Delays and increased costs on Longview power project
(Thomson Reuters ONE) -
Aker Solutions will reverse previously reported profits on its Longview coal
fired power project in the US in the third quarter this year. As a consequence
of this, the Process & Construction (P&C) business area will report slightly
negative earnings before interests, tax, depreciation and amortisation (EBITDA).
The Longview project was awarded to Aker Construction, Inc., formerly Aker
Kvaerner Songer, Inc., an indirect subsidiary of Aker Solutions ASA, in January
2007, in a consortium with Siemens Energy, Inc., formerly Siemens Power
Generation, Inc. The consortium contracts total combined value is approximately
USD 1.1 billion with Aker Construction's individual contract valued at
approximately USD 654 million.
Completion of the project is currently scheduled to occur mid 2011. The project
is delayed and costs have increased amongst other due to force majeure events,
changes to the project, and third party actions in furnishing engineering
services, equipment and materials, all of which have directly and adversely
impacted Aker Solutions' project work.
"The situation is highly unfortunate, and we are working closely with our
client, partners and vendors to find good solutions. There is uncertainty with
regard to remaining work and the financial outcome of the project. In light of
this we will reverse profits that have been booked on the project in the
past," says Øyvind Eriksen, executive chairman of Aker Solutions.
The development in the Longview project will contribute to an increase in Aker
Solutions' working capital in the third quarter.
ENDS
For reference: Press release from January 2007 announcing the project award.
For further information, please contact:
Investor relations:
Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30 39,
Mob: +47 911 37 194
Ingrid Aarsnes, VP Investor Relations, Aker Solutions. Tel: +47 22 94 63 37,
Mob: +47 950 38 364
Media:
Geir Arne Drangeid, EVP Corporate Communications. Tel: +47 67 51 30 36, Mob:
+47 913 10 458
Career opportunities:
Visithttp://www.akersolutions.com/Internet/CareerCentre
Notes to editors:
Aker Solutions ASA, through its subsidiaries and affiliates ("Aker Solutions"),
is a leading global provider of engineering and construction services,
technology products and integrated solutions. Aker Solutions' business serves
several industries, including oil & gas, refining & chemicals, mining & metals
and power generation. The Aker Solutions group is organised in a number of
separate legal entities. Aker Solutions is used as the common brand/trademark
for most of these entities.
Aker Solutions' parent company is Aker Solutions ASA. Aker Solutions has
aggregated annual revenues of approximately NOK 54 billion and employs
approximately 22 000 people in about 30 countries.
Ake Solutions is part of Aker (www.akerasa.com), a group of premier companies
with a focus on energy, maritime and marine resource industries. The Aker
companies share a common set of values and a long tradition of industrial
innovation. Through its majority-owned holding company Aker Holding AS, Aker
controls 40.27 percent of the shares in Aker Solutions, and takes an active role
in the development of the company.
This press release may include forward-looking information or statements and is
subject to our disclaimer, see www.akersolutions.com.
[HUG#1451189]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters 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 Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 12.10.2010 - 17:30 Uhr
Sprache: Deutsch
News-ID 45290
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Town:
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