Aker Solutions — Earnings Release 2018

Feb 8, 2019

Aker Solutions ASA: Fourth-Quarter Results 2018

Aker Solutions ASA: Fourth-Quarter Results 2018

February 8, 2019 - Aker Solutions increased the 2018 fourth quarter revenue to

7 billion, a rise of 8 percent compared to fourth quarter 2017, as the company

won significant international awards in a competitive, but improving market.

4Q 2018 Financial Highlights

* Revenue NOK 7 billion

* EBITDA NOK 483 million

* EBITDA margin 7.0%

* EBITDA ex. special items NOK 495 million

* EBITDA margin ex. special items 7.1%

* Earnings per share ex. special items NOK 0.63

* Order intake NOK 5.3 billion

* Order backlog NOK 35.1 billion

With a strong execution on projects for both Norwegian and international clients

throughout the year, as well as extensive tendering activity, the company is

well positioned to benefit from a market upturn. Investments in digitalization

and technology have proved key differentiators in securing new orders. The

company saw record demand for front-end engineering services.

"Delivering cost efficiency and standardization to our customers is increasingly

linked to our digital capabilities," said Aker Solutions' Chief Executive

Officer Luis Araujo. "Working closely with clients and suppliers in early stages

of projects, we are able to simplify and standardize our processes and products.

This is shared through our global organization, ultimately saving time and money

for our clients."

Orders totaled NOK 5.3 billion in the quarter, bringing the backlog to NOK 35.1

billion. Key awards included a contract from CNOOC to deliver a subsea

production system in the South China Sea. Also in the fourth quarter, Aker

Solutions landed a strategic win on Northern Lights with Equinor as the project

initiator and with Shell and Total as partners. This is a full scale carbon-

capture project with the potential of opening up exciting business opportunities

for the company. In Africa, our operations have gone according to plan with

solid execution of major projects including Kaombo in Angola.

Demand for early-phase work continues to grow, and in the fourth quarter Aker

Solutions was awarded 46 front-end contracts, up from 27 during the same period

in 2017. This brings the total for 2018 to a record of 150 studies, with studies

from overseas markets equalling 35 percent of the total.

"In 2018, we saw a record number of studies and front-end engineering work for

larger and more complex projects than previous years - a positive sign of more

work to come," said Araujo. "As we have already seen at Johan Sverdrup, Johan

Castberg and Troll, early involvement puts us in a strong position to secure

more work."

In January 2019, Aker Solutions acquired the remaining 30 percent of Brazilian

C.S.E. Mecânica e Instrumentação Ltda, having bought the first ownership stake

of 70 percent in 2016. The acquisition further strengthens the company's

position in Brazil's growing market for mature field services. C.S.E. will

continue to operate as an independent legal entity.

Aker Solutions continues to pursue energy solutions that minimize the

environmental footprint, with carbon capture and floating wind at the forefront.

The company increased its ownership share from five to 11.8 percent in Principle

Power in the quarter, a partnership which provides a strong position for

capturing the growth potential of floating wind as a global energy resource.

Revenue and EBITDA

Revenue rose to NOK 7.0 billion in the quarter from NOK 6.4 billion a year

earlier, supported by progress and deliveries on key projects in several

markets. The EBITDA was NOK 483 million, up from NOK 458 million in the fourth

quarter of 2017. Excluding special items, the EBITDA was NOK 495 million with a

margin of 7.1 percent compared 7.5 percent in the same period last year.

Aker Solutions has two reporting segments: Projects and Services. Revenue in

Projects rose 8.0 percent to NOK 5.6 billion in the quarter from NOK 5.2 billion

a year earlier, mainly driven by the field design sub segment. Excluding special

items, EBITDA margin was 6.2 percent in the quarter versus 7.8 percent a year

earlier.

Revenue in Services was NOK 1.3 billion, up 13 percent from NOK 1.2 billion in

the same quarter last year, with the increase driven by international growth in

the company's production asset services sub-segment. The EBITDA margin excluding

special items was 14.6 percent in the quarter, an increase from 12.9 percent a

year earlier.

With a liquidity buffer of NOK 7.5 billion, the financial position of Aker

Solutions is solid. However, the board has proposed that no dividend payment

should be declared for 2018 - still deeming it prudent to exercise caution and

to position the company to fully take advantage of the recovery.

Outlook

There are continued signs of a recovery in the global market, improvement

measures across the industry are lowering break-even costs and more projects are

being sanctioned.

Tendering activity remains high in main markets - and Aker Solutions is

currently bidding for contracts totaling about NOK 45 billion. About two thirds

of this is in the subsea area - and key projects are anticipated to be awarded

over the next six to 12 months.

In the longer term, Aker Solutions expects an increase in global energy demand

and that investment efforts in sustainable energy solutions will be rewarded.

Aker Solutions sees overall revenue in 2019 slightly up from 2018 on the back of

a strong order intake last year, and continued high tendering activity with

underlying 2019 EBITDA margin seen remaining around 2018-level (pre IFRS 16).

ENDS

Media Contact:

Mats Ektvedt, mob: +47 414 23 328, e-mail: mats.ektvedt@akersolutions.com

Investor Contact:

Fredrik Berge, mob: +47 450 32 090, e-mail: 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

14,000 people in more than 20 countries.

Visit akersolutions.com and connect with us on Facebook, Instagram, LinkedIn,

Twitter and YouTube.

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.