Norway's Aker Solutions has delivered a strong quarter with growth in revenues, margins and cash generation compared to the same period last year. The company now expects revenues in 2024 to grow to a level of around NOK50 billion (US$4.7 billion), representing a year-on-year growth of around 40 percent.
“This high-activity quarter really highlights the strength of our organisation as we keep surpassing our financial targets while meeting important project milestones and positioning Aker Solutions for the future,” said Kjetel Digre, Chief Executive Officer.
Revenue in the second quarter increased to NOK12.8 billion from NOK 8.8 billion a year earlier, driven by large oil and gas projects in Norway reaching profit recognition milestones in the quarter.
Order intake for the quarter was NOK15.5 billion and the secured backlog at the end of the quarter stood at NOK71.4 billion. The company won several important contracts in the period, including the modification of the Mongstad waste-water facility, the topside modification for the Bestla tie-in project and the long-term frame agreement with Azule Energy in Angola.
At the end of the quarter, the net cash position was NOK11.0 billion, including investments in liquid funds not treated as cash and cash equivalents under IFRS. During the first half of 2024, Aker Solutions distributed about NOK1.4 billion to shareholders through dividends and share buybacks.
During the first half of 2024, the company experienced high activity across its locations, reaching several important milestones in the project portfolio, including the successful sea trial for the Castberg FPSO and the delivery and later offshore installation of the Fenris pre-drilling module and jacket at the Valhall field for Aker BP.
"The outlook remains positive for Aker Solutions," said the company. "The high order backlog, mainly made up of projects to be executed in the well-proven alliance model with Aker BP with balanced risk-reward profile and upside potential through shared incentives, offers good visibility on activity levels going forward. Tender activity is high at about NOK70 billion and we will continue to be selective in our approach to tendering."
