Kongsberg Defence and Aerospace (KDA) has an EBITDA margin of more than 20% and is achieving good growth. Kongsberg Maritime (KM) is growing and had a book-to-bill ratio of 1.03. Kongsberg Digital (KDI) is continuing to scale its operations and among other delivered a Kognitwin dynamic digital twin to the Ormen Lange field this quarter.
2nd quarter key figures:
- The operating revenues were MNOK 6 762 compared to MNOK 5 983 in Q2 2020, an increase of 13%
- The EBITDA was MNOK 993 compared to MNOK 740 in Q2 2020, an increase of 34%
- The EBITDA margin was 14.7% compared to 12.4% in Q2 2020
- The order intake was MNOK 5 544 compared to MNOK 6 067 in Q2 2020
“We maintained our good developments in Q2 2021. Defence has once again two-digit growth and is demonstrating sound profitability. The situation during the past year has been slightly more challenging for our maritime area, but we now experience growth again and further improved our profitability during the quarter. For digital the focus is scaling, including rolling out digital solutions for new and existing customers. So far in 2021 KDI alone has hired more than 100 new employees,” says Geir Håøy, President and CEO of KONGSBERG.
Good maritime developments
Kongsberg Maritime (KM) further improved its margin and achieved an EBITDA margin of 11.1 per cent during the quarter, up from 7.1 per cent in Q2 2020. The stronger results are due to the full-year effect of the implemented efficiency measures and to a favourable project mix. The order intake is increasing and includes important contracts for the growing offshore wind segment.
“Offshore wind will play a key role in the transition to a low-emission society. KONGSBERG has long experience of demanding offshore operations and the expertise and technology to deliver solutions to the entire value chain. Success in the green shift requires ambitious commitments combined with industrial strength and the use of advanced technology,” says Håøy.
At the beginning of the third quarter, KONGSBERG announced a new MEUR 49 contract for delivery of a significant technology package to two new offshore wind installation vessels to be built at the Chinese shipyard COSCO for Cadeler.
Strong defence growth
Kongsberg Defence & Aerospace (KDA) continued to increase revenue in the second quarter. The operating revenues increased by 22 per cent compared to Q2 2020, while the EBITDA margin was 21 per cent.
“Our defence business has a considerable and solid order backlog. Revenue increased in all division during the quarter. The MUSD 498 expansion of the CROWS framework agreement with the US Army for delivery of remote weapon stations confirms our world-leading global position,” says Håøy.
On 8 July, KONGSBERG signed contracts worth NOK 8.2 billion for the delivery of submarine combat systems and naval strike missiles (NSM).
“These deliveries will go on well into the 2030s and are an important and strategic milestone that strengthens our foothold in Europe with Germany. Our cooperation with Germany on submarine technology stretches over several decades. This new, expanded industrial collaboration brings our partnership to a new level, and will be of great importance to Norwegian technology development and value creation over the next decades,” states Håøy.
Digital roll-out continues
Kongsberg Digital (KDI) is continuing to strengthen its position as the leading industrial digitalisation player in the energy and maritime sectors. This business area signed several new contracts with Vessel Insight customers and partners during the quarter. In addition, the roll-out of Kognitwin to new and existing customers is continuing. ExxonMobil has recently entered an agreement with KDI to explore the use Kognitwin.
“The main focus for our digital business is to expand our customer portfolio and further develop the digital ecosystem for Vessel Insight and Kognitwin,” says Håøy.
More optimistic about the future
“Today’s solid order books founds continued growth for our defence business. The developments we’ve seen in several maritime markets, especially during the past six months, also provide grounds for optimism. KONGSBERG has never been in a better position for an upturn in the market. In addition, we must capitalise on the leading positions we’ve established regarding sustainable solutions and digitalisation,” says Håøy.
“In total, KONGSBERG has a solid foundation, with technology and market positions in both established and future-oriented markets. The overall picture makes me confident that KONGSBERG will continue to make a difference to our customers and partners – and deliver strong performances also going forward. Our third-quarter intake is already off to a good start,” says Håøy.