Kvaerner returns to 4Q profit
Kvaerner, a Norway-based engineering and construction firm supporting oil and gas industry, returned to 4Q profit in 2015.
The company’s net profit for the last quarter of 2015 was NOK 147 million, compared to a net loss of NOK 327 million in the fourth quarter of 2014. Kvaerner’s revenue was lower for the quarter at NOK 2.57 billion, down from around NOK 3.6 billion in 2014.
“Through last year including the fourth quarter, Kvaerner managed to maintain a good activity level, and the productivity has developed positively in several areas. We are continuing to meet all key milestones in our project portfolio, and we were proud to contribute to first oil on the new Edvard Grieg platform in late November,” says Jan Arve Haugan, President & CEO of Kvaerner.
The company expects 2016 to be a challenging year „with only some few project opportunities expected, most of a moderate size.“
“Last year, we were awarded almost 90 percent of the contract values for platform substructures to Johan Sverdrup. In a competitive joint venture with KBR, we were awarded one of the largest topside contracts in the market last year, for the Utility & Living Quarter platform at Johan Sverdrup. For 2016, we see some few opportunities for new contracts of moderate size. Simultaneously, we see that the timing of key decisions is uncertain. This makes it difficult to predict the activity level in 2017, but our order backlog provides a good starting point for our operations in the current year and the next,” says Haugan.
In a statement on Tuesday, Kvaerner said that in 2015 the company laid off 121 permanent workers. For 2015 and 2016 combined, Kvaerner expects that total reductions in number of employees will be within the interval of 250 to 500 employees already communicated in 2015.
Also, the company’s Board of Directors has proposed no dividend distribution during the first half of 2016.
“A strong balance sheet and cash position is important to maintain the resilience through a challenging cycle. Retaining the solid financial platform may also provide additional opportunities which Kvaerner can leverage in the market,” Kvaerner said.
Offshore Energy Today Staff