Aker Continues Strong Performance in 3Q05

Aker Kvaerner showed continued strong performance in the third quarter of 2005. An EBITDA of NOK 539 million in the quarter reflects an increase by 52 percent compared to third quarter last year. A steady stream of mid-sized and smaller orders, in addition to growth in existing contracts, resulted in a NOK 11.8 billion order intake. The order backlog at the end of September reached a new record-high level of NOK 46.4 billion.

Profits continued to develop positively in the third quarter 2005. EBITDA in the three-month period amounted to NOK 539 million, which is an increase by 52 percent from NOK 354 million in the third quarter last year. Year-to-date EBITDA of NOK 1 356 million increased by 37 percent from NOK 993 million in the corresponding period last year.

The EBITDA margin in the third quarter 2005 increased to 5.4 percent compared to 4.0 percent in the same quarter last year. This confirms that internal improvement programs and strong focus on project execution and risk management are taking effect.

Cash flow from operating activities in the third quarter was NOK 704 million, reflecting a NOK 239 million decrease in net current operating assets. The liquidity buffer was NOK 5.3 billion, including undrawn credit facilities of NOK 2.1 billion. This is an improvement of NOK 600 million in the last quarter.

Main markets have continued to develop positively throughout 2005, and several important contracts have been awarded early in the fourth quarter.