Aker Kvaerner spoke today about the company's financial situation at Capital Market Day. For the top line revenues, Aker Kvaerner expects a flat development in 2008 compared to 2007, and an annual growth of 8-10% for 2009 to 2010.
Aker Kvaerner targets to deliver an EBITDA margin in the range of 9-11% by 2010, based on its order backlog and market outlook. Aker Kvaerner assumes its business areas Subsea and Products & Technologies will deliver double digit margins, while the business areas Field Development, Maintenance, Modifications and Operations and Process & Construction will deliver high single digit margins. The target is excluding any potential major acquisitions or divestments.
The company's balance sheet is expected to develop conservatively, with gross dept at a maximum two times the size of the annual EBITDA. The working capital is expected to be neutral, but possibly with quarterly fluctuations.
Annual capital expenditure for investments, excluding potential acquisitions, are expected to be in the range of NOK 1.0 to 1.2 billion for 2008-2010. Of this, approximately 40% will be used on maintenance of the existing portfolio, while approximately 60% is expected to be used on expansion.
Earnings per share are expected to grow 15-20% annually on average for the period 2008 - 2010.
Cash generation in the period 2008-2010 is anticipated to be substantial, and may be used for investments in new capacity, acquisitions, or for redistribution to shareholders.
Aker Kvaerner is a leading global provider of engineering and construction services, technology products and integrated solutions. The company has aggregated annual revenues of approximately NOK 50 billion, and employs approximately 24,000 people in about 30 countries.
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