Profits Rise for Aker Solutions

Aker Solutions has seen its profit go up in the second-quarter 2018 at NOK 117 million, or NOK 0.42 per share, versus net income of NOK 33 million, or NOK 0.08 same time last year.

The market activity boost allowed the Norwegian services company to generate quarterly revenue of NOK 6.3 billion ($778 million), up from NOK 5.4 billion ($667) in the prior-year comparable period, and up from 5.5 billion ($688 million) sequentially.

Some 17 per cent revenue increase was boosted by North Sea modifications work and good progress on international projects.

The company maintained its revenue guidance of 10 per cent increase for the full year 2018.

Revenues for the first six months of 2018 stood at NOK 11.7 billion versus NOK 10.6 billion same time last year.

Quarterly EBITDA was NOK 439 million, versus NOK 305 million in the corresponding period in 2017.

At the end of Q2 2018 the order backlog was NOK 37 billion. The order intake was NOK 5.7 billion, down sequentially from NOK 8.6 billion. Most orders were for projects in Norway, with addition of new key orders outside the Norwegian Continental Shelf.

Aker Solutions said it is bidding for future contracts totaling about NOK 50 billion, with about two-thirds of these are in the subsea area. These subsea projects are expected to be awarded over the next six to 12 months, including in Brazil, the UK, Africa and Asia Pacific.

“While the market remains very competitive, activity is picking up as lower break-even costs and higher oil prices spur project sanctions,” said Luis Araujo, Aker Solutions’ CEO. “Our order intake in the quarter was almost double the same period a year earlier and we’re seeing high tendering activity in our main markets.”

Aker Solutions generated profit for the first half of 2018 of NOK 222 million ($27.5 million), against NOK 95 million ($12 million) in 1H 2017.

Subsea World News Staff

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