Key financial figures
- Order intake of MNOK 12,325 in Q3 compared to MNOK 4,477 in Q3 2018, an increase of MNOK 7,848, of which the order intake from Commercial Marine accounts for MNOK 1,840.
- Operating revenues of MNOK 6,046 in Q3 compared to MNOK 3,154 in Q3 2018, an increase of MNOK 2,892, of which organic growth comprised 22%. Commercial Marine accounts for MNOK 2,089 of the operating revenues.
- EBITDA of MNOK 535 in Q3 (MNOK 417 excl. IFRS 16 effects) compared to MNOK 347 in Q3 2018. The EBITDA margin was 8.8% (6.9% excl. IFRS 16 effects) in Q3 compared to 11.0% in Q3 2018.
The Kongsberg Defence & Aerospace, Kongsberg Maritime and Kongsberg Digital business areas achieved organic growth of 23, 21 and 18 per cent respectively compared to Q3 2018.
"We've delivered a strong quarter for the company as a whole, with greater profitability in all business areas. We've achieved sound growth from both our existing operations and acquired companies," says KONGSBERG President and CEO Geir Håøy.
The order intake was good during the quarter and was especially strong in the defence area where KONGSBERG signed its biggest-ever contract, worth BNOK 5.6, to supply the NASAMS air-defence system to Qatar. Kongsberg Maritime contracted with Damen Shipyards to deliver its so-far most extensive system to a cruise ship. In addition, Kongsberg Digital had an important breakthrough in October when it won a contract with Shell concerning the digitalization of the Nyhamna gas processing plant.
Good profit performance in Kongsberg Maritime
Kongsberg Maritime (KM) had operating revenues of MNOK 4,255 during the quarter. The "former KM" had operating revenues of MNOK 2,166 compared to MNOK 1,798 in Q3 2018, equivalent to growth of 21 per cent. Commercial Marine (CM) grew by around 5 per cent and accounted for MNOK 2,089 of the Q3 operating revenues.
"Kongsberg Maritime has an order backlog of more than 13 billion (NOK), which is sound in a challenging market. The order intake in the aftermarket and marine robotics area is good and there is a high level of activity related to deliveries to LNG vessels," says Håøy.
The former Kongsberg Maritime improved its profitability and produced an EBITDA margin of more than 12 per cent. Kongsberg Maritime's overall results are affected by the earnings level of Commercial Marine, an acquired company. However, the EBITDA is improving, and Commercial Marine's own EBITDA was positive and better than in the previous quarter.
"The integration of Commercial Marine is ahead of schedule and we've increased our cost-synergy extraction goals for this year from NOK 200 million to NOK 250 million. Commercial Marine produced a positive result and I'm sure this acquisition will create value for KONGSBERG and our owners in the future," says Håøy.
Very strong order intake for Kongsberg Defence & Aerospace
Kongsberg Defence & Aerospace (KDA) achieved operating revenues of MNOK 1,578 in Q3, compared to MNOK 1,180 in the same quarter last year. After adjusting for the acquisition of Kongsberg Aviation Maintenance Services (KAMS), the organic growth was 23 per cent.
KDA's order intake remained strong in the third quarter, at MNOK 8,254 compared to MNOK 1,272 in the corresponding quarter last year. This business area signed a BNOK 5.6 NASAMS contract with Qatar, contracts worth MUSD 131 for deliveries to the US CROWS programme, and a MNOK 618 KSAT contract with Space Norway for the delivery of satellite-based broadband access in the Arctic.
"KDA's order intake reinforces our robust position in the niches where we operate. This provides a basis for considerable growth in the future," says Håøy.
See www.kongsberg.com/investor-relations/ for KONGSBERG's report and presentation for Q3 2019.
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 merchant navy and oil & gas, defence and aerospace industries. KONGSBERG has almost 11,000 employees in 40 countries. Follow us on Twitter: @kongsbergasa.