Aker Solutions ASA: Second-quarter and half-year results 2024 - Solid performance and upgraded guiding

Rhea-AI Summary

Aker Solutions reported strong financial performance for Q2 and H1 2024, achieving significant year-on-year growth. Q2 revenue reached NOK 12.8 billion, a 45% increase from the same period last year, while EBITDA rose to NOK 1.2 billion, reflecting a margin of 9.5%. Earnings per share stood at NOK 1.78. The company has a robust order intake of NOK 15.5 billion and a secured backlog of NOK 71.4 billion, ensuring long-term activity visibility. For H1 2024, revenues were NOK 24.3 billion with an EBITDA of NOK 2.2 billion. Aker Solutions expects 2024 revenues to hit NOK 50 billion, a 40% year-on-year growth, with an EBITDA margin of 7.5%. Key achievements include successful project milestones and new contracts, highlighting strong operational performance and strategic market positioning.

Positive

• Q2 revenue increased to NOK 12.8 billion, up 45% YoY
• Q2 EBITDA rose to NOK 1.2 billion with a 9.5% margin
• H1 revenue reached NOK 24.3 billion
• H1 EBITDA was NOK 2.2 billion with a 9.1% margin
• Order intake for Q2 was NOK 15.5 billion
• Secured backlog stands at NOK 71.4 billion
• Net cash position of NOK 11.0 billion
• 2024 revenue expected to grow by 40% to NOK 50 billion
• Strong operational performance with successful project milestones

Negative

• Order intake for H1 2024 was NOK 22.5 billion, a book-to-bill ratio of 0.9x

OSLO, Norway, July 12, 2024 /PRNewswire/ -- Aker Solutions has delivered another strong quarter with growth in revenues, margins and cash generation compared to the same period last year. Several key milestones have been met on the project portfolio in the period. Aker Solutions now expects revenues in 2024 to grow to a level of around NOK 50 billion, representing a year-on-year growth of around 40 percent, with EBITDA margins around 7.5 percent excluding net income from OneSubsea. 

2Q 2024 Financial Highlights
(excluding special items)

• Revenue NOK 12.8 billion
• EBITDA NOK 1.2 billion
• EBITDA margin 9.5 percent
• Earnings per share NOK 1.78
• Net cash position NOK 11.0 billion (including investments in liquid funds)
• Order intake NOK 15.5 billion (1.2x book-to-bill)
• Order backlog NOK 71.4 billion

1H 2024 Financial Highlights
(excluding special items)

• Revenue NOK 24.3 billion
• EBITDA NOK 2.2 billion
• EBITDA margin 9.1 percent
• Earnings per share NOK 3.19
• Order intake NOK 22.5 billion (0.9x book-to-bill)

"This high-activity quarter really highlights the strength of our organization as we keep surpassing our financial targets while meeting important project milestones and positioning Aker Solutions for the future," said Kjetel Digre, chief executive officer at Aker Solutions.

"A solid order intake and high tendering activity point to a positive outlook for Aker Solutions. I am also pleased to see the successful launch of the ENTR brand for our energy consultancy business, which is a key part of our strategy to uncover new opportunities in shifting energy markets," said Digre.

Key Developments

Revenue in the second quarter increased to NOK 12.8 billion from NOK 8.8 billion a year earlier. EBITDA excluding special items increased to NOK 1.2 billion compared with NOK 218 million in the same period last year. This was driven by solid operational performance, as well as large oil and gas projects in Norway reaching profit recognition milestones in the quarter.

Order intake for the quarter was NOK 15.5 billion and the secured backlog at the end of the quarter stood at NOK 71.4 billion, providing high visibility on activity levels for years to come. Aker Solutions won several important contracts in the period, including the modification of the Mongstad waste-water facility, the topside modification for the Bestla tie-in project and the long-term frame agreement with Azule Energy in Angola.  

Solid operational performance and the settlement of proceeds related to the subsea transaction resulted in strong cash generation. At the end of the quarter, the net cash position was NOK 11.0 billion, including investments in liquid funds not treated as cash and cash equivalents under IFRS. During the first half of 2024, Aker Solutions distributed about NOK 1.4 billion to shareholders through dividends and share buybacks, in line with our dividend policy. 

During the first half of 2024, Aker Solutions experienced high activity across our locations, reaching several important milestones in the project portfolio, including the successful sea trial for the Castberg FPSO and the delivery and later offshore installation of the Fenris pre-drilling module and jacket at the Valhall field for Aker BP.  

Outlook

The outlook remains positive for Aker Solutions. The high order backlog, mainly made up of projects to be executed in the well-proven alliance model with Aker BP with balanced risk-reward profile and upside potential through shared incentives, offers good visibility on activity levels going forward. Tender activity is high at about NOK 70 billion and we will continue to be selective in our approach to tendering. 

Based on the secured backlog and market activity, full year revenue in 2024 is now expected to increase by around 40 percent compared to 2023. The underlying EBITDA margin, excluding net income from OneSubsea, is expected to be around 7.5 percent for the full year of 2024.

Audiocast presentation

The second-quarter and half-year results will be presented by audiocast today, July 12, at 09:30 CEST. To join the audiocast, go to https://www.akersolutions.com/audiocast

A Q&A session will follow the presentation. Written questions can be submitted through the audiocast solution or sent in advance to preben.orbeck@akersolutions.com, Head of Investor Relations.

An opportunity for individual press interviews will follow the audiocast. Please direct your interest to hallvard.norum@akersolutions.com

The reports published today, and previous reports, are also available on https://www.akersolutions.com/investors/quarterly-results/

Preben Ørbeck
investor relations
preben.orbeck@akersolutions.com
+47 470 10 611

Hallvard Norum
media contact
hallvard.norum@akersolutions.com
+47 913 80 820

Aker Solutions delivers integrated solutions, products and services to the global energy industry. We enable low-carbon oil and gas production and develop renewable solutions to meet future energy needs. By combining innovative digital solutions and predictable project execution we accelerate the transition to sustainable energy production. Aker Solutions employs approximately 11,000 people in more than 15 countries.

Visit akersolutions.com and connect with us on Facebook, Instagram, LinkedIn and YouTube.

This press release may include forward-looking information or statements and is subject to our disclaimer, see https://akersolutions.com

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This stock exchange release was published by Hallvard Norum, Communications, Aker Solutions, on July 12, 2024 at 07:00 CEST.

View original content:https://www.prnewswire.com/news-releases/aker-solutions-asa-second-quarter-and-half-year-results-2024--solid-performance-and-upgraded-guiding-302195663.html

SOURCE Aker Solutions ASA

FAQ

What were Aker Solutions' Q2 2024 financial highlights?

Aker Solutions reported Q2 2024 revenue of NOK 12.8 billion, EBITDA of NOK 1.2 billion with a 9.5% margin, and earnings per share of NOK 1.78.

How did Aker Solutions perform financially in H1 2024?

In H1 2024, Aker Solutions achieved revenues of NOK 24.3 billion, EBITDA of NOK 2.2 billion with a 9.1% margin, and earnings per share of NOK 3.19.

What is Aker Solutions' order backlog as of Q2 2024?

Aker Solutions' order backlog stood at NOK 71.4 billion at the end of Q2 2024.

What is Aker Solutions' revenue forecast for 2024?

Aker Solutions expects its 2024 revenue to grow by around 40% to NOK 50 billion.

What were the key achievements for Aker Solutions in Q2 2024?

Key achievements include strong financial performance, new contracts, and successful project milestones in Q2 2024.

What was Aker Solutions' Q2 2024 order intake?

Aker Solutions' Q2 2024 order intake was NOK 15.5 billion.

What is the EBITDA margin forecast for Aker Solutions in 2024?

The EBITDA margin for Aker Solutions in 2024 is forecasted to be around 7.5%.