Aker on Target to hit 2015 Growth Targets

Norwegian oilfield services firm Aker Solutions announced Wednesday that it is on track to meet its growth targets for 2015.

Aker has a target of doubling its size between 2010 and 2015. At the beginning of November it revealed that it had achieved its biggest order backlog ever at the end of the third quarter.

Now, at the company's 'capital markets day' it has revealed that it will not only meet its 2015 growth targets but that it expects growth in revenue and margins will continue into 2017. Aker said that its revenues for the first nine months of this year were 32.2 percent greater than in the first nine months of 2011.

"Based on our record high order backlog of almost NOK 60 billion [$10.7 billion], and an estimated 10 per cent annual growth rate in offshore spending over the next five years, Aker Solutions, with its current portfolio of business areas, has the potential to double its revenues again - from 2012 to 2017," Aker Solutions Executive Chairman Øyvind Eriksen said in a company statement.

Aker added that it also intends to increase its margin in parallel with the planned revenue growth, with the aim of increasing its EBITDA (earnings before interest, tax, depreciation and amortisation) to approximately 15 percent by the end of 2017. The EBITDA margin for 3Q 2012 was 10.1 percent.

During the summer of this year, Aker revealed details of a major recruitment drive it has embarked on to help it grow its business by between nine and 15 percent annually through to 2015. In the UK, for example, the firm plans to add 1,100 staff to its London engineering hub by 2015 while it wants to add 500 people to its Aberdeen operation during the next two years.



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