Aker Solutions' Subsea Business Does Best in Q3 2013

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.


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 Today

The Maritime Industry's original and most viewed E-News Service

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

People & Company News

Royston Appoints New US Distributor

Diesel power engineering specialist Royston has appoint a new U.S.-based distributor, citing growing interest in its advanced Enginei marine fuel management and monitoring systems.

SSI Hires Holder for US Sales

SSI has hired CAD/CAM specialist Robert Holder as part of its sales force in the U.S. market.    According to SSI, the hiring is intended to meet the expanding

MacGregor Wins Orders for Pusnes Deck Machinery

MacGregor, part of Cargotec, announced it has secured orders for a series of Pusnes deck machinery packages for several shipowners. The Pusnes equipment has been


SSI to Unveil ShipConstructor 2016 R2 at WorkBoat

SSI's latest release, ShipConstructor 2016 R2 will be unveiled for the first time in public at the International WorkBoat Show, December 1-3, in New Orleans.   According to SSI,

IMMA App Offers Access to Maritime Medical Stores

Deteriorating seafarer health and poorly-stocked onboard medical chests are major issues concerning maritime medical practitioners, which is why the International

Available: 300 Free Systems; Wanted: 300 Ships

Which will be the first 300 ships in the world to test and validate Sea Traffic Management (STM) with updated systems free-of-charge?   As the shipping domain


R-22 Phase-out Presents Dangers and Expense -WSS

The shipping industry is facing price, supply and safety risks in the run-up to the global ban on R-22 (chlorodifluoromethane or HCFC) refrigerant, warns Wilhelmsen Ships Service,

U.S. Ups Philippines Aid as South China Sea Turmoil Builds

The United States has raised its military aid to the Philippines this year to $79 million, the U.S. ambassador said on Wednesday, as tension rises in the region

Asia Fuel Oil-Cracks, Spreads Tight; Bunker Prices Climb

Asia's fuel oil crack for benchmark 180-centistroke rebounded to a discount of $6.79 a barrel on Wednesday, gaining as bunker prices firmed on the possibility of

Offshore Energy

Ship Conversion: Offshore Survey Vessel to Become a Flotel

Dutch shipowner C-Bed has contracted Wärtsilä Ship Design to supply the design for rebuilding its Seismic Survey Vessel, the Viking II, for use as a hotel vessel

Deepwater Downturn: Bump in the Road or Long-Term Slowing of Growth?

IMA/World Energy Reports has just completed a comprehensiveassessment of the five year outlook for the deepwater sector.  The new report – the 19th annual floater

Tidal Energy from Deep and Slow Waters

Deep Green, an underwater kite construction from the Swedish company Minesto, is set to be deployed in 2017 at the Holyhead Deep site off the coast of Anglesey, Wales.

Underwater Engineering

Ship Conversion: Offshore Survey Vessel to Become a Flotel

Dutch shipowner C-Bed has contracted Wärtsilä Ship Design to supply the design for rebuilding its Seismic Survey Vessel, the Viking II, for use as a hotel vessel

Largest Underwater CO2 Release from Pipeline - DNV GL

Carbon capture, utilisation and storage (CCUS) is gaining momentum to meet stringent climate change goals and secure energy supplies for the future. To fully

Warm Water Mixing up Life in Arctic

AWI researchers’ unique 15-year observation series reveals how sensitive marine ecosystems in polar regions are to change The warming of arctic waters in

Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1123 sec (9 req/sec)