• 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 July 26

18:06 Norwegian Maritime Authority laid down amendments to the Regulations on environmental safety1 and the Regulations on port State control2
17:36 Simon Stevin arrives in Norway to load 32,000 tonnes of rock for the Borkum Riffgrund 2 offshore wind farm
17:06 Campbell Shipping appoints ISS for global husbandry representation services contract
16:53 NCSP wins anti-monopoly case in court
16:47 Hampton RoadsTransit сhristens BMT-designed ferry
16:29 SPb Governor and representatives of Passenger Port of Saint-Petersburg visit Turku
16:00 Port of Antwerp supports pilot project for secure, efficient release of containers
15:34 Okskaya Shipyard launches multi-purpose diving catamaran of Project SDS18, Igor Ilyin (photo)
15:02 ABS classes U.S.-built Liquefied Gas Barge
14:47 PETRONAS and partners will not proceed with Pacific NorthWest LNG project
14:22 Dr Wolfgang Hönemann represents Rotterdam port in North Rhine Westphalia
13:55 PETRONAS delivers first LNG cargo to Thailand
13:32 European Commission publishes Mobility Package for Transport
13:02 Georgia Ports Authority of USA ordered more STS cranes from Konecranes
12:53 Ukraine to close Ilyichevsk Ship Repair Plant and Museum of Ukrainian Navy
12:30 Samskip makes major Norwegian acquisition with Nor Lines takeover
12:01 Cnsortium of Bolloré Transport & Logistics, CMA CGM and CHEC sign the concession agreement for the Containers Terminal of the new Port of Kribi (Cameroon)
11:59 OCIMF and ReCAAP step up counterpiracy cooperation
11:51 Maersk Line launches Remote Container Management for customers
11:20 Wärtsilä scrubber systems to clean the exhaust from two new Japanese bulk carriers
10:40 Indicative bunker prices go up at the port of Saint-Petersburg, Russia (graph)
10:03 Brent Crude futures price up 0.72% to $50.56, Light Sweet Crude – up 0.94% to $48.34
09:37 Baltic Dry Index up to 980 points
09:18 Rosmorport appoints Yegor Shelukhin as Deputy Director for Security of Arkhangelsk Branch (photo)

2017 July 25

18:00 Krasnoye Sormovo delivers two chemical tankers of Project RST27 to shipping company Volgotrans (photo)
17:05 Western Marine delivers 176 TEU inland container vessel to Invicta Limited
16:33 Cruise ship Pacific Princess made her inaugural call to Passenger Port of Saint Petersburg
16:05 Wagenborg to repair Oostersluisbrug Groningen
15:44 Kaliningrad seaport boundaries changed
15:39 W&T Offshore contracts the Enterprise Offshore 264 jackup rig to drill the ST 224 gas condensate prospect
15:16 COSCO (Guangdong) Shipyard announces delivery of vessel
15:12 Ferryboat Petersburg returns to Ust-Luga – Baltijsk line (photo)
14:48 Commercial Sea Port of Taganrog invested RUB 114.9 mln in port infrastructure development in HI’17
14:27 380-tonne cargo unit handled by Multipurpose Terminal YUG-2 at the port of Ust-Luga (photo)
14:00 AquaStroy to invest RUB 493 mln in construction of yacht port Aquamarine in Vladivostok
13:59 VOS Start W2W vessel departs Damen Shiprepair Oranjewerf
13:33 Vostochny Port completed modernization of its water treatment facilities (photo)
12:58 Lotus Shipyard to launch cruise ship of Project PV300VD in April 2018 (photo)
12:05 Hyundai Merchant Marine increases Asia-US West Coast volume by 77% YoY, ranks 4th in market share in June 2017
11:46 LNG developer NextDecade finalizes business combination with Harmony
11:30 DP World establishes new logistics arm in Australia
11:04 Almost 1 000 MLC-inspections carried out in Norway in 2016
10:57 Bunker prices are flat at the Far East ports of Russia (graph)
10:42 MES establishes after-sales service company for container handling cranes in Malaysia
10:19 Coal exports via Rosterminalugol terminal hit 13 mln t milestone this year
10:04 DP World reports 10.7% gross volume growth in second quarter of 2017
09:54 Brent Crude futures price up 0.49% to $48.84, Light Sweet Crude – up 0.54% to $46.59
09:36 Port of Gdansk announces record high transshipment results
09:15 Baltic Dry Index is flat at 977 points

2017 July 24

18:27 ABP South Wales celebrates 30 year partnership with WNO
18:02 Marine Recruiting Agency starts cooperation with Saint-Petersburg Employment Centre
17:38 Freeport of Riga Authority announces winners of Innovation Competition for students “The Port for the City”
17:16 Nakilat concludes half year 2017 with net profit of QR 409 million
17:09 MOL Group Ship Management Company acquires latest international certification for Environment and Energy Management Systems
16:50 CMA CGM announces GRR - From Red Sea ports to West Africa
16:35 CMA CGM announces new FAK Rates - From Asia to North Europe
16:11 Maersk Line and JF Hillebrand partner for sustainable growth by signing the Carbon Pact
15:48 CMAL held a keel-laying ceremony for new Kerrera ferry
15:24 88-tonne fuel tank delivered for Scotland’s first LNG ferry
14:57 IMO Council is meeting for its 118th session