Aker Solutions Posts Strong Third-Quarter Results
Aker Solutions has once again demonstrated its strong financial performance in the latest quarter, with notable increases in revenue, margins, and cash flow compared to the same time last year. The company's positive outlook is underlined by a substantial order backlog and vigorous activity in securing new tenders across various market segments.
Financial Highlights for Q3 2024
In its third-quarter report, Aker Solutions reported:
- Revenue of NOK 13.2 billion
- EBITDA of NOK 1.2 billion
- EBITDA margin at 9.2 percent
- Earnings per share reaching NOK 1.70
- A net cash position of NOK 11.7 billion, including liquid investments
- Order intake totaling NOK 6.0 billion
- A robust order backlog amounting to NOK 64.7 billion
Kjetel Digre, the Chief Executive Officer at Aker Solutions, noted, “These solid financial results reflect our successful execution across an extensive project portfolio, where we've met crucial milestones while also enhancing our digital capabilities to maintain competitiveness.”
Key Developments in the Quarter
In terms of growth, Aker Solutions significantly increased third-quarter revenues from NOK 9.1 billion in the previous year to NOK 13.2 billion. This impressive growth was fueled by strong operational output across the company's business divisions and a noteworthy contribution from its 20 percent stake in OneSubsea.
Moreover, the company reached vital milestones, such as securing the anchorage of the Johan Castberg FPSO in the Barents Sea and enhancing connectivity at the Troll West platforms. The Life Cycle segment performed admirably, achieving a 7.1 percent margin during the quarter.
During this period, Aker Solutions secured new orders worth NOK 6.0 billion, contributing to an already substantial backlog of NOK 64.7 billion. The highlight of the quarter was a topside modification contract for Equinor's Troll Phase 3 Stage 2 project, reinforcing its established relationship with OneSubsea within subsea production systems.
Financial Standing and Capital Allocation
Aker Solutions' net cash position climbed to NOK 11.7 billion, bolstered by successful cash management strategies. The quarter saw a working capital outflow of approximately NOK 1.2 billion, and capital expenditures equated to NOK 254 million.
In recognition of this robust financial standing and positive market conditions, the Board of Directors is proposing an extraordinary dividend of NOK 21 per share, to be discussed in an upcoming Extraordinary General Meeting. This additional dividend reflects the company’s commitment to maximizing shareholder value, alongside regular dividends that have seen NOK 1.5 billion distributed through 2024 via dividends and share buybacks.
Positive Outlook Ahead
Despite facing challenges due to geopolitical issues and fluctuating energy prices, Aker Solutions is optimistic about its future prospects. The current tendering activity is strong, amounting to around NOK 82 billion, combined with proactive early-phase project engagements through their energy consultancy division.
The company anticipates full-year 2024 revenues to grow by over 40 percent year-over-year. Its EBITDA margin, excluding OneSubsea's net income, is projected to stabilize around 7.5 percent for 2024.
Concluding Remarks
The achievements highlighted in this quarter are a testament to Aker Solutions' commitment to excellence and sustainability. The planned extraordinary dividend underlines their focus on investing in growth while rewarding stakeholders, setting a solid foundation for continued success.
Frequently Asked Questions
What drove Aker Solutions' revenue increase in Q3 2024?
The substantial growth in revenue is attributed to strong operational performance and strategic project execution across various business segments.
How much is the proposed extraordinary dividend per share?
The Board of Directors has proposed an extraordinary dividend of NOK 21 per share.
What is Aker Solutions' outlook for future growth?
The outlook remains optimistic, with the company expecting revenue growth exceeding 40% for the full year 2024.
What was the Order intake for Q3 2024?
Aker Solutions reported an order intake of NOK 6.0 billion for the third quarter.
Who can shareholders contact for more information?
Shareholders can reach out to Preben Ørbeck at Aker Solutions’ investor relations team for inquiries.
