11 July 2018 - Kvaerner's second quarter and half year results are on track to the targets for the full year. Net cash at 30 June increased to more than NOK 3 billion, above levels over the last year. The total EBITDA result for the Field Development segment was NOK 118 million in the second quarter, and was NOK 230 million in the same quarter last year. The order intake was NOK 1 941 million in the last quarter, more than five times higher than in the second quarter 2017 with NOK 370 million.
The order backlog stands at NOK 11 204 million per 30 June, up from NOK 9 041 million at the same time last year. Some of the significant contracts won during the first half of 2018 will start to yield effects on the results next year.
In the second quarter, Kvaerner's total revenues including jointly controlled entities (Field Development segment) were NOK 1 846 million compared to NOK 1 986 million for the same period one year ago. The corresponding EBITDA-margin was 6.4 percent in the last quarter, versus 11.6 percent in the second quarter 2017. Revenues and EBITDA for the first half of 2018 amounted to NOK 3 789 million and NOK 323 million respectively, compared to NOK 4 055 million and NOK 350 million in the same period 2017.
"We are proceeding in line with our planned development this year. The second quarter results reflect that recently awarded projects are not yet recognising margin. The numbers also mirror that we are now in a period with less significant effects from bonuses and incentives compared to recent quarters. Going forward, we expect to see continued quarterly fluctuations in earnings due to phasing of projects, project portfolio mix and incentives. We maintain the outlook for 2018 with full year gross revenue of more than NOK 7 billion and full year EBITDA margins lower than in 2017", says Karl-Petter Løken, Kvaerner's President & CEO.
Kvaerner has no interest bearing debt. Cash and bank deposits at the end of the quarter were more than NOK 3 billion, up from NOK 2.9 billion in the same quarter last year.
"Our order book and our figures illustrate that we have a high activity level, with several projects being executed in parallel. All current projects are on track, which has become Kvaerner's trademark. Going forward, key priorities will continue to be safe and predictable completion of ongoing projects. In addition, our strategy is to further grow Kvaerner's business and order book. In the market, we expect a number of small and medium sized prospects, mostly in our defined growth segments. We also see some few larger prospects in our traditional market for topsides and substructures, and we expect to see the outcome of these during this year and next year" says Løken.
The second quarter and half year 2018 report and presentation can be downloaded from www.kvaerner.com and the links below.
ENDS
For further information, please contact:
Investor inquiries: Idar Eikrem, EVP & CFO, Kvaerner, Mob: +47 950 28 363, email: ir@kvaerner.com
Media inquiries: Torbjørn Andersen, Head of Communications, Kvaerner, Mob: +47 928 85 542, email: torbjorn.andersen@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 2 600 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 30 June 2018 of NOK 11.2 billion. Kvaerner is publicly listed with the ticker "KVAER" at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com .
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This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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