Three per cent barrier broken by Kvaerner Construction

Press release 09/05/2000 00:00 CET

Kvaerner Construction has announced its results for the three months to 31 March 2000 which show continued steady growth in both turnover and profit with the margin on sales increasing faster than turnover.

Turnover for the first quarter to March has increased by 4 per cent to £311 million (1999: £298 million), with operating profit jumping to £7.4 million from a deficit of £0.5 million for the same period in 1999. Profit before tax and goodwill has increased to £9.8 million (1999: £3.8 million). The order book at £1.49 billion (1999: £1.52 billion) is growing slowly in line with Kvaerner Construction’s policy of only tendering for work it wants to win, while the operating margin on sales continues to grow at 2.4 per cent. PBT margin is 3.1 per cent (1999: 1.3 per cent).

Commenting on the results Keith Clarke, Kvaerner Construction’s chief executive, said; “Concentration on performance continues to give results with operating profit rising to 3.1 per cent on turnover, growing faster than turnover or PBT.

“We have been saying for two years we like construction and we can do it better. The results show we can and we are. Our design and build expertise continues to grow with the recent announcement of the MoD Whitehall contract as a prime example. This is the second largest PFI contract in the UK and it reached financial closure last week.”

During the first quarter of the year a number of significant contracts have been secured by Kvaerner Construction’s companies around the world.

UK Civils won a second contract at the Dartford River Crossing to re-deck the west tunnel following the successful completion of a similar contract in the east tunnel. UK Civils has also signed a framework agreement with Anglia Water which entitles it to bid for a share of the utility’s £1.4 billion capital programme. A prestigious contract to refurbish and modernise the 19th Century Brighton Dome and Museum was won by UK Building.

Hong Kong-based Gammon Construction secured two further contracts to build residential towers giving it the market lead in this competitive sector with nine contracts, worth more than £400 million currently in progress.

In India Kvaerner Cementation India has won further marine work with a contract for a 300 metres long jetty near Mumbai where it completed a similar jetty for P&O last year. In the USA, Florida-based Kvaerner Construction Inc, has won four new contracts – two for extensions to university buildings and two renovation contracts with its long-term healthcare partner Columbia/HCA.

Finally, mining specialist Kvaerner Cementation is spearheading a return to Iran for British contractors with a contract to construct a new coal mine in Tabas, on the country’s eastern border with Afghanistan.


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