Kvaerner beefs up quarterly profit despite lower revenues
Norwegian engineering and construction services company Kvaerner recorded an increase in its second quarter 2017 profit, compared to the one made a year earlier, despite lower revenues.
According to its financial report on Thursday, the company nearly tripled its profit during the second quarter of the year, which totaled NOK 127 million ($15.4M). This compares to NOK 44 million ($5.3M) profit in the same period last year.
For the second quarter 2017, Kvaerner posted a NOK 1.5 billion revenues, a decrease compared to last year’s second quarter revenues of NOK 1.86 billion.
Kvaerner’s order book stood at NOK 9.04 billion at the end of the second quarter, compared to NOK 10.17 billion one year earlier. About 32% of the order backlog is scheduled to be executed this year, 52% next year, and the remaining 16% is set for execution in 2019 and later.
Tendering activity high
During the second quarter, Kvaerner reached final phases in several significant projects such as the Hebron concrete substructure, the Nyhamna Expansion project and the steel jacket substructure for the Johan Sverdrup riser platform.
Kvaerner’s President & CEO, Jan Arve Haugan, commented: “Our order backlog is a good foundation for pursuing further contracts. We now see more prospects to bid for, compared to the market one year ago.”
Kvaerner also noted that tendering activity is high and the company is currently positioning for prospects both in Norway and selected international regions. The company added it expects to see the outcome of some key contract awards during second half of 2017, and others during 2018. Even further ahead, it is anticipated that oil companies will start a number of additional prospects well fit for Kvaerner, not the least in the Barents Sea region.
While Kvaerner’s cost base over the last few years has already been reduced by approximately 20 – 25 percent, the company’s key priority is to continue to reduce the cost base and optimize the value chain.
Offshore Energy Today Staff