Aker Solutions ASA: First-Quarter Results 2016
(Thomson Reuters ONE) -
April 28, 2016
Financial Highlights
* Sales NOK 6.5 billion in 1Q 2016 vs NOK 8.5 billion in 1Q 2015
* EBITDA NOK 508 million vs NOK 591 million a year earlier
* EBITDA margin 7.9% vs 7% a year earlier
* EBITDA margin ex. one-off items 8% vs 7.8% a year earlier
* EBIT NOK 314 million vs NOK 409 million a year earlier
* EBIT margin 4.9% vs 4.8% a year earlier
* EBIT margin ex. one-off items 5% vs 6% a year earlier
* Earnings per share NOK 0.53 vs NOK 0.79 a year earlier
* Order intake NOK 6 billion vs NOK 9 billion a year earlier
* Order backlog NOK 38.5 billion vs NOK 48.3 billion a year earlier
* Net debt NOK 406 million vs NOK 889 million a year earlier
Aker Solutions made steady progress on major projects from Africa to Norway and
Brazil in the first quarter of 2016. Overall margins strengthened as operational
improvements countered the effects of a global market slowdown.
The company won NOK 6 billion in orders in the quarter, including key MMO
contracts in Norway from ConocoPhillips and Statoil as well as subsea services
agreements with Petrobras in Brazil and BP globally. The engineering division
also secured strategically important concept study orders for the Johan Sverdrup
and Johan Castberg developments offshore Norway. The company saw continued
strong demand for its front end engineering capabilities, receiving 20 study
awards, including for projects in Norway, Australia and West Africa.
The order backlog was NOK 38.5 billion at the end of the quarter, about two-
thirds of which was for projects to be delivered outside Norway, with the
biggest share in West Africa. The financial position was robust at the end of
the period, with a liquidity buffer of 8.5 billion kroner. The net debt
decreased to NOK 406 million at the end of the quarter from NOK 889 million a
year earlier. The company made steady progress on a global program to boost
cost-efficiency by at least 30 percent.
"Margins were supported by our drive to improve operations and bring down costs
across the business and on projects with customers," said Luis Araujo, chief
executive officer of Aker Solutions. "Our healthy order backlog, consistently
strong execution and solid finances will stand us well as we face continued
market uncertainty."
Revenue declined to NOK 6.5 billion in the quarter from NOK 8.5 billion a year
earlier amid a market slowdown and as some projects neared completion. The
company posted earnings before interest and taxes (EBIT) of NOK 314 million
compared with NOK 409 million a year earlier. The EBIT margin was 4.9 percent
versus 4.8 percent a year earlier. The company had NOK 13 million in one-off
items, mainly from costs of restructuring and reducing capacity. Excluding one-
off items, the margin was 5 percent.
Aker Solutions in the quarter introduced measures to streamline operations and
strengthen competitiveness across the business. The company also announced
workforce reductions of as many as 1,500 permanent positions in Subsea and Field
Design. This would bring reductions since the second half of 2014 to about 20
percent of the permanent workforce. About two-thirds of the adjustments are in
Norway. The company will continue to be vigilant about capacity while
safeguarding key competencies.
Aker Solutions has two reporting segments: Subsea and Field Design. Subsea
revenue declined to NOK 3.9 billion in the quarter from NOK 5.1 billion a year
earlier as demand weakened for subsea services and some projects neared
completion. The EBIT margin narrowed to 5.5 percent from 7 percent, impacted by
higher depreciation and lower volumes for subsea services.
Revenue in Field Design, which consists of MMO and Engineering, fell to NOK 2.6
billion in the quarter from NOK 3.5 billion a year earlier. The main decline was
in MMO where some major projects neared completion. The EBIT margin widened to
4.8 percent from 4.4 percent, helped by good progress on engineering projects.
Excluding one-off items the margin was 5.4 percent.
Outlook
The markets are challenging and projects are being postponed across the
industry. But there are signs that cost-cutting efforts are having an effect as
break-even costs are coming down. This may allow some major developments to be
sanctioned in the next 12-18 months. With the exception of the North Sea Johan
Sverdrup project, activity offshore Norway is expected to remain subdued this
year. Aker Solutions' greatest growth potential is outside of Norway, where the
company has been expanding. The company's tendering activity remains steady and
currently totals more than NOK 40 billion.
Aker Solutions is well-placed in key growth regions of the global deepwater and
subsea markets to provide the capabilities and technology to tackle the
challenges of lowering costs and improving recovery rates.
In Subsea, Aker Solutions targets a move over time toward peer-group margins and
a return on average capital employed (ROACE) of 20-25 percent in the medium
term. ROACE was 12 percent for Subsea in the first quarter and 22 percent
excluding special items. Margins in Field Design are expected to gradually
improve, with the biggest movement in MMO. The company expects to at least
maintain its market share in all business areas.
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
Per Christian Olsen, Analyst, Investor Relations, Aker Solutions. Tel:
+47 67 51 36 58, Mob: +47 900 29 077, E-mail:
per.christian.olsen(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 15,000
people in about 20 countries. Go to http://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 http://akersolutions.com.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
1Q 2016 Report:
http://hugin.info/163509/R/2007645/742299.pdf
1Q 2016 Presentation:
http://hugin.info/163509/R/2007645/742300.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#2007645]
Unternehmensinformation / Kurzprofil:
Datum: 28.04.2016 - 07:01 Uhr
Sprache: Deutsch
News-ID 467075
Anzahl Zeichen: 8033
contact information:
Town:
Fornebu
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 238 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Aker Solutions ASA: First-Quarter Results 2016"
steht unter der journalistisch-redaktionellen Verantwortung von
Aker Solutions ASA (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
