Delays and increased costs on Longview power project

Aker Solutions will reverse previously reported profits on its Longview coal fired power project in the US in the third quarter this year. As a consequence of this, the Process & Construction (P&C) business area will report slightly negative earnings before interests, tax, depreciation and amortisation (EBITDA).

The Longview project was awarded to Aker Construction, Inc., formerly Aker Kvaerner Songer, Inc., an indirect subsidiary of Aker Solutions ASA, in January 2007, in a consortium with Siemens Energy, Inc., formerly Siemens Power Generation, Inc. The consortium contracts total combined value is approximately USD 1.1 billion with Aker Construction's individual contract valued at approximately USD 654 million.

Completion of the project is currently scheduled to occur mid 2011. The project is delayed and costs have increased amongst other due to force majeure events, changes to the project, and third party actions in furnishing engineering services, equipment and materials, all of which have directly and adversely impacted Aker Solutions' project work.

"The situation is highly unfortunate, and we are working closely with our client, partners and vendors to find good solutions. There is uncertainty with regard to remaining work and the financial outcome of the project. In light of this we will reverse profits that have been booked on the project in the past," says Øyvind Eriksen, executive chairman of Aker Solutions.

The development in the Longview project will contribute to an increase in Aker Solutions' working capital in the third quarter.

ENDS

For reference: Press release from January 2007 announcing the project award.

For further information, please contact:

Investor relations:
Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30 39, Mob: +47 911 37 194
Ingrid Aarsnes, VP Investor Relations, Aker Solutions. Tel: +47 22 94 63 37, Mob: +47 950 38 364

Media:
Geir Arne Drangeid, EVP Corporate Communications. Tel: +47 67 51 30 36, Mob: +47 913 10 458

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

Notes to editors:
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 54 billion and employs approximately 22 000 people in about 30 countries.

Ake  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 www.akersolutions.com.