INTERNATIONAL engineering and construction company Kvaerner has seen fortunes continue to improve in the first half of the year.

The Anglo-Norwegian business, which employs about 1,500 staff across the Tees Valley, reported pre-tax profits of £44.8m in the six months to June 30, compared with £17.8m in the same period of last year.

However, income at its engineering and construction business, which employs the majority of staff on Teesside, continued to decline in the second quarter, because of reduced order intake in line with general market conditions.

The figures represent the continued recovery of the group, which narrowly avoided bankruptcy last year through a merger with Norwegian rival Aker Maritime.

The merger, which was sealed at the end of last year, was a lifeline for the struggling business, which in November was within days of collapse when it ran out of cash.

Earlier this month, Kvaerner's lenders approved a new business plan for the group, in accordance with the overall refinancing agreement concluded at the end of last year.

A spokesman for the group said: "This forms a sound foundation for the group going forward."

He added: "The improvement of operations is a key priority throughout the group.

"Initiatives for increased efficiency and competitiveness were identified in Aker Kvaerner following the merger, and these are currently being implemented."

He concluded: "The performance of Aker Kvaerner is expected to remain strong in the second half of the year, although profits in the shipbuilding division will decline, after a good start to the year."