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 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.

People in the News

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,

Ingram Barge’s Sehrt Elected AWO Chairman

The members of the American Waterways Operators (AWO), the national trade association representing the tugboat, towboat and barge industry, elected a new slate

Maritime Casualty Forum Held in Singapore

More than 250 shipping and insurance professionals gathered for the first ever Asian Maritime Casualty Forum held during Singapore Maritime Week.   The two-day conference,

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 Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators
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: 0.2455 sec (4 req/sec)