Aker Solutions Slow Out of the Blocks

Press Release
Monday, April 29, 2013

"The slow start to 2013 is truly disappointing," says Øyvind Eriksen, Executive Chairman of Aker Solutions ASA.

Aker Solutions decided to disclose preliminary information on its financial performance in the first three months of 2013 as the results so far considerably lag current consensus market estimates.

Aker Solutions expects to report revenue of NOK 11.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of NOK 868 million for the first quarter of 2013.

The earnings were impacted by increased costs at the Ekofisk Zulu platform project as work was accelerated to ensure the platform will be transported from the Egersund yard to the Ekofisk field in mid-June and start producing oil by October 2013. Extra work caused by quality issues related to cables delivered by a sub-supplier also increased the project's costs. Aker Solutions' Maintenance, Modifications and Operations (MMO) business area manages 60 percent of the project, while the company's Engineering business area manages 40 percent. The final project result will depend on bonus payments triggered by timely delivery, start-up of the platform and the final settlement with the customer.

Results were also weighed down by a loss of NOK 63 million at the Umbilicals business area. Aker Solutions in the first quarter wrote down the value of several Umbilicals projects following a thorough review of the entire portfolio. Several of the projects have, as previously reported, suffered from operational challenges in Norway. As a turnaround plan is about to be implemented, the Umbilicals business area is expected to generate a low, but positive EBITDA margin in the second quarter.
The earnings were also impacted by a loss of NOK 54 million at the Oilfield Services and Marine Assets (OMA) business area as the vessels Aker Wayfarer and Skandi Aker were idle in the first quarter. The OMA business area is expected to incur additional losses in the second quarter as Aker Wayfarer and Skandi Aker are set to remain idle until commencing operations in mid-June and mid-July, respectively. The Cat B project is, as previously communicated, in a system definition phase where Aker Solutions and the client are in a dialogue on how to proceed. The parties will spend the time required to find a solution and no news should be expected in the near future.

In addition, EBITDA margins for the business areas Drilling Technologies, Well Intervention Services and Mooring and Loading Systems were slightly lower in the first quarter than the average in recent quarters, mainly because of increased costs at some projects, some delayed contract awards and timing of progress.

Aker Solutions will present a full set of first-quarter earnings on May 8, 2013. The figures reported today are preliminary and have not been discussed or approved by the Aker Solutions Board of Directors.

"The slow start to 2013 is truly disappointing," says Øyvind Eriksen, Executive Chairman of Aker Solutions ASA. "As lost or postponed contract awards are part of the game, some of the quality issues are, simply speaking, unacceptable. We have worked hard to avoid such mistakes, but there is still a way to go. My hope is that the customers appreciate our efforts to deliver according to our commitments to safeguard their commercial interests and that we ultimately will be able to find amicable solutions to some of the additional costs."

 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Apply Now for the MN 100

The August 2015 edition of Marine News, the leading voice in the North American workboat market, will feature 100 leaders and innovators, including workboat owners and operators,

Alfred Hartmann: New Captain on the Bridge at VDR

Shipping owner Alfred Hartmann is the new President of the Association of German Shipowners (VDR). For the first time a mid-size company owner is at the helm of the VDR,

VT Halter Powers Ahead

If you drive just south of I-10 in Pascagoula, Miss., within 10 minutes you find yourself on the doorstep of VT Halter Marine, arguably one of the more diverse and active shipyards in the U.

Offshore

OSV Technology: Notable Designs & Deliveries

Though the market for Offshore Support Vessels (OSVs) is soft, advances in technology, fit and finish in  the sector is unrivaled in any other maritime niche over the past five years.

Four Petrobras Platforms Halt Output Due to Oil Leak

Four Petrobras oil platforms off the northeast coast of Brazil have halted production after a leak of about 7,000 liters of oil was detected coming from a pipeline linking them,

Gondan Lays Keef for IMR Oceanographic Vessel

Gondan Shipyard has celebrated at its facilities in Figueras the keel laying ceremony of the new Oceanographic Research Vessel for the Institute of Marine Research (IMR) of Bergen, Norway.

Finance

Oil Price Shock Soon to be Positive Overall for Canada

Canada's economy will start to show more positive effects from the drop in oil prices than negatives from the second quarter onwards, Bank of Canada Governor Stephen Poloz said on Friday.

Total Eyes Sale of its Fuel Retailing Business in Turkey

Total aims to exit its fuel distribution business in Turkey and has asked Societe Generale to lead the sale, sources said on Friday, as the French oil producer

MISC Says AET Tankers Unit Not for Sale

MISC Berhad issued a statement today addressing recent market speculation that the company is set to sell its wholly owned petroleum tanker subsidiary AET Tankers.

Offshore Energy

Four Petrobras Platforms Halt Output Due to Oil Leak

Four Petrobras oil platforms off the northeast coast of Brazil have halted production after a leak of about 7,000 liters of oil was detected coming from a pipeline linking them,

Huat Retires as Non-Ex Dir. of ST Engineering

Singapore Technologies Engineering Ltd (ST Engineering) today announced the retirement of Mr Quek Poh Huat as non-executive Director of the Company at its Annual General Meeting on 23 April 2015.

Five Minutes with Halul Offshore CEO, Vivek Seth

Last month Maritime Reporter spent some time with Vivek Seth, CEO, of Qatar-based Halul Offshore  Services Company, for his insights on the impact of low oil prices in the Middle East and beyond.

Underwater Engineering

MMT Presents Surveyor Interceptor ROV (SROV)

At Ocean Business in Southampton  MMT´s key topic was the new Surveyor Interceptor ROV (SROV). Together with its Norwegian partners Reach Subsea AS, MMT developed a new generation,

Salvage and Wreck Removal Conference

HINODE Events and Services Pvt Ltd., have announced the 4th Annual Conference on Salvage and Wreck Removal in India to be held on Wednesday, July 8, 2015 at Visakhapatnam on India's East Coast.

Technip dividend FY 2014

At the Annual General Meeting, held today, Technip’s shareholders approved the proposed €2.00 per share dividend for the 2014 financial year and decided to offer

 
 
Maritime Contracts Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1842 sec (5 req/sec)