Aker Solutions — Earnings Release 2020

Jul 15, 2020

Aker Solutions ASA: Second-Quarter and Half-Year Results 2020

Aker Solutions ASA: Second-Quarter and Half-Year Results 2020

July 15, 2020 - Aker Solutions' revenues fell in the second quarter of 2020 as

activity levels declined due to the COVID-19 pandemic and lower oil prices. The

volume of new orders rose, as some operators increased sanctioning towards the

end of the quarter.

2Q 2020 Financial Highlights

· Revenue NOK 5.4 billion

· EBITDA NOK 232 million

· EBITDA ex. special items NOK 353 million

· EBITDA margin ex. special items 6.6%

· Earnings per share ex. special items NOK -0.23

· Order intake NOK 7 billion

· Order backlog NOK 26.9 billion

"Despite challenging conditions on an unprecedented scale, we managed to keep

productivity up and complete key deliveries to our clients," said Luis Araujo,

chief executive officer of Aker Solutions. "I am proud of all Aker Solutions

employees around the world, who showed commitment and perseverance in a

difficult time for many."

Orders totaled NOK 7 billion in the quarter, bringing the backlog to NOK 26.9

billion. This was up from NOK 26.4 billion at the end of the previous quarter,

reflecting an increase of new 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.

Aker Solutions secured letters of intent (LOI) from Equinor to deliver subsea

production systems and equipment for the Askeladd Vest and Breidablikk

developments. Both contracts were included as order intake in the second

quarter. The company also signed a two-year contract extension for maintenance

and modifications of Aker BP's Ula, Skarv, Valhall and Tambar fields offshore

Norway.

Aker Solutions won 47 front-end orders in the period, bringing the total for the

first half of the year to 89, compared with 74 in the same period last year. 20

of the studies were related to renewable energy and low-carbon projects.

"We continue to see demand for studies and front-end work for larger and more

complex projects, related to both our traditional oil and gas market and our

renewables business," said Araujo. "This puts us in a strong position to secure

more work in future phases of projects and in the growing renewables segments."

The company ended the quarter with a liquidity buffer of NOK 5.5 billion.

Revenue and EBITDA

Revenue fell to NOK 5.4 billion in the quarter from NOK 7.5 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

232 million, compared with NOK 623 million a year earlier.

The EBITDA margin was 4.3 percent versus 8.3 percent a year earlier. Excluding

special items, the margin was 6.6 percent compared with 8.4 percent a year

earlier.

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

Projects fell to NOK 4.1 billion in the quarter from NOK 6 billion a year

earlier. Excluding special items, EBITDA margin was 6.6 percent in the quarter

versus 7.9 percent a year earlier.

Revenue in Services fell to NOK 1.3 billion in the quarter from NOK 1.5 billion

a year earlier. Excluding special items, the EBITDA margin was 9.8 percent in

the quarter compared with 14 percent a year earlier.

Outlook

The COVID-19 pandemic impacted activity levels, especially at the start of the

second quarter.

"For the second half of the year, we are cautiously optimistic about an improved

outlook for project sanctioning, supported by government measures to boost

activity and more stable commodity prices," said Araujo.

Activity is likely to be driven by the home market and the low-carbon agenda.

Sanctioning of new projects in international markets, that are not supported by

government measures, may take longer to materialize. In total, Aker Solutions

sees overall revenue at around 21-22 billion in in 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 13,000

people in more than 20 countries.

Visit akersolutions.com and connect with us on

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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.