Aker Solutions Sees Earnings Fall

aker-solutions-sees-earnings-fall

Norwegian oil services company Aker Solutions has reported net income of NOK 62 million ($7.3 million), or NOK 0.23 in the first-quarter 2017, versus net income of NOK 169 million ($19.5 million), or 0.53 NOK in the prior-year comparable period.

The company has seen its revenue declined to NOK 5.17 billion in the quarter from NOK 6.46 billion a year earlier on weak market and as some projects neared completion.

In the ‘Projects’ segment Aker Solutions revenue dropped to NOK 4.1 billion in the quarter from NOK 5.1 billion a year earlier. Subsea revenue fell 27 percent versus last year to NOK 2.2 billion.

In the company’s ‘Services’ segment revenue fell to NOK 1.1 billion in the Q1 2017 from NOK 1.5 billion in Q1 2016, impacted by low activity in subsea services and a maturing production asset services.

Aker Solutions said it expects overall 2017 revenue to decline some 10-15 percent year-on-year.

At the end of the first quarter the order backlog was NOK 30.7 billion, of which NOK 8.8 million in Subsea, compared to close to NOK 38.5 billion at the end of the year-ago quarter. The order intake was NOK 4.6 billion versus NOK 6 billion a year earlier.

Source: Subsea World News

Leave a Reply