quarter ended with a solid order intake of NOK 1 691 million, and an order backlog of NOK 10 196 million.

7 May 2019 – The results for the first three months in 2019 is the 31st quarter in a row where Kvaerner delivers solid, positive results. Per 31 March, the revenues were NOK 2 158 million including joint ventures. The corresponding EBITDA was NOK 137 million, and the EBITDA margin was 6.3 percent. The first quarter ended with a solid order intake of NOK 1 691 million, and an order backlog of NOK 10 196 million. The market is developing positively from the start of 2019. Hence, Kvaerner expects total revenues, including joint ventures, to grow to more than NOK 8 billion for the full year. Revenues were previously expected to end above NOK 7 billion. 

One year ago, the order backlog was NOK 11 118 million and the order intake in the first quarter was NOK 5 014 million. At the same time, the revenues for the Field Development segment, which includes joint ventures, were NOK 1 944, the EBITDA was NOK 205 million and the EBITDA margin was 10.6 percent.

The results after the first quarter 2019  shows that Kvaerner’s financial foundation remains robust,  with almost NOK 2.9 billion in cash and bank deposits.

“We have a high activity level in ongoing projects already from the start of this year, and both revenues and results for the last quarter are solid. The quarterly results are also positively impacted by reversal of warranty provisions of approximately NOK 40 million in previously completed projects. The order intake is also developing positively. In sum, this means that we will already this year start to grow our business in line with Kvaerner’s stated strategy. We simultaneously maintain that we beyond 2019 expect to see key decisions for several more of the prospects we are pursuing”, says Karl-Petter Løken, President and CEO for Kvaerner.

All current projects in Kvaerner’s portfolio are on track. The company is pursuing new contract opportunities both within its traditional market for construction of new offshore oil and gas platforms, as well as prospects within targeted new growth segments. During the first quarter, the company secured a contract for upgrading of Hydro’s aluminium plant at Husnes, Norway, and a new contract for marine operations to remove a decommissioned platform offshore Canada. At 2 May, the contract for demolition of the large Stafjord A platform was announced. All three projects  are examples of expanding business within new segments, which in 2018 counted for more than 10 percent of total revenues. Kvaerner aims to build further business in the growth segments in the coming period.

The presentation including financial appendix can be downloaded from the link to the right.

ENDS

For further information, please contact:

Media inquiries:
Torbjørn Andersen, Vice President, IR & Communications, Kvaerner, Tel: +47 928 85 542, email: torbjorn.andersen@kvaerner.com

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

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 2018, Kvaerner’s Field Development segment had consolidated annual revenues of NOK 7.2 billion and the company reported an order backlog at 31 March 2019 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.