Aker Solutions (OSLO:AKSO) reported storming fourth quarter and full year results, as a wave of new Norwegian projects filled its books to a record high.
The Oslo-listed firm reported pre-tax profits of 564 million NOK (£45.5m) for Q4 2022 – more than it did in full-year 2021.
Full year pre-tax profits more than tripled on the previous year to 1.7 billion NOK (£140m), as the engineering group reported “record high backlog and visibility towards 2027”.
Q4 revenue increased to 12.5 billion NOK (£1bn) from 8.7 billion (£700m) during the same period in 2021.
Aker Solutions said it ended the year with a net cash position of 5.1 billion NOK (£410m), excluding lease liabilities – more than double the NOK 2.2 billion at the end of 2021 – on the back of increased margins and improved working capital.
Full-year EDITDA stood at 2.9bn NOK (£230m).
Almost 60 billion NOK (£4.8bn) was booked in Q4, a record-high for the three-month period, and represents more than one-third of the 88.2 billion NOK (£7.1bn) booked for full-year.
Total order backlog now stands at a record NOK 97.3 billion (£7.7bn), of which 60% is related to a major package of work across the Norwegian continental shelf, including for a string of projects with Aker BP.
A new venture that would see the firm merge its subsea business with that of Schlumberger and Subsea 7 is also “progressing as planned”, Aker Solutions reported, with the transaction expected to be closed during the second half of 2023, pending regulatory approvals.
In response to the strong results the company’s board proposed a dividend payment of NOK 1 per share to be paid in 2023, for fiscal 2022 – equal to 40% of the group’s net profit.
In the meantime, the company said it expects “increased market activity moving forward.”
“Energy security remains very high on the agenda, particularly in Europe. A substantial step-up in global E&P capital spending is projected and project sanctioning activity internationally is expected to increase,” it added.
Based on secured order backlog and ongoing projects, the company expects full-year revenue in 2023 to be up by around 15%.
“I am happy that we delivered strong fourth quarter results both operationally and financially. I am also very pleased with our performance in 2022 overall – the year was successful for Aker Solutions on many fronts, delivering substantial revenue growth, increased profitability and all-time high order intake. I am very proud of our employees for making these great achievements possible,” noted CEO Kjetel Digre.
“Looking forward, we see increased market activity and the outlook for the industry and for the company is very positive. Aker Solutions is in an excellent position to take full advantage of opportunities ahead.”
Recommended for you
