Kvaerner, the international oil services and products, engineering and construction, pulp and paper, and shipbuilding group, has announced its results for the six months ending 30 June, 2002.
The positive trend in the Kvaerner Group continued in the second quarter. Profit before tax for the first half of the year was NOK 516 million, compared with NOK 205 million in the same period last year.
Earnings before interest, tax and amortisation (EBITA) and excluding the exceptional gains and special operating charges, amounted to NOK 494 million in the first six months. The combined effect of special items, sales gains and amortisation amounted to NOK 234 million negative, and EBIT was NOK 260 million in the six-month period.
Kvaerner Shipbuilding improved its EBIT significantly from the first to the second quarter. For the first six months of the year EBITA for the business area was NOK 323 million. Aker Kvaerner, the oil and gas business, reported NOK 259 million in that period, not including a NOK 106 million sales gain booked as a result of the closing of the sale of its Hydrocarbon business.
In the first six months, the Kvaerner E&C (Engineering & Construction) business area reported a negative EBITA of NOK 205 million, whilst Kvaerner Pulp & Paper’s EBITA in the six-month period was negative NOK 64 million. The Kvaerner E&C figures include special operational items that amount to approximately NOK 200 million, negative.
On the good news front, the Pulp and Paper business of Kvaerner recently announced that it has secured contracts to supply 45 million Euros worth of boilers, boiler rebuilds and fibreline systems.
Kvaerner’s Power Division is to supply a Hybex power boiler to the Norske Skog Parenco recycling newsprint mill in The Netherlands that will use its Bubbling Fluidized Bed (BFB) technology and will have the capacity for firing about 400 tons of dry solids per day. For its part, The Portucel Soporcel Group has also placed an order for boiler rebuilds on their Figueira da Foz and Setubal pulp and paper mills in Portugal. The existing bark-fired boilers will also be converted to Kvaerner’s BFB technology.
The Kvaerner Fiberline division also had some good news to report, having recently received four new orders for its Compact Press pulp washing systems from Sodra Cell Tofte A/S in Norway, SCA Mannheim in Germany, the Kishu Mill and the Hokuetsu Niigata Mill in Japan.
The Aker Kvaerner subsidiary, Kvaerner Process Systems has also been awarded a big contract for the supply of five utility modules for the Albacora Leste Field in Brazil’s Campus Basin. The work will be undertaken in co-operation with Maua Jurong and Siemens Oil and Gas.
The contract itself was awarded by Petrobras Netherlands BV, and the fabrication and assembly of the modules will take place at Maua Jurong’s fabrication yard in Rio de Janeiro.
The total contract price is in excess of $110 million, of which Kvaerner Process Systems’ revenue will amount to approximately $25 million.