Aker Reports Strong Third Quarter 2007
Third quarter consolidated revenues amounted to NOK 14 237 million, an increase of 18% compared with NOK 12 059 million for the same period last year. This reflects continued strong markets and high activity in all business areas.
EBITDA in the third quarter of 2007 was NOK 997 million compared to NOK 761 million in the third quarter of 2006, an increase of 31%. The EBITDA margin was 7.0% compared to 6.3% in the third quarter last year. Year to date EBITDA of NOK 2 846 million increased by 36% from NOK 2 086 million in the corresponding period last year, which gives a margin increase from 5.9% to 6.6%.
Net financial expenses for the third quarter were NOK 48 million, a reduction from NOK 110 million last year. This significant improvement reflects a favorable financial position after the refinancing of the company in December 2006.
Fluctuations in the fair value of hedging transactions, which do not qualify for hedge accounting, represented an accounting gain under financial items of NOK 70 million in the third quarter. Reported EBITDA was negatively affected by NOK 15 million in the same period.
The profit after financial items for the third quarter 2007 was NOK 927 million, a significant improvement of 76% compared to the third quarter 2006 profit of NOK 528 million. The tax expense for the third quarter was NOK 285 million, which is 31% of profit before tax. Net profit for the third quarter was NOK 642 million, giving earnings per share of NOK 2.29.
Cash flow from operating activities was NOK 1 673 million in the third quarter of 2007. This reflects a NOK 390 million decrease in net current operating assets, from NOK 1 620 million at the end of second quarter to NOK 1 230 million at the end of third quarter.
Cash and bank deposits at the end of the third quarter were NOK 2.2 billion, a reduction of NOK 167 million during the quarter. Undrawn committed long-term bank revolving credit facilities amounted to NOK 5 billion, representing a total liquidity buffer of NOK 7.2 billion.
Gross interest bearing debt amounted to NOK 2.9 billion at the end of the third quarter 2007, a decrease of NOK 1.3 million during the quarter. Net interest bearing items were negative NOK 69 million.
Order intake in the third quarter was NOK 14 billion. At the end of September, the order backlog was NOK 59.3 billion, a decrease of NOK1.6 billion from the second quarter 2007 and a NOK 0.4 billion decrease from end of 2006. The order intake represents both new contracts and growth in existing contracts.
The equity ratio at the end of the third quarter was 23.8%, a decrease from 24.3% at the end of the second quarter 2007.
As reported in the second quarter 2007, Aker Kvaerner has initiated multiple improvement programs in order to strengthen its competitiveness. The ambition is to improve our cost position with more than NOK 1 billion over the next two to three years. During the third quarter initiatives to achieve these results gained momentum with a NOK 100 million run rate saving achieved in the quarter.
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