Aker Solutions' Subsea Business Does Best in Q3 2013

MarineLink.com
Wednesday, November 06, 2013
Company logo

Aker Solutions ASA publish their third-quarter results 2013 showing a fairly even performance in the group's sectors, but in subsea widening its profit margin to 10.9 percent from 8.7 percent a year earlier.

Financial Highlights

  • Sales were NOK 10.9 billion in the third quarter of 2013, compared with NOK 11.2 in the third quarter of 2012.
  • Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to NOK 1.07 billion in the quarter, compared with NOK 1.12 billion in the year-earlier period.
  • The EBITDA margin was 9.8 percent in the quarter, compared with 10.1 percent a year earlier.
  • Earnings per share (EPS) were NOK 1.46 in the quarter, versus NOK 2.04 a year earlier.
  • The order intake was NOK 11.9 billion in the quarter, compared with NOK 16.9 billion a year earlier.
  • The order backlog was NOK 60.6 billion at the end of the quarter. The year-earlier backlog was NOK 59.7 billion and included a rig contract worth NOK 11 billion that was cancelled in June 2013

Key Developments

Aker Solutions' earnings for the third quarter of 2013 showed a steady improvement in profit compared with the first half of the year, helped by improved execution in several business areas and key deliveries. The EBITDA margin rose to 9.8 percent in the quarter from 7.9 percent in the first half.

"Improvement programmes in several business areas, including umbilicals, subsea and well-intervention services, started to pay off in the third quarter," Executive Chairman Øyvind Eriksen said. "We passed some important milestones, with the Skandi Aker vessel beginning a two-year contract in September and with the delivery in July of the Ekofisk Zulu platform, which achieved first oil production in October."

The four largest business areas - subsea, drilling technologies, engineering and maintenance, modifications and operations (MMO) - accounted for 82 percent of sales and 75 percent of EBITDA. The subsea and drilling technologies units increased their revenue in the quarter, compared with a year earlier, while the engineering and MMO divisions had somewhat weaker sales.

Subsea, the biggest business area, widened its profit margin to 10.9 percent from 8.7 percent a year earlier, aided by better project execution and strong subsea-services activity in Norway. Improvement programmes also boosted the earnings of the well-intervention services and umbilicals businesses. Umbilicals posted its first quarterly profit for the year after strengthening operations at a Norwegian plant and winning key contracts in the US.

Outlook

Aker Solutions experiences robust demand for its products and services in most markets and is well-positioned in the fast-growing deepwater offshore segment. Order intake and tender activity remain strong. At the same time, oil companies have delayed some projects amid cashflow concerns, increasing uncertainty about future investments and the timing of contract awards to oil-services providers.

The company says it has has recently agreed to sell its mooring and loading systems business to Cargotec for an enterprise value of NOK 1.4 billion. Proceeds from the sale will be used to develop the company's main business in the deepwater and subsea oil-services segments, building on a strategy to deepen the focus on core growth segments.
 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

BAE Systems Awarded Two Navy Contract Modifications

The US Department of Defense informs it has awarded separate contracts to BAE Systems in Jacksonville and in Norfolk for ship repairs and modifications as follows: 1.

DW to Present at Upcoming Floating LNG 2014, Houston

Douglas-Westwood (DW) says that its manager in Houston, Andrew B. Meyers will be joining the speakers on the platform at the upcoming 27th-30th October 2014 'Floating

Technology

There’s Still Time for SHIPPINGInsight Award Entries

Entry submissions for the first SHIPPINGInsight Award are due Friday, Aug. 1, but organizers said they will continue to accept nominations through following week to provide some extra time.

Joint Project Studies Condition-based Engine Monitoring

Classification society ClassNK announced that it will participate in a joint project together with Mitsui Engineering & Shipbuilding Co., Ltd. and MES Technoservice Co.

Resolve Maritime Academy's New Wet Trainer Facility

Resolve Maritime Academy informed it has started building a new, two-story wet trainer, larger and more expansive than its original, the L/V Gray Manatee. “We

Finance

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

BAE Systems Awarded Two Navy Contract Modifications

The US Department of Defense informs it has awarded separate contracts to BAE Systems in Jacksonville and in Norfolk for ship repairs and modifications as follows: 1.

Exxon Mobil Corporation Declares 3Q Dividend

The Board of Directors of Exxon Mobil Corporation yesterday declared a cash dividend of 69 cents per share on the Common Stock, payable on September 10, 2014 to

Offshore Energy

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

DW to Present at Upcoming Floating LNG 2014, Houston

Douglas-Westwood (DW) says that its manager in Houston, Andrew B. Meyers will be joining the speakers on the platform at the upcoming 27th-30th October 2014 'Floating

Crowley Maritime Open Singapore Office

Crowley Maritime Corp. says it has opened a full-service project management and logistics solutions office in Singapore under the leadership of industry veteran William Hill.

Underwater Engineering

BMT Oceanica Wins Major Water Corporation Bid

Marine and coastal environment specialist, BMT Oceanica (BMT), a subsidiary of BMT Group Ltd, is delighted to announce that it has won the bid to provide Ocean

Crowley Maritime Open Singapore Office

Crowley Maritime Corp. says it has opened a full-service project management and logistics solutions office in Singapore under the leadership of industry veteran William Hill.

North Sea Atlantic Joins the Technip fleet

On Saturday July 26, 2014, a ceremony was held in Bergen to officially name the latest new subsea construction vessel to join the Technip fleet, the North Sea Atlantic.

 
 
Maritime Contracts Maritime Standards Navigation Pipelines Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1464 sec (7 req/sec)