In the second quarter, the order reserve continued to grow from the record low at the end of 2002. Important orders have been booked in both Oil & Gas and Engineering & Construction. In Engineering & Construction the backlog has now recovered to the same levels as at the beginning of 2002. The total order intake in the second quarter was NOK 9.7 billion, in line with the strong first quarter.
The value of awards announced after the second quarter and letter of intents which have not yet been booked to the order reserve amounts to NOK 3.6 billion. This does not include up to two Ultra-Voyager cruise vessels at Kvaerner Masa-Yards for which a conditional agreement has been signed.
Operating profit before interest, tax, goodwill- and pension amortisation (EBITA) for the first six months was NOK 85 million. This includes a NOK 440 million charge in the second quarter, covering costs and provisions relating to Kvaerner Philadelphia, the shipyard in Pennsylvania, US.
EBITA in Oil & Gas improved in the second quarter compared with the first quarter, when considering that the first quarter included approximately NOK 60 million gain from sale of properties in Aberdeen. EBITA in Engineering & Construction remained marginally positive in the second quarter.
While the Group's US shipbuilding activity had a significant negative impact on group results in the second quarter, the improvement programme at the Finnish yard Kvaerner Masa-Yards continued to produce good results. In the second quarter alone, EBITA was NOK 252 million, almost twice as strong as in the first quarter.
In the second quarter working capital was reduced in all business areas. At the end of June total net current operating assets was NOK 1.5 billion, down from NOK 2.3 billion three months earlier.
Correspondingly, cash and short-term interest-bearing receivables increased to NOK 4.6 billion at the end of June, and net interest-bearing debt was NOK 143 million. The equity ratio remained at the same level as previous quarters, 26.8 per cent.
For the second half of 2003, the EBITA is expected to gradually improve for both Oil & Gas and Engineering & Construction, as the new orders come into effect. The shipbuilding activity will return a marginal loss for the year, following the substantial charges made at Kvaerner Philadelphia in the second quarter.
ENDS
Contacts:
Media: Geir Arne Drangeid, Senior Vice President, Group Communications, Aker Kværner ASA:+47 67 51 30 36
Investor Relations: Tore Langballe, Vice President, Group Communications, Aker Kværner ASA:
+47 67 51 31 06
Further information
Key figures, detailed tables and other supplementary information is available on both Aker Kvaerner's home page www.akerkvaerner.com and on the Oslo Stock Exchange www.oslobors.no:
- A complete version of the Quarterly Report for 2Q 2003
- Presentation material used in today's analyst meeting (available from 10 a.m Norwegian time)
- Web-cast of Helge Lund's presentation will also be available on the company's home page from from 10 a.m Norwegian time.
A conference call is being held today at 16:00 hrs Central European time. The dial-in number is
+44 (0) 207 162 0184, password "Aker Kvaerner".
+44 (0) 207 162 0184, password "Aker Kvaerner".
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