Aker Solutions still building record-high order backlog



Aker Solutions has ended the first quarter of this year with a new record-high order backlog of Nkr98.9 billion ($9.2 billion), reaffirming its strong outlook for three of its key business segments for the rest of this year.

According to the Norwegian contractor’s financial report, revenues for the first quarter were up by 39% to Nkr11.5 billion and net profit rose by 122% to Nkr390 million against the same period of the last year.

Results for the first quarter were marginally weaker when compared with the fourth quarter of the last year, when the contractor posted its strongest quarterly financial results for the whole of 2022.

Aker Solutions has added some Nkr12.9 billion to its order backlog after winning contract awards totalling Nkr59.3 billion in the fourth quarter of 2022.

In the first quarter, about Nkr4.8 billion of new orders were secured in the subsea segment, the most profitable part of the company’s business. Another Nkr4.8 billion of orders were booked in the electrification, maintenance and modifications segment, Aker Solutions said.

Awards of subsea work came from offshore developments in Brazil and Angola while contracts in the second segment were mostly related to modifications at offshore projects in Norwegian North Sea.

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The renewables and field development segment brought in about Nkr2.9 billion in new orders to add to its existing order backlog of Nkr49.7 billion, which is more than half of Aker Solutions’ total backlog.

Despite gaining the lowest value of new orders in the first quarter, the renewables and field development segment still saw revenues of Nkr4.1 billion, almost on par with Nkr4.3 billion in the subsea segment.

The electrification, maintenance and modifications segment reported revenues of Nkr2.9 billion.

“With a historically high order backlog and robust order intake in this quarter, we are on track to meet financial targets and to seize opportunities in rapidly changing energy markets,” Aker Solutions chief executive Kjetel Digre said.

The company added: “Project sanctioning across global energy markets is picking up and Aker Solutions is well positioned to capitalise on near-term market recovery and longer-term structural changes under way in world energy markets.”

Aker Solutions’ deal with international oilfield services provider SLB to spin off their subsea businesses into a joint venture “is progressing well”.

The venture, announced in August, will be owned by SLB with a 70% interest, Aker Solutions with 20% and UK-based Subsea 7 with a 10% holding.