Economy

Strong results for oil service group Kværner

The operating profit fell, but the oil service group Kværner has received several new assignments in a box.

Kværner results are out and looks strong. There’s an increase in overall order intake for the company about NOK 1.1 billion in the third quarter and the Røkke dominated company now has an order backlog of NOK 10.6 billion – an increase of NOK 8.2 billion at the same time last year, they announced in a stock exchange announcement Tuesday morning.

In the stock exchange report, they refer to the distribution of the third steel base to the Johan Sverdrup oil field from the Kvaerner Verdal yard as one of the milestones during the period from July to September , and the project was carried out according to plan and budget, says Kværner’s CEO Karl-Petter Løken.

During the period, the Group (including joint ventures) had operating income of NOK 1.7 billion, which was approximately at the same level as in the same period last year.

Operating profit before depreciation (EBITDA), however, ended at NOK 90 million, down from NOK 262 million last year. Karl-Petter Løken says that the result was in line with expectations.

“The company is in a period when it has not begun to take margins on some new projects while at the same time it has lower milestones and incentive effects from other projects, which affects both EBITDA and margins as expected,” the company states in the announcement.

The company says that only next year will see the effects of some of the major contracts that have now been won, but the company sees a positive market trend.

“In the short term, Kværner expects customers to decide on the outcome of a few important prospectuses. During 2019, more key prospects will be expected to pass key milestones and move on to project approval and implementation, “the company writes.

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