Environmental Technology, News, Oil & Gas

Profits sink at Aker Kvaerner

Industrial concern Aker Kvaerner reported a third-quarter net loss of NOK 48 million, worse then analysts had expected. The company's shipyard in Philadelphia caught most of the blame.

Aker Kvaerner’s loss compares to a profit of NOK 155 million in the same quarter last year.

Operating revenues fell as well, landing at NOK 9.3 billion. That’s down from NOK 10.1 billion in the third quarter of last year.

Operating profits were just a quarter of those reported last year, at NOK 42 million compared to NOK 169 million last time.

Aker Kvaerner noted that the Kvaerner Philadelphia Shipyard reported another pre-tax loss of NOK 105 million in the third quarter. That comes on top of a pre-tax loss of NOK 440 million in the second quarter, leaving the company’s combined shipbuilding operation with a loss for the first nine months of the year.

Aker Kvaerner was also hit by pension amortization and financing costs in the third quarter. The company has managed to attract new orders, however, which is good news for the company that’s been hit by tough markets of late in the engineering and construction sectors. The company’s orderbook was valued at NOK 39.4 billion in September, up 14 percent since the beginning of the year.