July 14, 2022 - Aker Solutions' revenue and margins increased in the second
quarter of 2022. The company continued to demonstrate that it remains on-track
with its financial targets. The main projects globally continued to progress,
tendering activity is record high, and the market outlook remains positive. Aker
Solutions increased its revenue guidance and now expects revenue up by about 30
percent in 2022 from 2021.
2Q 2022 Financial Highlights
(excluding special items)
· Revenue NOK 10.6 billion
· EBITDA NOK 691 million
· EBITDA margin 6.5 percent
· Earnings per share NOK 0.46
· Net cash position NOK 3.1 billion
· Order intake NOK 13.6 billion (1.3x book-to-bill)
· Order backlog NOK 52.7 billion
"Our second quarter results demonstrate that we continue on-track with our
financial targets, and I am pleased with our overall results for the quarter. As
we look ahead to the rest of 2022, we are on the path to deliver full-year
revenue growth of around thirty percent, with increased earnings," said Kjetel
Digre, chief executive officer of Aker Solutions.
"The market outlook overall remains positive, despite some supply chain
constraints and inflation brought on by the recent and unfortunate geopolitical
events. Aker Solutions is well-positioned to capitalize on both near-term
recovery and for the longer-term structural change in the energy markets," said
Digre.
Key Developments
Revenue in the second quarter increased to NOK 10.6 billion from NOK 7.0 billion
a year earlier. EBITDA excl. special items increased to NOK 691 million compared
with NOK 392 million a year before. The increase was driven by continued strong
performance in the Subsea and EMM segments. The Renewables and Field Development
segment contained a loss provision on a renewables project in the quarter, and
solid performance in field development projects in the same period.
Renewables is currently a young and developing industry with some first-of-a
-kind projects. Aker Solutions experiences that the current frameworks the
industry operates under are not sustainable for the longer term. The company
sees a clear need for change in the way authorities, operators and suppliers
work together. To secure a sustainable future for the industry, authorities have
a key role to play in order to develop a sustainable framework to increase
predictability and improve risk-reward balance in the industry.
During the first half of 2022, Aker Solutions has recruited more than 1,000 new
skilled employees globally. This means the company is on-track with the target
of hiring 2,000 new colleagues in 2022. During the quarter, Aker Solutions
completed the acquisition of Frontica Engineering, a Norwegian engineering
company employing around 50 highly skilled engineers.
Aker Solutions ended the second quarter with a net cash position of NOK 3.1
billion, excluding lease liabilities, and the company's financial position
remains solid.
Outlook
The outlook remains positive for Aker Solutions overall. Tender activity is
record high at NOK 105 billion and the company will continue to be selective in
its approach to tendering. The company sees increased market activity moving
forward, especially in the oil and gas segment boosted by the tax incentives in
Norway to support the supplier industry, supporting its long-term growth
targets.
Aker Solutions continues to see a favorable oil and gas price backdrop, but also
a dynamic operating environment and the company will continue to monitor the
supply chain situation proactively. Global oil and gas supply is projected to
remain constrained in the coming years and energy security to remain a priority.
This supports Aker Solutions' view of multiple years of spending growth from the
company's customers, across areas where Aker Solutions is relevant.
Overall, Aker Solutions is well-positioned to capitalize on both near-term
cyclical recovery and for the longer-term structural change in the energy
markets. Based on ongoing projects and secured order backlog, the company now
expects full-year revenue up by around 30 percent in 2022, and underlying EBITDA
-margin continues to be seen up from 2021. In the Subsea segment, margins are
now expected at around 15 percent for 2022. The high ongoing FEED work and
tendering activity supports the potential for record-high order intake in 2022
for Aker Solutions.
ENDS
Media Contact:
Torbjørn Andersen, mob: +47 928 85 542, email:
torbjorn.andersen@akersolutions.com
Investor Contact:
Fredrik Berge, mob: +47 450 32 090, email: fredrik.berge@akersolutions.com
Aker Solutions delivers integrated solutions, products and services to the
global energy industry. We enable low-carbon oil and gas production and develop
renewable solutions to meet future energy needs. By combining innovative digital
solutions and predictable project execution we accelerate the transition to
sustainable energy production. Aker Solutions employs approximately 14,000
people in more than 20 countries.
Visit akersolutions.com and connect with us on
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YouTube (https://www.youtube.com/akersolutions).
This press release may include forward-looking information or statements and is
subject to our disclaimer, see https://akersolutions.com
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange release was published by Daniel Ingebricson, Communications,
Aker Solutions, on July 14, 2022 at 07:00 CEST.