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Kvaerner ASA: 3rd quarter results 2016 - Solid operational performance in challenging market

19 October 2016 -
Solid operational performance in challenging market. Kvaerner increased the
adjusted EBITDA margin to 12.6 percent for the third quarter, up from 5.2
percent in the same period last year and 5.7 percent in the previous quarter.
"The margin reflects our improvements and ability to deliver predictably,
which affected the results positively through reaching planned milestones on
several projects," says Kvaerner's President&CEO Jan Arve Haugan.

Kvaerner's efforts to improve costs, quality, productivity and competitiveness
are currently yielding results on the current portfolio of projects. During
the third quarter, two jackets and the topside for Johan Sverdrup passed 20
percent completion, and accumulated profit for these projects has been
recognised. Additionally, the results were positively impacted by final
account and performance bonus of NOK 50 million for a recently completed

In the third quarter, total revenues, including jointly controlled entities,
amounted to NOK 2 727 million compared to NOK 3 615 million in the same
quarter 2015. Adjusted EBITDA ended at NOK 265 million, compared to NOK 166
million in the third quarter last year. Net operating cash inflow was NOK 407
million in the quarter. This reflects positive results, including insurance
recovery of USD 19 million related to the Longview Power project.

"Our market position and financial platform give resilience to manage the
current volatile market cycle. Simultaneously, this strength allows us to
consider structural measures to grow and create an even more robust
Kvaerner," says Jan Arve Haugan.

As of 30 September 2016, Kvaerner's order backlog was NOK 8 397 million, down
from NOK 10 172 million at the end of the second quarter. Order intake was
NOK 1 049 million in the third quarter, including the NOK 350 million pre-EPC
call off for preparations and docking of the Njord A platform at Kvaerner's
Stord facilities.

The oil and gas market remains challenging, but Kvaerner is well prepared for
a market with continued volatility. The company will continue to reduce costs
and strengthen its competitive power. Kvaerner expects some few projects in
relevant segments to come up for contract award in 2016, 2017 and 2018. There
are several signals of upcoming prospects, including FPSOs as well as
unmanned wellhead platforms with tie-backs to existing infrastructure. The
improvements over the last few years mean that Kvaerner can deliver such
projects at a cost which is attractive even with oil prices at levels around
USD 50 per barrel.

"Oil companies with plans for new projects seem to put more emphasis on
selecting contractors based on safe and predictable delivery connected to
schedule, quality and total price. The timing of new projects remains
uncertain. We are pursuing prospects to secure an effective capacity
utilisation during 2017," says Jan Arve Haugan.

The full report and presentation can be downloaded below and


For further information, please contact:

Investor inquiries:

Ingrid Aarsnes, VP Investor Relations&Communications, Kvaerner, Tel: +47 67 59
50 46 , Mob: +47 950 38 364

Media inquiries:

Torbjørn Andersen, Head of Communications, Kvaerner, Mob: +47 928 85 542

About Kvaerner:
Kvaerner is a leading provider of engineering, procurement and construction
(EPC) services, and delivers offshore installations and onshore plants for
upstream oil and gas production around the world. Kvaerner ASA, through its
subsidiaries and affiliates ("Kvaerner"), is an international contractor and
preferred partner for oil and gas operators and other engineering and
fabrication contractors. Kvaerner and its approximately 2 700 HSSE-focused
and experienced employees are recognised for delivering some of the world's
most amazing and demanding projects.

In 2015, the Kvaerner group had consolidated annual revenues of approximately
NOK 12 billion and the company reported an order backlog at 30 September 2016
of NOK 8.4 billion. Kvaerner is publicly listed with the ticker "KVAER" at
the Oslo Stock Exchange. For further information, please

To subscribe or unsubscribe to our press releases, please see our web

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

3rd quarter results 2016 Report
3rd quarter results 2016 Presentation


This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Kværner ASA via Globenewswire

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