Aker Solutions (OSLO: AKSO) is toasting a “good performance” in the third quarter after posting pre-tax profits of £38 million.
That is marginal increase on the previous quarter when the engineering firm reported profits of £35m, and a big surge on Q3 2021’s figure of £9m.
Revenue for Q3 stood at £843m, while across the three months the Norwegian company took in orders of £691m.
That has taken its order backlog to £4.3 billion.
Aker Solutions, which has a regional base in Dyce, Aberdeen, said tendering activity continues to be record high, and the market outlook remains positive.
As a result it has increased its revenue guidance and now expects takings to be up by more than 35% in 2022 from 2021.
During the first nine months of the year, Aker Solutions has successfully recruited around 2,300 new skilled employees globally.
Kjetel Digre, chief executive of Aker Solutions, said: “Our third quarter results demonstrate that we continue on-track with our financial targets, and I am pleased with our performance in the quarter. The market outlook overall for Aker Solutions remains positive.
“The company is well-positioned to capitalize on both near-term recovery and for the longer-term structural change in the energy markets.”
In the third quarter, Aker Solutions announced an agreement to form a joint venture by bringing together its subsea business with that of Schlumberger.
Subsea 7 will also become a partner in the JV, bringing existing subsea integration alliance.
Through the transaction, Aker Solutions will receive £621m in consideration for the sale of a 20% ownership in the partnership, after which it will retain 20%.
It will also retain an estimated £266m of cash generation from its subsea business until closing.
The transaction is subject to regulatory approvals and other conditions and is expected to close during the second half of 2023.
Mr Digre said: “By combining our strong and complementary subsea businesses, this compelling combination will deliver an industry step change that will significantly benefit our customers, employees and shareholders. As the offshore market activity is increasing, our customers will benefit from enhanced services that leverage digital and technological innovation to drive improved subsea asset performance while increasing energy efficiency and reducing CO2 emissions.”
In its previous set of results, Aker Solutions announced the award of an undisclosed contract.
It has now confirmed that the deal is for the East Anglia 3 offshore wind project in the UK, for ScottishPower Renewables.
Aker Solutions’ scope, in a consortium with Siemens Energy, is to provide the grid connection infrastructure, including the HVDC converter platform.
Looking ahead, the company says the outlook remains positive, with increase market activity and project sanctioning.
A substantial step-up in capital spending is projected in both oil & gas and renewables moving forward, driven by energy security.
Overall, Aker Solutions says it is well-positioned to capitalise on both near-term cyclical recovery and for the longer-term structural change in the energy markets.
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