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.

 

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

People & Company News

W&O, LESER Partner to Deliver Safety Relief Valves

W&O, a global supplier to the marine and upstream oil and gas markets for pipe, valves and fittings, valve automation and engineered solutions, has partnered with

Fednav Celebrates Anniversary Trio in Cleveland

Fednav Limited held a reception on board one of its vessels, the Federal Mayumi, at the Port of Cleveland yesterday to celebrate a trio of anniversaries: the 70th

Karl Senner Inks Distribution Deal with Electronic Power Design

Karl Senner, LLC (KS) has reached a new strategic representation agreement with Electronic Power Design (EPD). Karl Senner, LLC now represents EPD in the United States marine and offshore Markets.

Finance

New Company Takes Over OW Tanker

OW Tanker, a unit of bankrupt OW Bunker and owner of its marine fuel supply ships, has been taken over by a newly-created company, the fleet manager told Reuters on Wednesday.

WRRDA: Clearing the Channel for P3 Projects

A Creative Combination for Financing Inland Waterways Infrastructure Earlier this year, the U.S. maritime industry in general, and the inland waterways industry in particular,

Choosing the Best Financing Proposal

It isn’t always about the rate. In a robust boatbuilding market – like the one we see now – even the most successful, financially stable operators need to borrow.

Offshore Energy

Fourth Rig Delivered to Perforadora Central

Keppel AmFELS LLC, a wholly owned US subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered the jackup rig, Coatzacoalcos, to Mexico’s Central Panuco S.

Woodside to Pick up Moroccan Acreage

Woodside advises that it has entered into a contract for an exclusive Reconnaissance Licence (RL) with the Office National des Hydrocarbures et des Mines, the

UniMarine Opens Office in Pireaus

UniMarine announced the opening of its new office UniMarine South Europe & Mediterranean. Located in Piraeus (Greece), the office will be servicing the Southern

Underwater Engineering

Woodside to Pick up Moroccan Acreage

Woodside advises that it has entered into a contract for an exclusive Reconnaissance Licence (RL) with the Office National des Hydrocarbures et des Mines, the

Zargon Oil & Gas Sells Hamilton Lake Assets

Zargon Oil & Gas Ltd. announces that it has entered into a definitive purchase and sale agreement to sell its Hamilton Lake property for $25 million. Property

Strategy Can Maximize UKCS potential

Companies operating in the North Sea require a cultural shift to make the most of the its potential, according to a new report from Deloitte, the business advisory firm.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Pipelines Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction 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: 0.3493 sec (3 req/sec)