Aker Solutions sees profit rise despite lower revenues

Norwegian oilfield services provider Aker Solutions boosted its profit in the third quarter of 2020 despite lower revenues as oil and gas operators reduced their activity levels amid lower oil prices and Covid-19 pandemic.

Aker Solutions on Wednesday posted a net income of NOK 119 million ($13 million) for the third quarter of 2020, an increase from the net income of NOK 93 million ($10.2 million) in the same period last year.

The company’s revenue excluding special items fell to NOK 4.7 billion ($513 million) in the quarter from NOK 7.1 billion ($775 million) a year earlier.

According to the company, this was because operators reduced their activity levels due to the Covid-19 pandemic and lower oil prices.

Orders totalled NOK 7.1 billion ($775 million) in the quarter, bringing the backlog to NOK 29.2 billion ($3.2 billion).

This was up from NOK 26.9 billion ($2.9 billion) at the end of the previous quarter, reflecting an increase in orders on the Norwegian Continental Shelf.

The services company noted that temporary measures to boost industrial activity in Norway, which were introduced in June, led to an increase in sanctioning activity, which continued into the third quarter.

Kjetel Digre, who was appointed chief executive officer of Aker Solutions on July 17, said: “This was a transformational quarter for Aker Solutions, as we announced our plans to merge with Kvaerner to create a stronger, more robust supplier company”.

The first day of trading for the new Aker Solutions is currently expected to be 11 November 2020.

The company also completed the spin-offs of its offshore wind and carbon capture businesses during the third quarter, which created a one-off gain of NOK 804 million for Aker Solutions in the quarter.