Kvaerner doubled the operating profit

KvaernerKvaerner reports a good second quarter. Here from the work of Njord on Stord. Photo: Kvaerner

Kvaerner doubled the operating profit

– We are now seeing more prospects to bid on, compared to the market a year ago, says the CEO of Kvaerner.

Kværner’s quarterly results, released on Thursday, show that the company has put behind them three months with a turnover of 1,986 million. In Q2 last year, Kvaerner’s sales included joint-stock companies (Field Development segment) of NOK 2,475 million.

An adjusted profit before depreciation (EBITDA) shows an increase of NOK 216 million in the same period, almost doubling compared with last year, when the same figure was NOK 106 million.

– The figures reflect both solid operations in all ongoing projects and achieved incentives associated with some projects that are in the final phase, it is stated in the stock exchange announcement

The order reserves decreases

This year we will also finish some of the industry’s most demanding projects, at agreed quality and within agreed plans. Kvaerner’s business is characterized by a few large projects. Many of our contracts include bonuses to deliver good quality and to comply within milestones, especially towards the end of the projects. This means that in a few quarters we see significant fluctuations in our results. In the second quarter, earnings are affected by both such bonuses and quality improvements that reduce our costs, says Jan Arve Haugan, CEO of Kvaerner in the stock exchange announcement.

The company’s order book, however, is slightly over one billion less than at the same time last year, by just over NOK 9 billion. More than half of this entails assignments that will be completed in 2018, while just over 30 percent will be completed this year.

Haugan nevertheless believes that the order book is a good basis for pursuing new contract opportunities.

We are now seeing several prospects, compared to the market a year ago. We have a solid market position for our most important products and services, and are considering investments in further development of expertise, facilities and products, says the CEO.


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