Aker Solutions Reports Strong Q3 Earnings
Aker Solutions surpasses forecasts with net profit of $76.4 million in Q3, driven by closure of OneSubsea joint venture and solid order backlog.
Norwegian energy-industry service provider, Aker Solutions, reported better-than-expected earnings for the third quarter and remains optimistic about its future prospects. The company recorded a net profit of 853 million Norwegian kroner ($76.4 million), a significant increase from NOK305 million in the same period last year. Revenue also saw a substantial rise, jumping by 42% to reach NOK14.26 billion.
Analysts surveyed by FactSet had anticipated a net profit of NOK550 million on revenue of NOK14.19 billion, making Aker Solutions' results even more impressive.
One of the key factors contributing to the positive financial performance was the closure of the OneSubsea joint venture, resulting in a $700 million payment to Aker Solutions and the company retaining a 20% ownership stake in a larger subsea entity.
Looking ahead, Aker Solutions is confident in its future growth, with a solid order backlog and high levels of tendering activity. Based on its existing projects and secured order backlog, the company anticipates revenues (excluding subsea operations) of approximately NOK34 billion in 2023, along with stable earnings before interest, tax, depreciation, and amortization (EBITDA) margins.
The company also expects revenue to grow by approximately 10% in 2024, with an EBITDA margin ranging between 6% and 7%. Despite a slight decline in order intake in the third quarter, Aker Solutions remains optimistic about its pipeline, as the backlog increased from NOK51 billion to NOK90 billion.
Aker Solutions is actively tendering for contracts valued at around NOK103 billion, further demonstrating its commitment to securing future projects and maintaining growth.
Overall, these strong financial results underscore Aker Solutions' position as a leader in the energy-industry service sector, and the company looks poised for continued success in the coming years.