Norwegian oil and gas services firm Aker Solutions has delivered its third quarter results, achieving NOK 14.3 billion (£1.06 billion) in revenue.
The third-quarter revenue figure represented an increase from NOK 10.0 billion a year earlier.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding special items, increased to NOK 1.5 billion, or 10.6 percent from NOK 0.7 billion a year earlier.
The results follow Aker Solutions closing the OneSubsea joint venture in early October.
The company will receive USD 700 million (£578 million) in the deal and retain a 20 percent ownership in the new subsea entity.
Third-quarter revenue, excluding the Subsea segment, was NOK 9.1 billion with an EBITDA margin of 2.4 percent.
Aker Solutions ‘meets and surpasses’ financial targets
Aker Solutions chief executive officer Kjetel Digre said the third quarter results demonstrated the company continued to meet and surpass its financial targets.
“After the quarter ended, we announced the closing of the subsea joint venture transaction which marks a defining moment in our strategy,” Mr Digre said.
“We have transitioned from having a stand-alone subsea business to becoming a co-owner in a world-leading subsea company.”
Mr Digre said the overall market outlook remains positive despite industry cost inflation, geopolitical instability and supply chain constraints.
“With our solid order backlog and high tendering activity, Aker Solutions is well-positioned to capitalize on diversifying energy markets, including their longer-term structural changes,” he said.
Aker Solutions outlook remains positive
Aker Solutions said its outlook remains positive, with tender activity at about NOK 103 billion (£7.61 billion), of which 65 percent related to segments outside the subsea sector.
Moving forward, the company said its market activity is expected to increase across the energy sector, with constrained oil and gas supply from reliable sources driving the need for additional investments.
Aker Solutions said the outlook for renewables was not as strong.
“Despite high ambitions, the renewables markets remain immature and profit levels are insufficient to ensure that the industry makes the required investments to deliver on government targets,” the company said.
“The industry is dependent on authorities and policy makers taking an active role in developing frameworks that increase predictability and improves commercial models to ensure industrialization of the industry.
“Aker Solutions remains highly selective in these markets, with sole focus on projects with balanced risk-reward profiles.”
Based on ongoing projects and its secured order backlog, Aker Solutions said it expects full-year 2023 revenues, excluding subsea, to be around NOK 34 billion (£2.5 billion).