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Aker Solutions ASA: First-Quarter Results 2014

April 30, 2014

Financial Highlights

* Sales rose to NOK 11.2 billion in the first quarter of 2014 from NOK 10.3
billion in the first quarter of 2013.
* Earnings before interest, tax, depreciation and amortization (EBITDA)
gained to NOK 1.05 billion in the quarter from NOK 767 million in the
year-earlier period when earnings were impacted by losses in the umbilicals
and OMA business areas and increased costs at the Ekofisk Zulu project.
* The EBITDA margin improved to 9.3 percent in the quarter from 7.4 percent a
year earlier.
* Earnings per share (EPS) were NOK 1.12 in the quarter, compared with NOK 1
a year earlier.
* The order intake was NOK 8.7 billion in the quarter, compared with NOK 25
billion a year earlier.
* The order backlog was NOK 55.6 billion at the end of the quarter. The
year-earlier backlog was NOK 68.7 billion and included a Category B rig
contract worth NOK 11 billion that was canceled in June 2013.

Key Developments
Aker Solutions' revenue rose to NOK 11.2 billion in the first quarter of 2014
from NOK 10.3 billion a year earlier, driven by sales of subsea products and
services, single drilling equipment and umbilical systems in the U.S. and
Norway. Revenue also increased in the process systems unit, bolstered by
strong demand in Norway, the Americas and the Asia Pacific, and in OMA, which
had three vessels on charter in the quarter.

EBITDA rose to NOK 1.05 billion in the quarter, helped by stronger project
execution, particularly in the subsea and umbilicals areas, as well as
increased capacity utilization for the engineering division in London and the
U.S. umbilicals plant.

The EBITDA was NOK 767 million in the same quarter of last year, when earnings
were affected by costs at the Ekofisk Zulu project and losses in the
umbilicals and oilfield services and marine assets (OMA) businesses.

The EBITDA margin increased to 9.3 percent in the quarter from 7.4 percent a
year earlier.

"Demand for our subsea products and services remained strong and our
engineering unit boosted its activity as employees were mobilized in London
and Oslo to start work on the Johan Sverdrup contract awarded by Statoil in
December," said Øyvind Eriksen, executive chairman of Aker Solutions. "In
contrast, the offshore maintenance and modification market slowed down in
Norway and an oversupply of drilling rigs curbed new-building activity

Subsea, the biggest business area, had a record-high EBITDA margin of 11.5
percent in the quarter, up from 10.6 percent a year earlier. The engineering
unit's margin was 8.7 percent, compared with 7.2 percent a year earlier. The
maintenance, modifications and operations (MMO) unit's margin narrowed to 6.2
percent from 6.6 percent, and the drilling technologies margin weakened to
9.1 percent from 10 percent. Oil companies scaled back spending on
maintenance and drilling activities amid concern over rising costs and
stagnant oil prices.

Aker Solutions secured new orders worth NOK 8.7 billion in the quarter,
bringing the backlog to NOK 55.6 billion. Subsea had the strongest intake at
NOK 3.9 billion, followed by drilling technologies, which won NOK 1.9 billion
in contracts.

"Subsea also secured two major contracts with key customers after the
quarter's end, reinforcing our strong position in this fast-growing market,"
Eriksen said.

Aker Solutions in April won a contract worth NOK 14 billion from Total to
provide a subsea production system for the Kaombo development offshore Angola
and a more than USD 300 million order from Petrobras to supply subsea
manifolds for Brazil's pre-salt fields.

The company in the first quarter booked a gain of NOK 2.8 billion from the
sale of two business areas - well-intervention services and mooring and
loading systems.

Aker Solutions is well positioned in the global energy industry's key growth
markets, subsea and deepwater. We expect strong growth in subsea spending as
we continue to develop our unique subsea factory solutions.

This will also create opportunities for the umbilicals and process systems
areas. We are tendering for subsea contracts and umbilicals in key markets,
including the North Sea, Brazil, Africa, the U.S. and the Asia Pacific

Demand has been healthy for most of our products and services, including
conceptual and front-end engineering and design studies for offshore field
developments. The high order backlog gives us confidence in a robust
medium-term outlook. Key wins in Brazil, Angola and Norway, including the
contract for Johan Sverdrup, also bolster the longer term outlook for the

We see opportunities for our MMO business from aging facilities in the North
Sea and other markets, even as more restrained capital spending from
exploration and production companies is expected to weigh on revenue this
year and next.

A high number of available drilling rigs is curtailing building of new rigs.
At the same time there is healthy tendering activity for rigs to be delivered
in the next two to three years, particularly in the jack-up market, which
creates opportunities for our drilling technologies business. We also expect
good demand for our drilling services this year.

Global offshore spending on exploration and production is seen leveling off at
record levels in the short term.

Aker Solutions will continue its focus on boosting the return on capital
employed and improving the quality, predictability and efficiency of


For further information, please contact:

Bunny Nooryani, Chief Communications Officer, Aker Solutions. Tel: +47 67 59
42 71, Mob: +47 480 27 575,

Press Office: +47 908 42 894

Investor relations:
Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30
39, Mob: +47 911 37 194,

Career opportunities:

Aker Solutions
is a global provider of products, systems and services to the oil and gas
industry. Our engineering, design and technology bring discoveries into
production and maximize recovery from each petroleum field. We employ
approximately 28,000 people in about 30 countries. Go
towww.akersolutions.comfor more information on our business, people and

This press release may include forward-looking information or statements and
is subject to our disclaimer,

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

1Q 2014 Report
1Q 2014 Presentation


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Aker Solutions ASA via Globenewswire


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