KOGT Hits Kongsberg Profit

Kongsberg CEO Walter Qvam

Norway’s Kongsberg has reported a profit after tax of NOK 32 million in Q4 2014, down from 375 million in the same period last year.

The company has also posted a preliminary profit for the year after tax of MNOK 880, compared to last year’s MNOK 1 225.

Namely, Kongsberg Oil & Gas Technologies KOGT has been influenced by a generally weaker oil and gas market which led to its negative EBITA of NOK 122 million for the 2014.

For the Group’s smallest business area, Kongsberg Oil & Gas Technologies, 2014 it has been a disappointing year in a challenging market, and we have reduced the capacity and expectations, comments CEO Walter Qvam.

However, Kongsberg has reported a growth in operating revenues, of MNOK 16 613, versus MNOK 16 323 in 2013, a strong net cash flow from operations and a record influx of new orders valued at more than NOK 22 billion.

Furthermore, the Board has proposed a dividend for fiscal 2014 of NOK 4.25 per share (NOK 4.25), and an extraordinary anniversary dividend of NOK 5.00 (1.00) per share.

In Q4 2014, operating revenues came to MNOK 4 418 (MNOK 4 745) and EBITDA was MNOK 545 (MNOK 611), resulting in an EBITA margin of 12.3 per cent (12.9 per cent). The Group booked new orders valued at MNOK 4 541 (MNOK 3 697) in Q4.

“2014 ended as yet another good year for KONGSBERG, even though the last quarter showed a somewhat variable underlying picture. Our two defence segments added to their order books significantly in 2014, and are embarking on 2015 with a strong foundation. KDS’ margin is still improving and has now passed the 10 per cent EBITA mark. KM has a very high level of activity as well as a good influx of new orders in a more demanding market. At KOGT, among others, the declining level of activity for oil companies presented challenges in Q4 as well. Altogether, KONGSBERG has a very strong order backlog and we see good opportunities for the future of our defence and civilian areas alike,” concludes CEO Walter Qvam.