In the first quarter of the year, revenues are 14.3 per cent lower than the same quarter 2016. The EBITDA margin is 9.1 per cent, down from 9.4 per cent in the first quarter of last year. The reduction in revenues is mainly due to the challenging offshore market entailing a reduction in Kongsberg Maritimes revenues of 26.2 per cent. Kongsberg Defence Systems has an increase in revenues of 18.1 per cent. Due to a lower delivery volume for weapon stations, Kongsberg Protech Systems has NOK 120 million lower revenues.
Order intake is NOK 3,451 million, and the backlog at end quarter is NOK 16,672 million.
"As expected the first quarter result is lower than the same quarter last year. Even though certain markets of Kongsberg Maritime still are challenging there is a positive trend compared to the last two quarters concerning cost base development and profitability in the business area. Kongsberg Defence Systems has a good quarter with growth across all divisions and good operating profit. The reduction in Kongsberg Protech Systems' revenues is mainly due to normal quarterly fluctuations in delivery volume," says Geir Håøy, President and CEO of KONGSBERG.
Important agreements and events
The first quarter of the year contained several important events and agreements for the company's defence segment. The Norwegian Government announced this quarter that Germany is chosen as strategic partner for new submarines, and that a comprehensive industrial cooperation on submarine and missile deliveries will be initiated. The Norwegian Ministry of Defence announced this quarter their decision to carry out the Army Mobile Ground Based Air Defence project in a direct acquisition with Kongsberg Defence Systems. In early Q2, KONGSBERG announced that a contract had been entered into with the Australian Department of Defence for integration of a new sensor capability in Joint Strike Missile (JSM), and shortly after announced that they will be acquiring NASAMS air defence.
In the quarter Kongsberg Maritime signed the first contract for the "Walk to Work" concept with Olympic Shipping. Kongsberg Digital launched the digital platform "Kognifai" in the quarter, and a collaboration agreement has been signed with Fred. Olsen Renewables and Statoil for test and verification of "Kognifai" at the Lista wind farm. In addition Kongsberg Maritime recently announced an agreement with Yara on the world's first fully electric, autonomous container ship.
"The start of 2017 has seen a number of positive events. In the defence area, both Germany and Australia have confirmed their interest in our missiles, and an important cooperation agreement for submarines has been signed with the world's leading submarine supplier, thyssenkrupp Marine Systems. Both will involve considerable activity for KONGSBERG in the next decades. This quarter, Kongsberg Maritime and Kongsberg Digital have signed several strategic important contracts for new, innovative and digital solutions, thereby giving KONGSBERG a leading position when it comes to equipping existing and next generation of vessels," says Håøy.
For further information, please contact:
- Ronny Lie , Chief Communication Officer Mob: +47 916 10 798
- Jan Erik Hoff , Vice President, Investor Relations & Reporting Mob: +47 991 11 916