Kvaerner’s 3Q order intake, profit grow

Norwegian offshore engineering and construction company Kvaerner has reported an increase in order intake, revenues, and profit in the third quarter of 2019.

Illustration only: Gyda Platform – Photo by: Banja-Frans Mulder; Source: Wikimedia – under the CC BY 3.0 license

Kvaerner said on Monday that its revenues were NOK 2,57 billion ($280 million), an increase from NOK 1,7 billion ($185 million) a year ago.

Order intake for the quarter was NOK 1,83 billion ($199 million), up from NOK 1,14 billion ($124 million) in Q3 2018, and more than a double compared to the previous quarter’s 723 million crowns.

Net profit doubled too, with NOK 75 million ($8.1 million) for the quarter, up from NOK 35 million($3,8 million) a year ago.

The company has the financial strength and a market outlook with key prospects, which together support the company’s long term strategy to grow its business, including expansion in new segments, Kvaerner said Monday.

Kvaerner’s President and CEO Karl-Petter Løken said the revenue level in the third quarter reflects with a high activity level for several projects are in the period.

He said: “When evaluating Kvaerner, it is relevant to not only consider individual quarterly results but primarily look at the longer lines in the company’s performance. Hence, I am pleased to say that we are on track with our strategy for expansion of Kvaerner’s business to annual revenues above NOK 10 billion. However, we expect that revenues and margins will decrease for the full year 2020 compared to 2019 before we anticipate to see the start of the planned growth from 2021 and onwards.”

“Kvaerner’s strategy focuses on winning projects in three clearly defined market segments [Process & Structures, FPSOs, and Renewables] where there are opportunities for contracts that support our growth ambitions.”

He said on Monday that the company was bidding for new contracts, and was in dialogue with customers for coming projects. “We expect that some projects will be decided this fall, and in addition we expect several important projects to pass key decision in 2020 and 2021”, said Løken.

Worth reminding, the company was recently awarded a contract from Allseas for offshore preparations assistance, onshore disposal, and recycling of the Repsol-operated Gyda platform in the North Sea when it is decommissioned.

Offshore Energy Today Staff

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