Aker Solutions — Interim / Quarterly Report 2019

Apr 30, 2019

Aker Solutions ASA: First-Quarter Results 2019

Aker Solutions ASA: First-Quarter Results 2019

April 30, 2019 - Aker Solutions' revenues and earnings strengthened in the first

quarter of 2019, as the company won new orders and made good progress on its

portfolio of projects.

1Q 2019 Financial Highlights (including effects of IFRS 16)

* Revenue NOK 7.3 billion

* EBITDA NOK 634 million

* EBITDA margin 8.7%

* EBITDA ex. special items NOK 636 million

* EBITDA margin ex. special items 8.8%

* Earnings per share ex. special items NOK 0.57

* Order intake NOK 5.5 billion

* Order backlog NOK 33.3 billion

High activity in several ongoing Field Design projects, as well as increased

activity and progress in the subsea segment, on the back of work won last year,

contributed to a solid financial performance by Aker Solutions in the first

quarter.

"An active market for early phase studies, combined with high project tendering

activity, means the company is well positioned to take advantage of current

market conditions," said Aker Solutions' Chief Executive Officer Luis Araujo.

Orders totaled NOK 5.5 billion in the quarter, bringing the backlog to NOK 33.3

billion. Key awards included the subsea gas compression FEED contract from

Chevron for the Jansz-Io field offshore Australia. "This is the international

breakthrough for our subsea compression technology, which already has provided

great results at Åsgard for Equinor since 2015," said Araujo.

The contract is for front-end engineering and design of a subsea compression

station as well as an unmanned power and control floater. This is the first

service order under the master contract to develop the field.

During the first quarter, Aker Solutions completed the delivery of the topside

processing platform for Equinor's Johan Sverdrup field. In Africa, Total started

production on Kaombo South at the end of the quarter. Aker Solutions delivered

the subsea production system for this significant project in Angola.

Demand for early-phase work continued to be strong. In the first quarter Aker

Solutions was awarded 31 front-end contracts, from a range of customers and

regions.

In the first quarter, Aker Solutions made a strategic investment in Airborne Oil

& Gas, an innovative manufacturer of fully bonded, Thermoplastic Composite Pipe

(TCP). The lightweight, high strength and corrosion resistant composite pipes

provide cost and operational benefits in subsea production & oil field service

applications. The company will work with Airborne to introduce thermoplastic

composite pipe solutions into its subsea portfolio.

Revenue and EBITDA

Revenue rose to NOK 7.3 billion in the quarter from NOK 5.5 billion a year

earlier, supported by progress and deliveries on key projects in several

markets. The EBITDA was NOK 634 million, compared with NOK 425 million in the

first quarter of 2018. Excluding special items, the EBITDA was NOK 636 million

with a margin of 8.8 percent compared with 7.1 percent in the same period last

year. EBITDA for 1Q 2019 include 140 million of lease effects from the new IFRS

16 accounting standard, while comparative figures have not been re-stated. The

1Q EBITDA margin, excluding the IFRS 16 effect, was 6.8 percent.

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

Projects rose 40 percent to NOK 6 billion in the quarter from NOK 4.2 billion a

year earlier, mainly driven by the field design sub segment. Excluding special

items, EBITDA margin was 8.0 percent in the quarter versus 7.6 percent a year

earlier.

Revenue in Services was NOK 1.3 billion, up 12 percent from NOK 1.2 billion in

the same quarter last year, with the increase driven by international growth in

the company's production asset services sub-segment. The EBITDA margin excluding

special items was 14.4 percent in the quarter, an increase from 11.7 percent a

year earlier.

Outlook

Tendering activity remains high in main markets - and Aker Solutions is

currently bidding for contracts totaling about NOK 55 billion. The majority of

this is in the subsea area - and key projects are anticipated to be awarded this

year.

In the longer term, Aker Solutions expects an increase in global energy demand

and that investment efforts in sustainable energy solutions will be rewarded.

Aker Solutions sees overall revenue in 2019 up close to 10 percent from 2018 on

the back of a strong order intake last year and continued high tendering

activity, with overall 2019 underlying EBITDA margin up year-on-year, and to

remain around year-to-date level excluding the effects of the implementation of

IFRS 16.

ENDS

Media Contact:

Ivar Simensen, mob: +47 464 02 317, e-mail: ivar.simensen@akersolutions.com

Investor Contact:

Fredrik Berge, mob: +47 450 32 090, e-mail: 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, Instagram, LinkedIn,

Twitter and YouTube.

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.