Aker's Consolidated Revenue Down in Third Quarter

Aker Solution's third quarter consolidated revenues amounted to NOK 13,507 million, compared with NOK 14,237 million for the same period in 2007. Year to date revenues were NOK 42,797 million compared to NOK 43,081 million last year. The decrease in revenues is due to the completion and phasing of projects.

EBITDA for the third quarter 2008 was NOK 1,151 million compared to NOK 997 million for the third quarter of 2007. EBITDA year to date was NOK 3,279 million compared to NOK 2,846 million last year, demonstrating increases of 15 percent for both periods. The EBITDA margin for the third quarter 2008 was 8.5 percent compared to 7.0 percent in the same period in 2007. Year to date EBITDA margin was 7.7 percent and, for the same period last year, 6.6 percent.

Net financial items for the third quarter were negative NOK 103 million, compared to negative NOK 48 million for the same period in 2007, due to increased debt.

Fluctuations in the fair value of hedging transactions which did not qualify for hedge accounting represented an accounting loss in the quarter of NOK 130 million, of which negative NOK 214 million is booked under financial items and a gain of NOK 84 million is booked under EBITDA. The corresponding figure year to date is a loss of NOK 121 million, of which negative NOK 165 million is booked under financial items and positive NOK 44 million is booked under EBITDA.

Profit in the quarter was negatively influenced by a high fair value accounting loss of NOK 130 million from hedging transactions, and the year to date profit by an accounting loss of NOK 121 million. Last year's corresponding numbers were positive NOK 62 million for the third quarter and NOK 84 million year to date. Tax expenses for the third quarter were NOK 182 million, which was 27 percent of profit before tax. Net profit for the third quarter was NOK 495 million compared to NOK 642 million last year, representing earnings per share of NOK 1.75 and NOK 2.29 respectively.

Cash flow from operating activities was negative NOK 278 million in the third quarter. This reflects a NOK 504 million increase in net current operating assets, from NOK 1 190 million at the end of the second quarter to NOK 1 694 million at the end of the third quarter. Cash and bank deposits at the end of the third quarter were NOK 3.0 billion. Undrawn committed long-term bank revolving credit facilities amounted to NOK 2.0 billion, giving a total liquidity buffer of NOK 5.0 billion.

Gross interest-bearing debt amounted to NOK 6.9 billion at the end of the third quarter including a seller's credit of NOK 518 million for the remaining shares in Qserv, to be paid in 2011. Net interest-bearing debt was NOK 3.2 billion.

Order intake in the third quarter was NOK 15.8 billion. Order intake represents both new contracts and growth in existing contracts. At the end of the third quarter, order backlog was NOK 58.2 billion, an increase of NOK 4.8 billion from the previous quarter.

Equity ratio at the end of the third quarter was 21.3 percent, a decrease from 22.7 percent at the end of the second quarter 2008, due to the increased balance sheet.

Aker Solutions Reinforces Deepwater Position

To be at the forefront of key development trends in our markets, Aker has decided to change the set-up of the two business areas Subsea and Products & Technologies. This will reinforce its position throughout the value chain of subsea technologies, solutions and services. At the same time it will align the Company's offerings of drilling solutions, topside technology products and services to realize the potential seen in them.

The changes involve an integration of Aker Marine Contractors and Well Service and Geo business units into the Subsea business area. In combination with the ownership and cooperation with Aker Oilfield Services, the new structure will also leverage the Company's well intervention services offering. Until now these business units have been part of the Products & Technologies business area. Through this change Aker has the building blocks of creating more technology-driven service businesses, fuelled by its customers' drive for increased oil recovery. In addition the drilling riser business will be transferred from Subsea to the Products & Technologies business area to further strengthen the Company's drilling solutions offering.

Aker Solutions Takes Full Control over Aker Marine Contractors

On August 22, Aker Solutions ASA acquired an additional 30 percent of the shares in Aker Marine Contractors from Taubatkompaniet AS for NOK 555 million. Another 10 percent of the shares were acquired on October 22 for NOK 185 million from Aker Capital. After these transactions Aker Marine Contractors is a fully owned subsidiary of the group.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Sr Advising Engineer - Tech Development
Expertise: Business Development|IT - Software Development
Location: Houston, TX
Business Development Manager
Expertise: Business Development|Construction Manager|Marketing
Location: Salt Lake City, UT
Project Manager II
Expertise: Estimating|Project Controls|Project Management
Location: Hayward, CA
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours