Aker Solutions ASA: Third-Quarter Results 2015
(Thomson Reuters ONE) -
November 5, 2015
Financial Highlights
* Sales NOK 7.5 billion in 3Q 2015 vs NOK 8.3 billion in 3Q 2014
* Earnings before interest, taxes, depreciation and amortization (EBITDA) NOK
521 million vs NOK 615 million a year earlier
* EBITDA margin 7% vs 7.4% a year earlier
* EBITDA margin ex. special items 8.5% vs 8% a year earlier
* EBIT NOK 329 million vs NOK 460 million a year earlier
* EBIT margin 4.4% vs 5.6% a year earlier
* EBIT margin ex. special items 6% vs 6.1% a year earlier
* Earnings per share (EPS) NOK 0.75 vs NOK 0.97 a year earlier
* Order intake NOK 4 billion vs NOK 3.6 billion a year earlier
* Order backlog NOK 40.7 billion vs NOK 49 billion a year earlier
Aker Solutions made good progress on major projects from Africa to Norway and
Brazil in the third quarter of 2015 amid a push to improve operations and bring
down costs across the business.
The company won NOK 4 billion in orders in the quarter. These included a
contract for a subsea production system for the Rotan deepwater natural gas
development offshore Malaysia and an order for a high-pressure riser system in
Japan to test production of deepwater methane hydrates, secured as a result of
work by the subsea production alliance Aker Solutions formed last year with
Baker Hughes. Aker Solutions also saw strong interest in its front end
engineering capabilities, winning about 20 concept study awards including for
strategically important projects in Norway, the Caspian Sea and Australia.
The order backlog was NOK 41 billion at the end of the quarter, more than two-
thirds of which was for projects to be delivered outside Norway. The company's
financial position was robust at the end of the period, with a liquidity buffer
of 6.7 billion kroner.
Aker Solutions completed its delivery of the world's first subsea gas
compression system, which went on stream in September at the Statoil-operated
Åsgard field to enable recovery of an additional 306 million barrels of oil
equivalents. Key deliveries in the quarter also included equipment to facilitate
first oil production at Total's Moho field in Congo as well as components
essential to start drilling at Total's Kaombo development in Angola.
"We have shown consistently strong execution quarter by quarter this year and we
are seeing the benefits of improvement programs across the business," said Luis
Araujo, chief executive officer at Aker Solutions. "Our solid order backlog,
growing international presence and strong financial position stand us well as we
face continued market uncertainty with many of our customers scaling back
spending."
Revenue fell to NOK 7.5 billion in the quarter from NOK 8.3 billion a year
earlier, amid declining demand for subsea services, particularly in the North
Sea. Earnings before interest and taxes (EBIT) were NOK 329 million compared
with NOK 460 million a year earlier. Results were impacted by NOK 40 million in
restructuring costs and NOK 40 million in onerous lease costs on vacated office
space in Norway, the UK and Asia. The EBIT margin narrowed to 4.4 percent from
5.6 percent a year earlier. Excluding special items the margin was 6 percent in
the quarter.
The company in the quarter announced plans to further adjust its workforce
capacity to ensure the best fit for current market conditions. Capacity
reductions are expected to total more than 10 percent of the global workforce
this year and about 15 percent since July last year.
Reporting Segments
Aker Solutions has two reporting segments: Subsea and Field Design. Subsea
revenue fell in the third quarter to NOK 4.5 billion from NOK 5.1 billion a year
earlier amid lower demand for services, particularly in the North Sea. The EBIT
margin narrowed to 6.2 percent from 7.9 percent, primarily because of costs of
adjusting the workforce capacity.
Revenue in Field Design, which consists of MMO and Engineering, was NOK 3
billion in the quarter compared with NOK 3.2 billion a year earlier. The EBIT
margin widened to 4.6 percent from 4.4 percent a year earlier, helped by
improved performance on projects.
The long-term fundamentals for growth are still robust as demand for Aker
Solutions' offshore products and services is seen growing while output from
existing fields declines and new developments become more complex. The company
expects to grow in key markets in the medium term and aims to at least maintain
its market share in all business areas. Margins will remain stable in
Engineering and gradually recover in MMO. In Subsea, the aim is to move toward
peer-group margin levels.
ENDS
For further information, please contact:
Media:
Bunny Nooryani, Chief Communications Officer, Aker Solutions. Tel:
+47 67 59 42 71, Mob: +47 480 27 575, E-mail: bunny.nooryani(at)akersolutions.com
Anne Cecilie Lund-Andersen, Media Relations Manager, Aker Solutions. Tel:
+47 22 94 74 52, Mob: +47 99 62 12 13, E-mail: anne.cecilie.lund-
andersen(at)akersolutions.com
Investors:
David Phillips, Head of Industry & Investor Relations, Aker Solutions. Tel:
+44 208 811 7111, Mob: +44 7788 338 887, E-mail:
david.phillips(at)akersolutions.com
Lasse Torkildsen, Senior Advisor, Aker Solutions. Tel: +47 67 51 30 39, Mob:
+47 911 37 194, E-mail: lasse.torkildsen(at)akersolutions.com
Aker Solutions is a global provider of products, systems and services to the oil
and gas industry. Its engineering, design and technology bring discoveries into
production and maximize recovery. The company employs approximately 16,000
people in about 20 countries. Go to www.akersolutions.com for more information
on our business, people and values.
This press release may include forward-looking information or statements and is
subject to our disclaimer, see www.akersolutions.com.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
3Q 2015 Presentation:
http://hugin.info/163509/R/1964277/716955.pdf
3Q 2015 Report:
http://hugin.info/163509/R/1964277/716956.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Aker Solutions ASA via GlobeNewswire
[HUG#1964277]
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Datum: 05.11.2015 - 07:01 Uhr
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News-ID 432126
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