Aker Solutions Improves Order Backlog in 2Q10

Aker Solutions second quarter results show consolidated revenues at NOK 11.9 billion and an EBITDA of NOK 951 million. The EBITDA margin was 8.0 percent.

Despite some uncertainty in the market, order intake for the second quarter was NOK 15 billion, bringing total order backlog to NOK 60.3 billion. 

"This is a strong order intake and backlog that will offer us increased predictability going forward. The Energy Development & Services (ED&S) business area in particular has had a solid order intake, which secures a good base workload for its maintenance, modifications and operations (MMO) business in the coming years," said Øyvind Eriksen, executive chairman, Aker Solutions. 

Aker Solutions is well into a strategy process to further focus and optimize the company's structure and operating model. The ambition is to build an even stronger international delivery model for the field development business, while the maintenance, modifications and operations (MMO) business will continue to focus on the North Sea region. Development of new high-value service concepts will play an increasingly important role for MMO going forward. A likely outcome of this direction will be that the current ED&S business area will be split into two business areas. 

"There is a clear potential to develop a delivery model which combines our North Sea field development and project execution experience with low-cost engineering and fabrication. To achieve this we will actively source local partnerships in promising oil and gas regions, which in turn will generate local value creation and provide us with access to these markets. Our local partnerships in China and Kazakhstan - the latter being announced today - are two good examples of this strategy," said Eriksen. 

As part of the current strategy process, Aker Solutions is continuing to work on cultivating and growing its Process & Construction (P&C) business. The business area will in the future be independent and will be operating under a separate brand. 

"We are moving ahead as planned with the process of separating P&C from our upstream oil and gas business," said Eriksen.