Kværner increases order book

OE Staff Jul 16, 2014

Norway-based Kvaerner's Q2 earnings fell but the firm saw an increase in order intake and growth on existing projects, according to its latest results.

During the second quarter, Kvaerner completed three large offshore platform projects: the steel substructures for the Edvard Grieg and Martin Linge fields, and the topside for the Eldfisk field.

Eldfisk 2/7 S in the North Sea, one of Kvaerner’s production platform projects, has a contract value of approximately $887 million (NOK 5,5 billion). Kvaerner will perform offshore hook up and commissioning assistance with an estimated value of approximately $64.5 million (NOK 400 million). Eldfisk is one of the two biggest fields in the Greater Ekofisk area and has been in production since 1979.

"Predictability is key in both our strategy and to our competitive edge in the market,” said Kvaerner president and CEO Jan Arve Haugan. “In the second quarter, we have delivered three large projects to our customers on schedule and with the specified quality."

Order intake in 2Q was nearly $865 million(NOK 5.3 billion), including the letter of intent for two steel substructures to the Johan Sverdrup field. This brought the order backlog, including the scope of work of jointly controlled entities, to about $3.4 billion(NOK 21 507 million) at the end of the last quarter.

Operating revenues for the quarter were approximately US$461 million (NOK 2.8 billion), while they were nearly US$529 million (NOK 3.2 billion) in 2Q 2013, resulting in a 12.8% decrease.

Kvaerner said it expects high capacity utilization throughout 2014 and 2015.

Image at right: Kvaerner Transocean Barents (from kvaerner.com)

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