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

People & Company News

Odfjell 2Q Results In Line with Expectations

Chemical Tankers had an EBITDA of $24 million, compared with $17 million in the first quarter. Improved utilization with only minor interruptions of trade. Time-charter results were up by 10%.

New Partnership Targets Enhanced Tracking Solutions

Globe Tracker International, a  global asset tracking, monitoring and data sharing, has announced  a strategic relationship with Total Soft Bank Ltd. (TSB), a global

German Shipyard FSG Re-organizes Top Management

Flensburger Schiffbau-Gesellschaft (FSG) says it will be headed by a new management team from January 1st 2015, details as follows: Current Chief Technology

Technology

Kvaerner in Statoil Unmanned Platform Project

Kvaerner say that Statoil has awarded it a concept study related to a standardised, unmanned dry tree wellhead platform for the Oseberg Future Development project.

TMT CEO Files $100m IP Suit Over Vessel Sale

Hsin-Chi Su, Chairman and CEO of Today Makes Tomorrow Group (TMT) launched a suit in Texas federal court on July 28, 2014, alleging that a planned bankruptcy sale of three company ships, including M.

MN 100: Dometic Marine

2000 N. Andrews Ave. Ext. Pompano Beach, Florida 33069 Tel: (954) 973-2477    Email: ned.trigg@dometic.com Website: www.dometic.com CEO: Roger Johansson President:

Finance

Odfjell 2Q Results In Line with Expectations

Chemical Tankers had an EBITDA of $24 million, compared with $17 million in the first quarter. Improved utilization with only minor interruptions of trade. Time-charter results were up by 10%.

Container Manufacturer Reports Profit Plunge

World-leading container manufacturer and logistics services provider Singamas Container Holdings Limited (Singamas) has  announced its unaudited interim results for the six months ended 30 June 2014.

Bid to Rescue Clyde Shipbuilder Ferguson

Jim McColl, one of Scotland's richest men, has tabled a bid to rescue collapsed Clyde shipbuilder Ferguson and aims to return the yard to its former glory by creating hundreds of jobs,

Offshore Energy

Bureau Veritas to Class, Certify FPSOs for Saipem

Bureau Veritas has been awarded a contract by Saipem to provide classification and certification services for the two Kaombo FPSOs for service off Angola. The

Kvaerner in Statoil Unmanned Platform Project

Kvaerner say that Statoil has awarded it a concept study related to a standardised, unmanned dry tree wellhead platform for the Oseberg Future Development project.

Scotland Site for World's Biggest Tidal Array

The world’s biggest tidal array is to be built in North Scotland bringing jobs and energy security to the Pentland Firth region, informs a UK Government news release.

Underwater Engineering

Kvaerner in Statoil Unmanned Platform Project

Kvaerner say that Statoil has awarded it a concept study related to a standardised, unmanned dry tree wellhead platform for the Oseberg Future Development project.

RN Diving Expert Chris Baldwin Joins IMCA

The International Marine Contractors Association (IMCA) Secretariat says that Chris Baldwin has joined its team as a Technical Adviser following a short secondment from the Royal Navy.

Permanent On-site Collision Damage Repair in Greece

In July Hydrex mobilized a team of diver/technicians to Syros, Greece, for a complex repair operation on a 118-meter, 8550 DWT chemical tanker. The vessel had suffered

 
 
Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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)