First quarter consolidated revenues amounted to NOK 14 217 million, slightly higher compared with NOK 14 147 million for the same period in 2007. This reflects continued strong markets and high activity levels.

EBITDA for the first quarter of 2008 was NOK 1 002 million compared to NOK 856 million in the first quarter of 2007, an increase of 17 percent. The EBITDA margin for the first quarter 2008 was 7.0 percent compared to 6.1 percent in the same period in 2007.

Net financial income for the first quarter was NOK 6 million, improved compared to negative NOK 14 million for the same period in 2007. This improvement is due mainly to reduced USD interest rates and currency exchange gains.

Fluctuations in the fair value of hedging transactions which did not qualify for hedge accounting represented an accounting gain of NOK 11 million, of which NOK 47 million is booked under financial items and negative NOK 36 million booked under EBITDA.

Pre-tax profit for the first quarter 2008 was NOK 950 million compared to NOK 798 million for the same period in 2007. Tax expenses for the first quarter were NOK 283 million, which was 30 percent of profit before tax. Net profit for the first quarter was NOK 667 million, representing earnings per share of NOK 2.44. 

Cash flow from operating activities was negative NOK 848 million in the first quarter. This reflects a NOK 1 789 million increase in net current operating assets, from negative
NOK 1 061 million at the end of the year to NOK 728 million at the end of the first quarter.

Cash and bank deposits at the end of the first quarter were NOK 2.1 billion, a decrease of NOK 1.5 billion during the first quarter. Undrawn committed long-term bank revolving credit facilities amounted to NOK 6 billion, giving a total liquidity buffer of NOK 8.1 billion.

Gross interest-bearing debt amounted to NOK 2.1 billion at the end of the first quarter. Net interest bearing assets were NOK 0.5 billion.

Order intake in the first quarter was NOK 13.3 billion. Order intake represents both new contracts and growth in existing contracts. At the end of the first quarter, order backlog was NOK 54.5 billion, a decrease of NOK 3.8 billion from year end 2007.

Equity ratio at the end of the first quarter was 25.1 percent, a decrease from 25.5 percent at the end of the year 2007, due to increase in balance sheet.

As reported in 2007, Aker Solutions has initiated a number of improvement programmes to strengthen its competitiveness. These programmes are progressing as planned.

 

In March, Aker Solutions launched an internal process that will lead to the creation of one, new business area that integrates the operations of its current Maintenance, Modifications and Operations business area (MMO) and Field Development business area (FD). The new business area will have nearly 8 500 own employees and had revenues of NOK 25 billion in 2007. This process will streamline the operations, further sharpening the commercial edge in winning new projects in new and current markets and strengthening the ability to develop new business opportunities. The reorganisation maintains Aker Solutions' leading engineering capability and enhances the flexibility in further optimising its services offering and capacity. More focused business streams and resource centres will be secured. This will also position Aker Solutions for further project execution excellence across the project portfolio. It will be reported as one Business Area, Energy Development & Services, from the first quarter 2008.

ENDS

 

Media: Jannik Lindbæk, SVP Corporate Communications, Aker Solutions. Tel: +47 67 51 30 36, Mob: +47 977 55 622

 

Investor relations: Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30 39, Mob: +47 911 37 194

 

Career opportunities: visit http://www.akersolutions.com/Internet/CareerCentre

 

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 58 billion and employs approximately 24 000 people in about 30 countries.

Aker 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 our web-pages www.akersolutions.com.