Oil and gas engineering firm Kvaerner is targeting a continued increase in earnings by cutting costs of new projects as it reports improved financial results in the second quarter of the year.
The company recorded EBITDA of $46.5million, compared to $26.5million a year earlier.
But operating revenues for the second quarter of 2014 were down on last year by $67million to $460million.
During the second quarter, Kvaerner completed three large offshore platform projects: the steel substructures for the Edvard Grieg and Martin Linge fields, and the topside for the Eldfisk field.
The company also increased its order backlog to $3.5billion after the addition of $862million in the quarter, including the letter of intent for two steel substructures to the Johan Sverdrup field.
“Our first priority remains to be the effective execution of existing orders,” said Jan Arve Haugan, president and chief executive of Kvaerner.
“In addition, we are working hard to implement further improvements to our productivity and cost level. We see that these initiatives have a limited effect for ongoing projects where there are established agreements with subcontractors and suppliers.
“For new projects, our aim is that the improvements we now implement will reduce our cost base with 15%. We see from the market’s feedback that this is being recognised.
“The strong order intake in the second quarter documents that we are on the right track to further strengthen our competitive edge.”
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