Kvaerner Explores New Strategy

Engineering firm Kvaerner is examining a potential shift in its strategy after delivering several key oil and gas projects on schedule as well as winning new key contracts and implementing cost-reduction measures during its first half, the firm said Wednesday.

Norway-based Kvaerner – which supplies engineering, procurement and construction services – said that, after building a strong position as a competitive contractor, its board has concluded that the time is right to exploration opportunities to accelerate the development of the company's business.

"While we succeeded in building a record high order backlog up to 2013, we also received valuable feedback from the oil companies after the bidding rounds in the winter a year and a half ago. This spurred us to accelerate a range of activities to increase productivity and reduce our own cost level," Kvaerner CEO Jan Arbe Haugan said in a company statement.

"The award in June for two steel jacket substructures to the Johan Sverdrup field confirmed that we are moving in the right direction, and the combination of established expertize and reliability, together with renewed cost competitiveness, once more positions us well for the future. Now, we will use this momentum to consider step changes to further strengthen our business and competitiveness."

Kvaerner Chairman Leif-Arne Langøy added that the firm would consider further improvement initiatives, new industrial partnerships or changes to its ownership structures while safeguarding and continuing to develop the company's expertize that has been established in several businesses, "for example at the specialized facilities at Stord and in Verdal, which we have invested in during the last years in order to increase their long term competitiveness".



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