A good quarter with strong maritime order intake
KONGSBERG’s operating revenues in Q3 are NOK 3,154 million and the EBITDA is NOK
347 million. The quarterly order intake is NOK 4,477 million, which gives an
order backlog of NOK 17,602 million at the end of the period. The Group signed
maritime orders for more than NOK 3 billion, and a new framework agreement for
the CROWS programme was signed within the defence area. On 6 July, the Group
entered into an agreement concerning the acquisition of Rolls-Royce Commercial
Marine.
The EBITDA margin is 11.0 per cent, compared to 8.4 per cent in Q3 2017. The
EBITDA margin for the first three quarters of this year is 8.5 per cent (7.6 per
cent). Order intake during the quarter gives a book/bill of 1.42.
On 6 July, KONGSBERG entered into an agreement for the acquisition of
Rolls-Royce Commercial Marine from Rolls-Royce Plc. The acquisition will
strengthen KONGSBERG’s position as a world-leading supplier to the maritime
industry and will increase business scalability.
“We have had a good quarter with strong maritime order intake. The acquisition
of Rolls-Royce Commercial Marine is a milestone that will make us a more
complete supplier in a competitive global market. The goal is to create value
for our shareholders over time, and we are delighted that the parliament
acknowledges the strategic importance of the acquisition of Rolls-Royce
Commercial Marine, both for KONGSBERG and the Norwegian maritime industry”, says
Geir Håøy, President and CEO of KONGSBERG.
High order intake for Kongsberg Maritime.
Kongsberg Maritime has operating revenues of NOK 1,798 million (NOK 1,815
million). EBITDA totalled MNOK 205 (MNOK 161), implying an EBITDA margin of 11.4
per cent (8.9 per cent). The margin in the quarter is influenced by lower
development costs from reduced development activity during the summer months.
The order intake is NOK 3,024 million (NOK 1,670 million), which gives a
book/bill of 1.68, and the order backlog at the end of the quarter is NOK 5,975
million.
The order intake is relatively good for all areas of Kongsberg Maritime this
quarter. The largest single contracts were the following: around NOK 150 million
for deliveries to a semi-submersible platform for Awilco Drilling, more than NOK
400 million for hybrid deliveries to nine roll-on-roll-off vessels for Grimaldi
Group, and around NOK 110 million for deliveries to a heavy lift crane vessel
for Offshore Heavy Transport.
“Though the strong order intake from the maritime market this quarter, it is
important to emphasise that the market is still challenging, which means that
both margins and order intake can vary considerably from one quarter to another.
It is satisfying to see that the investments in integrated vessel solutions is
beginning to give results, which is reflected by the order intake this quarter.
We also see high levels of activity and utilisation in the aftermarket”, says
Håøy.
Deliveries to the CROWS programme secured for the next five years for Kongsberg
Defence & Aerospace.
Kongsberg Defence & Aerospace’s operating revenues for Q3 are NOK 1,180 million
(NOK 1,281 million). EBITDA totalled NOK 120 million (NOK 61 million), which is
equivalent to an EBITDA margin of 10.2 per cent (4.8 per cent). The order intake
is NOK 1,272 million (NOK 648 million), which gives a book/bill of 1.08, and the
order backlog at the end of the quarter is NOK 10,867 million.
In September, KONGSBERG was awarded a framework agreement for the next phase of
the CROWS programme, with a value of up to USD 498 million. The first order (USD
74 million) under the agreement was also signed in September. This is the third
framework agreement that has been signed since the US Army chose KONGSBERG as
supplier of remote weapon stations in 2007.
“At present we see somewhat lower revenues within the defence area. This is
largely due to reduced revenues within the air defence area, where the two large
contracts that were signed in 2017 are in a start-up phase. Our defence area is
well positioned, both through signed contracts with existing customers and
through ongoing contract negotiations with potential customers. The fact that
the US Army again chooses KONGSBERG as supplier to the CROWS programme in the
next five-year period, confirms the position we have taken in the past 10-15
years in this market”, says Håøy.
Full focus on existing operations and the upcoming integration.
“Since the announcement of the acquisition of Rolls-Royce Commercial Marine,
considerable work has gone into the upcoming integration. We have a large and
capable organisation that is preparing the takeover, and I’m looking forward to
the date of transfer. At the same time as this work is executed, we have focus
on our existing business and customers. Our customers can rely on KONGSBERG to
give them the same levels of attention and quality as they are used to, despite
the comprehensive integration process. We will not compromise on this”,
concludes Håøy.
Please visit kongsberg.com/ir for KONGSBERG’s report and presentation for the
third quarter 2018.
For further information, please contact:
Jan Erik Hoff, Group Vice President Investor Relations, Kongsberg Gruppen ASA,
Tel: (+47) 991 11 916.
Ronny Lie, Group Vice President Communications, Kongsberg Gruppen ASA, Tel.:
(+47) 916 10 798.
KONGSBERG (OSE-ticker: KOG) is an international, knowledge-based group
delivering high technology systems and solutions to clients within the oil and
gas industry, merchant marine, defence and aerospace. KONGSBERG has 7 000
employees located in more than 25 countries and total revenues of NOK 14.5
billion in 2017. Follow us on Twitter: @kongsbergasa.
This information is subject to disclosure requirements pursuant to §5-12 of the
Norwegian Securities Trading Act.
Ekstern link: http://www.newsweb.no/index.jsp?messageId=462122
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