Report for the fourth quarter of 2010
Net asset value (NAV) for Aker ASA and companies in its holding structure (Aker)was NOK 18.4 billion or NOK 253.80 per Aker share as of 31 December 2010, down5.9 percent from year-end 2009. In 2010, Aker's share price declined by 13.3percent while the Oslo Stock Exchange benchmark index (OSEBX) increased 18.3percent.
Aker has built a sound foundation for value growth. The Board recommends paymentof a NOK 10 per-share dividend for the 2010 accounting year.
In 2010, Aker implemented key measures to further develop its role as an equityinvestor through active ownership in operating companies and by reducingoutstanding loans to subsidiaries and associated companies from NOK 6.9 billionto NOK 5.5 billion.
2010 was marked by important events at operating companies, with Aker as adriver in identifying commercial opportunities and executing transactions inAker Solutions and Aker BioMarine. Also in Aker's Industrial Holdings portfolio,Aker Drilling and Aker BioMarine achieved excellent operational advances in2010. Aker Solutions reported satisfactory 2010 profits, and the company's boardof directors will recommend a NOK 754 million dividend payout for 2010. Aker'sshare of the dividend disbursement through its ownership in Aker Holding willamount to NOK 182 million.
Deferred tax benefit in Aker's 2010 accounts has been written down by NOK 430million due to changes in assumptions as to future application of carryforwardlosses.
At Aker Drilling, the positive trend of safe, stable operations continued in thefourth quarter. The company's two rigs recorded utilisation exceeding 95 percentin the quarter. In the fourth quarter of 2010, Aker Solutions announced the saleof its AMC subsidiary and most of the P&C business. The sales are stages in thestreamlining of Aker Solutions into an engineering and technology company; theoffshore yards will be spun off as a separate listed company. Aker BioMarinerecorded a NOK 393 million accounting gain in the fourth quarter as a result ofits Trygg Pharma joint venture agreement with Lindsay Goldberg.
In the first quarter of 2011, Aker Drilling implemented a plan for targetingstrong offshore growth markets and completed the listing of the company. Twodeepwater drillships have been ordered, with an option to build an additionaltwo drillships. Following a NOK 3 600 million share issue, Aker's ownershipinterest in Aker Drilling was reduced from 100 percent to 43.49 percent (beforeover-allotment). Aker subscribed to NOK 567 million of the share issue. As of31 December 2010, the carrying value of Aker's share investment in Aker Drillingwas reevaluated at the share issue price of NOK 19 per share or a total ofNOK 1.8 billion. Previously, the Aker Drilling shareholding was valued at itshistorical cost of NOK 3.5 billion.
Aker Drilling has completed a refinancing of its bank debt and bond loan. As aconsequence of the share issue and refinancing, the drilling company isscheduled to repay its USD 488 million loan from Aker in the first quarter of2011. Aker Drilling's 3-year NOK 1.5 billion bond loan has been replaced by a 5-year bond loan that no longer carries Aker ASA's guarantee. Thus, Aker Drillingachieved financial independence from Aker. The drilling company will continueits development as an independent entity with Aker as a significant minorityshareholder.
In the first quarter of 2011, Aker Philadelphia Shipyard entered into anagreement that forms the foundation for the construction of two vessels andcontinued operations at the yard until the first half of 2013.
Enclosed please find the Q4 2011 report and presentation.
This information is subject of the disclosure requirements pursuant to section5-12 of the Norwegian Securities Trading Act.
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