Aker Solutions announces preliminary annual results for 2020
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03 February 2021
Aker Solutions made significant structural and strategic changes to transform the company and enhance shareholder value. This included spinning off Aker Carbon Capture and Aker Offshore Wind to shareholders. The merger between Aker Solutions and Kvaerner has created a stronger and more optimized supplier company and was successfully completed during the fourth quarter.
With the unprecedented challenges of the COVID-19 pandemic and oil price volatility during 2020, Aker Solutions’ decisive actions focused on the health and safety of employees, delivering for clients, reducing cost and protecting the company’s balance sheet.
For the fourth quarter, Aker Solutions expects EBITDA excluding special items at around NOK 120 million, net negatively impacted by about NOK 350 million from non-recurring project adjustments related to a few projects, of which about NOK 120 million are non-cash. These projects, which were partly impacted by the restrictions imposed to manage the COVID-19 pandemic, are now in the finalization phase. Special items for the quarter are expected at around NOK 40 million, mainly related to restructuring charges from realization of merger synergies.
Fourth quarter EBIT excluding special items is expected to be around minus NOK 180 million, as the company expects to book around NOK 390 million of right-of-use asset impairments from synergies partly related to footprint optimization following the merger of the two companies. Net tax asset impairments in the quarter is expected at about NOK 90 million.
Preliminary financial results for the fourth quarter 2020:
- Revenues around NOK 6.9 billion
- EBITDA around NOK 80 million
- EBITDA ex. special items around NOK 120 million
- EBIT around minus NOK 680 million
- EBIT ex. special items around minus NOK 180 million
- Net cash position at year-end around NOK 450 million
- Working capital at year-end around minus NOK 280 million
Preliminary financial results for the year ended 31 December 2020:
- Revenues around NOK 29.4 billion
- Revenues ex. special items NOK 28.6 billion
- EBITDA around NOK 1.5 billion
- EBITDA ex. special items around NOK 1.2 billion
- EBIT around minus NOK 780 million
- EBIT ex. special items around minus NOK 50 million
- Capex around NOK 0.6 billion
Against the challenging backdrop of COVID-19, the company delivered about 30% growth in order intake versus the prior year, with high activity level in core oil & gas markets, following the temporary tax incentives in Norway in particular. Order intake for the year is expected around NOK 34 billion, of which around NOK 6.8 billion in the fourth quarter.
The business case and strategic ambitions for the merger remains unchanged. Aker Solutions has fully implemented the NOK 1.5 billion overhead cost saving target. Initiatives include simplified organizational structure, optimized footprint and improved project execution and management model.
Looking ahead, Aker Solutions is currently involved in a high level of FEED- and tendering activity and is engaged in about NOK 76 billion of tenders for new work, where around one third relates to renewables and low-carbon projects. This, combined with leading capabilities within energy transition, should turn into a number of interesting opportunities where Aker Solutions is well positioned.
Aker Solutions will publish its fourth-quarter results for 2020 on Monday, February 15, at 07:00 CET, with a live webcast and teleconference will take place the same day at 09:00 CET. In addition to the financial results, the presentation will include comments on market and strategy.