Aker Solutions Profit Falls

Aker Solutions has reported a net income of NOK 169 million in the first quarter 2016 versus net income of NOK 220 million a year earlier.

Revenue declined to NOK 6.5 billion in the quarter from NOK 8.5 billion a year earlier amid a market slowdown.

The company posted earnings before interest and taxes (EBIT) of NOK 314 million compared with NOK 409 million a year earlier.

During the quarter the company announced workforce reductions of as many as 1,500 permanent positions in Subsea and Field Design, about two-thirds made in Norway.

In Subsea segment Aker Solutions revenue dropped to NOK 3.9 billion in the quarter from NOK 5.1 billion a year earlier.

The EBIT margin narrowed to 5.5 percent from 7 percent, impacted by higher depreciation and lower volumes for subsea services.

In the company’s Field Design segment, which includes MMO and Engineering, revenue fell to NOK 2.6 billion in the Q1 2016 from NOK 3.5 billion in Q1 2015.

At the end of the quarter the order backlog was NOK 38.5 billion, more than two-thirds of which was for projects to be delivered outside Norway, with the biggest share in West Africa.