Akastor Q4 in Red

Business & Finance

February 10, 2015

An oilfield services investment company, Akastor, has recorded a net loss for the fourth quarter 2014 of NOK 502 million.

The net profit for the continuing operations ended at NOK -475 million in the fourth quarter. Net profit from discontinued operations was NOK -27 million.

For 2014 as a whole, net profit ended on NOK -1 387 million, including impairments of NOK -1172 million, and financial items of NOK -947 million. Net profit from discontinued operations, however, was NOK 3 880 million.

The recurring 4Q EBITDA result was NOK 439 million. The 4Q EBITDA result, including non-recurring items of NOK 177 million, was NOK 262 million. Akastor is operating in markets exposed to the recent significant fall in oil price. The negative impact of NOK 177 million on the EBITDA result in the fourth quarter was caused by a number of non-recurring items, primarily consisting of cost provisions related to the onerous office leases, the MMO personnel transfer agreement and an income from sale of shares in property projects in Stavanger and Oslo.

Depreciation, amortization and impairments of NOK 365 million, and net financial items of NOK -396 million, were also impacted by several items of non-recurring nature.

EBITDA for the full year 2014 was NOK 1 380 million, versus NOK 1 355 million in 2013.

The group had an order intake of NOK 5.2 billion in the quarter. The backlog amounted to NOK 21.6 billion at the end of the quarter compared with NOK 17 billion a year earlier. The order intake for 2014 was NOK 25.3 billion. The order intake for real estate was high in the quarter, as a result of taking in lease contracts in the backlog

”All portfolio companies have now been set up as strong, independent businesses with a dedicated management and separate board of directors. We have embarked on a systematic process to further improve each company’s performance and results. Our portfolio companies deliver acceptable results in 4Q, despite the challenging markets they are operating in. As an investment company, we are constantly looking at exciting opportunities to create shareholder value that might surface in turbulent times like these,” Frank O. Reite, CEO.

The Akastor group’s revenue increased five percent in the fourth quarter from one year earlier to NOK 5 326 million. Full year revenues have grown by 16 percent to NOK 21.4 billion.

Akastor was established as a separate listed company on Oslo Stock Exchange in September 2014, following the split of Aker Solutions into two separate companies.

Akastor has six reporting segments: MHWirth, Frontica Business Solutions, AKOFS Offshore, KOP Surface Products, Fjords Processing and Real Estate & other holdings.

AKOFS Offshore is a global provider of vessel-based subsea well construction and intervention services to the oil and gas industry.

Revenues in AKOFS Offshore was NOK 256 million in the fourth quarter compared to NOK 428 million a year earlier.

The company said that the purchase of Skandi Aker was executed in February 2015. Following the transaction, the vessel has been re-named AKOFS Seafarer. The purchase price was USD 122.5 million.