Aker Solutions — Earnings Release 2021

Jul 15, 2021

Aker Solutions ASA: Second-Quarter and Half-Year Results 2021

Aker Solutions ASA: Second-Quarter and Half-Year Results 2021

July 15, 2021 - Orderbook up almost 30 percent, on track for growth and

transition. In the second quarter of 2021, Aker Solutions continued to

demonstrate that it remains on track with its transformation and strategic

growth plans. Revenues strengthened as the company continued to make good

progress on projects globally. Order intake was very strong at NOK 12.2 billion

in the quarter, increasing the orderbook by close to 30 percent from the same

period last year. Tender activity is record high, and the market outlook is

developing positively.

2Q 2021 Financial Highlights

(excl. special items)

· Revenue NOK 7.0 billion

· EBITDA NOK 392 million

· EBITDA margin 5.6 percent

· Earnings per share NOK 0.14

· Net cash position NOK 0.8 billion

· Order intake NOK 12.2 billion (1.8x book-to-bill)

· Order backlog NOK 45.8 billion

"Our revenue for the quarter increased versus the same period last year and we

maintained our solid financial position. We secured several important contracts

in the quarter, including the major subsea gas compression award Jansz-Io from

Chevron in Australia. This resulted in our strongest quarterly order intake in

several years, of NOK 12.2 billion, increasing our secured order backlog by

close to 30 percent from the same period last year. An important development is

that we continue to see increased order intake from energy transition related

work. In the second quarter, this accounted for about 60 percent of the new

contracts. One year ago, we presented the strategy and goals for the new Aker

Solutions. I am proud to confirm that we deliver on those commitments, and that

we are on track for further profitable growth and transformation," said Kjetel

Digre, chief executive officer of Aker Solutions.

"We will maintain our leading market position for delivery of complete oil and

gas projects. In parallel, we are rapidly growing our business for renewable

energies and low-carbon solutions for oil and gas. For the future energy mix, we

are one of few contractors who can deliver complete solutions from first concept

through to the operations phase; from early engineering and management through

construction and installation to operation and maintenance. Increasingly, we see

that our clients recognize our ability to combine effective delivery of complete

solutions with local content and value creation. The outlook for project

sanctioning for the rest of the year and into 2022 remains positive. Our high

front-end and tendering activity, combined with leading capabilities and strong

position in active markets, makes Aker Solutions well positioned to take full

advantage of market opportunities ahead," said Digre.

Key Financials

In the second quarter, Aker Solutions reported revenue of NOK 7.0 billion and

EBITDA of NOK 392 million excl. special items. This was equivalent to an EBITDA

-margin of 5.6 percent. The same quarter last year included some significant one

-off effects, mainly in the legacy Kvaerner business. The earnings per share was

NOK 0.14 in the quarter. The company's financial position remained solid with a

net cash position of NOK 0.8 billion and a liquidity buffer of NOK 8.5 billion.

For the first half of 2021, the company reported revenue of NOK 13.5 billion and

EBITDA increased to NOK 820 million excl. special items. This was equivalent to

an EBITDA-margin of 6.1 percent, and the earnings per share increased to NOK

0.21.

Order Intake

The order intake in the second quarter was NOK 12.2 billion, equaling 1.8 times

book-to-bill. About 60 percent was related to energy transition work. During the

quarter, Aker Solutions won a major contract of more than NOK 7 billion from

Chevron to provide the subsea gas compression system for the Jansz-Io field,

offshore Western Australia. This landmark award marks the international

breakthrough for the company's world-leading subsea gas compression technology.

This next generation compression technology signifies a major leap for the

industry by significantly improving recovery rates, reducing costs and enhancing

safety, with a much smaller environmental footprint than the traditional topside

alternative.

The company also signed other important contracts related to energy transition

during the quarter, including the East Anglia THREE offshore wind project from

ScottishPower Renewables. The scope of the contract includes delivery of

engineering, procurement, construction, and installation (EPCI) of a large HVDC

platform. Order intake on this award is subject to the project reaching

financial close during first half 2022. In addition, the company won a front-end

engineering and design (FEED) contract to develop an e-Fuel facility for Nordic

Electrofuel, where the plan is to produce carbon-neutral, synthetic fuels and

other fossil replacement products, based on hydrogen, CO2 and renewable power.

In the traditional oil and gas business, Aker Solutions was awarded a three-year

subsea lifecycle services frame agreement by Petrobras in Brazil, a three-year

maintenance and modifications frame agreement by Shell in Norway, and a one-year

extension of an existing maintenance and modifications frame agreement with

Equinor on the NCS. The company also secured a topside modifications contract

with OKEA for the Hasselmus gas field development in Norway, and signed a five

-year frame agreement with TotalEnergies, to provide subsea lifecycle services

for its operated fields globally, on a call-off basis, starting out in West

-Africa.

This increased the company's secured order backlog by close to 30 percent from

the same period last year, to a solid NOK 45.8 billion.

Operations and Developments

The COVID-19 situation improved from the previous quarter, as systematic

mitigation and vaccination programs are progressing well in several countries

globally. Still, the situation remains more challenging in some countries,

including Brazil, India and Malaysia. Aker Solutions continued its strong focus

on mitigation of the virus risks in close cooperation with health authorities,

strong dedication from employees, as well as continuous dialogue with customers

to find practical solutions.

Ongoing projects progressed well during the quarter and the company continues to

experience increasing activity-levels related to front-end work for upcoming

projects, supporting the growth ambitions moving forward.

In Norway, Aker Solutions successfully completed the construction of the first

phase of Equinor's Hywind Tampen floating wind project. The company also

delivered the jacket for the Johan Sverdrup P2 platform on time and budget. And

in June, a milestone was reached with the Hod unmanned wellhead platform for

Aker BP, making it ready to start the installation-phase only one year after the

contract was signed.

In Angola, Aker Solutions' support to BP's installations are progressing well,

and in the U.S., the company made further progress on the FEED work for the

planned Empire Wind project offshore New York.

During the quarter, Aker Solutions continued its transformation. The company

announced the intention to create a leading global company for decommissioning

and recycling of old offshore installations together with AF Gruppen. The

JustEco digital tool was also launched, for calculation and analysis of energy

consumption and environmental footprint of projects, to enable customers to

reduce costs and choose more sustainable solutions.

Outlook

The outlook for project sanctioning for the remainder of 2021 and into 2022

remains positive in the company's main markets, both in traditional oil and gas

and related to energy transition. The temporary tax incentives on the Norwegian

continental shelf is expected to trigger sanctioning of more than 30 new

projects by end of 2022. Several ongoing early-phase studies are expected to

lead to FEED work during the second half of 2021.

Tendering activity is record high, and Aker Solutions is currently bidding for

contracts totaling about NOK 90 billion. The company will continue to have a

disciplined and selective approach to the projects it is tendering for. About 25

percent of the value is related to energy transition work, such as offshore

wind, carbon capture, hydrogen, and technologies for oil and gas including

subsea gas compression and electrification.

Looking ahead, Aker Solutions sees increased market activity. For 2021, the

company sees overall revenue at around NOK 28 billion, with underlying EBITDA

-margin seen up from last year towards the higher end of the 5.5 to 6.0 percent

level.

ENDS

Media Contact:

Torbjørn Andersen, mob: +47 928 85 542, email:

torbjorn.andersen@akersolutions.com

Investor Contact:

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

Aker Solutions delivers integrated solutions, products and services to the

global energy industry. We enable low-carbon oil and gas production and develop

renewable solutions to meet future energy needs. By combining innovative digital

solutions and predictable project execution we accelerate the transition to

sustainable energy production. Aker Solutions employs approximately 15,000

people in more than 20 countries.

Visit akersolutions.com and connect with us on

Facebook (https://www.facebook.com/AkerSolutions/),

Instagram (https://instagram.com/akersolutions/),

LinkedIn (https://www.linkedin.com/company/aker-solutions),

Twitter (https://twitter.com/akersolutions) and

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.