Aker Solutions ASA: Improved Financial Results in the Second Quarter
July 13, 2020
This has resulted in significant improvement of revenue, earnings and order intake in the quarter, due to faster-than-expected implementation of cost-saving measures, higher activity than first anticipated on existing projects and several new contract awards.
In the second quarter, the company expects operating revenue of about NOK 5.4 billion and EBITDA of about NOK 230 million. Excluding special items, EBITDA is expected to be about NOK 350 million. Special items mainly relate to restructuring costs of about NOK 115 million as the company adjusted the organization following lower activity levels.
The result improved as Aker Solutions made good progress on its previously announced NOK 1 billion cost saving program. The company also experienced increased activity in existing projects during the quarter, as the company and operators managed to keep activity levels up, despite restrictions imposed to manage the COVID-19 pandemic.
Sanctioning activity increased after Norwegian authorities introduced temporary tax incentives for oil and gas companies to start new projects. Aker Solutions won several new contracts for projects on the Norwegian Continental Shelf in June, and the order intake is expected to be about NOK 7 billion in the quarter.
Order intake in the second quarter includes about NOK 2.5 billion for the Breidablikk and Askeladd projects awarded by Equinor, excluding options. The company also experienced a significantly higher than anticipated order intake growth across several ongoing projects and frame agreements, particularly in the Brownfield area.
ENDS
Aker Solutions helps the world meet its energy needs. We engineer the products, systems and services required to unlock energy. Our goal is to maximize recovery and efficiency of oil and gas assets, while using our expertise to develop the sustainable solutions of the future. Aker Solutions employs approximately 15,000 people in more than 20 countries.
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This press release may include forward-looking information or statements and is subject to our disclaimer, see https://akersolutions.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.