Kvaerner delivers positive results for the first quarter, but warns savings to improve margins in the future.

The oil services company presented an operating profit of 83 million to 155 million in the first quarter last year. Turnover at 3.525 million is slightly above the first quarter last year.

– Margins we deliver this quarter is not in line with our ambitions, but we will use this as an inspiration for further cost improvements, says CEO Jan Arve Haugan in Kvaerner.

In the company’s stock exchange announcement shows that the situation is challenging in the oil industry, but that Kvaerner still has a good order backlog of 15.840 million, but that is noticeably smaller than a year ago when it was 19.696 million. Haugan forecasts cost but is still optimistic despite uncertain times in the industry.

– We continue to implement our cost and productivity improvements in collaboration with oil companies, and we are positioned in segments where important contracts shall be awarded in 2015, he said.

Greatest anticipation is related to the contract for the construction of residential platform for Johan Sverdrup. A decision for this is expected in late May to June.

Key figures from Kvaerner’s first quarter results 2015. Figures for the fourth quarter of 2013 in parentheses.

* Revenue: 3.525 million (3.489 million)

* Operating profit: 83 million (155 million)

* Profit before tax: NOK 77 million (NOK 135 million)

Source: Reuters