Energy service firm Aker Solutions has reported faster-than-expected progress for its £80 million cost-cutting drive.
The Norwegian company, which employs more than 600 people in Aberdeen, said its second quarter trading performance was better than it had anticipated earlier this year.
There was a “significant improvement” of revenue, earnings and order intake during the three months to June 30, thanks to quicker-than-expected implementation of cost-saving measures, higher activity than previously anticipated on existing projects and several new contract wins.
Aker Solutions, which is based just outside Oslo, said it expected second quarter earnings before interest, taxes, depreciation, and amortisation (Ebitda) to come in at around £19m.
Excluding one-off items, including £9.5m of restructuring costs, Ebitda of around £29m is anticipated on revenue totalling £450m.
The company said project sanctioning activity increased after Norwegian authorities introduced temporary tax incentives for oil and gas firms.
It highlighted several recently won contracts in Norway, with the total order intake for the second quarter expected to be worth nearly £600m.
Aker Solutions said recently it was axeing 44 UK North Sea jobs after Equinor postponed a project on its Mariner A platform, east of Shetland. Last October the firm announced plans to cut nearly 100 jobs from a then 750-strong Aberdeen workforce.
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