Aker Solutions Sees Slight Profit Increase
23 October 2017Norwegian oil services company Aker Solutions has reported net income of NOK 124 million ($16 million), or NOK 0.40 in the third-quarter 2017, versus net income of NOK 120 million ($15 million), or NOK 0.37 in the prior-year comparable period.
The company, however, has seen its revenue decline 9 percent to NOK 5.4 billion ($678 million) in the quarter from NOK 6 billion a year earlier on continuous weak market and as some projects move towards completion.
Quarterly EBITDA was NOK 401 million, versus NOK 477 million same time last year, while the EBITDA margin was 7.4 percent against 8 percent a year earlier.
In the third quarter Aker Solutions won 13 study awards for front-end engineering, giving a record of 84 studies in the first nine months of the year.
For the first nine months of 2017 Aker Solutions generated revenue of NOK 16 billion, down form NOK 19.4 in the first nine months last year. For 2017, Aker Solutions continues to see overall revenue down by about 10-15 percent from the prior year.
In the ‘Projects’ segment Aker Solutions revenue dropped to NOK 4.2 billion in the quarter from NOK 5 billion a year earlier. Subsea revenue fell 37 percent versus last year to NOK 1.8 billion.
In the company’s ‘Services’ segment revenue increased to NOK 1.2 billion in the Q3 2017 from NOK 1 billion in Q3 2016, boosted by growth from the acquisition of C.S.E.
Aker Solutions said it is bidding for contracts totaling about NOK 55 billion. The majority of these are in the subsea area, where the company, like in earlier reports, anticipates several major greenfield projects to be awarded in the upcoming 6 months.
At the end of the first quarter the order backlog was NOK 27.2 billion, of which NOK 7.7 million in Subsea, compared to close to NOK 35 billion at the end of the year-ago quarter. The order intake was NOK 2.6 billion versus NOK 3.4 billion a year earlier.
The company said it has completed 90 percent of its program aimed at increasing cost-efficiency by at least 30 percent by the end of this year. It is now also targeting an additional improvement of minimum 20 percent by the end of 2021.