Aker Solutions ASA : Aker Solutions ASA: Second-quarter results 2013
27 August 2013
*Aker Solutions generated revenue of NOK 11.9 billion in the second quarter
of 2013, compared with NOK 11.9 billion in the second quarter of 2012.
*Earnings before interest, tax, depreciation and amortisation (EBITDA)
amounted to NOK 946 million in the quarter, compared with NOK 1.36 billion
in the year-earlier period.
*The EBITDA margin was 7.9 percent in the quarter, compared with 11.4
percent a year earlier.
*Earnings per share (EPS) were NOK 0.44 in the quarter, down from NOK 2.50
a year earlier.
*The order intake was NOK 10.9 billion in the quarter, compared with NOK 12
billion a year earlier. The prior-year figure excludes a Category B rig
contract of NOK 11 billion that was cancelled in June.
*The order backlog was NOK 59.8 billion at the end of the quarter. The
year-earlier backlog, excluding the Category B contract, was NOK 43.1
Aker Solutions' earnings for the second quarter of 2013 were impacted by low
capacity utilisation in the engineering business as new orders waned. The
result was also pushed down by idle-time at the Aker Wayfarer and the Skandi
Aker vessels as well as a minor loss in the umbilicals business. The June
cancellation of the Category B rig contract led to a one-time cost of NOK 375
million, of which NOK 361 million was recognised as an investment impairment
and the rest booked as an operating cost.
"Aker Solutions in the second quarter resolved execution problems that led to
weak results at the start of the year," said Executive Chairman Øyvind
Eriksen. "We delivered on key projects, including the Ekofisk Zulu platform
and seven umbilical systems, and reduced the risks in our portfolio."
The Ekofisk Zulu platform was handed over as planned to ConocoPhillips this
summer and Aker Solutions also delivered the steel frame for the world's first
subsea gas compression facility at the Statoil-operated Åsgard field. The Aker
Wayfarer started operations in June and Skandi Aker sailed to Angola where it
is expected to start work next month. Operations were improved at Aker
Solutions' umbilicals plant in Norway, ensuring delivery of seven umbilical
Performance in the three largest business areas - subsea, drilling
technologies and maintenance, modifications and operations - was stable in the
second quarter. Subsea, the largest area, increased its EBITDA to NOK 361
million from NOK 268 million a year earlier. It won NOK 3.8 billion in orders,
including a USD 440 million contract on a subsea production system for a UK
North Sea oilfield development, leading to a record order intake in the first
half of the year.
Aker Solutions experiences robust demand for its products and services in most
markets and is well-positioned in the fast-growing deepwater segment.
Tendering activity is high. At the same time, oil companies have delayed some
projects amid cashflow concerns, increasing uncertainty about future
investments and the timing of contract awards to oil-services providers.
Capacity utilisation at the company's new engineering hubs in the UK and US
was low in the second quarter after the loss of several large contract bids in
late 2012 and early 2013. Aker Solutions laid off some non-permanent staff,
mainly in London and Houston, but not in Norway where the activity level
"We see several big opportunities ahead for engineering," Eriksen said. "The
current high level of activity in conceptual work indicates a new wave of
engineering projects in the years to come."
For further information, please contact:
Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30
39, Mob: +47 91 13 71 94, E-mail: firstname.lastname@example.org
Bunny Nooryani, Chief Communications Officer, Aker Solutions. Tel: +47 67 59
42 71, Mob: +47 480 27 575, E-mail: email@example.com
Aker Solutions provides oilfield products, systems and services for customers
in the oil and gas industry world-wide. The company's knowledge and
technologies span from reservoir to production and through the life of a
Aker Solutions brings together engineering and technologies for oil and gas
drilling, field development and production. The company employs approximately
28 000 people in more than 30 countries. We apply the knowledge and create and
use technologies that deliver our customers' solutions.
Aker Solutions ASA is the parent company in the group, which consists of a
number of separate legal entities. Aker Solutions is used as the common brand
and trademark for most of these entities. In 2012 Aker Solutions had
aggregated annual revenues of approximately NOK 45 billion. The company is
listed on the Oslo Stock Exchange.
This press release may include forward-looking information or statements and
is subject to our disclaimer, see www.akersolutions.com.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Second-quarter report 2013
Second-quarter presentation 2013
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information contained therein.
Source: Aker Solutions ASA via Thomson Reuters ONE
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