AKER SOLUTIONS ASA February 8, 2024 -Aker Solutions delivered solid financial performance in the fourth quarter and for the full-year 2023, with increasing revenue and margins. The large secured backlog of projects with balanced risk-reward profiles provides good visibility for future activity levels. The market outlook remains positive, with increased energy spending forecasted in the years to come.Aker Solutions expects revenue to be up by around 15 percent in 2024 from 2023. The updated dividend policy targets a distribution of 40 to 60 percent of adjusted net income through dividends and share buybacks over time.Aker Solutions intends to pay out dividends ofNOK 2.00 per share for the fiscal year of 2023 and implement a share buyback program of up toNOK 500 million for 2024. 4Q 2023 Financial Highlights (excluding special items) · RevenueNOK 11.0 billion · EBITDANOK 615 million · EBITDA margin 5.6 percent · Earnings per shareNOK 0.96 · Order intakeNOK 14.6 billion (1.4x book-to-bill) · Order backlogNOK 72.7 billion 2023 Full-Year Financial Highlights (excluding special items) · RevenueNOK 36.1 billion · EBITDANOK 1,295 million · EBITDA margin 3.6 percent · Earnings per shareNOK 5.20 · Order intakeNOK 35.3 billion (1.0x book-to-bill) · Board will propose dividend ofNOK 2.00 per share for 2023 and will implement a share buyback program of up toNOK 500 million for 2024 "We achieved solid revenue growth and improved profitability in the fourth quarter, and I am pleased with our overall results. We continue delivering good progress on our project portfolio while positioning the company for the future," said Kjetel Digre, chief executive officer ofAker Solutions . "The market outlook for the energy sector remains positive. With our wide range of offerings within oil and gas, carbon capture and storage, and offshore wind, we have a strong position to seize opportunities across the energy market. It is also encouraging to see the rapidly growing demand for our energy consultancy services," said Digre. Key developments In the fourth quarter, revenue increased toNOK 11.0 billion fromNOK 8.3 billion in the same period last year, a 33 percent increase. EBITDA excl. special items grew toNOK 615 million or 5.6 percent, up fromNOK 229 million or 2.8 percent in the previous year.Aker Solutions secured orders worthNOK 14.6 billion in the quarter, which means a book-to-bill ratio of 1.4x for the period. The total order intake for 2023 wasNOK 35.3 billion . The secured backlog at the end of the year wasNOK 72.7 billion , dominated by projects under the well-proven alliance model withAker BP . The transaction to form the OneSubsea joint venture was closed in earlyOctober 2023 . The OneSubsea joint venture reported revenues in the fourth quarter ofNOK 10.7 billion with an EBITDA margin of 19 percent. The outlook for the business is strong with a secured backlog of more thanNOK 50 billion . Capital Allocation and Dividend Based onAker Solutions' financial position and positive outlook, the Board of Directors will propose a dividend ofNOK 2.00 per share for the fiscal year 2023, to be paid in 2024. In addition, the company will implement a share buyback program of up toNOK 500 million for 2024. This is in line with the revised dividend policy whereAker Solutions is targeting to distribute between 40 and 60 percent of its net income excluding special items over time through a combination of dividends and share buybacks. Financial robustness remains a core priority for the company going forward. To ensure a more right-sized capital structure for its operational segments,Aker Solutions will implement a new structure with a fully owned entity responsible for managing financial assets and industrial holdings. Outlook The outlook remains positive forAker Solutions , with anticipated increased market activity and continued high demand for its services and solutions across the energy market. The tender pipeline at the end of the year wasNOK 74 billion , which surpassed the level before the large order intake in Q4 2022. In addition, the company is actively engaged in early-phase studies on future large -scale opportunities across the energy market. The company remains very selective about which contracts it takes on and continues to be vigilant about capacity. All in all,Aker Solutions is well-positioned to capitalize on both near-term market growth and longer-term structural change in the energy markets. Based on secured order backlog and ongoing projects, the company expects full -year revenue in 2024 to be up by around 15 percent. EBITDA margins are expected to pick-up significantly in 2024, as the large oil and gas projects reach profit recognition milestones. ENDS Preben Ørbeck investor relations preben.orbeck@akersolutions.com +47 470 10 611Hallvard Norum media contact hallvard.norum@akersolutions.com +47 913 80 820Aker 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 11,000 people in more than 15 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) 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. Thisstock exchange release was published by Svend Thürmer,Senior Advisor Communications ,Aker Solutions , onFebruary 08, 2024 at07:00 CET .
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