Aker Solutions profit surges in fourth quarter 2018

Norwegian oilfield services provider Aker Solutions recorded an increase in profit in the last quarter of 2018 from the same period in 2017 on the back of higher revenues. The company sees continued signs of a recovery in the global market. 

The company’s revenue rose to NOK 7 billion in the fourth quarter 2018 from NOK 6.4 billion a year earlier, supported by progress and deliveries on key projects in several markets.

Aker Solutions has two reporting segments: Projects and Services.

Revenue in Projects rose 8 percent to NOK 5.6 billion in the quarter from NOK 5.2 billion a year earlier, mainly driven by the field design sub-segment.

Revenue in Services was NOK 1.3 billion, up 13 percent from NOK 1.2 billion in the same quarter last year, with the increase driven by international growth in the company’s production asset services sub-segment.

The company recorded a net profit of NOK 178 million in the fourth quarter 2018 compared to the net profit of NOK 19 million in the same period of 2017.

Orders totaled NOK 5.3 billion in the quarter, bringing the backlog to NOK 35.1 billion.

According to Aker Solutions, there are continued signs of a recovery in the global market, improvement measures across the industry are lowering break-even costs and more projects are being sanctioned.

Tendering activity remains high in main markets – and Aker Solutions is currently bidding for contracts totaling about NOK 45 billion. About two thirds of this is in the subsea area – and key projects are anticipated to be awarded over the next six to 12 months.

In the longer term, Aker Solutions expects an increase in global energy demand and that investment efforts in sustainable energy solutions will be rewarded.

Aker Solutions sees overall revenue in 2019 slightly up from 2018 on the back of a strong order intake last year, and continued high tendering activity.

Offshore Energy Today Staff