Aker Solutions — Earnings Release 2020

Feb 2, 2021

Aker Solutions ASA: Fourth-Quarter 2020 Trading Update and Preliminary Annual Results 2020

Aker Solutions ASA: Fourth-Quarter 2020 Trading Update and Preliminary Annual Results 2020

February 2, 2021 - During 2020, Aker Solutions made significant structural and

strategic changes to transform the company and enhance shareholder value. This

included spinning off Aker Carbon Capture and Aker Offshore Wind to

shareholders. The merger between Aker Solutions and Kvaerner has created a

stronger and more optimized supplier company and was successfully completed

during the fourth quarter.

With the unprecedented challenges of the COVID-19 pandemic and oil price

volatility during 2020, Aker Solutions' decisive actions focused on the health

and safety of employees, delivering for clients, reducing cost and protecting

the company's balance sheet.

For the fourth quarter, Aker Solutions expects EBITDA excluding special items at

around NOK 120 million, net negatively impacted by about NOK 350 million from

non-recurring project adjustments related to a few projects, of which about NOK

120 million are non-cash. These projects, which were partly impacted by the

restrictions imposed to manage the COVID-19 pandemic, are now in the

finalization phase. Special items for the quarter are expected at around NOK 40

million, mainly related to restructuring charges from realization of merger

synergies.

Fourth quarter EBIT excluding special items is expected to be around minus NOK

180 million, as the company expects to book around NOK 390 million of right-of

-use asset impairments from synergies partly related to footprint optimization

following the merger of the two companies. Net tax asset impairments in the

quarter is expected at about NOK 90 million.

Preliminary financial results for the fourth quarter 2020:

· Revenues around NOK 6.9 billion

· EBITDA around NOK 80 million

· EBITDA ex. special items around NOK 120 million

· EBIT around minus NOK 680 million

· EBIT ex. special items around minus NOK 180 million

· Net cash position at year-end around NOK 450 million

· Working capital at year-end around minus NOK 280 million

Preliminary financial results for the year ended 31 December 2020:

· Revenues around NOK 29.4 billion

· Revenues ex. special items NOK 28.6 billion

· EBITDA around NOK 1.5 billion

· EBITDA ex. special items around NOK 1.2 billion

· EBIT around minus NOK 780 million

· EBIT ex. special items around minus NOK 50 million

· Capex around NOK 0.6 billion

Against the challenging backdrop of COVID-19, the company delivered about 30%

growth in order intake versus the prior year, with high activity level in core

oil & gas markets, following the temporary tax incentives in Norway in

particular. Order intake for the year is expected around NOK 34 billion, of

which around NOK 6.8 billion in the fourth quarter.

The business case and strategic ambitions for the merger remains unchanged. Aker

Solutions has fully implemented the NOK 1.5 billion overhead cost saving target.

Initiatives include simplified organizational structure, optimized footprint and

improved project execution and management model.

Looking ahead, Aker Solutions is currently involved in a high level of FEED- and

tendering activity and is engaged in about NOK 76 billion of tenders for new

work, where around one third relates to renewables and low-carbon projects.

This, combined with leading capabilities within energy transition, should turn

into a number of interesting opportunities where Aker Solutions is well

positioned.

Aker Solutions will publish its fourth-quarter results for

2020 (https://www.akersolutions.com/investors/presentations-and-events/fourth

-quarter-results-2020/) on Monday, February 15, at 07:00 CET, with a live

webcast and teleconference will take place the same day at 09:00 CET. In

addition to the financial results, the presentation will include comments on

market and strategy.

Disclaimer: Aker Solutions reports according to the IFRS and all figures

mentioned above are preliminary, unaudited and subject to change.

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 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 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.