Kvaerner CEO: Prepared to Take Part in Consolidation

CEO Jan Arve Haugan of offshore engineering and construction firm Kvaerner (KVAER.OL) says the firm is prepared to take part in consolidation due to an uncertain market outlook and low capacity utilisation.

CEO says we are of course prepared to participate in and continue to look at structural measures when we find the right opportunity

CEO says there will be a volatile market for remainder of 2016 and in 2017 and 2018

CEO says we are in the situation that we need to win new contracts to secure an efficient utilisation of our workforce and our tools and yards

CEO says however for 2016 and into 2017 and 2018 we expect only a few critical projects to be relevant in the segments we are competing

CEO says continuously monitoring its own capabilities and available projects, and says that's why we also indicate, and are prepared to participate in, strategic opportunities

CEO: This is not a Norwegian championship, it's a global championship we are participating in, and when we look at the market and opportunities we look at world capabilities

Kvaerner reported better results than expected on Wednesday, helped by a bonus payment of 50 million Norwegian crowns due to good operational performance

Backlog dropped to 8.4 bln Norwegian crowns at end Q3 compared to 10.2 bln at the end of Q2

CEO says he hopes that the FEED (front end engineering and design work) on Norway's Njord field will result in the award of the EPC contract (engineering procurement and construction)

CEO says phase II at giant field Johan Sverdrup Norway is also coming up and Kvaerner also has dialogue with international customers regarding new prospects

CEO says continues to cut costs and as of today Kvaerner can deliver projects at a cost which is attractive even with oil prices at levels around USD 50 per barrel

* CEO says development in oil price is key variable for activity.

Reporting By Ole Petter Skonnord