OSLO, Norway, Oct. 28, 2020 /PRNewswire/ --
Aker Solutions' revenues, excluding special items, were
NOK 4.7 billion and the order intake
was NOK 7.1 billion in the third
quarter of 2020.
3Q 2020 Financial
Highlights
- Revenue NOK 5.5
billion
- Revenue ex. special items NOK 4.7
billion
- EBITDA NOK 938
million
- EBITDA ex. special items NOK 243
million
- EBITDA margin ex. special items
5.2%
- Order intake NOK 7.1
billion
- Order backlog NOK 29.2
billion
"This was a transformational quarter for Aker Solutions, as we
announced our plans to merge with Kvaerner to create a stronger,
more robust supplier company," said Kjetel Digre, who was appointed
chief executive officer of Aker Solutions on July 17.
The company also completed the spin-offs of its offshore wind
and carbon capture businesses during the third quarter, which
created significant value for shareholders and a one-off gain of
NOK 804 million for Aker Solutions in
the quarter.
Orders totalled NOK 7.1 billion in
the quarter, bringing the backlog to NOK
29.2 billion. This was up from NOK
26.9 billion at the end of the previous quarter, reflecting
an increase in orders on the Norwegian Continental Shelf. Temporary
measures to boost industrial activity in Norway were introduced in June and led to an
increase in sanctioning activity, which continued into the third
quarter.
New orders included a contract to deliver a subsea production
system to ConocoPhillips for the Tommeliten Alpha development,
which includes 10 subsea trees and associated equipment. Aker
Solutions also secured a contract from the same client to execute
modifications to the Ekofisk platform to integrate the Tommeliten
Alpha discovery.
Low-carbon solutions are an increasingly important part of Aker
Solutions' portfolio and during the third quarter, the company
signed an engineering, procurement, construction and installation
(EPCI) contract for the integration of a high-voltage electrical
boiler package as part of the electrification of Lundin Energy's
Edvard Grieg platform.
In the third quarter Aker Solutions agreed to sell its
subsidiary software company, ix3, to aiZe, a newly established
software company owned by Aker ASA, for NOK
222 million.
"Aker Solutions has invested significantly in digitalization and
software development in recent years. Realizing the full potential
requires more dedicated resources and capital. We therefore
consider the timing right for a sale of the software company to
Aker," Digre added.
Aker Solutions will retain access to necessary software products
and improvements of these through partnership agreements, while the
company will no longer be required to fund the development of new
software. The agreement with aiZe will reduce the annual operating
expenses with approximately NOK 50
million. This is in accordance with the company's strategic
objective to develop the new Aker Solutions as a focused and
optimized supplier company.
The transaction has been treated in accordance with the
company's related party transaction procedure. Independent fair
value estimates have been provided by Deloitte.
Revenue and EBITDA
Revenue excluding special items fell to NOK
4.7 billion in the quarter from NOK
7.1 billion a year earlier, as operators reduced activity
level due to the COVID-19 pandemic and lower oil prices.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) were NOK 938 million,
including gains related to the spin-offs of Aker Offshore Wind and
Aker Carbon Capture. EBITDA, excluding special items, were
NOK 243 million, compared with
NOK 570 million a year earlier. The
EBITDA margin was 5.2 percent versus 8.0 percent a year
earlier.
Aker Solutions has two reporting segments: Projects and
Services. Revenue in Projects fell to NOK
3.6 billion in the quarter from NOK
5.6 billion a year earlier. Excluding special items, EBITDA
margin was 5.3 percent in the quarter versus 8.1 percent a year
earlier.
Revenue in Services fell to NOK 1.1
billion in the quarter from NOK 1.5
billion a year earlier. Excluding special items, the EBITDA
margin was 11.8 percent in the quarter compared with 11.2 percent a
year earlier.
Proposed Merger with Kvaerner
On July 17, Aker Solutions and
Kvaerner announced plans to merge the two companies to create a
stronger supplier company. The plans have been approved by
Extraordinary General Meetings of both companies and the process is
on track to be completed according to schedule.
The first day of trading for the new Aker Solutions is currently
expected to be November 11, 2020.
CONTACT:
Media Contact:
Cathrine Gjertsen, mob: +47 99 49 25
37, email: cathrine.gjertsen@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-2020,c3226526
The following files are available for download:
https://mb.cision.com/Public/18353/3226526/b7afbfeb5b0e2eb4.pdf
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3Q 2020
Presentation
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