Oil and gas engineering and construction company Aker Solutions reported yesterday fourth-quarter results which beat market expectations, and at the same time gave a positive outlook on its prospects.
Aker Solutions posted core earnings before interest, tax, depreciation and amortisation (EBITDA) of £10.37million for the quarter, down sharply from earnings of £107.75million a year earlier but better than analysts’ predicted losses of £19million.
EBITDA for 2008 was £340.58million against £394.06million the year before.
Chief executive Simen Lieungh said, however, the performance was pleasing and he saw the future with confidence despite the current uncertainty in the markets.
He said: “Our numbers show that we have a sound balance sheet, a good liquidity situation and no need to refinance our credit lines.”
Both Aker’s subsea and products and technologies business areas delivered strong revenue growth and double-digit percentage EBITDA margins for 2008. The process and construction business also delivered a solid EBITDA margin of 8.4% for the year.
Aker Solutions repeated its forecast for 2009 EBITDA to rise to more than £450million from £340million in 2008. The company has already said that revenues will probably fall in 2009, but still end up above £5.03billion. Revenues were £5.84billion in 2008.
The order backlog was £5.84billion at the end of 2008, against £5.86billion a year earlier.
Remi Birkeland, managing director of Aker Solutions’ UK subsea business, said: “The UK activities of the group mirror the global situation in that we have an order book that puts us in a good short-term position and we are prepared to meet the likely medium-term challenges our industry faces.
“Beyond that, we continue to have confidence that the North Sea industry has a prosperous future and we’re ready to be a major player in that.
“Qserv, which was acquired last year, is also delivering according to expectations. Being able to offer a more integrated service offering will be central to meeting our future growth ambitions.”
Aker Solutions employs around 2,500 people in the Aberdeen area.