OSLO, Norway, Oct. 23, 2019 /PRNewswire/ -- Aker Solutions'
revenue increased in the third quarter of 2019 compared to the same
period a year earlier, as the company experienced higher activity
levels across segments with several key deliveries
globally.
3Q 2019 Financial Highlights
- EBITDA ex. special items NOK 570
million
- EBITDA margin ex. special items 8.0%
- Earnings per share ex. special items NOK
0.33
- Order intake NOK 4.7 billion
- Order backlog NOK 27.4
billion
The company delivered strong execution on major projects
globally. Highlights included work to get the Johan Sverdrup field
ready to start production on October
5, below budget and two months ahead of schedule. The
company has been involved in this project since its early phase
from front end, through design, construction and hook-up. Other
highlights included first oil on the Mariner project in the UK for
Equinor, and completed delivery for the Ærfugl and Skogul projects
in Norway under the subsea
alliance contract with Aker BP and Subsea 7.
"We delivered another quarter of revenue growth compared to last
year, reflecting good execution and high activity levels in field
design and subsea on the back of work won over the last 18 months,"
said Luis Araujo, chief executive
officer of Aker Solutions. "The market is still competitive, but we
continue to see high tendering activity in our main markets.
Despite the fact that projects take longer to be awarded, we expect
several prospects to be concluded over the next six months," he
added.
Orders totaled NOK 4.7 billion in
the quarter, bringing the backlog to NOK
27.4 billion. The order intake was primarily driven by
smaller awards and growth in existing contracts. Aker Solutions won
37 front-end orders in the period, bringing the total for the first
three quarters of the year to 111, slightly higher than the record
number from last year.
The financial position remained solid, with a liquidity buffer
of NOK 6.8 billion at the end of the
quarter.
Revenue and EBITDA
Third-quarter revenue rose to NOK 7.1
billion in the quarter from NOK 6.5
billion a year earlier, driven by increased activity levels
in both the Projects and Services segments. Earnings before
interest, taxes, depreciation and amortization (EBITDA) were
NOK 553 million, compared with
NOK 463 million a year earlier. The
EBITDA margin was 7.8 percent. Excluding special items, the margin
was 8.0 percent compared with 7.5 percent a year earlier.
Aker Solutions has two reporting segments: Projects and
Services. Revenue in Projects rose to NOK
5.6 billion in the quarter from NOK
5.2 billion a year earlier, mainly driven by high activity
level in the Field Design sub-segment compared to the same period
last year. Excluding special items, EBITDA margin was 8.1 percent
in the quarter versus 7.2 percent a year earlier.
Revenue in Services rose to NOK 1.5
billion in the quarter from NOK 1.3
billion a year earlier, driven by international growth in
the company's Production Asset Services sub-segment. Excluding
special items, the EBITDA margin was 11.2 percent in the quarter
compared with 14.9 percent a year earlier.
Outlook
The outlook for oil services remains competitive. Tendering
activity is high, with a good balance between regions and segments.
Aker Solutions is currently bidding for contracts totaling about
NOK 55 billion. The company expects
visibility on order intake to improve, as several prospects are
likely to be concluded over the next six months.
Aker Solutions reported revenue growth of 12 percent in 2018 and
the company expects its 2019 revenue to increase at a similar rate,
with fourth quarter underlying EBITDA margin slightly below the
third quarter level.
For 2020, overall revenue and EBITDA margin are currently
expected slightly down year-on-year.
"After delivering nearly 25 percent revenue growth and stable
margins over the past two years, we expect to see slightly lower
revenues and margins next year," said Araujo. "This is mainly
driven by the order intake in 2019 and the phasing in of new work
won in a very competitive market. We believe we are well positioned
to win new work and to deliver a solid financial and operational
performance in 2020."
ENDS
Media Contact:
Ivar Simensen, mob: +47 464 02
317, email: ivar.simensen@akersolutions.com
Investor Contact:
Fredrik Berge, mob: +47 450 32
090, email: fredrik.berge@akersolutions.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/aker-solutions-asa/r/aker-solutions-asa-third-quarter-results-2019,c2938756
The following files are available for download:
https://mb.cision.com/Public/18353/2938756/9aeadaf5998a1995.pdf
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3Q 2019
Presentation
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