Kvaerner sees negative impact from COVID-19

Norway's Kvaerner announced that its financial results for the first quarter 2020 have been negatively impacted by its actions to curb the spread of COVID-19.

Kvaerner said in a statement that in the first quarter it had taken several precautionary steps to safeguard employees, suppliers and local societies against the risks of the corona virus development.

The company added that it had demobilised the majority of hired-in personnel working on ongoing projects, office staff is working from home offices and several virus precautions influence daily work at the yards. Operations are continuing though, and ongoing projects are moving forward with reduced capacity.

For the first quarter this year, Kvaerner saw revenues hit NOK 2 192 million for the Field Development segment, compared to NOK 2 158 million one year ago.

“For 2020 as a whole, it is too early to assess the total effects of the virus and of the volatile markets. We are in continuous dialogue with our customers about how we can keep progress in ongoing projects, within the framework of the corona precautions. We are doing what we can to maintain progress in spite of the demobilisation of many hired-ins for a period until the situation is concluded,” said Karl-Petter Løken, Kvaerner’s President & CEO.

The order intake was NOK 1 204 million during the first quarter 2020, mainly related to growth in existing projects and some new work for prospects in early phases.

“The market for new projects is this spring influenced by international and national virus protection measures, and also by how such measures reduce global activity for a period. With some new projects being delayed, we have taken actions to reduce costs, including about 225 employees placed on temporary leave. We do see some key prospects which we are currently actively positioning for. The largest share of such opportunities in 2020 is within renewable businesses and within onshore process industries,” added Løken.