Kvaerner profit dips despite higher revenues

Norwegian engineering and construction services company Kvaerner saw its profit drop in the last quarter of 2019 compared to the prior-year period despite increase in revenues. 

The company on Wednesday posted revenues of NOK 2,588 million for the fourth quarter of 2019 versus revenues of NOK 1,715 million in the same period of 2018.

The company’s profit dropped to NOK 39 million from NOK 86 million in 4Q 2018.

The total order intake in 2019 was NOK 6,902 million versus NOK 9,827 million in 2018. The order backlog was NOK 8 200 million at the end of 2019, while it was NOK 10 625 million at the end of 2018. The company has NOK 2 324 million in cash and bank deposits, and zero net debt.

According to the company, it is expected that annual revenues and EBITDA will decline in 2020 compared to 2019, as an effect of the market cycle with few new orders in 2018 and 2019.

During 2020, 2021, and beyond, it is expected that customers will award key contracts.

Offshore Energy Today Staff

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