Edition:
United Kingdom

Aker Solutions Q4 beats forecast, plans further cost cuts


Wednesday, 7 Feb 2018 

Feb 7 (Reuters) - Aker Solutions Asa ::AKER SOLUTIONS Q4 REVENUES NOK ‍6.4​ BILLION (REUTERS POLL NOK 6.0 BILLION).AKER SOLUTIONS Q4 EBITDA EX ITEMS NOK ‍482​ MILLION (REUTERS POLL NOK 420 MILLION).AKER SOLUTIONS Q4 EBITDA NOK ‍458​ MILLION (REUTERS POLL NOK 254 MILLION).AKER SOLUTIONS Q4 ORDER INTAKE NOK ‍13.4​ BILLION (REUTERS POLL NOK 12.11 BILLION).AKER SOLUTIONS Q4 ORDER BACKLOG NOK ‍34.6​ BILLION (REUTERS POLL NOK 33.26 BILLION).‍OUTLOOK FOR OIL SERVICES REMAINS CHALLENGING AS PROJECTS CONTINUE TO BE POSTPONED AND THERE IS PRESSURE ON PRICING​.‍STILL, THERE ARE INCREASING SIGNS OF A RECOVERY, PARTICULARLY OFFSHORE NORWAY WHERE THERE IS A PICKUP IN ACTIVITY AND IN BROWNFIELD SEGMENT WHERE OIL COMPANIES ARE FOCUSING ON OPTIMIZING OUTPUT FROM EXISTING FIELDS​.‍INDUSTRY EFFICIENCY IMPROVEMENTS ARE BRINGING DOWN BREAK-EVEN COSTS ON DEVELOPMENTS, WHICH IS SPURRING MORE PROJECT SANCTIONS.​.‍WON MOST ORDERS IN ALMOST FOUR YEARS IN Q4 OF 2017 AMID SIGNS OF A MARKET RECOVERY AND AS AN IMPROVEMENT PROGRAM HELPED MARGINS​.‍TENDERING IS STEADY AND AKER SOLUTIONS IS BIDDING FOR CONTRACTS TOTALING ABOUT NOK 50 BILLION.​.‍ABOUT TWO-THIRDS OF THESE ARE IN SUBSEA AREA, WHERE COMPANY ANTICIPATES SEVERAL KEY PROJECTS TO BE AWARDED IN NEXT SIX MONTHS, PARTICULARLY IN NORWAY, BRAZIL AND ASIA PACIFIC​.‍AKER SOLUTIONS SEES OVERALL REVENUE SOMEWHAT UP IN 2018 FROM 2017​.‍UNDERLYING 2018 EBITDA MARGINS ARE EXPECTED TO REMAIN AROUND FULL-YEAR 2017 LEVELS​.