Kvaerner Divests North American Construction Business

SeaDiscovery.com
Monday, December 09, 2013

Kvaerner sells its onshore construction business in North America to Matrix Service Company for an enterprise value of $80.3 million. The divestment enables Kvaerner to focus its efforts on further developing its upstream oil and gas business.

"This transaction is an important step in our strategy to focus our operations. All of Kvaerner's operations will now be focused on delivering offshore installations and onshore plants to our upstream oil and gas customers. The sale also provides us with increased strength to further develop Kvaerner's position in our target markets," said Jan Arve Haugan, President & CEO of Kværner ASA.

A definitive agreement was signed between Kværner AS and Matrix Service Company. In the transaction, Matrix will receive ownership of certain assets of Kvaerner North American Construction, Inc. in the U.S. and the shares in Kvaerner North American Construction, Ltd. in Canada. The business will continue to be led by their existing management and operational teams. In 2012, the Business delivered revenues of about $280 million and an EBITDA margin of approximately 5%. In total, the Business has about 200 employees in the U.S. and Canada. Kvaerner will retain the assets and liabilities related to the contract with Longview Power LLC, including any financial effects of the arbitration.

John Hewitt, President and Chief Executive Officer of Matrix commented, "The Business has over 35 years of successful delivery of maintenance and capital construction services, and this transaction will provide Matrix Service Company with a unique service offering that complements and enhances our existing platform."

In line with the upstream focused strategy, Kvaerner will continue to develop its Houston based entity focusing on offshore field development, Kvaerner Field Development Inc. Following the sale, Kvaerner will not have any remaining operations in the U.S. within the downstream and industrials segment, and remaining legacies within the segment will be presented as discontinued operations in the company's accounts going forward.

The transaction will be settled in cash at closing and is expected to be completed in late 2013, subject to anti-trust approval in the U.S. The financial effects of the transaction are expected to be recognized in Kvaerner's fourth quarter 2013 accounts subject to final closing.

kvaerner.com
 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Wärtsilä Reports Healthy Ship Power Sector in Q1 2014

In its interim financial report January to March 2014 Wärtsilä notes healthy development in ship power and services offsetting challenges in power generation markets.

No Lift for Konecranes as Q1 2014 Profit Slips

Finnish crane maker Konecranes on Thursday reported a 32-percent fall in its core quarterly operating profit amid slow demand and tight competition. January-March 2014 operating profit,

GulfMark Offshore Records Highest Ever Q1 Revenue

Houston-based GulfMark Offshore President & CEO Quintin Kneen commented on his company's first quarter 2014 financial report: "We recorded our highest first quarter revenue ever,

Energy

Baker Hughes Announces Q2 Conference Call

Baker Hughes Incorporated (NYSE: BHI) announced today that it has scheduled a conference call on Thursday, July 17, 2014, to discuss results for the second quarter 2014, ending June 30, 2014.

Explosion Rocks Natural Gas Processing Plant In Wyoming

An explosion on Wednesday rocked a natural gas-processing plant in Wyoming that can churn out about 2 percent of the daily U.S. gas supply, though no injuries were reported.

Euronav Posts 62% Core Profit Increase

Belgian crude oil shipping group Euronav on Wednesday unveiled a 62 percent rise in first-quarter core profit as daily rates for its fleet rebounded from last year.

Passenger Vessels

Body Of Korean Boy Who Raised Alarm On Sinking Ferry Found

The body of a South Korean boy whose shaking voice first raised the alarm that a passenger ferry with hundreds on board was in trouble has been found, his parents believe,

Holland American Line, with Seabourn Named 'World's Most Ethical' Companies

For the third consecutive year, Holland America Line, together with sister line Seabourn, was named among the World’s Most Ethical Companies by Ethisphere Institute,

US Navy Completes Korea Ferry SAR Mission

With concurrence from South Korean commanders, the U.S. Navy amphibious assault ship USS Bonhomme Richard (LHD 6) is departing waters around Jindo, South Korea

News

Mitsui O.S.K. Ship Ready To Leave Chinese Port

Japanese shipping firm Mitsui O.S.K. Lines Ltd said on Thursday that its ship, the "Baosteel Emotion" 226,434 deadweight-tonne ore carrier, is ready to leave

Body Of Korean Boy Who Raised Alarm On Sinking Ferry Found

The body of a South Korean boy whose shaking voice first raised the alarm that a passenger ferry with hundreds on board was in trouble has been found, his parents believe,

UASC Introduces New Asia - Europe Network

UASC has introduced its new Asia – Europe Network with three new services (AEC1, AEC3, AEC4), and two enhanced services (AEC8, AEC9). These services will broaden

Offshore Energy

Atkins Gain Maersk Oil Engineering Contract

Design, engineering and project management consultancy Atkins, says it has been awarded an engineering support contract covering three of Maersk Oil’s UK assets in the North Sea.

Offshore Oil & Gas: Brazil’s Northern Frontier

In an effort to spread out oil and gas production to other parts of the country and increase overall oil production, Brazil has finally intensified hydrocarbon

C-MAR's Modern Approach to DP Training in Brazil

The modern offshore maritime industry heavily relies on different classes of DP vessels, from OSVs to Drillships and Tankers, almost all vessels serving the oil

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1029 sec (10 req/sec)