Aker Kvaerner Sees Improved 2Q05 Results

The second quarter of 2005 marks another period with improved results for Aker Kvaerner. An EBITDA of NOK 441 million in the quarter reflects an increase by 36 percent compared to second quarter last year, and a number of major projects have been successfully delivered in the second quarter. Several important contracts were booked in the three-month period, resulting in a strong order intake of NOK 16.6 billion. The order backlog at the end of June was on a record-high level of NOK 44.5 billion.

Profits for the three-month period developed positively, taking EBITDA for the second quarter to NOK 441 million, a 36 percent increase from NOK 325 million in the second quarter of 2004. EBITDA for the first six months of 2005 was NOK 817 million, an increase by 28 percent from NOK 639 million in the corresponding period last year.

Order intake in the second quarter was NOK 16.6 billion, bringing the order backlog at the end of June to a record-high NOK 44.5 billion. Aker Kvaerner's main markets developed favourably and early-phase study work and bidding activity were high.

Cash flow from operating activities in the second quarter was NOK 276 million, reflecting only relatively small changes in net current operating assets from the end of first quarter. The liquidity buffer, including undrawn credit facilities of NOK 2.1 billion, was at the end of June a comfortable NOK 4.7 billion.

One of the main focus areas of Aker Kvaerner is to continuously improve operational efficiency, and the overall predictability and robustness of the group are steadily improving. Sakhalin, Kristin, White Rose and Jiang Lin, all major projects, have been successfully delivered during the second quarter.

Main markets are positive, and in several areas Aker Kvaerner has established a position as one of the two or three leading contractors in the world.