October 27, 2021 - Increased revenue, order intake and backlog, with margins at 6.3 percent. In the third quarter of 2021,Aker Solutions continued to demonstrate that it remains on-track with its transformation and growth targets, as the company continued to progress well on projects globally. Tendering activity remains high, and the company updated its financial guidance. 3Q 2021 Financial Highlights (excl. special items) · RevenueNOK 7.3 billion · EBITDANOK 459 million · EBITDA margin 6.3 percent · Earnings per shareNOK 0.22 · Net cash positionNOK 1.1 billion · Order intakeNOK 9.5 billion (1.3x book-to-bill) · Order backlogNOK 48.4 billion "We delivered another solid quarter demonstrating that we continue on-track with our growth targets and our transition journey. Third-quarter results reflect continued strength in operational performance and further support our confidence in full-year financial guidance. We secured our sixth consecutive quarter of high order intake above 1.0x book-to-bill. This provides a solid foundation for activity increase moving forward. Another important development is that we continue to secure order intake from energy transition related work, and this currently represents more than 30 percent of our orderbook. Looking forward, we see increased market activity across areas where we are relevant.Aker Solutions is well positioned to take full advantage of opportunities ahead," said Kjetel Digre, chief executive officer ofAker Solutions . Key Financials In the third quarter,Aker Solutions delivered revenues ofNOK 7.3 billion and an EBITDA ofNOK 459 million excl. special items. This was equivalent to an EBITDA-margin of 6.3 percent. The earnings per share wasNOK 0.22 in the quarter. The company's financial position remained solid with a net cash position ofNOK 1.1 billion and a liquidity buffer ofNOK 8.5 billion . Order Intake The order intake wasNOK 9.5 billion , equaling 1.3 times book-to-bill. At the end of the quarter, the backlog stood atNOK 48.4 billion , an increase fromNOK 38.1 billion a year ago. During the quarter,Aker Solutions won a major contract of more thanNOK 3 billion from Ørsted and Eversource, to provide the HVDC (high -voltage, direct current) transmission system for the Sunrise Wind offshore wind project in theU.S. Sunrise Wind is the first offshore wind farm inNew York , and when completed, it is planned to generate enough electricity to power close to 600,000 homes. Within oil and gas, the largest awards in the quarter included a topside modification contract forConocoPhillips' Tommeliten Alpha field development, and the subsea production system for the Kobra East & Gekko field development byAker BP .Aker Solutions was also awarded important front-end engineering and design (FEED) contracts fromAker BP for two platforms and subsea production systems for NOA and Fulla, which is part of the greater NOAKA field development. These FEED contracts could potentially represent contract opportunities of more thanNOK 12 billion forAker Solutions in 2022, subject to final investment decision and regulatory approvals. After quarter-end, onOctober 20 , the company announced a letter of intent for a FEED contract fromEquinor , for the FPSO for the Wisting field development inNorway . If the field development moves forward to execution phase,Aker Solutions estimates it could potentially represent a significant contract opportunity in the rangeNOK 8 to 12 billion, subject to final investment decision and regulatory approvals. Operations and Developments The company is gradually increasing progress on recently awarded work. Third -quarter results reflect solid operational performance. OnJohan Sverdrup , the company delivered a large 5,000-ton topside module on time, on budget, and with the right quality. On the Troll phase 3 project, first gas was achieved during the quarter, delivering great value for the customer.Aker Solutions also delivered the Hod unmanned wellhead platform toAker BP in a record-breaking 14 months after the first steel was cut, despite the challenges imposed by the COVID-19 pandemic. Another highlight was the formation of a consortium withSiemens Energy and Doosan Babcock to develop solutions for the growingUK carbon capture, utilization and storage (CCUS) market. The company also announced its commitment to Net Zero by 2050, to reduce own emissions to help reduce climate change. Outlook The outlook remains positive in the company's main markets, both within oil and gas and related to energy transition work.Aker Solutions is well positioned for the increased project sanctioning expected on the Norwegian continental shelf in 2022. Tendering activity remains high, and the company is currently bidding for contracts totaling aboutNOK 80 billion . About 25 percent of the tender value is related to energy transition work, such as offshore wind, carbon capture, hydrogen, and solutions for oil and gas with reduced emissions.Aker Solutions will continue to have a disciplined and focused approach to the projects it is tendering for. The company plans ahead in terms of capacity, also by discussing this with customers. For 2021, the company increases full-year revenue guidance to aroundNOK 29 billion , with underlying EBITDA-margin seen up from last year to around the 6.0 percent level. Based on secured backlog and market activity, 2022 full-year revenue is at this stage seen up 15 percent from 2021. 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 15,000 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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