Norway: Aker Solutions Announces Third Quarter Results

Aker Solutions’ operating revenues in the third quarter of 2011 were NOK 8.56 billion. Earnings before interest, tax, depreciation and amortisation amounted to NOK 322 million. Order intake in the quarter was NOK 8 billion.

“Our subsea challenges in Brazil are well known. We are working on a number of improvement initiatives, in close dialogue with our customers, to rectify the situation. However, it is encouraging to see that other business segments are delivering solid financial results with improved margins. Particularly our engineering, drilling technologies and mooring & loading systems businesses have had a strong quarter,” says Øyvind Eriksen, executive chairman of Aker Solutions.

Third quarter consolidated revenues were NOK 8 561 million, compared with NOK 7 949 million in the same period in 2010. EBITDA for the third quarter of 2011 was NOK 322 million (3.8 percent EBITDA margin), compared to NOK 733 million one year ago. Profits in the quarter were negatively affected by approximately NOK 500 million related to execution challenges in Brazil, as announced on 11 October 2011.

Order intake in the third quarter was NOK 8 billion. At the end of the third quarter Aker Solutions’ order backlog was NOK 44.9 billion – an increase of almost 23 percent from third quarter 2010.

“We have a strong order backlog, which reflects that activity levels remain high in all business segments and across all regions of the world. It is worth noting, however, that the North Sea is still the world’s biggest offshore market. We have always been buoyant about the many excellent opportunities in the North Sea, but it is still fascinating to witness one of the world’s biggest oil discoveries on such a mature continental shelf. There is no doubt that the latest discoveries, combined with the oil companies’ efforts to extend the lives of producing fields, will generate a large amount of work the oil service industry for several decades to come,” says Eriksen.

Aker Solutions has also taking steps to strengthen the company’s organisation in other growth regions, including the US and Brazil.

“We have recently appointed two highly experienced industry professionals in roles as regional managers for North America and Brazil respectively. They will coordinate our presence and develop a joint strategy for Aker Solutions in their region. The aim to build up a strong regional presence to capture the growth opportunities we see coming,” adds Eriksen.

[mappress]
Source: Aker Solutions, November 03, 2011