Aker Solutions books loss in second quarter

Norwegian oilfield services provider Aker Solutions recorded a loss in the second quarter of the year despite an increase in revenues driven by higher activity.

Photo: Aker Solutions

Aker Solutions posted a loss of NOK 11 million ($1.3 million) for the second quarter of the year compared to a profit of NOK 117 million ($13.6 million) in the same period last year.

The company recorded a 20% increase in revenues year-on-year. Namely, revenues rose to NOK 7.5 billion in the quarter from NOK 6.3 billion a year earlier, driven by generally higher market activity and continued good progress on a number of key projects.

Aker Solutions has two reporting segments: Projects and Services.

Revenue in Projects rose to NOK 6 billion in the quarter from NOK 4.9 billion a year earlier.

Revenue in Services rose to NOK 1.5 billion in the quarter from NOK 1.3 billion a year earlier, driven by higher activity and strong operational performance

“While the market remains very competitive, we are delivering our fifth consecutive quarter with revenue growth, and we are still seeing high tendering activity in our target markets,” said Luis Araujo, chief executive officer of Aker Solutions.

The company’s orders totaled NOK 3.8 billion in the quarter, bringing the backlog to NOK 29.5 billion. This was down from NOK 33.3 billion at the end of the previous quarter, reflecting the timing of new awards.

“We continue to see demand for studies and front-end work for larger and more complex projects,” said Araujo. “This puts us in a strong position to secure more work in future phases.”

According to the company, the market outlook for oil services remains competitive, and there is still pressure on pricing. Tendering activity is high in the company’s main markets.

Aker Solutions sees overall revenue up by around 10 percent in 2019 from 2018, in particular, driven by the high activity levels in the Field Design sub-segment in the first half and continued high tendering activity.

Offshore Energy Today Staff

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