Kværner Q3 2015 results

Kvaerner's financial result (adjusted EBITDA) for the third quarter grew to NOK 148 million. This is an increase of 36% from the previous quarter when the result was NOK 109 million. With the last new contract for a third substructure for the Johan Sverdrup platforms signed in October, the order backlog remains at a high level which provides sound visibility. Several projects are currently in phases with demanding activities. Still, all projects are on track for delivery in line with the schedules agreed with the respective customers.

Revenues in the third quarter were NOK 2 858 million. This is was a reduction from NOK 3 125 million in the second quarter. However, the EBITDA margin (Earnings before Interest, Taxes, Depreciation and Amortisation), improved from 3.5% in the second quarter, to 5.2% in third quarter.

"We are on track both with for the execution of projects and for the strengthening of our competitiveness. Kvaerner has a solid financial platform with no debt. Our customers are increasingly appreciating the value of our expertise for predictable deliveries. Kvaerner will combine the ongoing restructuring process with dedicated investments in facilities and competence. We aim at maintaining our robustness and shall come out of these demanding times with enhanced strength and flexibility, says Jan Arve Haugan," President & CEO of Kvaerner.

The order backlog was NOK 17 742 million at second quarter this year, and is reported at NOK 16 232 million at the end of third quarter. Order intake in the third quarter was NOK 2 027 million.

"While the downturn for the industry has now lasted for a while, our teams have demonstrated competitive strength and maintained predictability. We have through 2015 won several of the contracts. We see a reduced number of prospects for the next 12 months. Simultaneously, there are some interesting opportunities which may be a good fit for our expertise. We will implement the ongoing programmes for increased competitiveness, and use this to position for target projects," Haugan concludes.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/06112015/kv%C3%A6rner-results-q3-2015/