Aker Solutions books higher profit, expects increase in energy demand

Norwegian oilfield services provider Aker Solutions recorded an increase in its quarterly profit and revenues driven by high activity levels. Looking ahead, Aker Solutions expects an increase in energy demand. 

Aker Solutions recorded an increase in its first quarter 2019 net income which totaled NOK 149 million ($17.2M) compared to NOK 105 million ($12.1M) in the prior-year period.

Revenue rose 32% to NOK 7.3 billion ($844M) in the first quarter 2019 from NOK 5.5 billion ($635.9M) a year earlier, supported by progress and deliveries on key projects in several markets.

Aker Solutions has two reporting segments: Projects and Services.

Revenue in Projects rose 40 percent to NOK 6 billion in the quarter from NOK 4.2 billion a year earlier, mainly driven by the field design sub segment.

Revenue in Services was NOK 1.3 billion, up 12 percent from NOK 1.2 billion in the same quarter last year, with the increase driven by international growth in the company’s production asset services sub-segment.

Orders totaled NOK 5.5 billion in the quarter, bringing the backlog to NOK 33.3 billion. Key awards included the subsea gas compression FEED contract from Chevron for the Jansz-Io field offshore Australia.

“This is the international breakthrough for our subsea compression technology, which already has provided great results at Åsgard for Equinor since 2015,” said Aker Solutions’ Chief Executive Officer Luis Araujo.

According to the company, tendering activity remains high in main markets – and Aker Solutions is currently bidding for contracts totaling about NOK 55 billion. The majority of this is in the subsea area – and key projects are anticipated to be awarded this year.

In the longer term, Aker Solutions expects an increase in global energy demand and that investment efforts in sustainable energy solutions will be rewarded.

Aker Solutions sees overall revenue in 2019 up close to 10 percent from 2018 on the back of a strong order intake last year and continued high tendering activity.

Offshore Energy Today Staff

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