Aker Sees Signs of Upturn
Norwegian contractor Aker Solutions has reported higher net income for 2017 and in 4Q and thinks the outlook for Norwegian orders is improving.
"We're seeing increasing signs of recovery as break-even costs come down and more projects are sanctioned, particularly offshore Norway where we are well-positioned," said CEO Luis Araujo February 7.
Net income in 2017 was up 57% at Nkr 239mn ($30mn), and in 4Q 2017 it was Nkr 19mn, compared with a 4Q 2016 net loss of Nkr 268mn. Pre-tax earnings (Ebitda) for 4Q 2017 were Nkr 458mn, up 21% year on year. Araujo said Aker’s “strong execution and continuous improvement efforts are supporting margins."
Orders in 4Q 2017 of Nkr 13.4bn – taking the firm’s order backlog to Nkr 34.6bn – included Nkr 4bn for the subsea system of the Johan Castberg field, the largest oil find in the Barents Sea, including design of its floating production ship; and the world's largest umbilicals system order announced mid-2017 worth over Nkr 1bn for the Zohr gas field offshore Egypt, from Italy’s Eni.
Aker said the outlook for oil services remains challenging as projects continue to be postponed and there is pressure on pricing, but that there are “increasing signs of a recovery, particularly offshore Norway where there is a pickup in activity and in the brownfield segment where oil companies are focusing on optimising output from existing fields.”