Aker Solutions 'On The Right Track' After 4Q Results

Norwegian oilfield services firm Aker Solutions enjoyed "solid" fourth quarter results that reflect "strong market conditions and high activity" in the oil and gas industry, the company said Friday.

Aker reported revenues for the quarter of $2 billion (NOK 11,600 million), compared with $1.7 billion (NOK 9,794 million) in 4Q 2010. 4Q 2011 income on the EBITDA level increased 29.6 percent to $184 million (NOK 1,047 million) compared to a year earlier.
"Our financial performance in the fourth quarter reflects both the buoyant state of the oil and gas sector and improvements in our operational performance," said Øyvind Eriksen, executive chairman of Aker Solutions. "We can see the result of some of the necessary changes we have implemented, but our full year earnings are still influenced by the quality issues we faced in 2011. But overall, I see the fourth quarter numbers as the first sign that we are on the right track."
Operating revenues for 2011 as a whole increased by 9.3 percent to $6.4 billion (NOK 36.5 billion) while EBITDA grew by 4.1 percent to $604 million (NOK 3,445 million). The EBITDA figure includes a $133 million (NOK 757 million) gain from the sale of Aker Marine Contractors as well as a $105 million (NOK 600 million) loss related to quality issues concerning subsea production systems in Brazil.
Aker said that a streamlining of its business in 2011 – involving the disposal of parts of its Process & Construction business, the spinning out of its EPC project business and the sale of its marine construction business, as well as the sale of office buildings in Stavanger and Oslo – made significant positive contribution to its accounts for the year. Net profit after tax for 2011 was $929 million (NOK 5.3 billion) compared with $351 million (NOK 2 billion) in 2010.
The firm's order intake for the fourth quarter was, at $1.4 billion (NOK 7.9 billion), lower than the $2.2 billion (NOK 12.4) billion of orders that the firm took in during 4Q 2010, although its overall order backlog stood at $7.3 billion (NOK 41.4 billion) at the end of the year, representing an increase of $508 million (NOK 2.9 billion) over a year earlier.
Aker also reported that during 4Q 2011 it suffered a fatality when a subcontractor died during maintenance work at a storage building in India. The firm had 25 recorded injuries during the period, five of which resulted in lost time.


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