Aker Solutions was upbeat about its future prospects yesterday as it posted an 11% lift in quarterly profits.
The global provider of engineering and construction services to industries including oil and gas, said the basis for growth in its markets was positive, as producing oil and gas fields would be unable to meet demand in the longer term and the current replacement of output with new reserves was inadequate.
The group said a substantial proportion of future developments were expected to take place in deep waters and harsh environments – areas where it had broad experience and a strong competitive advantage, adding: “2010 has started with a high level of tender activity, but it still remains uncertain when contracts will be awarded.
“Our long-term strategy remains unchanged. We will focus on cold climates, harsh environments and deeper waters, and exploit the strong North Sea modifications, maintenance and operations (MMO) market.”
The group reported pre-tax profits of £106.05million yesterday for the three months to March 31, up from £95.93million a year earlier on revenue of £1.27billion, down from £1.65billion the year before.
It said it had booked £1.15billion in new orders during the quarter and had a backlog worth £6.13billion.
With three main business streams in Aberdeen – Aker Subsea, Aker QServ and Aker Offshore Partner – Aker Solutions employs more than 2,000 people in the city.
Alan Brunnen, managing director of Aker Subsea, said: “Good order-book development and positive messages from our customers has given us a great deal of confidence. With continued significant investment in technology we believe we are well-positioned to take advantage of the widely forecasted upturn and increase our share in the marketplace.”
Aker Solutions also said it had secured a one-year contract extension estimated to be worth about £25million for MMO work with Maersk Oil North Sea in UK waters.
The engineering and construction contract with Maersk began in February 2004. The contract duration was originally three years, and included three options. This is the fourth option that Maersk has exercised and will last until January 31, 2011.
Aker Solution’s scope of work for Maersk involves engineering and construction support on the Janice, GPIII and Gryphon installations.