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“Our second quarter results demonstrate that we continue on-track with our financial targets, and I am pleased with our overall results for the quarter. As we look ahead to the rest of 2022, we are on the path to deliver full-year revenue growth of around thirty percent, with increased earnings,” said Kjetel Digre, chief executive officer of Aker Solutions.
“The market outlook overall remains positive, despite some supply chain constraints and inflation brought on by the recent and unfortunate geopolitical events. Aker Solutions is well-positioned to capitalize on both near-term recovery and for the longer-term structural change in the energy markets,” said Digre.
Revenue in the second quarter increased to NOK 10.6 billion from NOK 7.0 billion a year earlier. EBITDA excl. special items increased to NOK 691 million compared with NOK 392 million a year before. The increase was driven by continued strong performance in the Subsea and EMM segments. The Renewables and Field Development segment contained a loss provision on a renewables project in the quarter, and solid performance in field development projects in the same period.
Renewables is currently a young and developing industry with some first-of-a-kind projects. Aker Solutions experiences that the current frameworks the industry operates under are not sustainable for the longer term. The company sees a clear need for change in the way authorities, operators and suppliers work together. To secure a sustainable future for the industry, authorities have a key role to play in order to develop a sustainable framework to increase predictability and improve risk-reward balance in the industry.
During the first half of 2022, Aker Solutions has recruited more than 1,000 new skilled employees globally. This means the company is on-track with the target of hiring 2,000 new colleagues in 2022. During the quarter, Aker Solutions completed the acquisition of Frontica Engineering, a Norwegian engineering company employing around 50 highly skilled engineers.
Aker Solutions ended the second quarter with a net cash position of NOK 3.1 billion, excluding lease liabilities, and the company’s financial position remains solid.
The outlook remains positive for Aker Solutions overall. Tender activity is record high at NOK 105 billion and the company will continue to be selective in its approach to tendering. The company sees increased market activity moving forward, especially in the oil and gas segment boosted by the tax incentives in Norway to support the supplier industry, supporting its long-term growth targets.
Aker Solutions continues to see a favorable oil and gas price backdrop, but also a dynamic operating environment and the company will continue to monitor the supply chain situation proactively. Global oil and gas supply is projected to remain constrained in the coming years and energy security to remain a priority. This supports Aker Solutions’ view of multiple years of spending growth from the company’s customers, across areas where Aker Solutions is relevant.
Overall, Aker Solutions is well-positioned to capitalize on both near-term cyclical recovery and for the longer-term structural change in the energy markets. Based on ongoing projects and secured order backlog, the company now expects full-year revenue up by around 30 percent in 2022, and underlying EBITDA-margin continues to be seen up from 2021. In the Subsea segment, margins are now expected at around 15 percent for 2022. The high ongoing FEED work and tendering activity supports the potential for record-high order intake in 2022 for Aker Solutions.
Aker Solutions delivers integrated solutions, products and services to the global energy industry. We enable low-carbon oil and gas production and develop renewable solutions to meet future energy needs. By combining innovative digital solutions and predictable project execution we accelerate the transition to sustainable energy production. Aker Solutions employs approximately 14,000 people in more than 20 countries.
This press release may include forward-looking information or statements and is subject to our disclaimer, see https://akersolutions.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange release was published by Daniel Ingebricson, Communications, Aker Solutions, on July 14, 2022 at 07:00 CEST.