Strong revenue decline in Kvaerner

CEO Jan Arve HauganKværner. CEO Jan Arve Haugan.Photo: Berit Roald / NTB scanpix

Kvaerner had a profit before tax of 28 million in the second quarter of 2016, NOK 60 million less than the same time last year. The company sees signs of improvement, despite a fall in revenue.

The quarterly report shows that the industry group’s revenue fell by over 1.2 billion – from 3.125 million last year, to 1.859 million this year.
– It is important for us to win new contracts to ensure a good level of activity over the next few years. We see that there may come a careful development of the market in a more positive direction during the next year, says CEO Jan Arve Haugan.

Kvaerner, which has most of its operations in the petroleum industry, expects the tough competition, but the company has recently implemented several measures to increase competitiveness.

The operating profit of 69 million is 21 million lower in the same period last year. Adjusted operating profit (EBITDA) totaled 106 million, the same as in the first quarter. During the second quarter last year it was NOK 109 million.

– Kvaerner’s solid financial position is a competitive factor in positioning the new contracts. This also provides the flexibility to pursue selected opportunities for strategic development in the context of the ongoing changes in the market, says Haugan.


Source: NTB scanpix / Norway Today