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A challenging quarter for Kongsberg

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Oilfield Technology,


Kongsberg has revenues of MNOK 3428 and an EBITDA of minus MNOK 40 in 3Q, compared to MNOK 4009 and MNOK 419 in the same quarter in 2015. The weak result is mainly due to significant write-downs and restructuring costs of MNOK 399 in Kongsberg Maritime, together with further decline in the oil and offshore-related activities.

Compared to 3Q in 2015, the Group has had a 14% decrease in turnover. The EBITDA margin adjusted for write-downs and restructuring costs is 10.5%. The quarterly order intake is MNOK 4067 which gives an order backlog of MNOK 17 858 at the end of 3Q.

“We see that the oil and offshore market is still challenging, and this has a considerable impact on the Group’s quarterly performance. The defence areas are steady going and at the same level as last year. Our order intake has been good, and, despite the write-downs in KM’s backlog, we maintain an overall solid order backlog”, said President and Chief Executive Officer in Kongsberg, Geir Håøy.

Downfall in the market and impairments in Kongsberg Maritime

Kongsberg Maritime had a turnover of MNOK 1849, a decrease of 26% compared to the same quarter in 2015. The business area reported a loss of MNOK 255. The weakening compared to 3Q in 2015 is mainly due to write-down of inventory, currency hedges and other items with MNOK 354, together with restructuring costs of MNOK 45 in the offshore business. In addition to the challenging offshore market, there is somewhat lower activity within the merchant marine segment.

“We are experiencing, like many others in this market, challenging times. Kongsberg Maritime is late cyclical and has maintained a high activity level in a weakened market. However, the market slowdown is now affecting us to an increasing extent. The quarterly order intake is reduced. The business area is making significant capacity and cost adjustments and the cost base will be considerably lower in 2017, said Håøy.

A good quarter for the defence segments

Kongsberg Defence Systems is on level with the corresponding quarter in 2015, with a turnover of MNOK 897 and an EBITDA margin of 18.8%. The share of net income from Patria in the quarter was MNOK 20.

Kongsberg Protech Systems has a turnover of MNOK 506 and an EBITDA margin of 4.7%. The increase from 3Q in 2015 is mainly due to more deliveries of new systems.

“The defence segments have good project execution, and are continuing working to exploit the considerable opportunities we see ahead of us in several core segments. The quarterly order intake is good for both business areas”, said Håøy.

For further information please visit: Kongsberg Maritime

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/28102016/a-challenging-quarter-for-kongsberg/


 

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