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Akastor Interim / Quarterly Report 2010
3525_rns_2010-04-23_60c0437c-f86d-4dd0-a8fd-9c2bb0e9246f.pdf
Interim / Quarterly Report
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AkerSolutions
part of Aker
1st quarter results 2010
23 April 2010
AkerSolutions
part of Aker
Improved margin
Financial
- EBITDA margin increased to 9.5 % (11.1 % incl. non-recurring items)
- EBITDA: NOK 1 096 million (NOK 1 278 million incl. non-recurring items)
- Revenues of NOK 11.6 billion
- EPS of NOK 2.36 (incl. non-recurring items)
- Net current operating assets of NOK 1.8 billion
- Ordinary fluctuations from quarter to quarter
- Dividend payment of NOK 2.60 per share paid on 22 April
Orders
- Booked NOK 10.5 billion in new orders
- Power plant project of NOK 1.1 billion
- Umbilical contracts of NOK 1.2 billion
- Power cable installation contract of NOK 0.5 billion
- Order backlog at NOK 55.7 billion
- USD 300 million subsea tree contract for Iara & Guara awarded (Q2)
Financial highlights
© 2010 Aker Solutions ASA
Page 1 of 12
1st quarter 2010 report
AkerSolutions
part of Aker
Aker Solutions financials
Income statement
First quarter 2010 consolidated revenues amounted to NOK 11 556 million, compared with NOK 14 975 million for the same period in 2009. The decrease in revenues is partly due to the completion and phasing of projects and partly due to slower markets.
EBITDA for the first quarter of 2010 was NOK 1 278 million (NOK 1 096 million excluding non-recurring items) compared to NOK 1 124 million for the first quarter of 2009. The EBITDA margin for the first quarter 2010 was 11.1 percent (9.5 percent excluding non-recurring items) compared to 7.5 percent in the corresponding period in 2009.
The existing main early retirement arrangement in Norway (AFP) will be replaced by a new AFP arrangement from 1 January 2011. It is assumed that the new AFP will be accounted for as a defined contribution plan, which means that annual contributions will be expensed as they are paid. The provision for accrued benefits under the old plan for employees born after 1949, which are too young to qualify for the former AFP program, is derecognised from the accounts in first quarter 2010. At the same time a provision is recognised to cover under financing of the old AFP with respect to employees that will retire under that plan. The combined net accounting effect of the above is an accounting gain of NOK 182 millions which is recognised in the EBITDA in first quarter 2010 in accordance with the recommendation of the Norwegian Accounting Standards Board. The effect is recognised in ED&S with NOK 139 million, in Subsea with NOK 16 million, in P&T with NOK 16 million, and in Corporate with NOK 11 million.
Net financial items for the first quarter were negative NOK 75 million, compared to negative NOK 142 million for the same period in 2009.
Fluctuations in the fair value of hedging transactions which did not qualify for hedge accounting represented an accounting loss of NOK 10 million in the quarter, of which negative NOK 37 million is booked under financial items and positive NOK 27 million is booked under EBITDA.
Pre-tax profit for the first quarter 2010 was NOK 964 million compared to NOK 872 million for the same period in 2009. Tax expenses for the first quarter were NOK 290 million, which was 30 percent of profit before tax. Net profit for the first quarter was NOK 674 million, representing earnings per share of NOK 2.36.
Cash flow
Cash flow from operating activities was negative NOK 1 645 million in the first quarter. This reflects a NOK 2 255 million increase in net current operating assets, from negative NOK 463 million at the end of 2009 to positive NOK 1 792 million at the end of the first quarter 2010. As previously communicated, the net current operating assets will fluctuate from period to period.
Cash and bank deposits at the end of the first quarter were NOK 2.2 billion. Undrawn committed long-term bank revolving credit facilities amounted to NOK 4.0 billion, giving a total liquidity buffer of NOK 6.2 billion.
Balance sheet
Gross interest-bearing debt amounted to NOK 8.8 billion at the end of the first quarter. Net interest bearing debt was NOK 5.8 billion.
Equity ratio at the end of the first quarter was 23.9 percent compared to 22.8 percent at the end of the year 2009.
The company has a healthy financial position with a comfortable debt level.
Order intake
Order intake in the first quarter was NOK 10.5 billion which is in line with the order intake in the first quarter 2009. Order intake represents both new contracts and growth in existing contracts. At the end of the first quarter, the order backlog was NOK 55.7 billion, a decrease of NOK 0.6 billion from year end 2009.
Key figures
| Amounts in NOK million | 1Q 10 | 1Q 09 | 2Q 09 | 3Q 09 | 4Q 09 | 2009 |
|---|---|---|---|---|---|---|
| Operating revenues | 11 556 | 14 975 | 14 324 | 12 565 | 12 213 | 54 077 |
| EBITDA | 1 278¹ | 1 124 | 1 192 | 1 008 | 1 044 | 4 368 |
| EBITDA margin (%) | 11.1% | 7.5% | 8.3% | 8.0% | 8.5% | 8.1% |
| EBIT | 1 076 | 936 | 963 | 789 | 770 | 3 458 |
| Net profit | 674 | 619 | 792 | 497 | 423 | 2 331 |
| Earnings per share (EPS)² | 2.36 | 2.24 | 2.87 | 1.78 | 1.51 | 8.40 |
| Order intake | 10 461 | 10 732 | 20 111 | 9 018 | 12 139 | 52 000 |
| Order backlog | 55 705 | 52 322 | 61 924 | 56 453 | 56 276 | 56 276 |
| Net current operating assets | 1 792 | 2 216 | 3 364 | 1 901 | -463 | -463 |
| Net debt | 5 752 | 3 671 | 6 410 | 4 863 | 3 705 | 3 705 |
¹ Of which non-recurring items NOK 182 million (AFP).
² Basic EPS.
© 2010 Aker Solutions ASA
Page 2 of 12
1st quarter 2010 report
AkerSolutions
part of Aker
The Aker Solutions share
The share price increased from NOK 75.45 at the end of the fourth quarter 2009 to NOK 93.00 at the end of the first quarter 2010, an increase of 23.2 percent. During the first quarter, the average share price was NOK 82.52, the highest closing share price was NOK 94.25 and the lowest closing share price was NOK 73.80. The daily turnover averaged 1 958 315 shares. Total market cap was NOK 25.5 billion at the end of the first quarter 2010, compared to NOK 11.3 billion at the end of the first quarter 2009.
During the first quarter 2010 Aker Solutions bought back 300 000 own shares at a value of NOK 24.8 million. Aker Solutions currently holds 4 838 134, or 1.77 percent, of the company's 274 000 000 outstanding shares.
Share price development last 12 months
Operations
Health, Safety and Environment
Aker Solutions' Just Care™ HSE programme continues with training, 'Just Rules' and the environment among the current main focus areas. The HSE operating system has been updated and there are continuous strategic reviews and assessments going on to ensure compliance. A continuous effort is put into efficient sharing of lessons learned from serious incidents and near misses across the company.
HSE performance
Energy Development & Services (ED&S)
| Amounts in NOK million | Q1 10 | Q1 09 | 2009 |
|---|---|---|---|
| Operating revenues | 4 995 | 5 479 | 19 827 |
| EBITDA | 569¹ | 350 | 1 116 |
| EBITDA margin | 11.4% | 6.4% | 5.6% |
| Order intake | 2 591 | 5 467 | 26 887 |
| Order backlog | 23 012 | 18 335 | 25 396 |
| Employees | 9 360 | 9 763 | 9 535 |
¹ Of which non-recurring items NOK 139 million (AFP).
Financials
Operating revenues for the first quarter were 9 percent lower compared to the corresponding period of 2009. The reduced revenues are mainly due to the phasing of projects.
First quarter EBITDA was NOK 569 million (NOK 430 million excluding the AFP-effect of NOK 139 million) compared to an EBITDA of NOK 350 million for the corresponding quarter last year. EBITDA margin for the first quarter was 11.4 percent (8.6 percent excluding the AFP effect), compared to 6.4 percent for the same quarter in 2009.
Order intake
The order intake includes a NOK 450 million EPC contract for the Gudrun jacket with Statoil and an EPC contract for a platform jacket for the new Ekofisk accommodation platform with ConocoPhillips, both in the North Sea. The order intake in the quarter also includes growth in existing contracts and smaller contracts. Several projects in the North Sea and international markets are in the bid phase. Tendering levels and activity will remain high for modifications and extension projects in the North Sea.
Project update
Internationally, activity is high on the Sakhalin I GBS and Kashagan hook-up projects.
The construction of the semi-submersible production platform for the Gjøa field has entered the final phase and activity is high in order to get the platform ready for handover to the customer Statoil on time.
Aker Solutions/KIEWIT was selected as the only contracting group pre-qualified to bid for Exxon's Hebron project in the first quarter.
The loss of the Goliat FPSO project raises capacity issues in the medium term.
Market
New development projects are expected to be awarded during 2010, both in the North Sea and internationally. In the long term, a number of field developments are still expected on the Norwegian Continental Shelf but fewer very large projects.
The outlook for the MMO market is regarded as good, with demand expected to be high in 2010. ED&S holds a number of long term frame agreements in this segment with the largest operators. We anticipate a good, stable MMO market, with high tendering activity. Low pressure production, tie-ins, safety upgrades and extended lifetime upgrades are all examples of projects within the maintenance and modifications portfolio that are aimed at extending fields' production lifetimes.
The goal for ED&S is to maintain its share of the traditional MMO market on the Norwegian and UK continental shelves. A commitment is simultaneously made to expand activities in international markets through a particular concentration on the Caspian Sea and selected harsh environment and deep water regions where Aker Solutions core competence and technologies are in demand.
© 2010 Aker Solutions ASA
Page 3 of 12
1st quarter 2010 report
AkerSolutions
part of Aker
In order to become a global player and to improve our competitive edge, we are looking at how we can cooperate more with yards in China and other places and see how we can utilise more of their complementary strengths to develop new and innovative delivery models.
Subsea
| Amounts in NOK million | Q1 10 | Q1 09 | 2009 |
|---|---|---|---|
| Operating revenues | 2 389 | 3 640 | 12 972 |
| EBITDA | 232¹ | 364 | 1 399 |
| EBITDA margin | 9.7% | 10.0% | 10.8% |
| Order intake | 4 510 | 2 598 | 12 568 |
| Order backlog | 14 504 | 9 429 | 12 395 |
| Employees | 5 319 | 5 263 | 5 276 |
¹ Of which non-recurring items NOK 16 million (AFP).
Financials
Subsea revenues in the first quarter decreased by 34 percent to NOK 2 389 million compared to the first quarter 2009. As expected, activity levels remained low in the first quarter of 2010 due to the postponement of project awards. There is continued growth in the lifecycle services business segment. Activity levels in capex (capital expenditure)-driven segments remain on a fairly low level. Opex (operational expenditure)-driven businesses are less affected by reduced activity level, but was affected by a seasonal slow period in January. However, well service activity was high in February and March. Lower order intake on capex-driven projects is the main challenge.
First quarter EBITDA was NOK 232 million (NOK 216 million excluding the AFP-effect of NOK 16 million), a decreased of 36 percent compared to the corresponding period in 2009 due to lower activity levels. The EBITDA margin was 9.7 percent (9.0 percent excluding the AFP effect), down from 10.0 percent for the corresponding quarter in 2009. EBITDA was negatively impacted by the slow market situation for Aker Marine Contractors' vessels.
Order intake
In January, Petrobras announced that Aker Solutions had the lowest bid on their 61 subsea trees for a four year frame agreement. It is standard procedure that the company with the lowest bid enters technical clarifications and commercial negotiations with Petrobras. It is expected that this process will take a couple of months, and that a contract could be signed during the second quarter. Aker Solutions' bid stands at EUR 195 million.
Several contracts were signed in the first quarter. A contract was signed with Repsol Investigaciones Petrolíferas S.A. for delivery of subsea equipment to the Spanish oil company's Mediterranean wells with a contract value of approximately NOK 120 million. A contract was also signed with Chevron Australia Pty Ltd to supply subsea umbilicals and associated equipment for the Gorgon Project, offshore Australia, with a contract value of approximately NOK 550 million. In addition Aker Solutions was selected to supply subsea umbilicals for Noble Energy Inc. with an initial order worth approximately NOK 650 million. A three-year contract was signed with Petrobras for maintenance of subsea control systems with a contract value is BRL 30 million (NOK 100 million). In addition the order intake in the quarter includes growth in existing contracts and smaller contracts.
ABB entered into a long-term agreement with Aker Solutions' marine operations unit, Aker Marine Contractors (AMC), to charter one of Aker Solutions' new vessels, Aker Connector, for installation of power cables and related services with
estimated generation of revenues of NOK 500 million in 2012 and 2013.
In April Aker Solutions signed a contract with Petrobras to supply 40 subsea trees for the Iara and Guará fields, located in the challenging pre-salt area of the Santos basin offshore Brazil. The contract value is approximately USD 300 million. Scope of work includes engineering and manufacturing of 40 vertical subsea trees for 2 500 meters water depth, subsea control systems and 17 complete tool sets plus related accessories. The contract was signed and booked in the second quarter 2010.
Operations
The vessel Skandi Santos has successfully started operations for Petrobras in Brazil from February 2010. The vessel Skandi Aker will operate in West Africa on installation contracts for 160 days from second quarter 2010.
Market
Tendering activity is high. Market potential in Brazil is significant, and it is a steady demand for lifecycle services. Aker Solutions is well positioned for major field developments in deepwater regions.
Increasing our service revenues, both through a growth in installed base and a more complete offering of technology-driven services such as well intervention, is a key focus. Investments into our lifecycle services facilities worldwide and our rental tool business will be additional drivers in achieving this.
Some of the projects that were postponed in 2009 will be awarded in 2010, while the timing on others is still uncertain. Nevertheless, we expect growth in subsea infrastructure spending in 2010 and beyond. This is driven in particular by field developments in Brazil, the North Sea, West Africa and South East Asia.
Products & Technologies (P&T)
| Amounts in NOK million | Q1 10 | Q1 09 | 2009 |
|---|---|---|---|
| Operating revenues | 2 327 | 3 363 | 12 729 |
| EBITDA | 305¹ | 240 | 1 304 |
| EBITDA margin | 13.1% | 7.1% | 10.2% |
| Order intake | 1 245 | 1 836 | 6 621 |
| Order backlog | 8 622 | 14 213 | 9 632 |
| Employees | 2 995 | 2 871 | 3 027 |
¹ Of which non-recurring items NOK 16 million (AFP).
Financials
First quarter operating revenues in P&T decreased by 31 percent to NOK 2 327 million compared to the corresponding quarter of 2009 with a general reduction in all units. The negative development was due to lack of new contracts for complete drilling packages in 2009.
EBITDA for the first quarter was NOK 305 million (NOK 289 million excluding the AFP-effect of NOK 16 million), an increase of 27 percent compared to the corresponding period in 2009. This growth in EBITDA was driven by strong performance on drilling equipment projects. The EBITDA margin for the quarter was 13.1 percent (12.4 percent excluding the AFP effect) compared to 7.1 percent for the corresponding quarter last year.
Order intake
A major contract was signed with Petrobras to supply sulphate removal units for two FPSOs with contract value of USD 41 million. Many new studies and FEED contracts for MEG projects were awarded in addition to orders in the life
© 2010 Aker Solutions ASA
Page 4 of 12
1st quarter 2010 report
AkerSolutions
part of Aker
cycle operations. The order intake in the quarter includes growth in existing contracts and smaller contracts. The market has continued to be slow for new builds, though we do see some new possibilities in the deepwater drilling rig market.
Aker Solutions benefits from a high quality drilling equipment backlog extending into 2011. We have six major drilling equipment deliveries scheduled for 2010, of which several have synergies with previous deliveries.
Project update
Drilling packages to the drilling rigs Seadrill 13 and Petroserve 3 have been delivered. Drilling risers have been delivered to Transocean and Sevan,
High utilisation of drilling rigs continue to increase lifecycle services activity.
Market
The medium- and long-term fundamentals are strong for new builds of drilling rigs both in Asia and Brazil. We foresee considerable movement in the Brazilian market where we already have a strong presence and are expanding our manufacturing and engineering capabilities. Deepwater drilling and the FPSO market will continue to be our main focus areas over the next few years.
P&T's installed base continues to grow and provides a strong basis for increased lifecycle revenues. We have made significant investments in developing a wide range of services, including simulator-based training and other state-of-the-art "eServices". We have also invested significantly in service bases in Rio das Ostras, Brazil and in Houston, USA to secure the highest level of service to our customers.
The drilling equipment upgrades and maintenance market activity on the Norwegian Continental Shelf and in other regions have been high and is expected to continue its positive development. The market activity for process systems and deck machinery is high.
Process & Construction (P&C)
| Amounts in NOK million | Q1 10 | Q1 09 | 2009 |
|---|---|---|---|
| Operating revenues | 2 011 | 2 660 | 9 534 |
| EBITDA | 106 | 131 | 484 |
| EBITDA margin | 5.3% | 4.9% | 5.1% |
| Order intake | 2 274 | 1 093 | 6 913 |
| Order backlog | 9 722 | 10 604 | 9 037 |
| Employees | 3 334 | 3 799 | 3 343 |
Financials
P&C delivered 24 percent lower revenues in the first quarter 2010 than in the first quarter 2009 primarily due to a slower market.
EBITDA for the first quarter was 19 percent lower compared to the corresponding period last year. The EBITDA margin for the first quarter was 5.3 percent compared to 4.9 percent for the first quarter 2009.
Order intake
A contract was awarded by RWE to provide design, supply, installation, construction and commissioning for a new power plant facility in Europe. The contract value to Aker Solutions is approximately GBP 115 million.
In addition to these contracts several smaller and medium sized contracts were booked in the first quarter.
Project update
Performance and growth on existing metals projects in Chile remain strong. The Power and LNG construction activities continue to lead project activity in the US.
Market
Expectations remain positive in growing the energy & environmental and Mining & Metals businesses. The Mining & Metals market remains positive in the Americas with large capital project opportunities and the Australian market is strengthening with significant study work.
We have interesting opportunities in the power market in US and UK. There is high bidding activity for the power sector, and gas-fired power plants continue to be permitted in North America.
Aker Solutions has a strong position within re-gasification of LNG in North America and in the power station construction market in the US and UK. Tendering activity is beginning to rise again in both areas.
In the Oil, Gas & Process market, the number of prospects is improving in China, Australia and the Middle East. Uncertainty persists over the level of activity related to investment by western customers in these markets. The tendering activity in the PTA (pure terephthalic acid) market is high.
We will develop sustainable niches and leverage our current and growing strengths to pursue new growth markets in the energy and environmental sectors, such as power plants, nuclear, carbon capture, renewable energy and water management.
Dividend
The Annual General Meeting (AGM) of Aker Solutions ASA on 8 April 2009 adopted the Board's proposal to distribute a dividend of NOK 2.60 per share. The dividend was paid on 22 April 2009 to shareholders listed in the Norwegian Central Securities Depository (VPS) as of 8 April 2009. The shares were traded ex-dividend from 9 April 2009 on the Oslo Stock Exchange.
Share buy-back programme
Based on the AGM's authorisation for a share buy-back programme, the Board of Directors of Aker Solutions was authorised to purchase own shares with an aggregate nominal value of up to NOK 54.8 million. The buy-back programme will be conducted opportunistically, at times and levels that will enhance overall shareholder value. Buy-backs will also be based on the company's performance and a review of possible alternative uses of the company's capital. The power of attorney for the share buy-back programme is valid until the Annual General Meeting in 2011, but not beyond 30 June 2011.
Principal risks and uncertainties
Operational risk is the ability to deliver existing contracts at the agreed time, quality, functionality and cost. Delivering projects and equipment in accordance with the contract terms and the anticipated cost framework represents a substantial risk element, which will be the most significant factor affecting Aker Solutions' financial performance. Results also depend on costs, both Aker Solutions' own and those charged by suppliers, and on interest expenses, exchange rates and customers' ability to pay.
Aker Solutions has established guidelines and systems to manage its exposure in the financial markets. These systems cover currency, interest rate, counterparty and liquidity risks.
© 2010 Aker Solutions ASA
Page 5 of 12
1st quarter 2010 report
AkerSolutions
part of Aker
Aker Solutions works systematically with risk management in all its business areas, and have extensive systems and procedures.
Outlook
The long-term basis for further growth in Aker Solutions' markets is regarded as good. Oil and gas fields currently in production will be unable to meet demand in the longer term. The current replacement of oil and gas production with new reserves is inadequate. A substantial proportion of future developments are expected to take place in deep waters and harsh environments. These are areas where Aker Solutions has broad experience and a strong competitive advantage.
2010 has started with a high level of tender activity, but it still remains uncertain when contracts will be awarded.
Our long-term strategy remains unchanged. We will focus on cold climates, harsh environments and deeper waters, and exploit the strong North Sea MMO market.
We will move towards the well stream and reservoir. The subsea installed base is increasing, so we will grow our service base, and expand value-added services and our lifecycle offering. Our view of the long-term fundamentals for
our products and technologies business area remains positive. Lifecycle and service volumes are increasing as their installed base grows.
In the onshore process and metals plant market, activity levels will depend on global economic development. Large capital project opportunities in the mining and metals market remain strong, primarily in Latin America due to our strong project execution reputation.
Our cost improvement activities have strengthened our market position and prepared us for future developments.
Aker Solutions has a healthy financial structure with a comfortable debt level and a good cash position.
With a high quality order backlog and a new organisation designed to meet key market developments and customers' demands, Aker Solutions has a sound financial outlook.
Fornebu, 22 April 2010
The Board of Directors and CEO
Aker Solutions ASA
© 2010 Aker Solutions ASA
Page 6 of 12
1st quarter 2010 report
AkerSolutions
part of Aker
AKER SOLUTIONS GROUP IN FIGURES $^{1)}$
CONSOLIDATED INCOME STATEMENT
| Group summary: | |||||||
|---|---|---|---|---|---|---|---|
| Q1 | Q1 | Q2 | Q3 | Q4 | 1.1-31.12 | ||
| Amounts in NOK million | Note | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 |
| Operating revenues and other income | 11 556 | 14 975 | 14 324 | 12 565 | 12 213 | 54 077 | |
| Operating expenses | (10 278) | (13 851) | (13 132) | (11 557) | (11 169) | (49 709) | |
| EBITDA | 1 278 | 1 124 | 1 192 | 1 008 | 1 044 | 4 368 | |
| Depreciation, amortisation and impairment | (202) | (188) | (229) | (219) | (274) | (910) | |
| Operating profit | 1 076 | 936 | 963 | 789 | 770 | 3 458 | |
| Financial income | 37 | 19 | 11 | 10 | (13) | 27 | |
| Financial expenses | (108) | (155) | (151) | (112) | (134) | (552) | |
| Profit from associated companies and jointly controlled entities | (4) | (6) | 104 | (7) | 23 | 114 | |
| Profit (+) / loss (-) on foreign currency forward contracts | (37) | 78 | 54 | 28 | 1 | 161 | |
| Profit / loss before tax | 964 | 872 | 981 | 708 | 647 | 3 208 | |
| Income tax expense | (290) | (253) | (189) | (211) | (224) | (877) | |
| Net profit / loss for the period | 674 | 619 | 792 | 497 | 423 | 2 331 | |
| Attributable to: | |||||||
| Equity holders of Aker Solutions ASA | 636 | 603 | 772 | 480 | 405 | 2 260 | |
| Non-controlling interests | 38 | 16 | 20 | 17 | 18 | 71 | |
| Basic earnings per share (NOK) | 4 | 2,36 | 2,24 | 2,87 | 1,78 | 1,51 | 8,40 |
| Diluted earnings per share (NOK) | 4 | 2,36 | 2,24 | 2,87 | 1,78 | 1,50 | 8,39 |
$^{1)}$ Hedge transactions not qualifying for hedge accounting represent a accounting gain to EBITDA (NOK 27 million) and a loss under financial items (NOK 37 million).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Q1 | Q1 | Q2 | Q3 | Q4 | 1.1-31.12 | |
|---|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 |
| Net profit / loss for the period | 674 | 619 | 792 | 497 | 423 | 2 331 |
| Other comprehensive income: | ||||||
| Cash flow hedges, effective portion of changes in fair value | (74) | (527) | 222 | (282) | (174) | (761) |
| Cash flow hedges, reclassification to income statement | 15 | 190 | (76) | 147 | 136 | 397 |
| Cash flow hedges, deferred tax | 17 | 95 | (48) | 39 | 16 | 102 |
| Translation differences | 20 | (579) | 470 | (805) | (75) | (989) |
| Total comprehensive income | 652 | (202) | 1 360 | (404) | 326 | 1 080 |
| Total comprehensive income attributable to: | ||||||
| Equity holders of Aker Solutions ASA | 601 | (209) | 1 339 | (409) | 306 | 1 027 |
| Non-controlling interests | 51 | 7 | 21 | 5 | 20 | 53 |
CONSOLIDATED BALANCE SHEET
| 31.3 | 31.3 | 30.6 | 30.9 | 31.12 | ||
|---|---|---|---|---|---|---|
| Amounts in NOK million | Note | 2010 | 2009 | 2009 | 2009 | 2009 |
| Deferred tax asset | 427 | 591 | 569 | 625 | 389 | |
| Intangible assets | 7 883 | 7 114 | 8 283 | 7 960 | 7 915 | |
| Property, plant and equipment | 6 778 | 4 505 | 5 536 | 5 740 | 6 531 | |
| Other non-current operating assets | 514 | 256 | 262 | 572 | 505 | |
| Investments | 565 | 551 | 1 145 | 542 | 558 | |
| Interest-bearing non-current receivables | 202 | 178 | 113 | 144 | 184 | |
| Total non-current assets | 16 369 | 13 195 | 15 908 | 15 583 | 16 082 | |
| Current tax assets | 74 | 20 | - | 13 | 97 | |
| Current operating assets | 21 599 | 24 788 | 25 384 | 22 823 | 20 121 | |
| Interest-bearing current receivables | 588 | 471 | 764 | 455 | 440 | |
| Cash and cash equivalents | 2 224 | 2 485 | 2 595 | 3 188 | 3 186 | |
| Total current assets | 24 485 | 27 764 | 28 743 | 26 479 | 23 844 | |
| Total assets | 40 854 | 40 959 | 44 651 | 42 062 | 39 926 | |
| Equity attributable to equity holders of Aker Solutions ASA | 9 549 | 8 241 | 9 150 | 8 750 | 8 976 | |
| Non-controlling interests | 209 | 143 | 164 | 170 | 147 | |
| Total equity | 4 | 9 758 | 8 384 | 9 314 | 8 920 | 9 123 |
| Deferred tax liabilities | 784 | 845 | 1 075 | 1 026 | 692 | |
| Employee benefits obligations | 743 | 755 | 789 | 824 | 910 | |
| Other non-current liabilities | 814 | 1 286 | 1 310 | 1 225 | 891 | |
| Non-current borrowings | 8 518 | 6 201 | 9 311 | 8 132 | 7 335 | |
| Total non-current liabilities | 10 859 | 9 087 | 12 485 | 11 207 | 9 828 | |
| Current tax liabilities | 182 | 312 | 262 | 494 | 211 | |
| Other current operating liabilities | 19 807 | 22 572 | 22 019 | 20 923 | 20 584 | |
| Current borrowings | 248 | 604 | 571 | 518 | 180 | |
| Total current liabilities | 20 237 | 23 488 | 22 852 | 21 935 | 20 975 | |
| Total liabilities and equity | 40 854 | 40 959 | 44 651 | 42 062 | 39 926 |
© 2010 Aker Solutions ASA
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AkerSolutions
part of Aker
CONSOLIDATED STATEMENT OF CASH FLOW
| Q1 | Q1 | Q2 | Q3 | Q4 | 1.1-31.12 | |
|---|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 |
| Net cash flow from operating activities | (1 645) | (542) | (40) | 2 397 | 2 430 | 4 245 |
| Net cash flow from investing activities | (513) | (575) | (1 873) | (126) | (1 353) | (3 927) |
| Net cash flow from financing activities | 1 173 | 95 | 1 915 | (1 250) | (1 038) | (278) |
| Translation adjustments | 23 | (321) | 108 | (428) | (41) | (682) |
| Net decrease (-)/increase (+) in cash and bank deposits | (962) | (1 343) | 110 | 593 | (2) | (642) |
| Cash and bank deposits as at the beginning of the period | 3 186 | 3 828 | 2 485 | 2 595 | 3 188 | 3 828 |
| Cash and bank deposits as at the end of the period | 2 224 | 2 485 | 2 595 | 3 188 | 3 186 | 3 186 |
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
| Q1 | Q1 | Q2 | Q3 | Q4 | 1.1-31.12 | |
|---|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 |
| Equity as of the beginning of the period | 9 123 | 8 606 | 8 384 | 9 314 | 8 921 | 8 606 |
| Total comprehensive income | 652 | (202) | 1 360 | (404) | 326 | 1 080 |
| Dividends | 4 | (20) | (430) | - | (1) | (451) |
| Treasury shares | (41) | - | (15) | (5) | - | (20) |
| Employee share purchase programme | 15 | - | 15 | 15 | 16 | 46 |
| Change in non-controlling interests | 9 | - | - | 1 | (139) | (138) |
| Equity as of the end of the period | 9 758 | 8 384 | 9 314 | 8 921 | 9 123 | 9 123 |
Segments:
REVENUE BY SEGMENT
| Q1 | Q1 | Q2 | Q3 | Q4 | 1.1-31.12 | |
|---|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 |
| Energy Development & Services | 4 995 | 5 479 | 5 020 | 5 030 | 4 298 | 19 827 |
| Subsea | 2 389 | 3 640 | 3 959 | 2 623 | 2 750 | 12 972 |
| Products & Technologies | 2 327 | 3 363 | 3 071 | 3 073 | 3 222 | 12 729 |
| Process & Construction | 2 011 | 2 660 | 2 526 | 2 143 | 2 205 | 9 534 |
| Total operating segments | 11 722 | 15 142 | 14 576 | 12 869 | 12 475 | 55 062 |
| Other | 668 | 946 | 870 | 863 | 777 | 3 456 |
| Eliminations | (834) | (1 113) | (1 122) | (1 167) | (1 039) | (4 441) |
| Total group | 11 556 | 14 975 | 14 324 | 12 565 | 12 213 | 54 077 |
EBITDA BY SEGMENT
| Q1 | Q1 | Q2 | Q3 | Q4 | 1.1-31.12 | |
|---|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 |
| Energy Development & Services | 569 | 350 | 186 | 281 | 299 | 1 116 |
| Subsea | 232 | 364 | 507 | 248 | 280 | 1 399 |
| Products & Technologies | 305 | 240 | 403 | 302 | 359 | 1 304 |
| Process & Construction | 106 | 131 | 80 | 144 | 129 | 484 |
| Total operating segments | 1 212 | 1 085 | 1 176 | 975 | 1 067 | 4 303 |
| Other | 66 | 39 | 16 | 33 | (23) | 65 |
| Total group | 1 278 | 1 124 | 1 192 | 1 008 | 1 044 | 4 368 |
EBIT BY SEGMENT
| Q1 | Q1 | Q2 | Q3 | Q4 | 1.1-31.12 | |
|---|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 |
| Energy Development & Services | 534 | 320 | 152 | 245 | 223 | 940 |
| Subsea | 125 | 269 | 392 | 135 | 153 | 949 |
| Products & Technologies | 273 | 208 | 351 | 264 | 310 | 1 133 |
| Process & Construction | 99 | 126 | 73 | 138 | 124 | 461 |
| Total operating segments | 1 031 | 923 | 968 | 782 | 810 | 3 483 |
| Other | 45 | 13 | (5) | 7 | (40) | (25) |
| Total group | 1 076 | 936 | 963 | 789 | 770 | 3 458 |
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NET CURRENT OPERATING ASSETS BY SEGMENT
| 31.3 | 31.3 | 30.6 | 30.9 | 31.12 | |
|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 |
| Energy Development & Services | (204) | 401 | 371 | 545 | (242) |
| Subsea | 1 139 | 2 126 | 2 770 | 1 937 | 251 |
| Products & Technologies | 1 757 | 1 153 | 1 525 | 1 076 | 1 026 |
| Process & Construction | (716) | (1 345) | (1 248) | (1 218) | (1 089) |
| Total operating segments | 1 976 | 2 335 | 3 418 | 2 340 | (54) |
| Other | (184) | (119) | (54) | (439) | (409) |
| Total group | 1 792 | 2 216 | 3 364 | 1 901 | (463) |
NET CAPITAL EMPLOYED BY SEGMENT
| 31.3 | 31.3 | 30.6 | 30.9 | 31.12 | |
|---|---|---|---|---|---|
| Amounts in NOK million | 2010 | 2009 | 2009 | 2009 | 2009 |
| Energy Development & Services | 3 698 | 4 069 | 3 840 | 4 049 | 3 081 |
| Subsea | 9 549 | 6 700 | 10 084 | 9 443 | 8 457 |
| Products & Technologies | 3 558 | 3 415 | 3 429 | 2 939 | 2 838 |
| Process & Construction | 1 446 | 1 034 | 1 182 | 1 068 | 1 213 |
| Total operating segments | 18 251 | 15 218 | 18 535 | 17 499 | 15 589 |
| Other | 1 433 | 1 414 | 1 872 | 1 344 | 1 258 |
| Total group | 19 684 | 16 632 | 20 407 | 18 843 | 16 847 |
Notes
Note 1 General
Aker Solutions ASA (the company) is a company domiciled in Norway. The consolidated financial statements of Aker Solutions ASA comprise the company and its subsidiaries (together referred to as the group) and the group's interests in associates and jointly controlled entities and assets.
Note 2 Basis for preparation
Aker Solutions' financial reports are prepared in accordance with International Financial Reporting Standards (IFRS).
The interim report does not include all of the information required for full annual consolidated financial statements, and should be read in conjunction with the consolidated financial statements of the group for 2009. The accounting policies applied in the interim financial statements are the same as those described in the annual report 2009 for Aker Solutions. The condensed consolidated interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The Interim Financial Statements are unaudited.
The annual report for 2009 is available on www.akersolutions.com.
Note 3 Judgements, estimates and assumptions
In applying the accounting policies, management makes judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. The estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revision to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
In preparing these interim financial statement, the significant judgements made by management in applying the group's accounting policies and the key sources of uncertainty in the estimates were consistent with those applied to the consolidated financial statements as at and for the period ended 31 December 2009.
Note 4 Share capital and equity
At the end of 2009 Aker Solutions ASA had 274 000 000 ordinary shares at a par value of NOK 2 per share.
In their annual meeting on 8 April 2010 the shareholders of Aker Solutions ASA approved a dividend payment of NOK 2.60 per share for 2009 which was proposed by the Board of Directors. The payment was made in April 2010.
The average number of outstanding shares, which is used to calculate earnings per share, has been:
For the period 1 January - 31 March 2010: 269 415 400 (diluted 269 859 211)
Diluted number of shares includes the anticipated effects of rights to receive bonus shares as part of the Employee share purchase programme.
Note 5 AFP (Contractual retirement scheme)
On 19 February 2010, the Norwegian Parliament passed legislation which changed the early retirement programme impacting employees. The early retirement benefits for the affected employees were previously partly accounted for as defined benefit and the related pension liabilities were determined with the assistance of professional actuaries. Going forward such benefits will be expensed when contributions are made to a state sponsored plan. Aker Solutions have followed guidelines published by the Norwegian Accounting Standards Board (NRS) regarding this change and has during the quarter ended 31 March 2010 derecognised a portion of its pension liability for employees born after 1948. This resulted in an increase of operating profit by NOK 182 million. The amount includes a provision for future contributions to fund underfunding of already vested pension rights under the old plan.
ENDS
© 2010 Aker Solutions ASA
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For further information, please contact:
Investor relations: Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +47 67 51 30 39, Mob: +47 911 37 194
Media: Geir Arne Drangeid, EVP Corporate Communications, Aker Solutions. Tel: +47 67 51 30 36, Mob: +47 977 55 622
Career opportunities: visit http://www.akersolutions.com/CareerCentre
Aker Solutions ASA, through its subsidiaries and affiliates ("Aker Solutions"), is a leading global provider of engineering and construction services, technology products and integrated solutions. Aker Solutions' business serves several industries, including oil & gas, refining & chemicals, mining & metals and power generation. The Aker Solutions group is organised in a number of separate legal entities. Aker Solutions is used as the common brand/trademark for most of these entities.
Aker Solutions' parent company is Aker Solutions ASA. Aker Solutions has aggregated annual revenues of approximately NOK 54 billion and employs approximately 22 000 people in about 30 countries.
Aker Solutions is part of Aker (www.akerasa.com), a group of premier companies with a focus on energy, maritime and marine resource industries. The Aker companies share a common set of values and a long tradition of industrial innovation. Through its majority-owned holding company Aker Holding AS, Aker controls 40.27 percent of the shares in Aker Solutions, and takes an active role in the development of the company.
This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akersolutions.com.
© 2010 Aker Solutions ASA
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Appendix
Announced orders in the first quarter 2010
Energy Development & Services (ED&S)
-
Statoil awarded Aker Solutions an EPC contract for the Gudrun jacket. The contract value is approximately NOK 450 million. The contract will be executed by the Aker Solutions yard in Verdal, and includes engineering, procurement, construction, load-out and sea-fastening of the steel jacket and associated piles. The detail engineering starts immediately, while fabrication in Verdal will commence in July 2010. The jacket will be delivered summer 2011 and will then become number 35 in the series of jackets delivered by Aker Verdal.
-
ConocoPhillips Skandinavia AS, Norway awarded Aker Solutions an EPC contract for platform jacket and a bridge support jacket for the new Ekofisk accommodation platform - Ekofisk 2/4L. The contract will be executed by the Aker Solutions yard in Verdal, and includes engineering, procurement, construction, load-out and sea-fastening of the steel jacket, bridge support jacket and associated piles. The detail engineering starts immediately, while fabrication in Verdal will commence in November 2010. The jacket - and the bridge support jacket - will be delivered in the spring of 2012, and will then become number 36 and 37 in the series of jackets delivered by Aker Verdal.
Subsea
-
Aker Solutions is the lowest bidder for a four-year frame agreement to supply 61 subsea trees to Brazilian national oil company Petrobras. This was announced at a public bid opening in Brazil. Standard procedure is that the company with the lowest bid enters technical clarifications and commercial negotiations with Petrobras. It is expected that this process will take a couple of months, and that a contract could be signed during Q2 2010. Aker Solutions' bid stands at EUR 195 million.
-
Aker Solutions signed a contract with Repsol Investigaciones Petrolíferas S.A. for delivery of subsea equipment to the Spanish oil company's Mediterranean wells. Contract value is approximately NOK 120 million. Scope of work includes manufacturing and delivery of 12 kilometres of steel tube umbilicals, 8 kilometres of subsea power cables, a topside control system and tie-in and connection system. This deal follows a contract awarded to Aker Solutions in Q1 2008 for delivery of two subsea trees with control modules to the same field development project. The new equipment deliveries will complete the subsea production system and enable Repsol to connect the subsea trees to the production platform. The project will be managed out of Oslo, Norway. Umbilicals and power cables will be manufactured in Moss, Norway. Control system will be manufactured in Aberdeen and Malaysia. Final equipment deliveries will be made in Q1 2011.
-
Aker Solutions' geo business signed a three-year frame agreement with Statoil to supply sub-surface consultancy services within the areas of production geology, exploration geology and reservoir technology.
Contract value is undisclosed. The agreement is valid a period of three years, from 1 March 2010. In addition, Statoil has options to extend the agreement with two one-year periods. The agreement is valid to cover Statoil's assets worldwide. Aker Solutions' sub-surface consultancy Aker Geo AS delivers services through the whole subsurface value chain, from exploration to production. The unit comprises a team of 60 geologists, geophysicists and reservoir engineers. Its main fields of activity are geological and geophysical interpretation, petrophysics, reservoir modelling and simulation, wellsite geology as well as production technology and operations.
-
Aker Solution's marine operations unit entered into a long-term agreement with ABB regarding installation of power cables and related services. ABB will charter one of Aker Solutions' new vessels for installation campaigns during 2012 and 2013. Aker Solutions estimates that this can generate revenues up to NOK 500 million. The agreement also includes options for further campaigns in the period 2014 - 2016. Key deliverables from Aker Solutions will in addition to the vessel include project management, engineering and offshore execution. The vessel is a state-of-the-art installation vessel uniquely equipped to install long, heavy power cables and subsea umbilicals. It is one of Aker Solutions' vessels already under construction. The vessel will be called Aker Connector and will be ready for operations from 2012. For Aker Solutions the agreement means higher predictability with regards to vessel utilisation and associated operations such as engineering, installation planning and execution of the installation activities. ABB and Aker Solutions have also entered into a strategic cooperation agreement where the two parties have ambitions to combine their strengths within power cables (ABB) and installation services (Aker Solutions) in selected projects.
-
Aker Solutions signed a contract with Chevron Australia Pty Ltd to supply subsea umbilicals and associated equipment for the Gorgon Project, offshore Australia. Contract value is approximately NOK 550 million. Aker Solutions will supply 264 kilometres of steel tube umbilicals to the Gorgon Project, which will develop the Greater Gorgon Area gas fields, located about 130 kilometres off the north-west coast of Western Australia. The steel tube umbilicals will connect the Gorgon Project's subsea production system to an onshore liquefied natural gas (LNG) plant on Barrow Island, Western Australia. Engineering of the umbilicals will be managed out of Aker Solutions' facilities in Oslo, Norway, and Perth, Western Australia. The steel tube umbilicals will be manufactured at Aker Solutions' facility in Moss, Norway. Final deliveries will be made in Q2 2012.
-
Aker Solutions signed a three-year contract with Petrobras for maintenance of subsea control systems supplied to the Brazilian national oil company. The contract value is BRL 30 million (NOK 100 million). The contract will be managed from Aker Solutions' service base in Rio das Ostras, through a specialised Brazilian team. Scope of work comprises maintenance, supply of parts and offshore operations on control systems already installed, and on their respective tests and installation tools, which are held onshore. The contract also covers maintenance of equipment installed on platforms, including the HPU (hydraulic power unit) and EPU (electrical power unit). The contract also allows new equipment to be included within the maintenance scope of work as subsequent deliveries are being made, such as the manifolds for
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the Albacora field and the Tupi subsea trees, which are all equipped with control systems.
- Aker Solutions was selected to supply subsea umbilicals for leading US independent oil and gas company Noble Energy Inc. The initial order is worth approximately NOK 650 million. Noble Energy's initial order is for approximately 240 kilometres of steel tube umbilicals. Engineering and project management will be provided from Aker Solutions' Houston office. Manufacturing will take place at Aker Solutions' umbilical facility in Mobile, Alabama. Estimated delivery date is Q2 2011. The subsea umbilicals will be used at Noble Energy's Tamar project in the Mediterranean Sea. Opened in 2003, Aker Solutions' umbilical manufacturing facility in Mobile, with its high capacity horizontal cabler, is specially designed to meet the challenges of demanding deepwater applications.
Products & Technologies (P&T)
- Aker Solutions signed a major contract with Petrobras to supply sulphate removal units for two FPSOs (Floating Production Storage and Offloading) platforms, which will operate offshore Brazil. Contract value is USD 41 million. The scope of work comprises the supply of two sulphate removal systems (SRUs) with associated equipments. The SRU systems will be installed on the topsides of the P-58 and P-62 FPSOs. The sulphate removal technology provided by Aker Solutions delivers treated and de-sulphated seawater for injection into the hydrocarbon reservoir to maintain the pressure and control scaling and souring effects in the reservoir. High quality injection water devoid of sulphate and particles provides cost savings and improves the safety aspect in the handling of well streams. The contract will be executed by Aker Solutions' team based in Rio de Janeiro who will further develop the conceptual design and oversee the project all the way through delivery. Detailed engineering, procurement, fabrication of major equipment, commissioning and start-up are included in the contract.
Process & Construction (P&C)
- Aker Solutions was awarded a contract to provide design, supply, installation, construction and commissioning for a new power plant facility in Europe by RWE. The contract value to Aker Solutions is approximately GBP 115 million. Work is scheduled to commence in February 2010. The contract party is Aker Solutions' subsidiary Aker Solutions E&C Ltd. This new plant will be the largest of its kind in Scotland, and will reduce Tullis Russell's annual carbon emissions by 250,000 tonnes, reinforcing the company's position as one of the world's leading environmentally focused papermakers. Work is scheduled to commence in February 2010, with commissioning completed in March 2013.
Corporate
- Aker Solutions entered into a contract with the construction company HENT to build a new combined office and hotel building at the K2 site at Fornebu. The building is planned with a total area of about 46 000 m² including underground and parking areas, of which 12 000 m² for the hotel. The building is planned to be completed in the first quarter of 2012 and Aker Solutions will be the tenant for the office building. The contracting party is Fornebu Gate 2 A/S, which will be owned 93 % by Aker Solutions and 7 % by Arthur Buchardt Invest AS. This contract is the next step in the development of the K2 site that was acquired from SPDE in the fourth quarter of 2009. The office building is an expansion to the existing headquarters to cover capacity needs from 2012.
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