May 5, 2021 -Aker Solutions is on track for the 2021 targets and strategic growth plans. In the first quarter, the company delivered growth in both earnings and order intake. About 35 percent of the new contracts are for projects related to energy transition. Tender activity remains high, and the market outlook is developing positively. 1Q 2021 Financial Highlights (excl. special items) · RevenueNOK 6.5 billion · EBITDANOK 427 million · EBITDA margin 6.6% (4.7% excl. the Nordsee Ost settlement) · Earnings per shareNOK 0.07 · Net cash positionNOK 794 million · Order intakeNOK 9.4 billion (1.5x book-to-bill) · Order backlogNOK 41 billion "Our earnings and order intake for the quarter increased versus the same period last year and sequentially. We continued to increase our orderbook by securing several important new contracts in the quarter. An important development is that we continue to see increased order intake from energy transition related work, in line with our strategic ambitions. In the quarter, this counted for about 35 percent of the new contracts. As we move forward, the strong backlog for all our segments is an important foundation for our growth ambitions," said Kjetel Digre, chief executive officer ofAker Solutions . "We will maintain our leading market position for delivery of complete oil and gas projects. In parallel, we are rapidly growing our business for renewable energies and low-carbon solutions for oil and gas. Our high front-end and tendering activity, a strong position in active markets, combined with our leading capabilities, makes us well positioned to continue to capitalize on interesting opportunities ahead," said Digre. Key FinancialsAker Solutions reported first quarter revenue ofNOK 6.5 billion . The EBITDA wasNOK 427 million excl. special items, an increase versus the same period last year and sequentially. The earnings per share wasNOK 0.07 . The company's financial position remained solid with a net cash position ofNOK 794 million and a liquidity buffer ofNOK 8.5 billion at the end of the quarter. During the first quarter,Aker Solutions received the final ruling from an arbitration tribunal inGermany concerning the legacy project Nordsee Ost. The ruling entitledAker Solutions to receive a recoverable cash amount ofNOK 698 million , and this amount was received at the end of the quarter and recognized in the company accounts. The recoverable cash amount covered the receivable on the balance sheet, and in addition contributed byNOK 147 million of positive effect on interest income andNOK 125 million of positive effect on EBITDA, in the profit and loss statement. Order Intake The order intake in the first quarter was strong atNOK 9.4 billion , equaling 1.5 times book-to-bill. This was a growth of 19 percent compared to the same period last year and 39 percent increase sequentially. Main awards in the quarter included Troll West electrification forEquinor , Åsgard B topside EPCI modification forEquinor , Eldfisk North subsea production system forConocoPhillips , Empire Wind FEED forEquinor andBP , Mero 3 topside engineering and procurement for MISC, Agogo subsea umbilicals for ENI and Barossa subsea umbilicals forConocoPhillips . This brought the backlog to a healthyNOK 41 billion , a growth of 22 percent from the same period last year. Operations and Developments Operations in the first quarter continued to be impacted by the restrictions imposed to manage COVID-19, in particular related to the mobilization of personnel in and out ofNorway . Still, the ongoing projects have progressed based on a strong focus on mitigation of the virus risks, close cooperation with health authorities, strong dedication from employees, as well as continuous dialogue with customers to find practical solutions. The company continues to experience high activity-levels related to front-end work for upcoming projects, supporting the growth ambitions moving forward. InBrazil , manufacturing of the subsea trees forAker BP's Ærfugl project were completed successfully during the quarter - on time and below budget. InChina , several umbilicals for the Lingshui project were delivered during the quarter. InNorway , forEquinor's Hywind Tampen project,Aker Solutions' yard atStord finalized the first phase of the construction of 11 concrete hulls for the wind turbines. At the yard in Verdal, the EPC phase for the Johan Sverdrup Phase 2 jacket toEquinor was completed when the large jacket was skidded on to the transportation barge. In parallel, the planned fast-track progress for the Hod unmanned wellhead platform toAker BP is on track for delivery later this year. In the quarter,Aker Solutions signed a memorandum of understanding (MoU) with Doosan Babcock to jointly deliver complete projects for low-carbon solutions and renewable energy in theUK . The partnership is currently pursuing identified opportunities related to upcoming onshore plants for hydrogen production and facilities for carbon capture, utilization and storage (CCUS). The company also announced that it will reduce the environmental footprint from its own operations, targeting 50 percent reduction in CO2 emissions by 2030, compared to 2019 level (total scope 1 and scope 2 emissions). Outlook The outlook for project sanctioning for 2021 and 2022 remains positive in the company's main markets, both in traditional oil and gas and related to energy transition. The temporary tax incentives on the Norwegian continental shelf is expected to trigger sanctioning of more than 30 new projects by end of 2022.Aker Solutions is experiencing high demand for its differentiating front-end capabilities. Several ongoing early-phase studies are expected to lead to front -end engineering and design (FEED) work in the second half of 2021. Tendering activity is high, andAker Solutions is currently bidding for contracts totaling aboutNOK 78 billion . About 30 percent of this is related to Energy Transition within areas such as offshore wind, carbon capture, hydrogen, and low-carbon solutions for oil and gas such as subsea gas compression and electrification. Looking ahead, while some near-term restrictions related to the COVID-19 pandemic remain,Aker Solutions sees increased market activity. The outlook for 2021 remains unchanged; the company sees overall revenue somewhat lower than last year's level, with underlying EBITDA seen up from last year to around the 5.5 percent to 6.0 percent level. ENDS Media Contact:Torbjørn Andersen , mob: +47 928 85 542, email: torbjorn.andersen@akersolutions.com Investor Contact:Fredrik Berge , mob: +47 450 32 090, email: fredrik.berge@akersolutions.comAker Solutions delivers integrated solutions, products and services to the global energy industry. We enable low-carbon oil and gas production and develop renewable solutions to meet future energy needs. By combining innovative digital solutions and predictable project execution we accelerate the transition to sustainable energy production.Aker Solutions employs approximately 14,000 people in more than 20 countries. Visit akersolutions.com and connect with us on Facebook (https://www.facebook.com/AkerSolutions/), Instagram (https://instagram.com/akersolutions/), LinkedIn (https://www.linkedin.com/company/aker-solutions), Twitter (https://twitter.com/akersolutions) and YouTube (https://www.youtube.com/akersolutions). This press release may include forward-looking information or statements and is subject to our disclaimer, see https://akersolutions.com This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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