'Increasing Signs' of Oilfield Services Recovery



'Increasing Signs' of Oilfield Services Recovery
There are increasing signs of a recovery in the oilfield services sector, particularly offshore Norway and in the brownfield segment.

There are increasing signs of a recovery in the oilfield services sector, particularly offshore Norway and in the brownfield segment, according to Aker Solutions.

In a company statement on its website, the services firm said Norway’s offshore had seen a ‘pickup in activity’ and stated that the brownfield sector was where oil companies were focusing on optimizing output from existing fields.

“Industry efficiency improvements are bringing down break-even costs on developments, which is spurring more project sanctions,” the company stated.

Aker Solutions revealed Wednesday that it had won the most orders in almost four years in the fourth quarter of 2017. Orders in the quarter came in at $1.7 billion (NOK 13.4 billion), bringing the backlog to $4.4 billion (NOK 34.6 billion).

Most were for projects in Norway, including about $510 million (NOK 4 billion) from Statoil to supply the subsea system and the design of the floating production, storage and offloading vessel for the Johan Castberg field, the largest oil discovery in the Norwegian Barents Sea.

Aker’s revenues totaled $817 million (NOK 6.4 billion) during 4Q 2017, compared to $778 million (NOK 6.1 billion) a year earlier, with EBITDA coming in at $58 million (NOK 458 million).

"Our strong execution and continuous improvement efforts are supporting margins,” Aker Solutions CEO Luis Araujo said in a company statement.



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