3rd Quarter 2007 - Another strong quarter

Third quarter consolidated revenues amounted to NOK 14 237 million, an increase of 18 percent compared with NOK 12 059 million for the same period last year. This reflects continued strong markets and high activity in all business areas.

 

EBITDA in the third quarter of 2007 was NOK 997 million compared to NOK 761 million in the third quarter of 2006, an increase of 31 percent. The EBITDA margin was 7.0 percent compared to 6.3 percent in the third quarter last year. Year to date EBITDA of NOK 2 846 million increased by 36 percent from NOK 2 086 million in the corresponding period last year, which gives a margin increase from 5.9 percent to 6.6 percent.   

 

Net financial expenses for the third quarter were NOK 48 million, a reduction from NOK 110 million last year. This significant improvement reflects a favourable financial position after the refinancing of the company in December 2006.

 

Fluctuations in the fair value of hedging transactions which do not qualify for hedge accounting, represented an accounting gain under financial items of NOK 70 million in the third quarter. Reported EBITDA was negatively affected by NOK 15 million in the same period.

 

The profit after financial items for the third quarter 2007 was NOK 927 million, a significant improvement of 76 percent compared to the third quarter 2006 profit of NOK 528 million. The tax expense for the third quarter was NOK 285 million, which is 31 percent of profit before tax. Net profit for the third quarter was NOK 642 million, giving earnings per share of NOK 2.29.    

 

Cash flow from operating activities was NOK 1 673 million in the third quarter of 2007. This reflects a NOK 390 million decrease in net current operating assets, from NOK 1 620 million at the end of second quarter to NOK 1 230 million at the end of third quarter.

 

Cash and bank deposits at the end of the third quarter were NOK 2.2 billion, a reduction of NOK 167 million during the quarter. Undrawn committed long-term bank revolving credit facilities amounted to NOK 5 billion, representing a total liquidity buffer of NOK 7.2 billion.

 

Gross interest bearing debt amounted to NOK 2.9 billion at the end of the third quarter 2007, a decrease of NOK 1.3 million during the quarter. Net interest bearing items were negative NOK 69 million.

 

Order intake in the third quarter was NOK 14 billion. At the end  of September, the order backlog was NOK 59.3 billion, a decrease of NOK1.6 billion from the second quarter 2007 and a NOK 0.4 billion decrease from end of 2006. The order intake represents both new contracts and growth in existing contracts.

 

The equity ratio at the end of the third quarter was 23.8 percent, a decrease from 24.3 percent at the end of the second quarter 2007.

 

As reported in the second quarter 2007, Aker Kvaerner has initiated multiple improvement programmes in order to strengthen its competitiveness. The ambition is to improve our cost position with more than NOK 1 billion over the next two to three years. During the third quarter initiatives to achieve these results gained momentum with a NOK 100 million run rate saving achieved in the quarter.

 

During the third quarter Aker Kvaerner announced a buy-back of 931 000 own shares, for a consideration of NOK 132 million. Aker Kvaerner currently holds 3 421 830 of the company's 274 000 000 outstanding shares, or 1.25 percent. In total NOK 631 million has been spent on share buy back this year.

 

The share price increased from NOK 150 at the end of second quarter to NOK 171.75 at the end of third quarter. This increase of 14.3 percent represents a value creation of NOK 5.9 billion for the shareholders of Aker Kvaerner. Total market value was NOK 47.1 billion at the end of the quarter.

 

ENDS

 

 

Media:
Torbjørn S. Andersen, SVP Group Communications, Aker Kvaerner. Tel: +47 67 51 30 36, Mob: +47 928 85 542

 

Investor relations:
Lasse Torkildsen, VP Investor Relations, Aker Kvaerner. Tel: +47 67 51 30 39

 

Career opportunities:
Visit http://www.akerkvaerner.com/Internet/CareerCentre  

 

AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals and Power Generation. The Aker Kvaerner group is organised in a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.

 

The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 50 billion and employs approximately 24 000 people in about 30 countries.

 

Aker Kvaerner is part of Aker (www.akerasa.com), a group of premier companies with a focus on energy, maritime and marine-resources industries. The Aker companies share a common set of values and long traditions of industrial innovation. As an industrial owner with a 40.27 percent holding in Aker Kvaerner, Aker ASA takes an active role in the development of its holdings.

 

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com