Aker Solutions Bullish on Future Financial Returns

MarineLink.com
Wednesday, December 04, 2013
Image courtesy of Aker Solutions

On its capital markets day, Aker Solutions' Executive Chairman Øyvind Eriksen says: "While we will continue to build Aker Solutions, the focus on topline growth will be toned down and more attention will be paid to growing our profit and share price," Executive Chairman Øyvind Eriksen says. "We are going to reduce our investment levels so that we don't overinvest in capacity that could erode margins."

The company announce that all business areas are committed to improvement programmes that will start translating into double-digit profit margins for Aker Solutions and an improved return on equity. New investment criteria are being set, moving the hurdle rate up to 15 percent. This focus will mean challenging the business rationale for each investment and testing it against whether a share buyback would yield a better return for investors.

Aker Solutions' EBITDA margin widened to 9.8 percent in the third quarter of 2013 from 7.9 percent in the first half of the year, helped by improvement programmes in several areas and key deliveries.

The company experiences robust demand for its products and services in most markets even as some oil producers delay projects amid cashflow concerns, increasing uncertainty about future investments and the timing of contract awards to oil-services providers.

"We are optimistic about our market segments," Eriksen says. "So far this year, the order intake has grown by 20 percent and the order backlog by 33 percent, which is a decent development."

The company sees its main pillars for growth will be supplying subsea factory products and solutions, designing offshore fields, providing drilling packages and helping producers with modifications that increase oil recovery and extend the life of fields.

 


People & Company News

MN100: MarineCFO

The Company: Founded in 1992, UA Business Solutions was a pioneer in the field of Enterprise Resource Planning (ERP) and an early Microsoft Partner. The ERP evolution

MN100: All American Marine, Inc.

The Company: All American Marine Inc. was founded in 1987 and specializes in the construction of custom tailored aluminum boats from 30 to 150 feet LOA. Today,

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

Finance

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Offshore Energy

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

MISC Enters Thai Offshore O&G Market

Energy related maritime solutions and services provider MISC Berhad (MISC) has made inroads into Thailand’s offshore oil and gas market for the first time.

Underwater Engineering

Fugro, US Army Corps of Engineers Ink Mapping Deal

Fugro has been awarded a photogrammetric and LIDAR surveying and mapping contract by the U.S. Army Corps of Engineers, St. Louis District, Missouri. The agreement

Next Geosolutions Surveys Roman Ports

Next Geosolutions, an independent geoscience and engineering service provider, has secured a €1.25million (£1million) mapping and survey contract with Naples Port

First ISDS for DNV GL Classed Ocean Greatwhite

DNV GL has welcomed the world’s largest semi-submersible drilling rig into class recently. Ocean Greatwhite is 123 metres long and 78 metres wide and was delivered

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction
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: 0.1085 sec (9 req/sec)