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Aker Solutions ASA (OSL:AKVER) * Good operations, steady performance:
* EBITDA increased by 15% * EBITDA margin of 8.5%
* 12 drilling equipment packages awarded YTD 2008 * Strategically important agreements on Kashagan and Ekofisk * 100 percent ownership of Aker Marine Contractors * Structural changes in Subsea and P&T business areas
All numbers compared to Q3 2007
Aker Solutions financials 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, we have decided to change the set-up of the two business areas Subsea and Products & Technologies. This will reinforce our position throughout the value chain of subsea technologies, solutions and services. At the same time it will align our offerings of drilling solutions, topside technology products and services to realise the potential we see in them.
The changes involve an integration of Aker Marine Contractors and our Well Service and Geo business units into the Subsea business area. In combination with our ownership and cooperation with Aker Oilfield Services, the new structure will also leverage our well intervention services offering. Until now these business units have been part of the Products & Technologies business area. Through this change we have the building blocks of creating more technology-driven service businesses, fuelled by our 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 our drilling solutions offering.
Aker Solutions takes full control over Aker Marine Contractors On 22 August Aker Solutions ASA acquired an additional 30 percent of the shares in Aker Marine Contractors from Taubåtkompaniet AS for NOK 555 million. Another 10 percent of the shares were acquired on 22 October for NOK 185 million from Aker Capital. After these transactions Aker Marine Contractors is a fully owned subsidiary of the group.
Aker Solutions ASA, through its subsidiaries and affiliates ("Aker Solutions"), is a leading global provider of engineering and construction services, technology products and integrated solutions. Aker Solutions' business serves several industries, including oil & gas, refining & chemicals, mining & metals and power generation. The Aker Solutions group is organised in a number of separate legal entities. Aker Solutions is used as the common brand/trademark for most of these entities.
Aker Solutions' parent company is Aker Solutions ASA. Aker Solutions has aggregated annual revenues of approximately NOK 58 billion and employs approximately 26 000 people in about 30 countries.
Aker Solutions is part of Aker (www.akerasa.com), a group of premier companies with a focus on energy, maritime and marine resource industries. The Aker companies share a common set of values and a long tradition of industrial innovation. Through its majority-owned holding company Aker Holding AS, Aker controls 40.27 percent of the shares in Aker Solutions, and takes an active role in the development of the company.
This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akersolutions.com.
The full report and presentation can be downloaded from www.akersolutions.com and the links below:
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