4th Quarter and Preliminary Annual Results 2007 - Best Year Ever
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o Record high financial performance:
o Revenue increased by 15 %
o EBITDA increased by 36 %
o EPS increased by 95 %
o Strong cash flow of NOK 2.7 billion from operations
o Record setting profit in Subsea and P&T
o Strong performance and positive outlook for P&C
o Continued strong markets in all industries
o Dividend proposal of NOK 3 per share
o Financial guidance:
o Revenues of NOK 58-60 billion in 2008
o EBITDA margin of approximately 8 % in 2008
Group financials
Full year consolidated revenues of NOK 57 957 million represented an increase of 15 percent compared to 2006. This increase was due mainly to good markets and high activity in all business areas. Fourth quarter consolidated revenues amounted to NOK 14 876 million, slightly lower compared with NOK 15 304 million for the same period in 2006. The main reason for this reduction was the successful completion of the Ormen Lange and Snøhvit projects in the third quarter 2007.
EBITDA of NOK 3 913 million for the year showed an increase of 36 percent from NOK 2 872 million in 2006, which gave a margin increase from 5.7 percent to 6.8 percent. EBITDA in the fourth quarter of 2007 was NOK 1 067 million compared to NOK 786 million in the fourth quarter of 2006, an increase of 36 percent. The EBITDA margin for the fourth quarter 2007 was 7.2 percent compared to 5.1 percent in the same period in 2006.
Depreciation in the fourth quarter was approximately NOK 60 million higher than levels in the past, primarily due to items connected to one-off write downs of fixed assets at Aker Kvaerner Verdal. NOK 1.6 billion was booked as capital expenditure in 2007 compared to NOK 971 million in 2006. The main investments are related to the high-tech manufacturing centre in Malaysia and capacity expansion within the subsea and P&T business areas.
Net financial expenses for the fourth quarter were NOK 18 million, a reduction from NOK 653 million for the same period in 2006. This reflected a favourable financial position after the refinancing of the company in December 2006. Net financial expenses for 2007 were NOK 106 million.
Fluctuations in the fair value of hedging transactions which did not qualify for hedge accounting represented an accounting loss under financial items of NOK 2 million in the fourth quarter and a gain of NOK 162 million for the year. EBITDA was negatively affected by NOK 23 million in the quarter and negatively by NOK 68 million for the year from hedging positions not qualifying for hedge accounting.
Pre-tax profit for the fourth quarter 2007 was NOK 880 million compared to NOK 88 million for the same period in 2006. Pretax profit for 2007 was NOK 3 538 million compared to NOK 1 869 million in 2006. Tax expenses for the fourth
quarter were NOK 255 million, which was 29 percent of profit before tax. Tax expenses for the year were NOK 1 074 million, or 30 percent of profit before tax, while payable tax was 16 percent of profit before tax. Net profit for the fourth quarter was NOK 625 million, giving earnings per share of NOK 2.24.
Cash flow from operating activities was NOK 3 055 million in the fourth quarter and NOK 2 675 for the year 2007. This reflects a NOK 2 291 million decrease in net current operating assets, from NOK 1 230 million at the end of third quarter to negative NOK 1 061 million at the end of the year.
Cash and bank deposits at the end of the year were NOK 3.5 billion, an increase of NOK 1.3 billion during the fourth quarter. Undrawn committed long-term bank revolving credit facilities amounted to NOK 6 billion, giving a total liquidity buffer of NOK 9.5 billion.
Gross interest-bearing debt amounted to NOK 2.0 billion at the end of the year, a decrease of NOK 0.9 billion during the fourth quarter. Net interest bearing items were NOK 2.1 billion.
Order intake in the fourth quarter was NOK 13.3 billion. At the end of the year, order backlog was NOK 58.3 billion, a decrease of NOK1 billion from the third quarter 2007 and a NOK 1.4 billion decrease from the end of 2006. Order intake represents both new contracts and growth in existing contracts.
Equity ratio at year end was 25.5 percent, an increase from 23.8 percent at the end of the third 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 by more than NOK 1 billion over the next two to three years. Initiatives to achieve these results gained momentum, with approximately NOK 280 million saving by the end of the year.
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 58 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.
The full report can be downloaded from akerkvaerner.com
For further information, please contact:
Media:
Jannik Lindbæk
SVP Corporate Communications
Aker Kvaerner.
Tel: +47 67 51 30 36
Mob: +47 977 55 622
Investor relations:
Lasse Torkildsen
SVP Investor Relations
Aker Kvaerner.
Tel: +47 67 51 30 39
Mob: +47 911 37 194
Career opportunities: visit akerkvaerner.com/Internet/CareerCentre
