Kongsberg Gruppen (KONGSBERG) delivered strong Q3 operating results, with an EBITDA margin of 15.8% for the group. The results are due to good adaptation to the market as well as lower costs and efficient project execution.
The integration of acquired companies is ahead of schedule and is also making a positive contribution to the sound profit performance. The Board has decided to distribute an additional dividend of NOK 10 per share, a total of MNOK 1 800, and initiate a share buy-back programme of up to MNOK 200.
- The operating revenues were MNOK 5 802 compared to MNOK 5 833 in Q3 2019
- The EBITDA was MNOK 919 compared to MNOK 496 in Q3 2019.
- The EBITDA margin was 15.8% compared to 8.5% in Q3 2019.
“We are very pleased with the results for this quarter, for which we achieved an EBITDA margin of 15.8 per cent. Lower costs, efficient project execution, scalability and implemented measures have had the desired effect and contributed to high margins for the quarter. Some markets have been, and still are, demanding, especially in the maritime sector, but we’ve adapted our operations in a satisfactory manner. In addition, we have successfully integrated Commercial Marine (CM). Since its acquisition, we’ve achieved positive and improved results for its operations due to cost synergies and additional sales from the expanded portfolio,” says Geir Håøy, CEO of KONGSBERG.
The company is affected by COVID-19 and the downturn in international trade, but this is partly offset by lower costs and implemented measures.
Kongsberg Maritime increases profitability in a difficult market
- KM deliver in the quarter order intake of MNOK 3 439 (MNOK 3 345), revenue MNOK 3 695 (MNOK 4 041) and EBITDA MNOK 411 (MNOK 223). Figures in brackets is Q3 2019.
This business area strengthened its order intake by 3 per cent and its profitability (EBITDA) improved considerably compared to Q3 2019, despite developments in the maritime market continuing to be characterized by significant uncertainty. Integration and restructuring costs came to MNOK 11, compared to MNOK 152 in the same quarter in 2019. The operating revenues declined by 8.6 per cent compared to Q3 2019.
Sound project execution in defence operations
- KDA deliver in the quarter order intake MNOK 987 (MNOK 8 254), revenue MNOK 1 933 (MNOK 1 578) and EBITDA MNOK 473 (MNOK 252). Figures in brackets is Q3 2019.
Kongsberg Defence & Aerospace (KDA) increased its operating revenues by 22 per cent compared to Q3 2019.
In major programmes, the revenues vary from quarter to quarter, while the profitability margin changes in line with risk developments and attained milestones. KDA achieved considerably lower costs in individual projects as a result of efficient project execution. This made a positive contribution of MNOK 150 to the results in the quarter. KDA did not sign any individual contracts of a significant value during the period. In comparison, the largest contract in the history of KONGSBERG, for NASAMS Qatar valued at MNOK 5 600, was signed in Q3 2019. Major variations in the order intake from quarter to quarter are normal for the defence operations.
Kongsberg Digital strengthens its leadership position
Kongsberg Digital (KDI) has further strengthened its leading position in the dynamic digital twin market. During the quarter, this business area was chosen as the partner to digitalize Shell’s global portfolio of installations, after previously having won the contract to deliver a dynamic digital twin, KogniTwin®, to the Shell Nyhamna processing facility.
Anticipating more new orders
“We can still see uncertainty both in the world in general and in our markets. However, KONGSBERG is well prepared to tackle this extraordinary situation. Although our total order intake during the quarter was lower than in previous quarters, our results have improved. The company is continuing to develop new, sustainable solutions. We are finding new, innovative ways of delivering projects and supporting our customers, and we take responsibility in a world that is challenging, changing and at the same time full of opportunities. We anticipate a good order intake in the next few quarters, especially in our defence operations,” says Håøy.