Aker Solutions has strengthened earnings in the third quarter of 2018 as orders more than doubled from a year earlier amid increasing signs of a market recovery.
Aker Solutions has seen its profit go up in the third quarter 2018 at NOK 155 million, versus net income of NOK 124 million same time last year.
Orders in the quarter totaled NOK 5.9 billion, bringing the backlog to NOK 36.1 billion.
“Our order intake in the quarter more than doubled versus the same period a year earlier and we’re seeing high tendering activity in all our markets,” said Luis Araujo, chief executive officer of Aker Solutions. “A main development this quarter is that we are seeing increased order intake in key global markets such as China, Brazil and Angola, in line with our strategic ambitions.”
Revenue rose to NOK 6.5 billion in the quarter from NOK 5.4 billion a year earlier, driven by increased North Sea modifications work and continued good progress on a number of key projects across all business lines.
Aker Solutions has two reporting segments: Projects and Services. Revenue in Projects rose to NOK 5.2 billion in the quarter from NOK 4.2 billion a year earlier, mainly driven by recent strong order intake and ongoing North Sea modification and hook-up jobs.
Revenue in Services rose to NOK 1.3 billion in the quarter from NOK 1.2 billion a year earlier, driven by international growth in the company’s production asset services sub-segment.
For 2018, Aker Solutions continues to see overall revenue up by close to 10 percent from 2017, helped by the strong order intake and performance year to date. Underlying 2018 EBITDA margins are expected to remain around year-to-date levels, supported by solid execution and the company’s improvement program.
Aker Solutions sees overall revenue in 2019 slightly up from 2018, on the back of our strong order intake year-to-date, and continued high tendering activity with underlying 2019 EBITDA margin expected to remain around full-year 2018 levels.