Nuclear orders boost for Aker Tees performance

Oct 23 2007 Evening Gazette

STOCKTON-BASED Aker Kvaerner Engineering Services has continued its “good performance” as the company revealed its latest financial update today.

The news came as parent company Aker Kvaerner posted its third quarter financial results.

The Stockton team, which employs about 500, is due to move to new state-of-the-art premises at the Surtees Business Park on Bowesfield Lane in Stockton, in the new year.

The team has also secured a number of new contracts in recent months.

Today Aker Kvaerner said that its EBITDA - earnings, stripping out one-off costs - across the group had risen 31% to £90.3m for the third quarter of 2007.

The process and construction division, which takes in the Teesside operation, saw earnings drop in the third quarter - to £16.4m.

But the company added: “Aker Kvaerner Engineering Services has continued the good performance as a result of high activity fuelled by a strong nuclear market in the UK.

“There is high activity in the metals market and several large projects are in the pipeline.”

Earlier this month Aker Kvaerner was awarded a £16m contract by Magnox Electric. The project involves the design, building and installation of a plant for the retrieval and encapsulation of wet intermediate level wastes (ILW) at Hunterston A Site in West Kilbride, Scotland.

The project is part of the site’s nuclear decommissioning programme and will commence immediately.

The 38-month project will mean the plant is expected to be up and running in July 2010.

Aker Kvaerner today gave an upbeat longer term view.

It said: “Aker Kvaerner expects high levels of investment in the oil and gas industry to continue for then next few years.

“The market is developing favourably within most segments.”