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High influx of new orders gives record-high order backlog for KONGSBERG

30. April 2015

KONGSBERG reports a high influx of new orders and good growth in Q1. At the end of the quarter, the Group had a record-high backlog of orders, valued at NOK 22 billion.

Wlter Qvam
"We are reporting a very high income of new orders and continued growth. That gets us off to a good start in 2015. The Group's record-high order backlog strengthens predictability at a time when the oil and gas market is challenging", comments CEO Walter Qvam.

In Q1 2015, operating revenues came to MNOK 4,234 (MNOK 3,941), and EBITDA was MNOK 486 (MNOK 446), resulting in an EBITDA margin of 11.5 per cent (11.3 per cent). KONGSBERG's new orders in Q1 added up to MNOK 4,970 (MNOK 8,565), equivalent to a book/bill of 1.17. At end quarter, KONGSBERG had an order backlog worth more than NOK 22 billion.

"We are reporting a very high income of new orders and continued growth. That gets us off to a good start in 2015. The Group's record-high order backlog strengthens predictability at a time when the oil and gas market is challenging", comments CEO Walter Qvam.

Record sales, and strong, well-diversified new orders for Kongsberg Maritime

Sales for the KONGSBERG's largest business area, Kongsberg Maritime, were the highest ever recorded in a single quarter, with MNOK 2,611 (MNOK 2,365). EBITDA was MNOK 352 (MNOK 341), resulting in a margin of 13.5 per cent (14.4 per cent). Maritime's influx of new orders was the second highest ever , with MNOK 2,975 (MNOK 3,428).

"Kongsberg Maritime continues its solid trend with record-high sales and the second highest level of new orders during a single quarter ever. It is also very gratifying to see the widespread diversity of the high volume of new orders. No single class of vessels account for more than seven per cent of the new orders", Qvam points out.

Continued upswing in defence outlooks

KONGSBERG's second largest business area, Kongsberg Defence Systems, had a good quarter, with a strong EBITDA margin of 12.3 per cent (8.3 per cent). Operating revenues during the quarter aggregated MNOK 1,041 (MNOK 884) and EBITDA MNOK 128 (MNOK 73). The business area's order backlog at end quarter added up to MNOK 9,425.

Operating revenues for the other business area within defence, Kongsberg Protech Systems, ended at MNOK 369 (MNOK 434). The Q1 EBITDA was MNOK 14 (MNOK 79), resulting in an EBITDA margin of 3.8 per cent (18.2 per cent). KPS has a backlog of orders valued at MNOK 3,935. The book/bill is at 2.12, meaning it is more than 1.0 for the fourth consecutive quarter.

Several important contracts have been signed in the defence sector this far in 2015, including the largest contract to date for deliveries to the F-35 programme, Protector to Great Britain, the cooperation agreement on the Naval Strike Missile (NSM) with Raytheon, and the award for NSM ships equipment with Malaysia.

"International interest in our defence systems is growing significantly. Kongsberg Defence Systems reports robust margins and its projects are on schedule. Kongsberg Protech Systems has an attractive product portfolio and extensive marketing activities", confirms Qvam.

Adjustments in oil and gas paying off

For the Group's smallest business area, Kongsberg Oil & Gas Technologies, market adjustment measures have helped ensure better results. The business area reports operating revenues of MNOK 243 (MNOK 271), and an EBITDA of MNOK 5 (MNOK -18), which gives a margin of 2.1 per cent (-6.6 per cent).

"The market situation in oil and gas is still challenging, and we are considering new initiatives on an ongoing basis to adapt to the market", concludes Qvam.

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