Norway: Aker Solutions on the Right Track, CEO Says

Norway’s Aker Solutions, a company that provides oilfield products, systems and services for customers in the oil and gas industry world-wide reported first quarter of 2012 operating revenues  of NOK 9.8 billion (USD 1.67 billion), a 15.7 per cent increase from the first quarter of 2011.

Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to NOK 1 002 million with a margin of 10.2 per cent. The positive trend has continued into the second quarter through key strategic events and signing of several important contracts.

Order intake in the quarter was NOK 11 307 million, bringing the order backlog to NOK 42.9 billion at the end of march 2012, up from 40.4 billion twelve months earlier.

“Our performance in the fourth quarter showed that we are on the right track. With a 15.7 per cent year-on-year increase in first quarter revenues and continuous growth in profit margins, it is encouraging to see that we are continuing along this track,” says Øyvind Eriksen, executive chairman in Aker Solutions.

“The start of the second quarter has also been inspiring. We have signed a number of new contracts and we have confirmed significant investments in new capacity,” Eriksen adds.

The biggest contract signed in the second quarter is the NOK 11 billion contract to provide Cat B well intervention services to Statoil on the Norwegian continental shelf.

Investments in new capacity includes a new umbilical manufacturing plant in Malaysia and added capacity at the company’s subsea manufacturing sites in Norway and Malaysia. The total value of these is estimated at NOK 850 million (USD 145.5 million).

“All these elements will be key contributors towards meeting our growth targets for the group as a whole of 9-15 per cent on average per year from 2011 to 2015,” conludes Øyvind Eriksen.

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Offshore Energy Today Staff, May 9, 2012.