Aker Solutions ASA

Second-Quarter and Half-Year Results 2020

OSLO, July 15, 2020 /PRNewswire/ --- Aker Solutions' revenues fell in the second quarter of 2020 as activity levels declined due to the COVID-19 pandemic and lower oil prices. The volume of new orders rose, as some operators increased sanctioning towards the end of the quarter.

2Q 2020 Financial Highlights   

• Revenue NOK 5.4 billion           
• EBITDA NOK 232 million          
• EBITDA ex. special items NOK 353 million          
• EBITDA margin ex. special items 6.6%           
• Earnings per share ex. special items NOK -0.23          
• Order intake NOK 7 billion           
• Order backlog NOK 26.9 billion

"Despite challenging conditions on an unprecedented scale, we managed to keep productivity up and complete key deliveries to our clients," said Luis Araujo, chief executive officer of Aker Solutions. "I am proud of all Aker Solutions employees around the world, who showed commitment and perseverance in a difficult time for many."

Orders totaled NOK 7 billion in the quarter, bringing the backlog to NOK 26.9 billion. This was up from NOK 26.4 billion at the end of the previous quarter, reflecting an increase of new orders on the Norwegian Continental Shelf. Temporary measures to boost industrial activity in Norway were introduced in June and led to an increase in sanctioning activity.

Aker Solutions secured letters of intent (LOI) from Equinor to deliver subsea production systems and equipment for the Askeladd Vest and Breidablikk developments. Both contracts were included as order intake in the second quarter. The company also signed a two-year contract extension for maintenance and modifications of Aker BP's Ula, Skarv, Valhall and Tambar fields offshore Norway.

Aker Solutions won 47 front-end orders in the period, bringing the total for the first half of the year to 89, compared with 74 in the same period last year. 20 of the studies were related to renewable energy and low-carbon projects.

"We continue to see demand for studies and front-end work for larger and more complex projects, related to both our traditional oil and gas market and our renewables business," said Araujo. "This puts us in a strong position to secure more work in future phases of projects and in the growing renewables segments."