October 24, 2018 / 5:50 AM / a month ago

Aker Solutions sees 2019 earnings margins on par with 2018, Q3 beats

OSLO, Oct 24 (Reuters) - Norwegian oil services firm Aker Solutions expects revenues next year to be higher than this year’s, but with 2019 earnings margins around the same level as 2018’s, and reported third-quarter profits that beat forecasts on Thursday.

The firm’s earnings before interest, tax, depreciation and amortisation (EBITDA) and excluding non-recurring items rose to 492 million Norwegian crowns ($59.44 million) in the third quarter from 421 million crowns in the year-ago period.

Analysts in a Reuters poll expected 450 million crowns in the third quarter.

“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,” it said in a statement.

The outlook for the oil services sector remained competitive and there is pressure on pricing, it said. Still, there are increasing signs of a recovery amid lower break-even costs and higher oil prices, it added

Shares in Aker Solutions are up 23 percent over the past year, outperforming a European oil and gas index up 8 percent over the same period. ($1 = 8.2767 Norwegian crowns) (Reporting by Camilla Knudsen, writing by Gwladys Fouche)

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