Aker Kvaerner Sets New Financial Targets
At Aker Kvaerner's Capital Market Day presentations December 1, 2005, the focus will be on recent strategic achievements, financial targets, technology portfolio development and key objectives for the future.
The financial target of an EBITDA of NOK 1.75 billion in 2006 which was set in April 2004 is expected to be reached already in 2005, one year ahead of the plan. Aker Kvaerner considers that also the targets to strengthen the financial robustness of the group and to establish a stable dividend capacity have been reached.
The new financial target will be to reach an EBITDA margin of 6.5 - 7.0 percent by the end of 2007. The long term target for equity to total asset-ratio will be 20 - 25 percent.
Dividend payment for 2005 will be evaluated based on Aker Kvaerner reaching its financial targets, potential alternative use of funds, need for further strengthening of the balance sheet and being in compliance with covenants in the loan agreements.
Aker Kvaerner stated in the annual report 2004 (note 14) that a subsidiary of Aker Kvaerner ASA incurred a tax loss of NOK 2,940 million in the restructuring of the group in 2004. Due to uncertainties with regard to the outcome of discussions with tax authorities, only NOK 320 million of the NOK 823 million (28 percent of the incurred tax loss) were recorded in the 2004 accounts. Aker Kvaerner's tax positions have now been further clarified, and the company expects to recognize the full tax assets in the fourth quarter 2005.
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