Aker Solutions ASA: First-quarter results 2013
8 May 2013
Financial Highlights
- Aker Solutions generated revenue of NOK 11.1 billion in the first quarter of 2013, compared with NOK 9.8 billion in the first quarter of 2012.
- Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to NOK 868 million in the quarter, compared with NOK 1,040 million in the year-earlier period.
- The EBITDA margin was 7.8 percent in the quarter, compared with 10.6 percent a year earlier.
- Earnings per share (EPS) amounted to NOK 1.00 in the quarter.
- The order intake was NOK 25.5 billion in the quarter, up from NOK 11.3 billion a year earlier.
- The order backlog reached an all-time high of NOK 71.7 billion at the end of the quarter, an increase of 67 percent from a year earlier.
Key Developments
Earnings were impacted in the quarter by increased costs of about NOK 70 million at the Ekofisk Zulu platform project as work was accelerated to deliver the platform in mid-June. In addition, the umbilicals business area lost NOK 63 million in the quarter after Aker Solutions wrote down the value of several projects. The oilfield services and marine assets business area lost NOK 54 million as the vessels Aker Wayfarer and Skandi Aker were idle.
Earnings were impacted in the quarter by increased costs of about NOK 70 million at the Ekofisk Zulu platform project as work was accelerated to deliver the platform in mid-June. In addition, the umbilicals business area lost NOK 63 million in the quarter after Aker Solutions wrote down the value of several projects. The oilfield services and marine assets business area lost NOK 54 million as the vessels Aker Wayfarer and Skandi Aker were idle.
The company's order backlog was bolstered by new contract awards for subsea production systems in key markets such as Brazil, West Africa and Norway. The subsea business accounted for 27 percent of total revenue at the end of the first quarter, followed by the maintenance, modifications and operations business with 26 percent and the drilling technologies business with 21 percent.
Positive Long-Term Trend
Demand for Aker Solutions' products and services remains high in most regions. Tendering activity is also strong.
"The long-term trend in our main markets is positive," says Øyvind Eriksen, executive chairman of Aker Solutions. "At the same time, we have recently seen that some customers are taking longer to make final decisions to award contracts. This makes it more difficult to predict short-term market developments."
As communicated in a stock exchange release on 29 April, Aker Solutions expects earnings to be higher in the third and fourth quarters of 2013 compared with the same quarters a year earlier. The expectations are based in part on anticipated contract awards, particularly within the subsea business area.
ENDS
For further information, please contact:
Investor relations:
Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30 39, Mob: +47 91 13 71 94, E-mail: lasse.torkildsen@akersolutions.com
Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30 39, Mob: +47 91 13 71 94, E-mail: lasse.torkildsen@akersolutions.com
Media:
Bunny Nooryani, Chief Communications Officer, Aker Solutions. Tel: +47 67 59 42 71, Mob: +47 480 27 575, E-mail: bunny.nooryani@akersolutions.com
Bunny Nooryani, Chief Communications Officer, Aker Solutions. Tel: +47 67 59 42 71, Mob: +47 480 27 575, E-mail: bunny.nooryani@akersolutions.com
Aker Solutions provides oilfield products, systems and services for customers in the oil and gas industry world-wide. The company's knowledge and technologies span from reservoir to production and through the life of a field.
Aker Solutions brings together engineering and technologies for oil and gas drilling, field development and production. The company employs approximately 28 000 people in more than 30 countries. We apply the knowledge and create and use technologies that deliver our customers' solutions.
Aker Solutions ASA is the parent company in the group, which consists of a number of separate legal entities. Aker Solutions is used as the common brand and trademark for most of these entities. In 2012 Aker Solutions had aggregated annual revenues of approximately NOK 45 billion. The company is listed on the Oslo Stock Exchange.
This press release may include forward-looking information or statements and is subject to our disclaimer, see www.akersolutions.com.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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