Oilfield services firm Aker Solutions says it will scale back investment as uncertainty about oil sector spend impacts on its future plans.
The company, which has been selling off non-core assets over the last few months, said it was reducing the focus on growth in favour of improving profit margins at the company.
The move comes after Aker had previous targeted doubling revenues between 2010 and 2015, but saw profits down 27% in the last quarter.
“While we will continue to build Aker Solutions, the focus on topline growth will be toned down and more attention will be paid to growing our profit and share price,” said chairman Øyvind Eriksen.
“We are going to reduce our investment levels so that we don’t overinvest in capacity that could erode margins.”
Despite order intake increasing by a fifth this year, with a £300million deal for Statoil’s Norwegian operations announced just last week, the Oslo-based firm said it would continue its sell-off programme as it focused on deepwater and subsea operations.
The oilfield services and marine assets aspects of the company will also be sold off over the next few months, the company said, as it aims to build on subsea factory supply and design project work – with Brazil and Norway targeted as among its priorities.
“Aker Solutions will prioritize high-growth areas with significant barriers to entry and businesses that yield a high return on capital,” said Eriksen.
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