Aker Solutions posts Third-Quarter results 2014
Aker Solutions revenue rose 22 percent to NOK 8.3 billion in the third quarter of 2014, boosted by increased work at major subsea projects in Norway and West Africa, higher activity at the U.S. umbilicals plant and rising engineering sales, the company said in its press release.
Earnings before interest and taxes (EBIT) climbed to NOK 460 million from NOK 451 million a year earlier. The EBIT margin in the same period narrowed to 5.6 percent from 6.6 percent. Margins were held back by overcapacity caused by a steep drop in activity in the maintenance, modifications and operations market in Norway, as well as a major subsea project that had not yet started to recognize profit. This was somewhat offset by stronger project execution at umbilicals plants in the U.S. and Norway and improved capacity utilization in the engineering business.
The order intake was NOK 3.6 billion in the quarter, bringing the backlog to NOK 49 billion kroner.
"We made good progress in the quarter on major subsea and engineering projects and had a near-record backlog after significant contract wins earlier this year in Angola and Brazil," said Luis Araujo, chief executive officer of Aker Solutions. "This puts us in a strong position to tackle a slowdown in some market segments as oil companies delay projects amid concerns over capital."
