Aker Solutions Reports Earnings Prior to Split

By George Backwell
Thursday, July 17, 2014
Offshore work: Image credit Aker Solutions

Aker Solutions reports its second-quarter 2014 earnings ahead of its plan to split into two companies at the end of September 2014.

One company will keep the current name and be comprised of the Subsea, Umbilicals, Engineering, and Maintenance, Modifications and Operations (MMO) areas.

Aker adds that pro-forma second-quarter revenue for the new Aker Solutions rose to NOK 8.1 billion from NOK 7.5 billion a year earlier, helped by a 13 percent increase in sales of subsea equipment and services. The new company's pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) increased to NOK 592 million in the quarter from NOK 481 million a year earlier.

The other company,  will be called Akastor and include Drilling Technologies, Aker Oilfield Services, Process Systems, Surface Products and Business Solutions. Pro forma revenue for this company climbed 25 percent in the second quarter to NOK 6 billion. The company had a pro forma EBITDA loss of NOK 129 million in the quarter versus a profit of NOK 303 million a year earlier. The earnings were impacted by one-off items totaling NOK 451 million, including a previously announced provision on the Aker Wayfarer, a vessel in the Aker Oilfield Services unit.

"We've taken huge strides since announcing the split in April - putting in place new management teams and structures for the two companies," said Øyvind Eriksen, Aker Solutions' chairman. "Today we are also announcing the first pro forma earnings figures for these companies."

New management structures were put in place this month as Luis Araujo, formerly regional president for Aker Solutions in Brazil, on July 1 became chief executive officer of the new Aker Solutions. Frank Ove Reite, formerly managing partner at Converto, became CEO of Akastor. Øyvind Eriksen has been nominated as chairman of the board of both the new Aker Solutions and Akastor.

Current Aker Solutions Revenue
Revenue  rose 17 percent to NOK 13 billion in the second quarter from NOK 11 billion a year earlier. EBITDA fell to NOK 429 million, compared with NOK 786 million a year earlier. The EBITDA margin narrowed to 3.3 percent from 7.1 percent a year earlier. 

Earnings were impacted by impairments and a provision totaling NOK 1.6 billion on assets and goodwill of the Aker Oilfield Services business, which will be part of Akastor after the split. Excluding one-off items, the margin was 7.5 percent in the second quarter of 2014.
 

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

People & Company News

Jee to Host Subsea Installation Analysis Webinar

Webinar to focus on optimizing subsea installation analysis, helping companies minimize offshore time and costs. Jee Ltd., an independent subsea engineering and training company,

Harris Secures Certification for its Multi-channel Manpack Radio

Harris Corporation (NYSE:HRS) has received Type-1 National Security Agency (NSA) certification for its Falcon III® RF-340M multi-channel manpack radio. The certification

Lithuania Inks First Statoil LNG Deal

Lithuania seeks to cut dependence on Russia; Statoil to supply 0.54 bcm of gas per year. This will cover about 20 pct of Lithuania's demand. Lithuania signed

Offshore

Jee to Host Subsea Installation Analysis Webinar

Webinar to focus on optimizing subsea installation analysis, helping companies minimize offshore time and costs. Jee Ltd., an independent subsea engineering and training company,

Coast Guard Medevacs Seafarer From Tanker off Galveston

A Coast Guard rescue helicopter crew medevaced a 32-year-old crewmember off an Italian-flagged tanker Wednesday, after he suffered an injury from a snapped fender

USCG Rescue Fisherman from Western Lake Erie

The Coast Guard rescued a fisherman from western Lake Erie after he launched an emergency distress flare Wednesday afternoon, near South Bass Island, Ohio. The

Finance

Lithuania Inks First Statoil LNG Deal

Lithuania seeks to cut dependence on Russia; Statoil to supply 0.54 bcm of gas per year. This will cover about 20 pct of Lithuania's demand. Lithuania signed

DNO Eyes First Kurdistan Crude Shipment

Norwegian firm DNO expects its first shipment of oil from Kurdistan to be sold on the international market by the end of the year and said it was committed to its

Second Tanker Awaits Lifting Opportunity at Libya Port

A second tanker is waiting to load oil at Libya's Es Sider port, state-run National Oil Corp (NOC) said on Thursday, as the country's biggest crude export terminal

People in the News

Lithuania Inks First Statoil LNG Deal

Lithuania seeks to cut dependence on Russia; Statoil to supply 0.54 bcm of gas per year. This will cover about 20 pct of Lithuania's demand. Lithuania signed

DNO Eyes First Kurdistan Crude Shipment

Norwegian firm DNO expects its first shipment of oil from Kurdistan to be sold on the international market by the end of the year and said it was committed to its

Second Tanker Awaits Lifting Opportunity at Libya Port

A second tanker is waiting to load oil at Libya's Es Sider port, state-run National Oil Corp (NOC) said on Thursday, as the country's biggest crude export terminal

Offshore Energy

Jee to Host Subsea Installation Analysis Webinar

Webinar to focus on optimizing subsea installation analysis, helping companies minimize offshore time and costs. Jee Ltd., an independent subsea engineering and training company,

Keppel Delivers 4th Jackup Rig to Qatar

Keppel FELS Limited (Keppel FELS) has delivered its fourth jackup rig, "Dukhan", to Gulf Drilling International Ltd. q.s.c. (GDI) of Qatar nine days ahead of schedule,

Chariot Agrees Brazil Farm Out with AziLat

Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, announced that its wholly owned subsidiary, Chariot Brasil Petróleo e Gás Ltda.

Underwater Engineering

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

Maersk Drilling Rig Team Train Local Talent

Maersk Drilling says that its 'Mærsk Deliverer' rig team has initiated seven local acceleration programmes in Angola. The goal is to train and develop local talent

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Pipelines Port Authority Salvage Ship Repair 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: 0.1917 sec (5 req/sec)