Aker Solutions ASA: Fourth Quarter 2021 Results

Oslo, Norway, February 8, 2022 /PRNewswire/ — Aker Solutions recorded an increase in revenue, margins and order intake in the fourth quarter of 2021. The company continued to demonstrate that it remains on track to achieve its transformation and growth objectives, as the company continued to make good progress on its projects globally. Bidding activity remains high and the company has updated its financial guidance. The board of directors proposed a dividend of NOK0.20 per share for fiscal year 2021.

Q4 2021 Financial Highlights
(excluding special items)

  • Income NOK 8.7 billion
  • EBITDA NOK593 million
  • EBITDA margin 6.8%
  • Earnings per share NOK0.23
  • Net cash NOK 2.2 billion
  • Order taking NOK 9.3 billion (1.1x from booking to billing)
  • Backlog NOK 49.2 billion

2021 Financial Highlights
(excluding special items)

  • Income NOK 29.5 billion
  • EBITDA NOK1,871 million
  • EBITDA margin 6.4%
  • Earnings per share NOK0.65
  • Order taking NOK 40.5 billion (1.4 x invoice book)
  • Backlog NOK 49.2 billion
  • The board proposes a dividend of NOK0.20 per share for 2021

“I am pleased that we delivered another strong quarter both operationally and financially, and pleased with our performance in 2021 overall. It was a successful year for Aker Solutions on many fronts, with improved profitability , strong order intake and key commercial successes related to our all our key figures increased over the previous year, and we achieved our financial targets. I am very proud of our employees for making this great achievement possible. said Kjetel Digre, CEO of Aker Solutions.

“In 2021, we also took several steps to accelerate our strategy and position the business for the future. Going forward, we see increased market activity in the areas and regions where we are relevant. Aker Solutions is well positioned to take full advantage of the opportunities ahead,” said Digré.

Key financial data

In the fourth quarter, Aker Solutions achieved sales of NOK 8.7 billion and an EBITDA of NOK 593 million excluding exceptional items, which is equivalent to an EBITDA margin of 6.8%. Earnings per share were NOK0.23 during the quarter, and the company had net cash of NOK 2.2 billion at the end of the quarter, excluding IFRS 16 lease liabilities.

For 2021, the company achieved a turnover of NOK 29.5 billion with an EBITDA of NOK 1,871 million excluding exceptional items, which is equivalent to an EBITDA margin of 6.4%. Earnings per share were NOK0.65 for the year. Order intake in 2021 was NOK 40.5 billionequivalent to 1.4x the book-to-bill, bringing the order book at the end of the year to NOK 49.2 billionan augmentation of NOK 38.0 billion one year ago. Aker Solutions generated strong free cash flow before debt repayment of NOK 1.7 billion in 2021 and the company’s financial situation is solid.

Dividend policy

The Board of Directors has decided on a dividend policy aimed at distributing annual dividends of 30-50% of net profit over time. Given the company’s solid financial situation and positive outlook, the board has proposed a dividend of NOK0.20 per share for fiscal year 2021.

Order taking

In the fourth quarter, Aker Solutions delivered an order intake of NOK 9.3 billion, which equals 1.1x the ratio of order to billing. At the end of the quarter, the order book stood at NOK 49.2 billionan increase of 29% compared to NOK 38.0 billion one year ago.

During the quarter, Aker Solutions won several important contracts in its business segments. The company has won a contract with Petrobras to supply the subsea production system for the Mero 4 offshore project Brazil. The company also won a contract from Chevron to supply subsea umbilicals for the Jansz-Io gas compression subsea development, offshore Australia. It also won a dismantling and recycling contract for the Heimdal and Veslefrikk fields in Norway from Heerema Marine Contractors, which was the largest decommissioning contract won in the European market in 2021. The company also secured scope growth from Equinor’s Johan Castberg project.

Aker Solutions also announced several major early stage engineering and design (FEED) contracts during the quarter. These included FEEDs for the FPSO for Equinor’s Wisting field and for Valhall field topsides and Aker BP’s King Lear discovery, in Norway. These single-source FEED contracts have the potential to turn into significant order intake for Aker Solutions in late 2022, subject to final investment decision and regulatory approvals. The company also won a strategically important carbon capture FEED for BP’s Net Zero Teesside Power project in the UK. As one of the two winning consortia of this FEED, Aker Solutions executes the FEED through its consortium with Doosan Babcock and Siemens Energy, and with Aker Carbon Capture as a sub-contractor.

Key developments

During the quarter, Aker Solutions announced that it had formed the Windstaller Alliance with DeepOcean and Solstad Offshore, for the growing offshore wind market. The alliance will provide manufacturing and marine services for offshore wind and other renewable segments.

Subsequent to the end of the quarter, the company announced that it would enhance its engineering offering by creating engineering consulting services and that it had agreed to acquire Unitech Power Systems. Unitech is a leading power systems consultancy, and the acquisition is a first step in building a leading engineering consultancy business and will allow Aker Solutions to further accelerate its transformation. The all-cash transaction is expected to close in the first quarter of 2022, at an undisclosed value.

Outlook

The outlook remains positive for Aker Solutions and the company expects project sanctions to increase in 2022 in regions and segments where it has a strong position.

A tight balance between supply and demand in the oil and gas market should result in an attractive investment environment for the Company’s clients, supported by greater confidence in the oil price environment. This should lead to a substantial increase in capital spending, and Aker Solutions is well positioned to capitalize on such a cyclical recovery.

Aker Solutions is also well positioned for longer-term structural changes in energy markets and is well on its way to transition. Recent contract awards and the company’s continued high tender pipeline illustrate a gradual shift in Aker Solutions’ exposure as the company shifts more towards renewable energy and transition solutions with the The goal is to reach one-third of revenue from these business areas by 2025. By the end of the fourth quarter, these areas already accounted for 32% of the company’s backlog.

For 2022, the company is increasing its full-year guidance. Based on the secure backlog and market activity, revenue is now expected to grow more than 20% versus 2021. Underlying EBITDA margin is at this early stage of the year, up from compared to 2021. contracts, combined with high front-end and tender activity, support the potential for record order intake in 2022 for Aker Solutions.

Media Contact:
Torbjørn Andersen, mobile: +47 928 85 542, e-mail: [email protected]

Investor contacts:
Fredrik Bergemobile: +47 450 32 090, e-mail: [email protected]

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https://news.cision.com/aker-solutions-asa/r/aker-solutions-asa–fourth-quarter-results-2021,c3500511

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SOURCEAker Solutions ASA

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