Wednesday, October 19, 2016

Kvaerner’s order book worries – Hegnar Online

Kvaerner delivered in the morning number 3. quarter, far above the consensus.

Swedbank allows itself to be impressed by marginutviklingen, and doing the same investeringsøkonom Tom Hauglund in Nordnet.

Companies are now beginning to get paid for cost-cutting and streamlining operations, ” he says to the Obi.no.

According to Hauglund applaud the market for an adjusted EBITDA margin of 12,6 per cent.

Similar size came in at 5.2 per cent in the 3. the year-ago quarter and 5.7 per cent in 2. quarter of this year.

order book concerns

kvaerner’s order intake was at 1.049 million, which lowered the order book from 10.172 to 8.397 million.

I would like to have seen that the order book developed better, but the company itself says they are well prepared for future volatility, and that they live fine with an oil price of 50 dollars, says Hauglund.

A net positive cash flow of 377 million, characterizes him as strong.

the Company has around 2.8 billion in cash, which alone is almost 10 million (per share) in cash. But the concern is of course the order book, continues investeringsøkonomen.

The good margins coming from the old order, and kostnadskuttene turn the on the bottom line now. At the end of 3. quarter of last year had Kværner an order book of 16.2 billion, and it has now dwindled into to 8.4 billion. It is clear there is a cause for concern. Then a finally give up margins in order to achieve new contracts, developing Hauglund.

He is wondering if there can be some strategic solutions for the Kværner asa stock.

- Øyvind Eriksen (Aker’s ceo) said at the latest in June that they have an open minds on the strategic solutions that may involve changes in ownership, also, says Nordnet-economist.

Aker Kværner Holding is the largest shareholder of Kvaerner, with 41,02% of the shares. Aker Kværner Holding is 70 per cent owned by Aker ASA, while the state owns the rest.

- Needs to win new contracts

And Kvaerner ceo Jan Arve Haugan confirmed at today’s presentation (which was transferred here on the Obi.en) that the company is prepared to participate in consolidation in a market with uncertain prospects and low capacity utilization.

We are of course ready to participate in and continue to look at structural measures when we find the right opportunity, he said.

the Market will, according to Haugan be volatile out 2016 and throughout 2017 and 2018.

We are in the situation that we need to win new contracts in order to ensure efficient utilization of workforce, equipment and yards. (…) It is not a NM we participate in, there is a world cup. When we look at the market and the possibilities, we look at it globally, he said further.

Toppsjefen hope FEED the work (front-end engineering & design) on Njård field will result in the allocation of a so-called EPC contract (engineering procurement & construction.

Phase II of the gigantfeltet Johan Sverdrup comes also, and we are in dialogue with the international customers about new, potential projects, ” said Haugan.

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