Aker Boasts Steady Performance for Q2

Aker Solutions has reported a good and steady performance for the second quarter.

2nd Quarter Results 2008:

  • EBITDA increased by 13%
  • EBITDA margin of 7.5%
  • EPS increased by 4.3%
  • Strengthening of well services with acquisition of Qserv
  • 5 drilling equipment packages awarded YTD 2008
  • Continued strong markets and high activity
  • All numbers compared to Q2 2007

Aker Solutions financials

Consolidated revenues for the second quarter 2008 amounted to NOK 15,073 million, compared with NOK 14,697 million for the same period in 2007. Year to date revenues were NOK 29,290 compared to NOK 28,844 million last year, increases of 3 percent and 2 percent respectively. This reflects continued strong markets and high activity levels.

EBITDA for the second quarter 2008 was NOK 1,126 million compared to NOK 993 million for the second quarter of 2007. EBITDA year to date was NOK 2,128 million compared to NOK 1,849 million last year, increases of 13 percent and 15 percent respectively. The EBITDA margin for the second quarter 2008 was 7.5 percent compared to 6.8 percent in the same period in 2007. Year to date EBITDA margin was 7.3 percent and, for the same period last year, 6.4 percent.

Net financial items for the second quarter were negative NOK 55 million, compared to negative NOK 26 million for the same period in 2007.

Fluctuations in the fair value of hedging transactions which did not qualify for hedge accounting represented an accounting gain year to date of NOK 8 million, of which NOK 49 million is booked under financial items and negative NOK 41 million booked under EBITDA.

Pre-tax profit for the second quarter 2008 was NOK 943 million compared to NOK 933 million for the same period in 2007. For the year to date, pre-tax profit was NOK 1 893 million compared to NOK 1 731 million last year. Tax expenses for the second quarter were NOK 256 million, which was 27 percent of profit before tax. Net profit for the second quarter was NOK 687 million compared to NOK 647 million last year, representing earnings per share of NOK 2.40 and NOK 2.30 respectively.

Cash flow from operating activities was positive NOK 105 million in the second quarter. This reflects a NOK 462 million increase in net current operating assets, from NOK 728 million at the end of the first quarter to NOK 1 190 million at the end of the second quarter.

Cash and bank deposits at the end of the second quarter were NOK 3.0 billion, an increase of NOK 0.9 billion during the second quarter. Undrawn committed long-term bank revolving credit facilities amounted to NOK 4.8 billion, giving a total liquidity buffer of NOK 7.8 billion.

Gross interest-bearing debt amounted to NOK 3.9 billion at the end of the second quarter. Net interest bearing items were negative NOK 0.5 billion.

Order intake in the second quarter was NOK 14.0 billion. Order intake represents both new contracts and growth in existing contracts. At the end of the second quarter, order backlog was NOK 53.4 billion, a decrease of NOK 1.1 billion from the previous quarter.

Equity ratio at the end of the second quarter was 22.7 percent, a decrease from 25.1 percent at the end of the first quarter 2008, due to the increase in the balance sheet and the payment of a dividend.

Aker Solutions streamlines operations

In March, Aker Solutions launched an internal process that will lead to the creation of a new business area that integrates the operations of its current Maintenance, Modifications and Operations (MMO) business area and its Field Development (FD) business area. The integration of the two business areas is on track and the new, single business area - Energy Development & Services (ED&S) will be operational from September 1, 2008.

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