Aker Solutions — Earnings Release 2020

Oct 28, 2020

Aker Solutions ASA: Third-Quarter Results 2020

Aker Solutions ASA: Third-Quarter Results 2020

October 28, 2020 - Aker Solutions' revenues, excluding special items, were NOK

4.7 billion and the order intake was NOK 7.1 billion in the third quarter of

3Q 2020 Financial Highlights

· Revenue NOK 5.5 billion

· Revenue ex. special items NOK 4.7 billion

· EBITDA NOK 938 million

· EBITDA ex. special items NOK 243 million

· EBITDA margin ex. special items 5.2%

· Order intake NOK 7.1 billion

· Order backlog NOK 29.2 billion

"This was a transformational quarter for Aker Solutions, as we announced our

plans to merge with Kvaerner to create a stronger, more robust supplier

company," said Kjetel Digre, who was appointed chief executive officer of Aker

Solutions on July 17.

The company also completed the spin-offs of its offshore wind and carbon capture

businesses during the third quarter, which created significant value for

shareholders and a one-off gain of NOK 804 million for Aker Solutions in the

quarter.

Orders totalled NOK 7.1 billion in the quarter, bringing the backlog to NOK 29.2

billion. This was up from NOK 26.9 billion at the end of the previous quarter,

reflecting an increase in orders on the Norwegian Continental Shelf. Temporary

measures to boost industrial activity in Norway were introduced in June and led

to an increase in sanctioning activity, which continued into the third quarter.

New orders included a contract to deliver a subsea production system to

ConocoPhillips for the Tommeliten Alpha development, which includes 10 subsea

trees and associated equipment. Aker Solutions also secured a contract from the

same client to execute modifications to the Ekofisk platform to integrate the

Tommeliten Alpha discovery.

Low-carbon solutions are an increasingly important part of Aker Solutions'

portfolio and during the third quarter, the company signed an engineering,

procurement, construction and installation (EPCI) contract for the integration

of a high-voltage electrical boiler package as part of the electrification of

Lundin Energy's Edvard Grieg platform.

In the third quarter Aker Solutions agreed to sell its subsidiary software

company, ix3, to aiZe, a newly established software company owned by Aker ASA,

for NOK 222 million.

"Aker Solutions has invested significantly in digitalization and software

development in recent years. Realizing the full potential requires more

dedicated resources and capital. We therefore consider the timing right for a

sale of the software company to Aker," Digre added.

Aker Solutions will retain access to necessary software products and

improvements of these through partnership agreements, while the company will no

longer be required to fund the development of new software. The agreement with

aiZe will reduce the annual operating expenses with approximately NOK 50

million. This is in accordance with the company's strategic objective to develop

the new Aker Solutions as a focused and optimized supplier company.

The transaction has been treated in accordance with the company's related party

transaction procedure. Independent fair value estimates have been provided by

Deloitte.

Revenue and EBITDA

Revenue excluding special items fell to NOK 4.7 billion in the quarter from NOK

7.1 billion a year earlier, as operators reduced activity level due to the COVID

-19 pandemic and lower oil prices.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were NOK

938 million, including gains related to the spin-offs of Aker Offshore Wind and

Aker Carbon Capture. EBITDA, excluding special items, were NOK 243 million,

compared with NOK 570 million a year earlier. The EBITDA margin was 5.2 percent

versus 8.0 percent a year earlier.

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

Projects fell to NOK 3.6 billion in the quarter from NOK 5.6 billion a year

earlier. Excluding special items, EBITDA margin was 5.3 percent in the quarter

versus 8.1 percent a year earlier.

Revenue in Services fell to NOK 1.1 billion in the quarter from NOK 1.5 billion

a year earlier. Excluding special items, the EBITDA margin was 11.8 percent in

the quarter compared with 11.2 percent a year earlier.

Proposed Merger with Kvaerner

On July 17, Aker Solutions and Kvaerner announced plans to merge the two

companies to create a stronger supplier company. The plans have been approved by

Extraordinary General Meetings of both companies and the process is on track to

be completed according to schedule.

The first day of trading for the new Aker Solutions is currently expected to be

November 11, 2020.

ENDS

Media Contact:

Cathrine Gjertsen, mob: +47 99 49 25 37, email:

cathrine.gjertsen@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 13,000

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.