Norwegian engineering and construction services company Kvaerner is seeing signs of an improved market despite lower profit as its order intake doubled during the third quarter of 2018.
According to its financial statement for 3Q 2018 published on Tuesday, Kvaerner’s net profit in the third quarter of 2018 was NOK 35 million compared to a profit of NOK 170 million a year earlier.
The company’s revenues were NOK 1.7 billion in the third quarter 2018, about the same as in the corresponding quarter of 2017.
Kvaerner’s order intake doubled and the backlog increased 30 percent in the last quarter compared to the same quarter in 2017.
The order intake in the third quarter 2018 was in excess of NOK 1.1 billion. This is almost twice as high as in the same quarter last year, when it was NOK 588 million. As per September 30, 2018, Kvaerner’s order backlog was NOK 10.6 billion, up from NOK 8.2 billion at the same time last year.
“The third quarter was in line with our expectations, both in terms of project execution and financial results,” said Kvaerner’s CEO Karl-Petter Løken.
The third quarter results confirm Kvaerner’s previous guiding for 2018. Kvaerner maintains the financial outlook for 2018, with gross annual revenues above 7 billion and lower EBITDA-margins for the second half year compared to the first half.
Kvaerner said it now sees an improved market and customers with more new prospects both within traditional segments and growth segments. In particular, there is an increase in the number of medium size prospects. It will take some time before the increasing number of prospects is mirrored in new contracts, Kvaerner concluded.
Offshore Energy Today Staff