• 2017 July 14 15:44

    Aker Solutions 2Q revenues drop 22% to $653.2 million amid the global market slowdown

    Aker Solutions secured NOK 3 billion in orders, including a contract to deliver three umbilicals and equipment to ENI's Coral South project and an order from Statoil for subsea equipment for Snefrid Nord in the Norwegian Sea. It won 41 study awards for front-end engineering, bringing the total in the first six months of the year to 71 studies for projects in Norway, the UK, the U.S., Brazil, Australia and Malaysia. That compares with a record of more than 80 studies for all of 2016, the Company's financial report for the period shows.

    The company has completed more than 80 percent of a program aimed at increasing cost effiency across the business by at least 30 percent by the end of 2017. It is also benefiting from its more streamlined organizational structure of five delivery centers, introduced in November last year.

    The company made good progress in integrating acquisitions, including the purchase in December of Brazilian maintenance and modifications provider, C.S.E. Mecânica e Instrumentação Ltda. Aker Solutions in April also bought the Norwegian oil and gas business of Reinertsen, Norway's third-largest offshore maintenance and modifications supplier.

    The order backlog was NOK 30.7 billion at the end of the quarter, of which about half was for projects outside Norway. Finances were solid, with a liquidity buffer of NOK 4.9 billion at the end of the period.

    Revenue fell to NOK 5.4 billion ($653.2 million) in the quarter from NOK 7 billion a year earlier amid the global market slowdown and as some projects neared completion. Earnings before interest, taxes, depreciation and amortization (EBITDA) were NOK 305 million in the quarter, compared with NOK 563 million a year earlier. The EBITDA margin was 5.6 percent versus 8.1 percent a year earlier. The company booked NOK 64 million in integration and restructuring costs related to the acquisition of Reinertsen. Excluding these and other special items, the margin was 7.4 percent compared with 8.5 percent a year earlier.

    Aker Solutions has two reporting segments: Projects and Services. Revenue in Projects declined to NOK 4.2 billion in the quarter from NOK 5.5 billion a year earlier amid generally lower market activity and on some projects nearing completion. The EBITDA margin contracted to 5 percent in the quarter from 7.5 percent a year earlier. Revenue in Services fell to NOK 1.2 billion in the quarter from NOK 1.4 billion a year earlier, primarily driven by decreased activity for subsea services and a maturing production asset services portfolio. The EBITDA margin expanded to 12.5 percent in the quarter from 12 percent a year earlier, helped by a favorable activity mix and strong operational performance.

    The company continues to see overall revenue down by about 10-15 percent in 2017 from the prior year, with an anticipated modest pickup in the field design segments of both Projects and Services while subsea volumes will be weaker. The company maintains its outlook for full-year underlying EBITDA margins to narrow slightly from first-quarter levels due to a continued market slowdown and a changing revenue mix. This will be partially offset by a continued strong momentum from the company's global improvement program.

    Aker Solutions is a global provider of products, systems and services to the oil and gas industry. Its engineering, design and technology bring discoveries into production and maximize recovery. The company employs approximately 14,000 people in about 20 countries.




2017 September 21

13:17 Sovcomflot CEO Sergey Frank meets IMO Secretary-General Kitack Lim
13:02 Aker Solutions wins Troll FEED contract with EPCI option from Statoil
12:31 RF Navy’s Northern Fleet takes part in combined-arms exercise in the Barents Sea
12:08 Dorian LPG selects ABS to evaluate LPG as fuel and other 2020 compliance options
11:39 Fuel oil prices are still high at the Far East ports of Russia (graph)
11:08 ZIM marks the 3 millionth container carried through DaChan Bay Terminals
10:47 IMO conducted table-top exercise on maritime security in Lima, Peru
10:29 Brent Crude futures price down 0.23% to $56.16, Light Sweet Crude – down 0.12% to $50.63
10:08 MAN Diesel & Turbo concludes dual-fuel ‘Wes Amelie’ LNG conversion project
09:50 Port of Gdansk to cooperate with new foreign partners - Ukraine and Qatar
09:32 Baltic Dry Index up to 1,449 points
09:17 NCSP volumes for 8M 2017 totaled 97 million tons
09:08 Royal IHC launches NMDC’s first custom-built TSHD
08:28 Berth rehabilitation continues apace at APM Terminals at the Port of New York and New Jersey
08:02 Samsung Heavy Industries showcases in-house glycol LNG regasification system to shipowners
07:57 Wärtsilä tests its automatic wireless induction charging system on a hybrid powered coastal ferry

2017 September 20

18:04 IMO talks Polar matters in Russia
17:49 Uniper and Pavilion Gas sign LNG deal providing access to their assets in respective home markets
17:32 Seaspan accepts delivery of 11000 TEU SAVER containership
17:22 Songa Bulk ASA announces acquisition of Kamsarmax bulk carrier
17:17 Digital Ship returns to Singapore on 4 October with a focus on investigating maritime’s digital future
16:55 Damen to open service hub in Russian Black Sea port
16:48 Almaz Shipyard hosts flag hoising ceremeny for patrol ship Predanny of Project 22460
16:14 Nevsky Shipyard took part in the International Fishery Forum
15:50 Russia and India to cooperate on development of high-speed maritime transport based on Russian designs (photo)
15:12 NIBULON finished constructing B2000 Project vessels
14:37 Gazprom Neft undertakes the company’s largest ever maritime oil shipment
14:06 RF Transport Minister: waterways of Saint-Petersburg can obtain a status of regional waterways in navigation season of 2018 (photo)
13:23 Port of King's Lynn celebrates new bulk store terminal opening
13:09 Skangas’ Coralius performs first ship-to-ship LNG bunkering
12:51 WMU holds inauguration of the Class of 2018 MSc in Maritime Affairs
12:15 Qatargas and BOTAŞ (Turkey) sign new LNG agreement
11:49 IMO Secretary-General Kitack Lim considers Russia to be one of the key players at the IMO
11:39 Northwest Seaport Alliance container volumes up 6 percent in August 2017
10:43 GTT announces an evolution of the Mark III Flex technology
10:14 Brent Crude futures price up 0.44% to $55.38, Light Sweet Crude – up 0.80% to $50.30
09:55 Bunker prices go up at the port of Saint-Petersburg, Russia (graph)
09:31 RS describes procedure for obtaining of Polar Ship Certificates (photo)
09:13 Baltic Dry Index up to 1,415 points

2017 September 19

18:06 Samskip expands shortsea services in Scotland
17:48 Arctic Economic Council welcomes three new members
17:25 IMO is attending 34th session of ASEAN to update the Maritime Transport Working Group on its latest activities
17:06 Turkish shipyard Cemre Marin Endüstri A.S orders 4 x MAN 8L21/31 variable speed GenSets
16:39 Marine Engineering Bureau: half of Russia’s towing fleet is renovated, bunkering fleet situation is worse
16:14 MSC announces a new service between South America’s east coast and the Mediterranean
16:04 Port of Southampton completes construction of sixth multi-story car park
15:52 Turkish landing ship Bayraktar arrived in Novorosiysk
15:27 USPA announces tender for procurement of dredging vessel
15:04 GY Marinas and P&O Marinas launch superyacht complex in Sète, France
14:39 Commissioning works commenced at KN‘s LNG reloading station
14:14 Port of Gdansk, Port of Gdynia and Baltic Gateway attended Seatrade Europe in Hamburg
14:03 Wärtsilä Nacos Platinum bridge systems selected for two new mega yachts
13:50 IMO issues Guidelines on maritime cyber risk management
13:28 IMO says search and rescue is an international responsibility
13:01 Ningbo Zhoushan Port volumes up 72% to 254,000 TEUs
12:43 NEVA 2017, 14th International Maritime Exhibition and Conference of Russia, opens in Saint-Petersburg (photo)
12:22 Fuel oil prices are still high at the Far East ports of Russia (graph)
12:04 Jan De Nul wins IADC Safety Award 2017
11:40 Secretary-General of IMO believes in a great future of Vostochny Port (photo)
11:04 CMA CGM signs strategic partnership with Infosys to accelerate the transformation of its Information System