The Kongsberg Group (KONGSBERG) increased its operating revenue and profit and ended 2019 with a record-high revenue and order backlog. Also, the integration of Commercial Marine (CM) is ahead of schedule and the goal of MNOK 500 in realised cost synergies will now be achieved in 2020, two years before the original date.
Key financial figures
--Order intake of MNOK 32,452 compared to MNOK 16,574 in 2018. This is an increase of 96%. Growth excluding acquisitions is 56%.
--Revenues of MNOK 24,081 compared to MNOK 14,381 in 2018. This is an increase of 67%. Growth excluding acquisitions is 16%.
--EBITDA of MNOK 2,279 (MNOK 1,856 excl. IFRS 16 effects). This is an increase of MNOK 462 compared to last year, of which MNOK 251 comes from acquisitions.
--EBITDA-margin of 9.5% (7.7% excl. IFRS 16 effects) compared to 9.7% in 2018.
--Order intake of MNOK 6,934 compared to MNOK 3,859 in Q4 2018. This is an increase of MNOK 3,075, of which MNOK 1,954 comes from Commercial Marine.
--Revenues of MNOK 8,164 compared to MNOK 4,148 in Q4 2018. This is an increase of MNOK 4,016, 22%, excluding acquisitions. Commercial Marine has contributed revenues of MNOK 3,016.
--EBITDA of MNOK 851 (MNOK 731 excl. IFRS 16 effects) compared to MNOK 520 in Q4 2018.
--EBITDA margin of 10.4% (9.0% excl. IFRS 16 effects) compared to 12.5% in Q4 2018.
"In 2019, KONGSBERG finalised two strategic acquisitions that make us a much larger company and a more complete supplier in the industries we serve. We have achieved a record-high order intake and continued to grow in all business areas and have launched new systems and products. The integration of Commercial Marine has been very successful so far, as clearly shown by the underlying profitability in the area. In addition, KONGSBERG experienced a very sound end to the year," says Geir Håøy, President and CEO of KONGSBERG.
The company delivered strong quarterly results across its operations and increased its revenue by 22% excluding acquired companies. Kongsberg Defence & Aerospace (KDA) achieved an EBITDA margin of 16.1%. The EBITDA margin of Kongsberg Maritime (KM) was 9.8% excluding integration costs and is moving in the right direction for both the "former" KM and CM. Kongsberg Digital confirmed its leading position with a breakthrough contract for its dynamic digital twin and grew revenues by 10% during the quarter.
Growth in a challenging maritime market
Kongsberg Maritime increases operating revenue to MNOK 5,490 from MNOK 2,041 in the fourth quarter. Growth excluding acquired business is 21%. This is among other things driven by a high level of activity in the LNG and after-sales markets as well as by growth in the Sensors & Robotics area. The EBITDA for the quarter came to MNOK 436. This includes integration and restructuring costs of MNOK 100.
"Our maritime operations are growing in a market where the newbuilding activity is at an all-time low, at the same time as the organisation is integrating Commercial Marine and achieving considerable cost savings. I'm very pleased about this," says Håøy.
Defence strengthens market positions
Kongsberg Defence & Aerospace attained operating revenue of MNOK 2,468 for the quarter. Increase excluding acquired business is 24%.
"We're now seeing the results of our long-term positioning work in the defence sector. KDA has achieved important milestones, won breakthrough contracts and executed a lot of projects across its divisions. The order backlog is at a record-high NOK 20.1 billion, which provides a good foundation for continued more positive developments," says Håøy.
High level of activity and a record-high order backlog
"We have stronger market and financial positions than ever before. This gives us a robust platform from which to achieve our strategic plans, position us for the future and better serve our customers. We expect to achieve sound advancement and good profitability in 2020 too, despite a rather increasingly complex market scenario. At the beginning of 2020, we've secured orders worth NOK 16.6 billion for deliveries this year. That's an increase of 61% compared to a year ago," says Håøy.
KONGSBERG is an international, knowledge-based group that supplies high-tech systems and solutions to customers in the merchant navy and oil & gas, defence and aerospace industries. KONGSBERG has almost 11,000 employees in 40 countries.