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    AKAST   NO0010215684

AKASTOR ASA

(AKAST)
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Baker Hughes, Akastor merging oil drilling ops, eye IPO

03/02/2021 | 09:07am EDT
FILE PHOTO: The logo of Baker Hughes

OSLO (Reuters) - Baker Hughes and Norway's Akastor plan to merge their offshore oil drilling equipment units to combine their complementary technologies, with a view to listing the new company longer term, they said on Tuesday.

Demand for new drilling equipment has been weak amid the COVID-19 pandemic and last year's plunge in the price of oil, and the companies said proforma revenue for the new unit declined by 16% in 2020 to $713 million.

Combining the drilling technology of Akastor's MHWirth, which sits on top of an oil rig, with seabed pressure control units made by Baker Hughes Subsea Drilling Systems (SDS), will cut costs and create a complete product offering, Akastor told Reuters.

"This is the sort of equipment MHWirth has wanted for many years, but which is difficult to invent from scratch as it's strictly regulated and technically complex," Akastor Chief Financial Officer Oeyvind Paaske said of the SDS products.

Akastor shares hit a 12-month high in early Oslo trade and were up 6.1% by 1338 GMT.

The new company will be owned 50% by each of the parent companies and will have a dual headquarters in Houston, Texas and the southern Norwegian town of Kristiansand, the two companies said.

An initial public offering could come a year or more after the deal closes, Paaske said.

"This transaction makes a stock market listing more realistic," Paaske said, adding that Akastor had considered listing MHWirth previously but didn't feel it had the right set-up to be an independent company.

The new company also plans to expand within onshore oil drilling and in non-oil businesses such as mining at sea and on land.

Annual cost savings from the deal were estimated at between $10 million and $11 million, Akastor said. The company declined to comment on potential job losses.

Baker Hughes will get a cash payout of $120 million from the new firm when the deal closes, and will be owed a further $80 million, while Akastor will receive $100 million in cash and be owed another $20 million.

The deal is subject to regulatory approvals and is expected to close in the second half of 2021.

(Reporting by Terje Solsvik; editing by Jason Neely and Susan Fenton)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AKASTOR ASA -0.83% 5.96 Real-time Quote.-15.11%
AKER ASA 2.07% 642.5 Real-time Quote.12.41%
BAKER HUGHES COMPANY 2.33% 19.995 Delayed Quote.-6.24%
LONDON BRENT OIL 0.65% 65.45 Delayed Quote.28.24%
NORWAY OSLO BORS BENCHMARK(TRG) 1.25% 1069.13 Real-time Quote.8.83%
S&P GSCI GOLD INDEX -0.59% 1037.1451 Delayed Quote.-5.38%
WTI 0.64% 61.47 Delayed Quote.29.35%
All news about AKASTOR ASA
03/03Baker Hughes, Akastor To Merge Drilling Units, List JV On Oslo Bourse
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03/02Baker Hughes, Akastor merging oil drilling ops, eye IPO
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03/02Baker Hughes, Akastor merging oil drilling ops, eye IPO
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03/02AKASTOR  : Shares Up 6% on Offshore Drilling Joint Venture With Baker Hughes
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03/02Deals of the day-Mergers and acquisitions
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More news
Financials
Sales 2021 3 606 M 431 M 431 M
Net income 2021 53,7 M 6,42 M 6,42 M
Net Debt 2021 1 240 M 148 M 148 M
P/E ratio 2021 30,1x
Yield 2021 -
Capitalization 1 632 M 195 M 195 M
EV / Sales 2021 0,80x
EV / Sales 2022 0,67x
Nbr of Employees 1 947
Free-Float 45,1%
Chart AKASTOR ASA
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Technical analysis trends AKASTOR ASA
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TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
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Mean consensus BUY
Number of Analysts 2
Average target price 12,00 NOK
Last Close Price 6,01 NOK
Spread / Highest target 99,7%
Spread / Average Target 99,7%
Spread / Lowest Target 99,7%
EPS Revisions
Managers and Directors
NameTitle
Karl Erik Kjelstad Chief Executive Officer
Øyvind Paaske Chief Financial Officer
Kristian Monsen Røkke Chairman
Charlotte Cecilie Håkonsen Secretary, Head-Compliance & Legal
Kent Liane-Unsgaard Head-Compliance
Sector and Competitors
1st jan.Capitalization (M$)
AKASTOR ASA-15.11%196
SCHLUMBERGER LIMITED17.87%35 306
HALLIBURTON COMPANY1.06%16 972
BAKER HUGHES COMPANY-6.24%14 982
NOV INC.-4.81%4 985
DIALOG GROUP-10.43%4 234