Aker Solution Moves Closer to Strategic Split

The oil and gas service company Aker Solution reported some progress on Wednesday, with operating revenue and other income increasing from NOK 4,794 million in 2Q 2013 to NOK 5,972 million in 2Q 2014. On the other hand, in the same period, EBITDA and EBIT results were not equally positive.  

‘Earnings before interest, taxes, depreciation and amortization (EBITDA) were NOK 592 million in the quarter compared with NOK 481 million a year earlier. The EBITDA includes NOK 59 million in demerger expenses and hedges not qualified for hedging accounting. Excluding these items, the EBITDA margin widened to 8 percent in the quarter from 6.4 percent a year earlier,’ reads a note released on Thursday.  

Norway-based Aker Solution is indeed proceeding with a company split to streamline process to reduce costs.

Aker Solution will split into two companies, one focused on Subsea, Umbilical, Engineering, and Maintenance, Modifications and Operations (MMO) areas; and the second on Drilling Technologies, Aker Oilfield Services, Process Systems, Surface Products and Business Solutions.  

‘The split is set to be completed at the end of September with separate listings of the two entities on the Oslo Stock Exchange, pending the approval of shareholders at an extraordinary general meeting to be held August 12.’