Dwindling North Sea demand has hit Aker Solutions’ earnings.
The firm credited a dipped North Sea marketplace for shaving off its second quarter results.
The firm booked NOK8billion in sales, just shy of last year’s NOK8.1billion.
But the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) was NOK547million, down from last year’s NOK608million.
A company report said: “Results were impacted by overcapacity costs in the MMO workforce and a NOK58million provision to cover lease costs for vacant office space. Declining demand for subsea services in the North Sea weighed on the results.”
In June, the firm confirmed it wold reduce its Norwegian workforce by 200. The decrease was a knock-on effect from a weakened Norwegian market. Initially, the firm looked to find alternate work for staff, but the company confirmed the job losses with its subsea services facility in Ågotnes, Norway bearing the brunt of the cuts.
Chief executive Luis Araujo said: “Our strong order backlog and growing international presence stand us well as markets continue to be challenging with many clients exercising strict capital control.
“We made good progress in the quarter on major projects and also benefited from improvement programs across the business.”
The firm booked NOK3.4billion in sales in the second quarter. Its current backlog stands at NOK44billion, of which two-thirds is for projects to be delivered outside Norway.
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