Aker Solutions — Earnings Release 2022

Oct 25, 2022

Aker Solutions ASA: Third-Quarter Results 2022

Aker Solutions ASA: Third-Quarter Results 2022

October 25, 2022 - Aker Solutions revenue and margins increased in the third

quarter of 2022. The company delivered good performance in the quarter and

continued to demonstrate that it remains on-track with its financial targets.

Tendering activity continues to be record high, and the market outlook remains

positive. Aker Solutions increased its revenue guidance and now expects revenue

up by more than 35 percent in 2022 from 2021.

3Q 2022 Financial Highlights

(excluding special items)

· Revenue NOK 10.0 billion

· EBITDA NOK 749 million

· EBITDA margin 7.5 percent

· Earnings per share NOK 0.58

· Net cash position NOK 3.5 billion

· Order intake NOK 8.2 billion (0.8x book-to-bill)

· Order backlog NOK 50.9 billion

"Our third quarter results demonstrate that we continue on-track with our

financial targets, and I am pleased with our performance in the quarter. The

market outlook overall for Aker Solutions remains positive. The company is well

-positioned to capitalize on both near-term recovery and for the longer-term

structural change in the energy markets," said Kjetel Digre, chief executive

officer of Aker Solutions.

Key Developments

Revenue in the third quarter increased to NOK 10.0 billion from NOK 7.3 billion

a year earlier. EBITDA excl. special items increased to NOK 749 million from NOK

459 million a year before. Within Subsea, the periodic profit was positively

impacted by initiating margin recognition on the large Jansz subsea gas

compression project, after reaching 20 percent progress on this project during

the quarter. This led to a catch-up effect in the period.

Aker Solutions ended the quarter with a net cash position of NOK 3.5 billion,

excluding lease liabilities, and the company's financial position remains solid.

In the third quarter, Aker Solutions announced an agreement to form a joint

venture by bringing together the complementary subsea businesses of Aker

Solutions and Schlumberger. Subsea 7 will become a partner in the JV and bring

the existing subsea integration alliance to the JV. Through the transaction,

Aker Solutions will receive USD 700 million in consideration for the sale of a

20% ownership in the JV and will retain a 20% ownership in the JV. It will also

retain an estimated USD 300 million of cash generation from its subsea business

until closing. The transaction is subject to regulatory approvals and other

customary closing conditions and is expected to close during the second half

"By combining our strong and complementary subsea businesses, this compelling

combination will deliver an industry step change that will significantly benefit

our customers, employees and shareholders. As the offshore market activity is

increasing, our customers will benefit from enhanced services that leverage

digital and technological innovation to drive improved subsea asset performance

while increasing energy efficiency and reducing CO2?emissions," said Digre.

During the first three quarters of 2022, Aker Solutions has successfully

recruited around 2,300 new skilled employees globally.

In the second quarter 2022 presentation, Aker Solutions announced the award of

an undisclosed contract due to contractual obligations at the time. Aker

Solutions discloses today that this contract award was for the East Anglia 3

offshore wind project in the UK, for ScottishPower Renewables. Aker Solutions'

scope, in a consortium with Siemens Energy, is to provide the grid connection

infrastructure, including the HVDC converter platform.

Outlook

The outlook remains positive for Aker Solutions overall and the company sees

increased market activity moving forward with increased project sanctioning both

near- and medium term. Tender activity is record high and the company will

continue to be selective. A substantial step-up in capital spending is projected

in both oil & gas and renewables moving forward, and energy security is very

high on the agenda, particularly in Europe.

Overall, Aker Solutions is well-positioned to capitalize on both near-term

cyclical recovery and for the longer-term structural change in the energy

markets. Based on ongoing projects and secured order backlog, the company now

expects full-year revenue up by more than 35 percent in 2022, and underlying

EBITDA-margin continues to be seen up from 2021. In the Subsea segment, margins

are now expected at around 16 percent for 2022. The high ongoing FEED work and

tendering activity supports the potential for record-high order intake in 2022

for Aker Solutions.

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

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

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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 considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange release was published by Daniel Ingebricson, Communications,

Aker Solutions, on October 25, 2022 at 07:00 CEST.