"The third quarter has been a solid operational quarter, with financial results in line with the company's anticipated activity level, " says Jan Arve Haugan, President & CEO of Kvaerner.
Operating revenues in the third quarter amounted to NOK 2 623 million, compared with NOK 3 237 million for the third quarter 2010, a decrease of 19 percent. The decrease is a result of lower activity in most business areas during the quarter. The anticipated activity drop is a consequence of the current project portfolio and the phasing of projects.
In the third quarter three important projects were completed according to plan; the Gulf LNG re-gasification terminal project, the Skarv FPSO in-shore work and the offshore work on the Kashagan hook-up project.
EBITDA for the third quarter 2011 ended at NOK 169 million, an increase of NOK 72 million compared to NOK 97 million in the corresponding quarter last year. As a result the EBITDA margin for the third quarter 2011 was 6.4 percent compared to 3.0 percent in the same quarter in 2010. The EBITDA for the quarter is mainly a result of contributions from projects in the North Sea and International business areas that have been winding down during the summer. These projects are not expected to contribute significantly to the EBITDA going forward.
The order intake in the third quarter totaled NOK 1 105 compared to NOK 4 237 million in the third quarter 2010. At 30 September 2011, the order backlog amounted to NOK 11 855 million, a decrease of NOK 1 441 million from 30 June 2011. Net cash amounted to NOK 1 678 million compared to 1 773 million at the end of second quarter. Together with loan facilities, this provides Kvaerner access to liquidity totaling NOK 4.6 billion at the end of the quarter.
"Our current project portfolio implies that only a few projects will be running through 2012. Short term, this means that we expect lower results until new projects are won and start contributing to the results. However, our current project portfolio also leaves both room and capacity to take part in the exceptionally strong market we see ahead of us", Haugan concludes.