Aker Solutions ASA Reports Significant Growth in 2024 Performance
Aker Solutions ASA experienced remarkable growth in 2024, demonstrating a solid revenue increase and enhanced margins. With a substantial order backlog amounting to NOK 61 billion, the company also saw its tender pipeline expand to approximately NOK 86 billion by year's end. Looking ahead, revenues for 2025 are projected to reach between NOK 50 billion and 55 billion, paired with EBITDA margins estimated between 7.0% to 7.5%, excluding income from OneSubsea. In a testament to its robust financial position, Aker Solutions plans to distribute a dividend of NOK 3.30 per share for the fiscal year 2024.
Financial Performance in 2024
Full-Year Financial Results
Aker Solutions reported significant financial highlights for the year, showcasing revenue of NOK 53.2 billion and an EBITDA of NOK 4.6 billion, resulting in an EBITDA margin of 8.7%. Additionally, earnings per share were reported at NOK 6.62, with an order intake totaling NOK 40.1 billion, achieving a book-to-bill ratio of 0.8x. The board has proposed a dividend of NOK 3.30 per share for 2024, reaffirming the company's commitment to delivering value to its shareholders.
Highlights from the Fourth Quarter
4Q 2024 Financial Summary
The final quarter of 2024 was marked by revenue of NOK 15.7 billion and an EBITDA amounting to NOK 1.2 billion, resulting in an EBITDA margin of 7.8%. Earnings per share for this period reached NOK 1.70, and the order intake was NOK 11.6 billion, leading to an order backlog of NOK 60.9 billion. This performance highlights a growth of 43% in revenue compared to NOK 11.0 billion in the same period of the previous year, reflecting strong contributions from its Life Cycle segment despite challenges in legacy renewables projects.
CEO Insights on Future Prospects
Kjetel Digre, the CEO of Aker Solutions, expressed pride in the company's performance and highlighted the exceptional management of both project delivery and future-oriented skills development. He emphasized the strategic partnership with OneSubsea, where Aker Solutions holds a 20% stake. The anticipated dividend distribution of over USD 250 million from OneSubsea to its shareholders in 2025 reflects the value generated through this collaboration.
Upcoming Opportunities and Strategic Focus
Looking ahead, Aker Solutions maintains a positive outlook bolstered by a robust order backlog and high levels of activity within tenders and early-phase projects. The company's focus remains on large-scale opportunities in the energy sector, with a notable growth rate of over 50% in consultancy revenues during 2024. Aker Solutions is committed to a selective approach for future contract opportunities while ensuring capacity is managed prudently.
Dividends and Shareholder Value
The Board of Directors has announced plans to propose a dividend of NOK 3.30 per share for the fiscal year 2024. This dividend payment reflects around 50% of net income excluding special items, aligning well with the company's established dividend policy. The proposal remains contingent on approval during the Annual General Meeting.
Frequently Asked Questions
What were the total revenues for Aker Solutions in 2024?
The total revenues for Aker Solutions in 2024 were NOK 53.2 billion.
What was the EBITDA margin for Aker Solutions in the fourth quarter of 2024?
The EBITDA margin for the fourth quarter of 2024 was 7.8%.
How much is the proposed dividend per share for 2024?
Aker Solutions proposed a dividend of NOK 3.30 per share for the fiscal year 2024.
What are the expected revenues for 2025?
The expected revenues for Aker Solutions in 2025 are projected to be between NOK 50 billion and 55 billion.
What is Aker Solutions' stake in OneSubsea?
Aker Solutions has a 20% ownership stake in OneSubsea.
