Kvaerner profit halved but market developing positively

Norwegian engineering and construction services company Kvaerner more than halved its profit in the first quarter of 2019 compared to the prior-year period but the company is seeing positive developments in the market. Kvaerner has therefore raised the bar on its revenue target for the year. 

Kvaerner’s Stord yard; Source: Kvaerner

Kvaerner said on Tuesday that its profit in the fist quarter of 2019 decreased to NOK 54 million ($6.2M) from NOK 115 million ($13.2M) in the same period last year.

The company’s revenues were NOK 2.16 billion, including joint ventures, compared to revenues of NOK 1.9 billion in the first quarter of 2018.

The first quarter ended with a solid order intake of NOK 1.69 billion, and an order backlog of NOK 10.2 billion.

Kvaerner said it sees an improved market and more customers considering new projects. During 2019, it is expected that several key prospects will pass important decision gates and move further towards project sanctioning and project execution. The company anticipates that potential contract awards for near term larger contracts will mostly come in 2020 and 2021.

The market in and around Norway will continue to be important, but several key prospects are also in international regions.

According to the company, the market is developing positively from the start of 2019. Hence, Kvaerner expects total revenues, including joint ventures, to grow to more than NOK 8 billion for the full year. Revenues were previously expected to end above NOK 7 billion.

Capex level for 2019 is expected to be about NOK 300 million.

Offshore Energy Today Staff

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