Aker today announced a three-year contract extension from Total to provide maintenance and operations services at the Elgin and Franklin fields in the UK North Sea. This work is valued at more than NOK 400 million.
“We have a healthy order backlog and solid financial position underpinned by our continuous improvement efforts and consistently strong execution on major projects worldwide,” said chief executive Luis Araujo.
“We are building on all of this with key collaborations that boost our competitiveness, particularly in the subsea area.”
The deal comes after its NOK 1billion deal to deliver its longest-ever umbilicals system at the Zohr gas field offshore Egypt.
Speaking to investors today, Araujo said teh firm was making good progress on stripping costs out of the business. The service firm is currently targeting a 30% reduction in its spend.
A quarter of the targeted improvement will be achieved this year, helping to achieve potential annualized cost-savings of at least NOK 9 billion by the end of 2017, based on the 2015 cost base and work volumes.
Araujo said: “We’re simplifying how we work and standardizing our products and services to drive through savings and become more competitive.
“These efforts are supporting our margins and we are winning new work through increased collaboration with customers and industry participants on key projects and technology.”
He added: “We have a healthy order backlog and solid financial position underpinned by our continuous improvement efforts and consistently strong execution on major projects worldwide.
“We are building on all of this with key collaborations that boost our competitiveness, particularly in the subsea area.”
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