Aker Solutions — Capital/Financing Update 2020

Apr 1, 2020

Aker Solutions Reduces Costs and Capital Spending

Aker Solutions Reduces Costs and Capital Spending

April 1, 2020 - Aker Solutions is implementing a number of measures to mitigate

the effects of the slowdown in activity level triggered by the COVID-19 outbreak

and the increased uncertainty following the decline in commodity prices and

demand for oil and gas. The company has the resources, organization, competence

and assets to maintain current and new activity levels initiated by clients.

"The first months of 2020 have been unlike anything we have previously

experienced. The COVID-19 pandemic, coupled with the sharp drop in demand for

oil and gas, has caused significant disruption to the global economy and left

societies around the world grappling with new ways of working and living. The

global energy sector has been hit particularly hard, and at Aker Solutions we

are doing our utmost to mitigate the effects for employees, customers,

shareholders and other stakeholders worldwide," said Luis Araujo, chief

executive officer of Aker Solutions.

Operational Response to the COVID-19 Situation

Unprecedented measures have been implemented around the world to stop the spread

of the virus, including travel restrictions and quarantine provisions. These

measures cause challenges for both Aker Solutions and its customers' operations.

This affects the entire value chain and has led to lower activity levels than

planned. It is expected that the level of activity going forward will be reduced

considerably and Aker Solutions' revenues will decline by a minimum of 20

percent compared to the outlook at end of 2019.

The company's priority is to protect the safety and wellbeing of its employees,

while also mitigating substantial operational disruptions. Measures implemented

to date include:

· Following national health authorities' requirements for office and non

-office locations, including temporarily close down of locations where

applicable

· Demobilized about 3,000 people in Norway, including 700 non-Nordic

contractors from Egersund and Sandnessjøen, to comply with new national and

customer restrictions

· Submitted notice of potential need for temporary layoffs to up to 6,000

employees in Norway

· Temporary laid off 400 employees in Norway and 250 employees in UK, as per

April 1

Protecting Balance Sheet and Financial Performance

Aker Solutions' main financial priority is to protect the company's balance

sheet and financial performance. The company has initiated measures to reduce

the company's cost and investment level.

"While it is too early to predict the long-term impact on financial markets and

industrial activity level, the current market situation is expected to have an

adverse impact on both activity, financial performance and structure of Aker

Solutions in 2020," said Araujo. "A large part of the planned project

sanctioning activity in the oil industry will most likely be postponed or

cancelled in 2020 unless governments are introducing significant fiscal

stimulation to aid in the recovery."

Before the COVID-19 pandemic, the company had already introduced cost-saving

initiatives in key segments, including subsea, in order to address the overall

cost base. The company is now accelerating and deepening these efforts. The

initiatives aim to reduce the company's fixed cost level by a total, of at least

NOK 750 million on an annualized basis by:

· Consolidation of the subsea tree production to Brazil and Malaysia. This

means the Tranby site outside Oslo, Norway will no longer produce subsea trees

after 2020 - effectively removing market capacity of about 60 subsea tree

equivalents per year.

· At the subsea plants in Port Klang (Malaysia) and Curitiba (Brazil), manning

will be reduced to strengthen the plant's competitive position and adapt to the

forecasted demand

· A program for substantial reduction of overhead personnel and costs across

all regions has been initiated

· Early retirement initiatives

· CEO, Executive and Senior Management: Salary freeze, and no variable pay

scheme for 2020.

· General population: Salary freeze, and no variable pay schemes.

In addition, the investment level will be significantly reduced in 2020, from

the original plan of about NOK 750 million to about NOK 500 million. Close to

NOK 200 million of the NOK 500 million has already incurred to date, with the

remainder committed. This equates to approximately a 45 percent reduction in the

investment level for the remaining part of 2020.

The company will continue to assess the need for additional manning and capacity

adjustments including potential closures of production and office locations, in

close dialogue with customers, employee representatives, and relevant third

parties.

One-off restructuring costs of about NOK 150 million and impairments of around

NOK 500 million are expected to be booked in the first quarter of 2020 as a

result of these initiatives. Further restructuring cost may occur in later

quarters.

The company is currently scheduled to update investors with its first quarter

2020 results and an updated market view on April 30, 2020.

ENDS

Media Contact:

Ivar Simensen, mob: +47 464 02 317, email: ivar.simensen@akersolutions.com

Investor Contact:

Fredrik Berge, mob: +47 450 32 090, email: fredrik.berge@akersolutions.com

Aker Solutions helps the world meet its energy needs. We engineer the products,

systems and services required to unlock energy. Our goal is to maximize recovery

and efficiency of oil and gas assets, while using our expertise to develop the

sustainable solutions of the future. Aker Solutions employs approximately 16,000

people in more than 20 countries.

Visit akersolutions.com and connect with us on

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YouTube (https://www.youtube.com/akersolutions).

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.