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Strategic milestones and good activity level in the first quarter

Walter Qvam, CEO
29. April 2016

In Q1 2016, the Group had operating revenues of MNOK 4,340, up 2.5 per cent from Q1 2015. During the quarter, the Group acquired 49.9 per cent of the Finnish technology and defence company Patria, and established Kongsberg Digital as a new subsidiary.

In Q1, KONGSBERG had an EBITDA of MNOK 408, resulting in a margin of 9.4 per cent. New orders added up to a value of MNOK 3,749 in Q1, bringing the backlog of orders at end quarter to MNOK 18,718.

"We have had a quarter with a good activity level. The developments within the Group’s defence areas are good, and we are working on significant international opportunities. We expect that the challenging oil and gas market will increasingly affect the activity level and earnings of the Group going forward", says Walter Qvam, CEO of KONGSBERG.

CEO, Walter Qvam and CFO, Hans-Jørgen Wibstad comments on Q1 2016.

Important strategic decisions and events during the quarter

In February, the Group announced the establishment of the new subsidiary Kongsberg Digital, and in March the acquisition of 49.9 per cent of the shares of Finnish company Patria was announced.

"Several strategically important decisions were taken during the quarter, contributing to further developing and strengthening KONGSBERG's position. By forming this industry partnership consisting of KONGSBERG, Patria and Nammo, we are taking a proactive step to meet the ongoing consolidation in the defence industry. With the establishment of Kongsberg Digital, we are taking an important step in the Group's strategy for developing the next generation of digitised products and services," says Qvam.

Demanding offshore market for Kongsberg Maritime

Kongsberg Maritime earned operating revenues of MNOK 2,478 and an EBITDA of MNOK 264 during the quarter. The business area's order backlog was MNOK 7,450 at end quarter.

"Kongsberg Maritime still has a good level of activity, but the market for offshore vessels is very challenging. We are also experiencing more cancellations, in addition to more requests from customers regarding the postponement of projects. Further adjustments of the cost base are continuously assessed. Within Kongsberg Maritime’s other product areas the activity levels are stable or growing and we experience the strength in a diversified portfolio”, says Qvam.

Significant market opportunities in defence

Kongsberg Defence Systems had revenues of MNOK 1,156 and an EBITDA of MNOK 142. The Group's other defence segment, Kongsberg Protech Systems, had revenues of MNOK 559 and an EBITDA of MNOK 59.

"Kongsberg Defence Systems has a good development and are working on significant market opportunities in several segments. For Protech Systems, the important first delivery contract for the medium calibre turret solution for General Dynamics’ Stryker vehicles was signed during the quarter, and further opportunities are being explored in this segment and we are developing other parts of the portfolio further", says Qvam.

Further information

For further information, please contact:

  • Ronny Lie, Chief Communication Officer
    Mob: +47 916 10 798
  • Jan Erik Hoff, Vice President, Investor Relations & Reporting
    Mob: +47 991 11 916