Walter Qvam News

The Board of Directors of Petroleum Geo-Services ASA (PGS) has appointed Rune Olav Pedersen (47) as the new President & CEO of the Company. He will succeed Jon Erik Reinhardsen on 1 September 2017. "The Board has run a thorough succession process since early spring, and assessed a number of very qualified Norwegian and international candidates. With the appointment of Mr. Pedersen, PGS will get a CEO with deep knowledge of the Company and industry and with strong execution capabilities. We look forward to working closely with Mr. Pedersen in the time to come," says Chairperson Walter Qvam. Rune Olav Pedersen has worked in PGS for 7 years and comes from the position of Executive Vice President & General Counsel.

Earlier this year Kongsberg launched Kongsberg Digital, a new subsidiary to expand its industrial software offering, a “start-up” with about 500 employees. Hege Skryseth, President of Kongsberg Digital and also the Chief Digital Officer of Kongsberg shares with MR her insights on the size, shape and direction of the new entity. “You see some opportunities here,” is how Hege Skryseth summarizes the potential for the digital revolution to make maritime and offshore operations more efficient.

Egil Haugsdal has been selected to take over as President of Kongsberg Maritime. Haugsdal holds extensive leadership experience from KONGSBERG, currently leading Kongsberg Oil & Gas Technologies, with previous experience as Executive Vice President of Business Development and as President of Kongsberg Protech Systems. Haugsdal will assume his new position after a short period of overlap with current president Geir Håøy, who will assume the position of CEO of KONGSBERG in June 2016. “I am delighted with the confidence I have been given,” Haugsdal said.

Close to 1,000 maritime exhibitors showed off the breadth and diversity of the shipping industry at this week’s Nor-Shipping, the bi-annual event that opened in Oslo on 1 June. About 35,000 delegates from 70 countries are expected to attend more than 100 events during the weeklong event that celebrates its 50th anniversary this year. The speakers said that innovation and investment are key to boosting the maritime industry to new levels. A mix of geopolitics, regulatory pressure, innovation and business issues were discussed at the NorShipping. They also discussed important issues for shipping now and in the near future. Engineering experts at Nor-Shipping have called for more open-source systems to be used on vessels if shipping is to realize the efficiency goals for which it is striving.

KONGSBERG reports Q1 operating revenues of MNOK 3 941 (MNOK 4 033) and EBITDA of MNOK 446 (MNOK 500), resulting in an EBITDA margin of 11.3 per cent (12.4 per cent). New orders were strong in both the maritime and defence segments, totalling MNOK 8 565 (MNOK 3 885) in Q1 and bringing the Group's backlog of orders to the highest level since 2009. Kongsberg Maritime (KM) had a very strong quarter, with sales growth of 17.8 per cent year-on-year (Y/Y), and a very good influx of new orders. Both KM and Kongsberg Defence Systems (KDS) have higher EBITDAs Y/Y, while Kongsberg Protech Systems (KPS) and Kongsberg Oil & Gas Technologies (KOGT) have experienced declines.

The company says it has installed 330 employees in a new building which will be the main headquarters for the Group's Oil & Gas business area in addition to accommodating some of the Group's defence activities. According to the cluster organisation 'Subsea Valley', the area between Fornebu and Drammen currently includes some 200 enterprises that represent nearly 57 000 workplaces and roughly NOK 111 billion in sales. The cluster organisation estimates that it has a market share in excess of 70 per cent of the global market for subsea technology.

KONGSBERG reports operating revenues in Q3 2013 of MNOK 3 448 (MNOK 3 675) and EBITDA of MNOK 518 (MNOK 646), resulting in an EBITDA margin of 15.0 per cent (17.6 per cent). Kongsberg Maritime and Kongsberg Defence Systems have higher EBITDA's than in Q3 2012, while Kongsberg Protech Systems has lower EBITDA. During the quarter, the Group booked new orders valued at MNOK 3 688 (MNOK 3 495). "KONGSBERG has had yet another robust quarter, characterised by a strong influx of new…

Kongsberg is reporting operating revenues in the second quarter of 2013 of MNOK 4 097, up 4.2 per cent year-on-year. EBITDA came to MNOK 513 in Q2, compared with MNOK 525 in Q2 2012. At mid-year, operating revenues totalled MNOK 8 130, translating into growth of 4.7 per cent from mid-year 2012. The expansion in H1 has been driven by Kongsberg Maritime, which posted growth of 13.9 per cent compared with H1 2012, and is continuing to report a significant influx of new orders. Altogether during the quarter, Kongsberg Maritime signed new orders valued at MNOK 2 431.

Nor-Shipping 2013 opens just three months from now with a cast of speakers featuring top executives from world-leading companies covering the entire value chain of themaritime industry – from shipowners and technology and service companies to regulators and financiers. Among speakers welcoming delegates to the Opening Conference on June 4 will be Norway’s Minister of Trade and Industry Trond Giske, who will provide a governmental perspective, and IMO Secretary-General Koji Sekimizu, who will share regulatory insights.HRH Crown Prince Haakon of Norway will also attend.

The company won several important contracts in the maritime and defence markets during the third quarter 2012. Q3 operating revenues totalled MNOK 3 675 and EBITA came to MNOK 570. This corresponds to an EBITA margin for the Group of 15.5 per cent, compared with 16.3 per cent in the same quarter of 2011. Earnings per share (EPS) came to NOK 3.26 in Q3 2012. Kongsberg had an equity ratio of 38.4 per cent at the end of Q3. The Group has had a good quarter, winning several important contracts that further consolidate the Group's market positions. “It is gratifying to note that Kongsberg Maritime has further strenghtened its position in the advanced offshore market.

“The Group is off to a satisfactory start for the year. It is especially gratifying to see that Kongsberg Maritime's 'Full Picture' strategy generated substantial new orders during the quarter", comments CEO Walter Qvam. Q1 operating revenues came to MNOK 3 836, and the EBITA totalled MNOK 482. This resulted in an EBITA margin for the Group of 12.6 per cent, compared with 13.8 per cent in Q1 2011. Earnings per share (EPS) came to NOK 2.66 in Q1 2012. At 31 March, the Group had an equity ratio of 39.9 per cent and there was a satisfactory influx of new orders. Kongsberg Maritime is still seeing a positive trend, booking new orders valued at MNOK 2 541 this quarter, compared with MNOK 2 082 in Q1 2011.

Geir Håøy has been appointed President of Kongsberg Maritime and will join the Group Corporate Management Team in KONGSBERG. Håøy has worked for Kongsberg since June 1993, holding various management positions since 1996. Håøy succeeds Torfinn Kildal, President of Kongsberg Maritime since 1999. Håøy has broad international experience from different positions in Kongsberg Maritime. He has, among other positions, been head of Kongsberg Maritime's activities in Singapore and Kongsberg Norcontrol in Busan, South-Korea.