Bloomberg News

Kvaerner Gains to 7-Month High on $210 Million Deal: Oslo Mover

February 13, 2012

Feb. 13 (Bloomberg) -- Kvaerner ASA, the Norwegian company involved in engineering, procurement and construction, advanced to the highest in seven months in Oslo trading after winning a 1.2 billion-krone ($210 million) contract from Total SA.

Kvaerner climbed as much as 5.3 percent to 13.8 kroner, the biggest intraday gain since Jan. 27 and the highest since July 14. The Fornebu, Norway-based company is up 39 percent in 2012.

The business won an engineering, procurement, supply and construction contract from Europe’s third-largest oil company to deliver a steel jacket for the Hild field, off the coast of Norway in the first half of 2014. This is the second such contract for Kvaerner, the unit spun off from Aker Solutions in a listing in July, after winning a 1.1 billion-krone contract last month from Lundin Petroleum AB for the Luno field.

It rose 3.8 percent to 13.6 kroner by 1:07 p.m. in Oslo.

It’s “positive to see two major contracts for Kvaerner so far in 2012 after reporting poor order intake over the last quarters,” Goeran Andreassen, an analyst at RS Platou Markets AS, wrote in an e-mailed note to clients. Andreassen recommends investors buy the stock with a target price of 14 kroner.

The Hild field, with reserves estimated at 190 million barrels of oil equivalent, is expected to begin output at the end of 2016 and reach a peak 100,000 barrels a day, Total said Feb. 2. Jackets are platform supports, installed underwater and extending into the seabed, on which rest modules for production, processing and crew accommodation, together known as topsides.

--Editor: Tony Barrett, Randall Hackley

To contact the reporter on this story: Stephen Treloar at streloar1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net


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