Aker Kvaerner Reports Record-Breaking Quarter

Aker Kvaerner said that it posted unprecedented operating results for the second quarter.

The company’s EBITDA for the period was NOK 733 million--an increase of 66 percent compared to the second quarter of 2005. New contract awards in the Subsea, Product & Technology segment, coupled with growth in existing contracts, resulted in a NOK 15.2-billion order intake and an order backlog of NOK 56 billion at the end of June 2006.

Revenues in the second quarter totaled NOK 14 billion. The 44-percent increase compared with the same quarter last year reflects strong markets and high activity in all reporting segments.

EBITDA for the three-month period was NOK 733 million. This represents an increase of 66 percent from NOK 441 million in the second quarter 2005. The quarterly EBITDA margin was 5.2 percent compared to 4.5 percent in the second quarter last year.

The second quarter order intake was NOK 15.2 billion. This brings the order backlog to a solid NOK 56 billion.

Cashflow from operating activities was NOK -169 million in the second quarter, reflecting a NOK 1.3-billion increase in net current operating assets. Cash and bank deposits at the end of June amounted to NOK 6.2 billion. The liquidity buffer, including undrawn credit facilities of NOK 2.2 billion, was a comfortable NOK 8.4 billion.

The closing price of the Aker Kvaerner share at the end of June was NOK 584. Accordingly, the company's market capitalization was NOK 32.1 billion--an increase of NOK 9.3 billion from year-end 2005. A total of 25 million Aker Kvaerner shares were traded on the Oslo Stock Exchange during the second quarter, constituting 45 percent of total outstanding shares.

The market is still expected to be strong with attractive opportunities. With the high capacity utilization in the industry, the focus for Aker Kvaerner will be to continue to select and execute the right projects successfully.