Aker Solutions Climbs as Brazil Deals Boost Backlog: Oslo Mover
Aker Solutions ASA (AKSO) climbed in Oslo after two deals by Petroleo Brasileiro SA (PETR4) boosted the order backlog of the company’s subsea unit to almost three times its value at the end of the previous quarter.
Shares in the company, based in Lysaker near Oslo, gained as much as 2 percent to 110 kroner as of 10:20 a.m. in the Norwegian capital. That makes Aker Solutions the second-biggest gainer on the Oslo stock exchange’s OBX index today.
Aker Solutions, controlled by billionaire Kjell Inge Roekke, signed an agreement to provide subsea equipment to Petrobras, as the company is known, valued at about 4.6 billion kroner ($790.8 million), it said in a statement today. The Brazilian company also exercised a second call-off option under the terms of a previous contract, worth an undisclosed sum, Aker Solutions said in a separate statement.
The two deals are together worth about 5.6 billion kroner, Pareto Securities AS said in an e-mailed note. Aker Solutions, which on March 25 announced a 4.9 billion kroner deal with Total SA (FP) in the Republic of Congo, has now announced about 18 billion kroner of subsea orders so far this quarter, the broker said.
That will give the company’s subsea unit an order backlog of about 26 billion kroner at the end of the first quarter, up from about 9 billion kroner at the end of the previous three months, said Pareto, which recommends investors buy the stock.
With fields maturing and finds more difficult to develop, demand is rising for drilling and subsea services offered by companies such as Aker, Subsea 7 SA, and Seadrill Ltd. While Aker Solutions plans to expand off Norway, where spending is forecast to climb to a record 198.7 billion kroner this year, it’s also aiming to boost its operations around the world in regions including West Africa and South America.
To contact the reporter on this story: Alastair Reed in Oslo at firstname.lastname@example.org
To contact the editor responsible for this story: Christian Wienberg at email@example.com