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Aker Solutions posts Q3 profit, unveils growth plan for low carbon, renewables

Norway's Aker Solutions ASA on Oct. 23 reported revenue of 7.10 billion Norwegian kroner for the third quarter, up from 6.50 billion kroner in the prior-year period.

The projects segment contributed 5.60 billion kroner, while the services segment brought in 1.50 billion kroner. Compared with the same period last year, both segments saw an increase from 5.20 billion kroner and 1.30 billion kroner, respectively.

EBITDA totaled 553.0 million kroner during the quarter, an increase from 463.0 million kroner a year ago.

Orders totaled 4.70 billion kroner in the quarter, which hikes the total backlog to 27.40 billion kroner. The order intake was driven by smaller awards and growth in existing contracts.

The oilfield services provider is bidding for contracts amounting to 55.0 billion kroner.

The company also expects revenue growth at a rate similar to that of 2018, which was 12%. However, revenue is expected to drop in 2020.

"After delivering nearly 25% revenue growth and stable margins over the past two years, we expect to see slightly lower revenues and margins next year," Aker Solutions CEO Luis Araujo said in the earnings release.

In a separate release, Aker Solutions said it is aiming to generate 20% of its revenue from renewable energy and 25% from low-carbon solutions by 2030, under its 20/25/30 strategy.

The renewable energy solutions will mainly come from floating wind, while the low carbon segment includes carbon capture, utilization and storage, subsea gas compression, electrification of production assets and unmanned platforms.

The company is developing wind projects in the U.S. and South Korea through its 23% stake in Principle Power Inc.

Aker Solutions is also delivering the modular Just Catch plant to a waste-to-energy plant in the Netherlands, where the CO2 is planned to be used as fertilizer.

In addition, the company is involved in the Northern Lights CO2 storage project in the North Sea and in the development of a subsea gas compression project at the Jansz-Io field for Chevron Corp. in Australia.

As of Oct. 22, US$1 was equivalent to 9.14 Norwegian kroner.