3 May 2016 - Increased margin and stable result. Kvaerner increased the adjusted EBITDA profit margin, from 2.9 percent in first quarter 2015 up to 4.8 percent in first quarter this year. The adjusted EBITDA results remain stable, at NOK 106 million in first quarter 2016, compared to NOK 101 million one year ago. - We strengthen our financial position in spite of a challenging market and we maintain our predictable performance in 2016, says Kvaerner's President & CEO Jan Arve Haugan.
Revenues in the first quarter were NOK 2 228 million, versus NOK 2 577 million in fourth quarter 2015, and NOK 3 525 million in the corresponding quarter last year. Kvaerner continued to strengthen its financial platform also in the last quarter. The company is debt free, and has more than NOK 2.1 billion in net cash. A strong balance sheet and cash position is important to maintain the resilience through a challenging cycle. In addition, the solid financial position provides flexibility to selectively follow up opportunities in connection with the ongoing market shift.
"We noticed the signs of a challenging market cycle early. The results we have now illustrate that the Kvaerner organisation have implemented improvements with full efforts over the last years. We are confident that we can make even further improvements to cost and productivity if we can coordinate the initiatives between oil companies, contractors and sub-suppliers across the value chain", says Jan Arve Haugan.
The order backlog was NOK 12.1 billion at the end of first quarter, compared to NOK 14.3 billion at year-end 2015. The order book gives Kvaerner a solid starting point for the challenging market in 2017 and 2018.
"In Kvaerner's segments, which include offshore platforms and onshore facilities, there has been a reasonable activity both in 2014 and 2015. In the markets we compete, we have over the past two years won a share of the contracts which have been out for bid. We have proven that Kvaerner can offer attractive solutions when we can compete on the best total price and delivery on time. We are currently using this competitive power to pursue several selected prospects, and we expect to see the outcome of further contract awards both through 2016 and 2017", says Haugan.
The full report and presentation can be downloaded below and at www.kvaerner.com .
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Ingrid Aarsnes, VP Investor Relations & Communications, Kvaerner, Tel: +47 67 59 50 46, Mob: +47 950 38 364, email: email@example.com
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Kvaerner is a leading provider of engineering, procurement and construction (EPC) services, and delivers offshore installations and onshore plants for upstream oil and gas production 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 2 800 HSSE-focused and experienced employees are recognized for delivering some of the world's most amazing and demanding projects.
In 2015, the Kvaerner group had consolidated annual revenues of NOK 12 billion and the company reported an order backlog at 31 March 2016 of NOK 12.1 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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