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    Aker Kvaerner reports weak profits, strong order intake, good cash position

    News // September 1, 2003
    Aker Kvaerner says that, as previously forecast, profits remained relatively weak throughout the first half of 2003, due to weak market and correspondingly low order intake in 2002. "Meanwhile, the time has been well spent streamlining the organisation,and focusing sales and marketing activity has resulted in a steady flow of new orders," said the company in an end of August statement.

    In the second quarter, the order reserve continued to grow from the record low at the end of 2002. Important orders have been booked in both oil and gas and engineering and construction. In engineering and construction the backlog has now recovered to the same levels as at the beginning of 2002. The total order intake in the second quarter was NOK 9.7 billion, in line with the strong first quarter.

    The value of awards announced after the second quarter and letter of intents which have not yet been booked to the order reserve amounts to NOK 3.6 billion. This does not include up to two Ultra-Voyager cruise vessels at Kvaerner Masa-Yards for which a conditional agreement has been signed.

    Operating profit before interest, tax, goodwill and pension amortisation (EBITA) for the first six months was NOK 85 million. This includes a NOK 440 million charge in the second quarter, covering costs and provisions relating to Kvaerner Philadelphia, the shipyard in Pennsylvania, US.

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