ABB acquisition and large projects boost NKT's finances

GERMANY: NKT's increases in revenue and earnings were driven by contracts to lay cables at three large offshore wind projects, the company stated.

NKT named its new cable-laying vessel Victoria (above) earlier this year
NKT named its new cable-laying vessel Victoria (above) earlier this year

The third quarter implementation of its acquisition of ABB’s high-voltage cable business also boosted the company’s finances, NKT added in its Q3 results.

The alternate-current cable manufacturer’s quarterly revenue rose 53.78% from Q3 2016 to €396.6 million, while its operational earnings before interest tax, depreciation and amortisation (Ebitda) for the quarter more than doubled year-on-year to €43.8 million.

The increase in earnings was "driven by acquired activities and by solid execution in the projects business", NKT stated.

The cable company had announced it was to acquire Swedish-Swiss rival ABB's high-voltage cable business in September 2016. The takeover and subsequent demerger of NKT’s cabling arm from Nilfisk, its cleaning equipment business, was implemented in Q3 2017, NKT stated.

NKT was announced as preferred cable supplier for the 700MW Borssele Beta platform to transmit power from the Borselle III and IV wind farm to the Netherlands’ onshore grid, as well as for the 860MW Triton Knoll and 950MW Moray East projects in the UK.

The company was also awarded a turnkey service repair order for the Skagerrak 2 offshore cable connecting Norway and Denmark, which was damaged in July. NKT will carry out the cabling using its NKT Victoria vessel in the fourth quarter of 2017, it said.

At the end of September 2017, NKT had an order backlog of €830 million, the company added.

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