Aker Solutions Quarterly Profit Increases on Kvaerner Gain

Aker Solutions ASA (AKSO), Norway’s biggest oil platform maker, said third-quarter net income more than tripled as it booked a gain after separating out Kvaerner ASA.

Net income rose to 1.12 billion kroner ($200 million) from 315 million kroner a year earlier, the Oslo-based company said today in a statement. The company booked a 1.33 billion kroner gain from splitting off the engineering and construction unit. Sales rose 8 percent to 8.56 billion kroner.

The company posted a loss for its continuing business because of delays in contracts in Brazil. Delivery schedules for all major subsea production systems on order from Petroleo Brasileiro SA have been “substantially” further delayed and additional costs are expected, the company said.

“Our subsea challenges in Brazil are well known,” Oeyvind Eriksen, executive chairman of Aker Solutions said in the statement. “We have a strong order backlog, which reflects that activity levels remain high in all business segments and across all regions of the world.”

The company’s shares fell 1.6 percent to 60 kroner as of 9:04 p.m. in Oslo.

Earnings before interest, tax, depreciation and amortization fell 56 percent to 322 million kroner, beating the 308 million-krone average estimate of 15 analyst estimates compiled by Bloomberg. The company had an order intake of 8 billion kroner in the quarter.

Aker Solutions said today that it plans to raise its total headcount by 15 percent this year and will open its London office in November amid rising demand for oil services.

“We expect high tendering activity going forward due to strong demand in all target markets,” the company said.

To contact the reporters on this story: Meera Bhatia at mbhatia2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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