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KONGSBERG achieved profits of more than NOK 1 billion and a record-high order intake

Kongsberg Gruppen (KONGSBERG) attained profitable growth and a record-high order intake of more than NOK 15 billion during third quarter of 2021. All its business areas’ operating revenues increased, although the growth is mainly driven by a high level of activity in the defence sector.

Kongsberg Defence & Aerospace (KDA) produced revenue of NOK 2.3 billion, an increase of 17 per cent, while Kongsberg Maritime (KM) delivered an EBITDA margin of 15%. Kongsberg Digital (KDI) continues to upscale its activities and increased its revenue by 20% during the quarter.

3rd quarter:

  • The operating revenues were MNOK 6 216 compared to MNOK 5 802 in Q3 2020, an increase of 7%
  • The EBITDA was MNOK 1 054 compared to MNOK 919 in Q3 2020, an increase of 15%
  • The EBITDA margin was 17% compared to 15.8% in Q3 2020
  • The order intake was MNOK 15 315 compared to MNOK 4 558 in Q3 2020

“KONGSBERG continued its strong trend in Q3, 2021. Our defence operations achieved a record-high order intake, particularly driven by the contracts with Germany for submarines and Naval Strike Missiles (NSM). On the maritime side, several offshore wind contracts contributed to an increase in the order intake, while we are continuing to sign strategic agreements and contracts for our digital operations,” says Geir Håøy, the president and CEO of KONGSBERG.

Increasing maritime activity

Kongsberg Maritime (KM) is continuing to improve its operations and achieved a 15 per cent EBITDA margin during the quarter, up from 11.1 per cent in Q3 2020. Its EBITDA is positively affected by the favourable mix of projects and at the same time shows that KM has good cost discipline.

“The offshore wind contracts we have signed so far in 2021 confirm that we are starting to take a position in this growing and sustainable market, where KONGSBERG contributes both expertise and technology to the entire value chain. We have among other things secured contracts linked to two new wind turbine installation vessels for Cadeler and the delivery of propulsion systems for installation vessels to be built at Vard. The after-sales market continued to develop po­­sitively, as it has in recent quarters, and we also see increasing activity in some other maritime segments,” says Håøy.

Strong growth in defence

Kongsberg Defence & Aerospace (KDA) increased its operating revenues to NOK 2.3 billion, compared to NOK 1.9 billion in Q3 2020. There is a high level of activity in several projects, especially those linked to missile production, weapons stations for the US CROWS programme, several NASAMS air defence programmes, and deliveries to the F-35 programme.

“The submarine and missile agreement is an important and strategic milestone that will create activity for decades to come. All the divisions are doing well, and the considerable order backlog provides a basis for continued growth going forward,” says Håøy.

The digital roll-out continues

Kongsberg Digital (KDI) increased its operating revenues to NOK 221 billion, compared to NOK 185 billion in Q3 2020. Its share of recurring revenues was 41 per cent during the quarter.

“The digital business area is experiencing increased demand for the digital twin solution, Kognitwin, and our “ship-to-cloud” solution, Vessel Insight. Kognitwin has been developed in line with our ambitious plans. However, the Vessel Insight roll-out has been slightly slower than expected, but so far in 2021 we see that the arrows are pointing in the right direction,” says Håøy.

The agreements entered into during the quarter include one with ExxonMobil to install and evaluate Kognitwin, and agreements with Olympic Subsea, Güngen and Island Offshore to roll out Vessel Insight on these companies’ fleets.

Expecting continued growth

KONGSBERG had a sound balance sheet and an order backlog of NOK 44.9 billion at the end of Q3 2021.

“We have faith in positive market developments in the future, even though challenges in the supply chain and other uncertainties linked to the pandemic may affect our markets. Our defence area has a record-high order backlog and we are in a good position for significant international programmes. I expect the high level of activity in the defence sector to contribute to future growth for the Group. We are constantly investing in our digital business area to boost our capacity and lay the foundation for further growth. In the maritime business area, the higher level of activity in some segments provides grounds for increased optimism,” says Håøy.

KONGSBERG has great ambitions when it comes to reducing our climate footprint and committed us to setting targets according to the Science Based Target initiative, during the quarter.

“Where we can really make a difference is through our value chain, and we will therefore also initiate a collaboration project to ensure that within five years at least two-thirds of the company’s suppliers by spend, set their own climate targets. We can see considerable business opportunities linked to the need for sustainable solutions, where we can contribute our expertise and technology to solve the environmental challenges facing our customers and sectors,” says Håøy.

Webcast of the presentation is streamed at www.kongsberg.com kl. 0815, Friday 29 October.

CONTACT:

Jan Erik Hoff

Group Vice President Investor Relations

Kongsberg Gruppen ASA

(+47) 99 11 19 16

jan.erik.hoff@kog.kongsberg.com

kongsberg.com

Ronny Lie

Chief Communication Officer

Kongsberg Gruppen ASA

(+47) 91 61 07 98

ronny.lie@kog.kongsberg.com

kongsberg.com

 

This information is subject of the disclosure requirements acc. to section 5-12 of the Securities Trading Act.

KONGSBERG (OSE-ticker: KOG) is a leading global technology corporation delivering mission-critical systems and solutions with extreme performance for customers that operate under extremely challenging conditions. We work with nations, businesses and research environments to push the boundaries of technology development in industries such as space, offshore and energy, merchant marine, defence and aerospace, and more. KONGSBERG has about 11,000 employees located in more than 40 countries, creating a total revenue of NOK 25.6bn in 2020.

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