Aker Kvaerner Posts Record High Results

Aker Kvaerner reported record high operating results in the period. The EBITDA for the second quarter of $119m, is an increase of 66 percent compared to the second quarter of 2005. New contract awards in the Subsea, Product & Technology segment and growth in existing contracts, resulted in a $2.5b order intake and an order backlog of $9b at the end of June 2006. Revenues in the second quarter totaled $2.3b, an increase of 44 percent compared with the same quarter last year, reflecting strong markets and high activity in all reporting segments. EBITDA for the three-month period was $119m represents an increase of 66 percent from $71m in the second quarter 2005. The quarterly EBITDA margin was 5.2 percent compared to 4.5 percent in the second quarter last year. Cashflow from operating activities was $27.5m in the second quarter, reflecting a $205.6m increase in net current operating assets. Cash and bank deposits at the end of June amounted to $1b. The liquidity buffer, including undrawn credit facilities of $357m, was a comfortable $1.4b. The company's market capitalization was $5b, an increase of $1.5b from year end 2005. A total of 25 million Aker Kvaerner shares were traded on the Oslo Stock Exchange during the second quarter, which constitutes 45 percent of total outstanding shares.