Key figures:
- The order intake amounted to MNOK 6,067, compared to MNOK 9,297 in Q2 2019.
- The operating revenue totalled MNOK 5,983, compared to MNOK 6,012 in Q2 2019.
- The EBITDA was MNOK 772, compared to MNOK 443 in Q2 2019.
- The EBITDA margin equalled 12.9%, compared to 7.4% in Q2 2019.
"The Q2 results show that we have so far been successful in carrying out the tasks and dealing with the challenges related to the COVID-19 outbreak. I'm impressed by our customers, our partners and, not least, our 11,000 colleagues, who have been very solution-oriented and demonstrated great adaptability during the period. COVID-19, combined with the oil price fall in 2020, is challenging the global economy, and market developments going forward are still uncertain. This particularly applies to the maritime industry, which is characterised by declining numbers of newbuilding contracts and a lower level of activity in the aftersales market. The defence operations continue to do well based on their solid order book and increased their revenue during the quarter. Further, we see that the experience we've gained during the past six months has led to greater efficiency, a lower cost base and a 'new normal' which I expect will make us even more competitive," says Geir Håøy, CEO of KONGSBERG.
Kongsberg Maritime reported good results but was affected by COVID-19 and the oil price fall
Kongsberg Maritime (KM) has extensive international operations and is affected by the reduction in international trade and lower level of activity in the maritime markets. The Q2 results show that this business area is handling the situation well, but experienced a 6 per cent reduction in revenue compared to the same quarter last year. The order intake fell by 22 per cent, while profitability (EBITDA) increased from MNOK 168 in Q2 2019 to MNOK 267 (+59%) in Q2 2020.
This business area is ahead of schedule when it comes to integration and cost savings, for which the goal is MNOK 500 by the end of the year. At the end of Q2, cost synergies of MNOK 160 had been realised. In addition, the business area has managed to create revenue synergies across the KM portfolio.
Increase in Kongsberg Defence & Aerospace's revenue
Kongsberg Defence & Aerospace (KDA) continued to deliver on the solid order backlog it had at the beginning of the year, and at the same time increased its operating revenue by 10 per cent compared to Q2 2019. The increase in operating revenue was driven by the same programmes as in Q1 2020: F-35, CROWS and the NASAMS air-defence system.
The defence operations did not experience any major COVID-19 consequences during the quarter, although a few projects had some logistics and delivery challenges. The operations were nonetheless able to remain at more or less the normal level.
Kongsberg Digital won its biggest individual contract so far
During the quarter, Kongsberg Digital signed a contract worth MNOK 250 for the delivery of software solutions for real-time data collection and visualisation. This is Kongsberg Digital’s biggest individual contract since the company was formed in 2016. Kongsberg Digital has a high level of activity and ended the quarter by acquiring Danish IT company Coach Solutions.
"Overall, we achieved strong quarterly results which I'm really satisfied with in the current situation. Our project execution was very good during the quarter, and we also signed new, important agreements with customers and partners. We're prepared for the extraordinary situation involving COVID-19 and the oil price fall to affect us for a long time to come. However, I'm confident that KONGSBERG is well equipped to deal with challenges and that the organisation is able to adapt to changing circumstances," says Håøy.
For more information, contact
Jan Erik Hoff, Group Vice President Investor Relations, Kongsberg Gruppen ASA, Tel: +47 991 11 916.
Ronny Lie, Communications Director, Kongsberg Gruppen ASA, Tel: +47 916 10 798.
This information is subject to disclosure in accordance with section 5-12 of the Norwegian Securities Trading Act.
KONGSBERG (OSE-ticker: KOG) is an international, knowledge-based group that supplies high-tech systems and solutions to customers in the maritime, oil & gas, defence and aerospace industries. KONGSBERG has almost 11,000 employees in 40 countries. Follow us on Twitter: @kongsbergasa.