The offshore business of the oil and defence industry conglomerate Kongsberg Gruppen has posted quarterly earnings before tax and debt-paying of 164 million kroner ($24.7 million), or up 13 percent year-on-year.

Kongsberg Maritime, with its offshore shipping and subsea enterprises, notched first-quarter revenues of 1.84 billion ($277.2 million), up 33 percent as late-stage orders from Asian shipbuilders came in.

The progress of Asian yards biting into backlogs meant a “high volume” of orders for despite a company-wide reorganization and the “drying up” of orders for new ships at the world's yards.

The revenue hike was recorded despite 12.5 percent fewer new orders in the quarter, down to 1.95 billion kroner ($29.4 million). While orders of automated technology for oil and gas producers were steady at six percent of KM's business, the orders for shipping replaced nine percent of business that once came from the subsea realm.

"We have implemented several cost-cutting measures, in addition to an efficiency improvement programme throughout the Group," chief exec Walter Qvam was quoted as saying.

But KM can still boast a 6.67-billion-kroner order backlog and the parent Kongsberg Group showed operating profit and revenue were up 42 percent and 33 percent.

With ship orders expected to shrink “for a period of time”, the company — like others in this business — is experiencing “growth in after sales and customer support”.

Tags: Kongsberg Maritime