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Aker Solutions Investor Presentation 2020
3531_rns_2020-10-28_c0954bbd-908f-4f4f-b80e-6445b1cd7120.pdf
Investor Presentation
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3Q 2020
Fornebu, October 28, 2020 Kjetel Digre and Idar Eikrem
2020 © Aker Solutions
Introduction
Kjetel Digre Chief Executive Officer
Financials
Idar Eikrem Chief Financial Officer
Q&A Session
Kjetel Digre CEO Idar Eikrem CFO
Main Developments
- Strong HSSE performance
- Installed Troll Phase 3 topside module, delivered Lingshui subsea equipment
- Cost-saving program yielding results
- Merger with Kvaerner on track
- To be completed 4Q
- Value-creating spin-offs
- Carbon Capture
- Offshore Wind
- Sale of ix3
- NCS tax incentives support order intake
- 35 standardized subsea trees YTD
- Brownfield framework agreement extensions
- Energy transition a key driver
Key Figures | 3Q 2020
Revenue EBITDA Order Intake
Order Backlog
New Orders
ConocoPhillips
Subsea Production System for Tommeliten Alpha and Framework Agreement for Brownfield Services
Subsea Production System for the Breidablikk Development
Brownfield Services Contract for Hebron Platform in Canada
Electrification Work on the Edvard Grieg Platform Offshore Norway
23 Front-End Contracts Where Three Have Led on to Full Projects
Merger Process on Track
Spin-Offs Unlock Shareholder Value
- Spun off developer-roles of Aker Carbon Capture and Aker Offshore Wind to shareholders
- Creating significant value for shareholders
- Distributing NOK 8.5 per share in dividend vs. share price of NOK 10.7 per share for Aker Solutions on day one of trading
Tendering Activity
Outlook
- Increased backlog improves 2021 visibility
- Sanctioning activity on the Norwegian continental shelf expected to continue near-tomedium term
- Number of early-phase discussions on international projects rising
- Share of low-carbon and renewables projects expected to grow
Introduction
Kjetel Digre Chief Executive Officer
Financials
Idar Eikrem Chief Financial Officer
Q&A Session
Kjetel Digre CEO Idar Eikrem CFO
3Q 2020 | Income Statement
| NOK million | 3Q 2020 | 3Q 2019 | 2019 |
|---|---|---|---|
| Revenue | 5,501 | 7,134 | 29,263 |
| Revenue ex. special items1 | 4,696 | 7,132 | 29,262 |
| EBITDA | 938 | 553 | 2,244 |
| EBITDA margin | 17.1% | 7.8% | 7.7% |
| EBITDA ex. special items1 | 243 | 570 | 2,316 |
| EBITDA margin ex. special items1 | 5.2% | 8.0% | 7.9% |
| Depreciation, amortization and impairment | (301) | (308) (1,539) | |
| EBIT | 637 | 245 | 705 |
| EBIT margin | 11.6% | 3.4% | 2.4% |
| EBIT ex. special items1 | (39) | 262 | 1,081 |
| EBIT margin ex. special items1 | (0.8%) | 3.7% | 3.7% |
| Net financial items | (115) | (111) | (535) |
| FX on disqualified hedging instruments | (1) | 6 | (0) |
| Income (loss) before tax | 521 | 140 | 170 |
| Income tax | (322) | (47) | (87) |
| Net income (loss) | 199 | 93 | 83 |
| Net income (loss) ex. special items1 | (165) | 101 | 460 |
| Earnings per share (NOK) | 0.75 | 0.30 | 0.15 |
| Earnings per share (NOK) ex. special items1 | (0.59) | 0.33 | 1.54 |
- Third quarter revenue of NOK 5.5 billion
- Reduction versus previous year mainly driven by Field Design, as previously guided following the record activity last year
- And continued progress towards finalization of several ongoing projects, some with COVID-19 impacts
- Third quarter reported EBITDA of NOK 938 million
- Positively impacted by gain on dividend transaction of NOK 804 million (Aker Carbon Capture and Aker Offshore Wind)
- Third quarter underlying EBITDA of NOK 243 million, with a margin of 5.2%
- Third quarter restructuring charges of NOK 114 million
- Mainly related to additional right-sizing of the organization to match activity level where necessary
- Effective tax-rate in the third quarter impacted by impairment of tax assets in Brazil and Angola (non-cash)
- Earnings per share of NOK 0.75
1 Special items mainly include gain/loss on sale of assets, restructuring costs, impairments, leases, and costs linked to the impact of currency derivatives not qualifying for hedge accounting. See the appendix for details on special items
3Q 2020 | Cashflow and Financial Position
- Working capital1 at NOK 429 million
- Cashflow from operations at NOK 496 million
- Cashflow from investments at NOK 109 million
- Net interest-bearing debt2 of NOK 1.9 billion and leverage2 2.0x (covenants at 3.5x)
- Available liquidity of NOK 5.9 billion (cash NOK 2.9 billion and RCF NOK 3.0 billion)
Debt Maturity Profile2 NOK million
1 See definition under Alternative Performance Measures in the appendix
Net Interest-Bearing Debt and Leverage1,2 Working Capital NOK million, x times 1 NOK million
2 Excluding the effects of IFRS 16 as covenants are based on frozen GAAP
Projects
- Lower activity driven by Field Design following the record activity last year, and continued progress towards finalization of several ongoing projects, some with Covid-19 impacts
- Revenue down 37% year-on-year to NOK 3.6 billion
- EBITDA margin1 of 5.3% vs 8.1% a year earlier
Revenue NOK billion
EBITDA and Margin1
NOK million, %
- EBIT margin1 at 0.1%, impacted by lower activity level and a few projects won in a very competitive market not yielding satisfactory margins
- These projects are now in the finalization phase
- Strong order intake of NOK 5.4 billion (1.5x book-to-bill)
- Order backlog of NOK 17.8 billion
EBIT and Margin1
NOK million, %
Working Capital NOK billion
1 Figures are excl. special items
- Activity driven by continued progress towards finalization of several ongoing projects, some with Covid-19 impacts
- Revenue down 27% year-on-year to NOK 1.6 billion
- Solid order intake of NOK 2.0 billion (1.3x book-to-bill)
- Backlog of NOK 7.9 billion
Quarterly Revenue NOK billion
Subsea Field Design 1.0 0.0 4.0 3.0 2.0 2.7 3.4 2Q 20 1.4 1.9 3Q 19 1.7 4Q 19 1.4 1.3 1Q 20 3.0 3.4 3Q 20 2.0
Projects | Subsea Projects | Field Design
- Normalized activity as previously guided, following the record activity in 2019
- Revenue down 42% year-on-year to NOK 2.0 billion
- Strong order intake of NOK 3.4 billion (1.7x book-to-bill)
- Backlog of NOK 10.0 billion
Order Backlog by Execution Date
Order Intake
NOK billion
Services
- Activity remained resilient in Subsea Lifecycle Services, Topside brownfield maintenance activity-level impacted by COVID-19
- Revenue down 28% year-on-year to NOK 1.1 billion
- EBITDA margin1 of 11.8% vs 11.2% a year earlier
EBITDA and Margin1
NOK million, %
- EBIT margin1 of 6.2% vs 7.2% a year earlier
- Strong order intake of NOK 1.7 billion (1.5x book-to-bill)
- Order backlog of NOK 11.5 billion
Working Capital NOK billion
1 Figures are excl. special items
Revenue NOK billion
Order Backlog Gives Reasonable Visibility
3Q 2020 Order Backlog by Execution Date NOK billion
Order Backlog by Segment NOK billion
Order Backlog and Intake Development NOK billion
Order Backlog by Market
Financial Guidance
Revenue and Margin
- 2020 with unprecedented impacts of the COVID-19 pandemic combined with steep decline in oil demand and commodity prices, resulting in significant slowdown in activity
- Improved order intake and outlook for project sanctioning following government measures and increased commodity prices
- Main financial priority remains cash conservation and protecting the company's balance sheet and financial performance
- Continued strict focus on cost and capital reduction measures, including significant initiatives aiming to reduce the company's fixed cost level by a total of about NOK 1 billion on an annualized basis versus 2019
- Overall 2020 revenues expected at around NOK 21-22 billion
Balance Sheet and Cashflow
- Working Capital likely to fluctuate with large project work and expected to trend around the NOK 1.0 billion level going forward
- Capex and R&D in 2020 expected to be reduced by about 40% versus 2019, to around NOK 500 million
- Capex and R&D in 2021 targeted to be reduced by another 30% versus 2020, to around NOK 350 million
- Covenants are at 3.5x Net Interest-Bearing Debt / EBITDA for both bonds and RCF (excl. special items and IFRS 16)
(Forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections)
Introduction
Kjetel Digre Chief Executive Officer
Financials
Idar Eikrem Chief Financial Officer Q&A Session
Kjetel Digre CEO Idar Eikrem CFO
Front-End Statistics
| 3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | |
|---|---|---|---|---|
| Total front-end studies |
23 | 37 | 112 | 111 |
| Concept Studies leading to FEEDs |
4 | 5 | 12 | 22 |
| FEEDS leading to projects |
3 | 5 | 8 | 7 |
Basis for Preparation
This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange.
The financial information is not reported according to the requirements in IAS 34 (Interim Financial Reporting) and the figures are not audited.
The same measurement principles as presented in the Annual Report 2019 have been used preparing this presentation.
Alternative Performance Measures
Aker Solutions discloses alternative performance measures in addition to those normally required by IFRS as such performance measures are frequently used by securities analysts, investors and other interested parties.
Alternative performance measures are meant to provide an enhanced insight into the operations, financing and future prospects of the company.
Profit Measures
EBITDA and EBIT terms are presented as they are used by financial analysts and investors. Special items are excluded from EBITDA and EBIT as alternative measures to provide enhanced insight into the financial development of the business operations and to improve comparability between different periods.
EBITDA is short for earnings before interest, taxes, depreciation and amortization. EBITDA corresponds to the "operating income before depreciation, amortization and impairment" in the consolidated income statement in the annual report.
EBIT is short for earnings before interest and taxes. EBIT corresponds to "operating income" in the consolidated income statement in the annual report.
Margins such as EBITDA margin and EBIT margin are used to compare relative profit between periods. EBITDA margin and EBIT margin are calculated as EBITDA or EBIT divided by revenue.
Special items may not be indicative of the ongoing operating result of cash flows of the company. Profit measures excluding special items are presented as alternative measures to improve comparability of the underlying business performance between the periods.
1) Earnings per share is calculated using Net income, adjusted for non-controlling interests, divided by average number of shares
2) Earnings per share ex. special items is calculated using Net income ex. Special items, adjusted for non-controlling interests, divided by average number of shares
| NOK million | Projects | Services | Other/eliminations | Aker Solutions | ||||
|---|---|---|---|---|---|---|---|---|
| 3Q 2020 | 3Q 2019 | 3Q 2020 | 3Q 2019 | 3Q 2020 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |
| Revenue | 3,560 | 5,627 | 1,113 | 1,549 | 828 | (42) | 5,501 | 7,134 |
| Non-qualifying hedges | - | - | - | - | 3 | (2) | 3 | (2) |
| Gain on non-cash dividend distribution | - | - | - | - | (804) | - | (804) | - |
| (Gain) loss sale of PPE | - | - | - | - | (3) | - | (3) | - |
| Sum of special items excluded from revenue | - | - | - | - | (805) | (2) | (805) | (2) |
| Revenue ex. special items | 3,560 | 5,627 | 1,113 | 1,549 | 23 | (44) | 4,696 | 7,132 |
| EBITDA | 187 | 455 | 131 | 162 | 620 | (64) | 938 | 553 |
| Gain on non-cash dividend distribution | - | - | - | - | (804) | - | (804) | - |
| (Gain) loss sale of PPE | - | - | - | - | (3) | - | (3) | - |
| Restructuring cost | 2 | (1) | (0) | 11 | 112 | 1 | 114 | 12 |
| Non-qualifying hedges | - | - | - | - | (1) | 5 | (1) | 5 |
| Other special items | - | - | - | - | (1) | (1) | (1) | (1) |
| Sum of special items excluded from EBITDA | 2 | (1) | (0) | 11 | (697) | 5 | (695) | 16 |
| EBITDA ex. special items | 190 | 455 | 131 | 174 | (77) | (59) | 243 | 570 |
| EBITDA margin | 5.3 % | 8.1 % | 11.8 % | 10.5 % | 17.1 % | 7.8 % | ||
| EBITDA margin ex. special items | 5.3 % | 8.1 % | 11.8 % | 11.2 % | 5.2 % | 8.0 % | ||
| EBIT | 19 | 251 | 61 | 100 | 557 | (105) | 637 | 245 |
| Sum of special items excluded from EBITDA | 2 | (1) | (0) | 11 | (697) | 5 | (695) | 16 |
| Impairments | (19) | - | 8 | 0 | 30 | 0 | 19 | 0 |
| Sum of special items excluded from EBIT | (16) | (1) | 8 | 12 | (668) | 5 | (676) | 16 |
| EBIT ex. special items | 3 | 250 | 69 | 112 | (111) | (100) | (39) | 262 |
| EBIT margin | 0.5 % | 4.5 % | 5.5 % | 6.4 % | 11.6 % | 3.4 % | ||
| EBIT margin ex. special items | 0.1 % | 4.4 % | 6.2 % | 7.2 % | -0.8 % | 3.7 % | ||
| Net income | 199 | 93 | ||||||
| Sum of special items excluded from EBIT | (676) | 16 | ||||||
| Non-qualifying hedges | 1 | (6) | ||||||
| Tax effects on special items | 312 | (3) | ||||||
| Net income ex. special items | (165) | 101 | ||||||
| Net income to non-controlling interests | 6 | (12) | ||||||
| Net income ex. non-controlling interests | (159) | 89 | ||||||
| Average number of shares (in '000) | 271,943 271,533 | |||||||
| Earnings per share1) | 0.75 | 0.30 | ||||||
| Earnings per share ex. special items2) | (0.59) | 0.33 |
Financing Measures
Alternative financing and equity measures are presented as they are indicators of the company's ability to obtain financing and service its debts.
Liquidity buffer (available liquidity) is a measure of available cash and is calculated by adding together the cash and cash equivalents and the unused credit facility.
| NOK million | 3Q 2020 | 3Q 2019 |
|---|---|---|
| Cash and cash equivalents | 2,873 | 1,758 |
| Credit facility (unused) | 3,000 | 5,000 |
| Liquidity buffer | 5,873 | 6,758 |
Net Current Operating Assets (NCOA) or Working Capital is a measure of the current capital necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, provisions and current tax assets and liabilities.
| NOK million | 3Q 2020 | 3Q 2019 |
|---|---|---|
| Current tax assets | 97 | 106 |
| Inventory | 228 | 397 |
| Customer contract assets and other receivables | 4,701 | 4,611 |
| Trade receivables | 3,112 | 4,061 |
| Prepayments | 1,482 | 1,653 |
| Current tax liabilities | (222) | (48) |
| Provisions | (447) | (444) |
| Trade payables | (2,734) | (1,894) |
| Other payables | (5,315) | (6,727) |
| Customer contract liabilities | (472) | (389) |
| Net current operating assets (NCOA) | 429 | 1,327 |
Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used by management to assess the borrowing capacity of a company. The ratio shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant. The ratio is one of the debt covenants of the company.
The ratio is calculated as net interest-bearing debt (total principal debt outstanding less unrestricted cash) divided by EBITDA. If a company has more cash than debt, the ratio can be negative. The leverage ratio for Aker Solutions does not include the effects of IFRS 16 Leasing, as the debt covenants are based on frozen GAAP.
Further, the EBITDA is calculated based on the last four quarter period and it excludes certain special items as defined in the loan agreements, such as restructuring of offices (onerous leases) and other restructuring costs.
| NOK million | 3Q 2020 | 3Q 2019 |
|---|---|---|
| Non-current borrowings | 4,535 | 2,720 |
| Current borrowings | 251 | 907 |
| Cash and cash equivalents | (2,873) | (1,758) |
| Net interest-bearing debt | 1,913 | 1,869 |
| Trailing four quarters: | ||
| EBITDA | 1,753 | 2,293 |
| IFRS 16 effects excl. onerous lease cost | 558 | 426 |
| EBITDA excl. IFRS 16 effects and onerous lease cost | 1,195 | 1,867 |
| Onerous lease cost (IAS 17) | (0) | 15 |
| Restructuring cost | 432 | 22 |
| Non-qualifying hedges | 1 | (2) |
| Gain on non-cash dividend distribution and sale of PPE | (808) | - |
| Net operating cost, divested businesses | 113 | - |
| Adjusted EBITDA | 934 | 1,902 |
| Net interest-bearing debt to EBITDA (leverage ratio) | 2.0 | 1.0 |
Order Intake Measures
Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, as they are indicators of the company's revenues and operations in the future.
Order intake includes new signed contracts in the period in addition to expansion of existing contracts. For construction contracts, the order intake is based on the signed contract value excluding potential options and change orders. For service contracts, the order intake is based on the estimated value of firm periods in the contracts.
Order backlog represents the estimated value of remaining work on signed contracts. The backlog does not include part of the Services business, which is short cycled or book-and-turn in nature, or potential growth or options on existing contracts.
Book-to-bill ratio is calculated as order intake divided by revenue in the period. A book-to-bill ratio higher than 1 means that the company has secured more contracts in the period than what has been executed in the same period.
| NOK million, x times | 3Q 2020 | 3Q 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Order intake | Revenue ex. special items |
Book-to-bill | Order intake | Revenue ex. special items |
Book-to-bill | ||||
| Projects - Subsea | 2,011 | 1,576 | 1.3x | 1,386 | 2,171 | 0.6x | |||
| Projects - Field Design | 3,401 | 1,985 | 1.7x | 1,899 | 3,450 | 0.6x | |||
| Other/eliminations | (1) | (1) | (3) | 6 | |||||
| Projects | 5,411 | 3,560 | 1.5x | 3,282 | 5,627 | 0.6x | |||
| Services | 1,697 | 1,113 | 1.5x | 1,408 | 1,549 | 0.9x | |||
| Other/eliminations | (2) | 23 | 23 | (44) | |||||
| Aker Solutions | 7,107 | 4,696 | 1.5x | 4,713 | 7,132 | 0.7x |
Special Items
NOK million, (Gain) / Loss
| Special items (EBITDA) | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Restructuring | 31 | (3) | 39 | 3 | 10 | 12 | 46 | 70 | 155 | 117 | 114 |
| Non-qualifying hedges | (3) | (1) | (11) | (2) | (4) | 5 | 1 | 0 | 10 | (8) | (1) |
| Gain on non-cash dividend distribution | - | - | - | - | - | - | - | - | - | - | (804) |
| (Gain) loss sale of PPE | - | - | (50) | - | - | - | - | - | - | - | (3) |
| Onerous leases under IAS 171) | - | 15 | 15 | (0) | (0) | 0 | (0) | (0) | (0) | 0 | 0 |
| Other special items | 2 | 0 | 8 | 2 | (0) | (1) | (0) | 1 | (0) | 13 | (1) |
| Total special items EBITDA | 30 | 12 | 2 | 3 | 6 | 16 | 46 | 72 | 165 | 121 | (695) |
| Special items (EBIT) | |||||||||||
| Impairments | 1 | 6 | 22 | 2 | 221 | 0 | 81 | 304 | 548 | 3 | 19 |
| Total special items EBIT | 31 | 18 | 24 | 5 | 228 | 16 | 128 | 376 | 713 | 124 | (676) |
The table shows the Special items to be added to reported figures to get underlying figures
1)Onerous lease provisions under IAS 17 and IAS 37 were presented as part of EBITDA prior to 1.1.2019
Income Statement
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement consolidated | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Revenue | 6,541 | 6,954 25,232 | 7,256 | 7,525 | 7,134 | 7,348 29,263 | 6,510 | 5,361 | 5,501 | ||
| Operating expenses | (6,078) (6,471) (23,422) (6,622) (6,902) (6,581) (6,914) (27,019) (6,361) (5,129) (4,563) | ||||||||||
| EBITDA | 463 | 483 | 1,810 | 634 | 623 | 553 | 434 | 2,244 | 149 | 232 | 938 |
| Of which related to hedging | 3 | 1 | 11 | 2 | 4 | (5) | (1) | (0) | (10) | 8 | 1 |
| Depreciation and amortization | (179) | (190) | (739) | (307) | (304) | (308) | (315) (1,234) | (302) | (291) | (282) | |
| Impairment | (1) | (6) | (22) | (2) | (221) | (0) | (81) | (304) | (548) | (3) | (19) |
| EBIT | 282 | 287 | 1,049 | 325 | 98 | 245 | 37 | 705 | (701) | (63) | 637 |
| Net interest cost | (45) | (57) | (229) | (105) | (112) | (115) | (119) | (451) | (122) | (78) | (96) |
| Foreign exchange on disqualified hedging instruments | (3) | 2 | (16) | (3) | (5) | 6 | 2 | (0) | 13 | (11) | (1) |
| Other financial items | (1) | (5) | (12) | 9 | (1) | 4 | (96) | (84) | (19) | (54) | (19) |
| Net financial items incl. disqualified hedging instruments | (49) | (60) | (258) | (99) | (118) | (105) | (213) | (535) | (128) | (144) | (116) |
| Net income (loss) before tax | 233 | 227 | 792 | 226 | (20) | 140 | (176) | 170 | (829) | (206) | 521 |
| Income tax | (78) | (50) | (238) | (77) | 8 | (47) | 28 | (87) | 99 | 35 | (322) |
| Net income (loss) for the period | 155 | 178 | 554 | 149 | (11) | 93 | (148) | 83 | (730) | (171) | 199 |
| Net income attributable to: | |||||||||||
| Equity holders of the parent company | 136 | 158 | 511 | 148 | (30) | 81 | (158) | 41 | (742) | (177) | 205 |
| Non-controlling interests | 19 | 20 | 43 | 1 | 18 | 12 | 10 | 41 | 12 | 6 | (6) |
| EBITDA margin | 7.1 % | 7.0 % | 7.2 % | 8.7 % | 8.3 % | 7.8 % | 5.9 % | 7.7 % | 2.3 % | 4.3 % | 17.1 % |
| Basic earnings per share (NOK) | 0.50 | 0.58 | 1.88 | 0.54 | -0.11 | 0.30 | -0.58 | 0.15 | -2.73 | (0.65) | 0.75 |
Balance Sheet – Assets
| NOK million | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Assets | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Property, plant and equipment | 2,905 | 3,044 | 2,945 | 2,916 | 3,031 | 3,065 | 3,235 | 2,905 | 2,779 |
| Intangible assets | 5,596 | 5,686 | 5,690 | 5,578 | 5,669 | 5,710 | 5,589 | 5,423 | 5,249 |
| Right-of-use assets | - | - | 4,184 | 3,848 | 3,796 | 3,628 | 3,710 | 3,494 | 3,392 |
| Deferred tax assets | 607 | 663 | 782 | 751 | 858 | 871 | 1,093 | 1,121 | 837 |
| Lease receivables | - | - | 715 | 665 | 652 | 663 | 829 | 755 | 720 |
| Other investments | 48 | 79 | 157 | 157 | 94 | 93 | 93 | 92 | 110 |
| Other non-current assets | 79 | 84 | 85 | 168 | 242 | 268 | 309 | 370 | 239 |
| Total non-current assets | 9,235 | 9,556 14,557 14,084 14,343 14,298 14,857 14,161 13,326 | |||||||
| Current tax assets | 122 | 109 | 101 | 92 | 106 | 120 | 117 | 93 | 97 |
| Inventories | 277 | 326 | 320 | 353 | 397 | 369 | 329 | 270 | 228 |
| Trade receivables | 3,258 | 3,236 | 4,150 | 4,063 | 4,061 | 3,182 | 3,503 | 3,617 | 3,112 |
| Customer contract assets and other receivables | 3,597 | 3,652 | 3,996 | 4,147 | 4,611 | 4,846 | 5,731 | 4,868 | 4,701 |
| Prepayments | 1,126 | 1,348 | 1,522 | 1,918 | 1,653 | 1,564 | 1,633 | 1,536 | 1,482 |
| Derivative financial instruments | 236 | 218 | 110 | 86 | 118 | 156 | 469 | 204 | 145 |
| Interest-bearing receivables | 62 | 47 | 144 | 122 | 126 | 130 | 143 | 140 | 211 |
| Cash and cash equivalents | 2,392 | 2,473 | 1,872 | 2,228 | 1,758 | 1,898 | 2,818 | 2,460 | 2,873 |
| Total current assets | 11,070 11,408 12,215 13,009 12,830 12,265 14,742 13,188 12,849 | ||||||||
| Total assets | 20,305 20,964 26,772 27,092 27,174 26,563 29,599 27,349 26,175 |
Balance Sheet – Liabilities and Equity
| NOK million | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Liabilities and equity | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Total equity attributable to the parent | 6,849 | 7,502 | 7,241 | 7,044 | 7,355 | 7,134 | 7,411 | 6,532 | 5,709 |
| Non-controlling interests | 45 | 106 | 107 | 123 | 110 | 97 | 78 | 78 | 58 |
| Total equity | 6,893 | 7,608 | 7,348 | 7,167 | 7,466 | 7,231 | 7,489 | 6,610 | 5,767 |
| Non-current borrowings | 2,777 | 1,788 | 1,764 | 2,714 | 2,720 | 3,280 | 4,643 | 4,580 | 4,535 |
| Non-current lease liabilities | - | - | 5,203 | 5,029 | 4,989 | 4,889 | 5,108 | 4,799 | 4,712 |
| Pension obligations | 529 | 572 | 566 | 562 | 557 | 663 | 666 | 656 | 741 |
| Deferred tax liabilities | 240 | 266 | 247 | 211 | 328 | 269 | 235 | 242 | 235 |
| Other non-current liabilities | 90 | 10 | 3 | 14 | 19 | 22 | 1 | 3 | 3 |
| Total non-current liabilities | 3,636 | 2,636 | 7,782 | 8,530 | 8,613 | 9,123 10,653 10,280 10,227 | |||
| Current tax liabilities | 98 | 68 | 121 | 79 | 48 | 81 | 174 | 221 | 222 |
| Current borrowings | 117 | 1,125 | 1,125 | 865 | 907 | 217 | 230 | 242 | 251 |
| Current lease liabilities | - | - | 563 | 556 | 565 | 571 | 628 | 608 | 609 |
| Provisions | 932 | 906 | 717 | 582 | 444 | 521 | 602 | 555 | 447 |
| Trade payables | 2,105 | 1,680 | 2,044 | 2,087 | 1,894 | 2,000 | 2,855 | 3,087 | 2,734 |
| Other payables | 5,855 | 6,062 | 6,128 | 6,364 | 6,727 | 6,021 | 5,956 | 5,084 | 5,315 |
| Customer contract liabilities | 416 | 709 | 831 | 730 | 389 | 677 | 673 | 516 | 472 |
| Derivative financial instruments | 254 | 172 | 112 | 132 | 122 | 121 | 340 | 144 | 131 |
| Total current liabilities | 9,776 10,721 11,641 11,396 11,095 10,209 11,457 10,458 10,181 | ||||||||
| Total liabilities and equity | 20,305 20,964 26,772 27,092 27,174 26,563 29,599 27,349 26,175 |
Cashflow
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cashflow | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| EBITDA | 463 | 483 | 1,810 | 634 | 623 | 553 | 434 | 2,244 | 149 | 232 | 938 |
| Change in cashflow from operating activities | (506) | (370) | (890) | (937) | (568) | (726) | 306 | (1,925) | (449) | (184) | (442) |
| Net cashflow from operating activities | (44) | 113 | 921 | (303) | 55 | (173) | 740 | 319 | (299) | 48 | 496 |
| Acquisition of property, plant and equipment | (107) | (94) | (331) | (77) | (107) | (204) | (211) | (599) | (195) | (74) | (31) |
| Payments for capitalized development | (43) | (61) | (174) | (35) | (44) | (82) | (67) | (228) | (80) | (39) | (52) |
| Acquisition of subsidiaries, net of cash acquired | - | - | (0) | (14) | (21) | 0 | (0) | (35) | - | - | - |
| Change in current interest-bearing receivables | 40 | 21 | 62 | - | 22 | - | - | 22 | - | - | - |
| Sub-lease income received | - | - | - | 28 | 34 | 22 | 29 | 113 | 31 | 32 | (1) |
| Cashflow from other investing activities | 50 | (27) | 147 | (60) | (76) | 16 | (68) | (188) | (17) | (74) | 193 |
| Net cashflow from investing activities | (59) | (160) | (297) | (159) | (192) | (248) | (317) | (916) | (261) | (156) | 109 |
| Change in external borrowings | 110 | (26) | (99) | (22) | 697 | 43 | (124) | 594 | 1,362 | (13) | (29) |
| Lease installments paid | - | - | - | (134) | (136) | (138) | (152) | (559) | (161) | (145) | (143) |
| Paid dividends to majority | 0 | 0 | 0 | - | - | - | - | - | - | - | (19) |
| Other financing activities | (1) | 0 | (0) | (0) | 0 | (44) | (5) | (49) | (49) | 18 | 7 |
| Net cashflow from financing activities | 108 | (26) | (99) | (156) | 561 | (138) | (281) | (14) | 1,152 | (140) | (184) |
| Effect of exchange rate changes on cash and cash equivalents | (53) | 153 | (30) | 17 | (68) | 89 | (1) | 37 | 328 | (110) | (7) |
| Net increase (decrease) in cash and cash equivalents | (48) | 81 | 495 | (601) | 356 | (470) | 140 | (575) | 920 | (358) | 413 |
| Cash and cash equivalents as at the beginning of the period | 2,440 | 2,392 | 1,978 | 2,473 | 1,872 | 2,228 | 1,758 | 2,473 | 1,898 | 2,818 | 2,460 |
| Cash and cash equivalents as at the end of the period | 2,392 | 2,473 | 2,473 | 1,872 | 2,228 | 1,758 | 1,898 | 1,898 | 2,818 | 2,460 | 2,873 |
Split Per Segment
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 5,211 | 5,608 19,920 | 5,952 | 6,015 | 5,627 | 5,658 23,253 | 5,119 | 4,058 | 3,560 | ||
| Services | 1,277 | 1,324 | 5,096 | 1,299 | 1,503 | 1,549 | 1,645 | 5,995 | 1,386 | 1,281 | 1,113 |
| Other | 72 | 78 | 298 | 42 | 35 | (23) | 121 | 176 | 29 | 53 | 838 |
| Eliminations | (19) | (56) | (82) | (37) | (28) | (19) | (76) | (160) | (23) | (31) | (10) |
| Revenue | 6,541 | 6,954 25,232 | 7,256 | 7,525 | 7,134 | 7,348 29,263 | 6,510 | 5,361 | 5,501 | ||
| EBITDA | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 372 | 346 | 1,354 | 477 | 470 | 455 | 333 | 1,736 | 173 | 233 | 187 |
| Services | 183 | 188 | 678 | 186 | 205 | 162 | 168 | 721 | 62 | 85 | 131 |
| Other | (92) | (50) | (222) | (30) | (52) | (64) | (67) | (213) | (86) | (87) | 620 |
| EBITDA | 463 | 483 | 1,810 | 634 | 623 | 553 | 434 | 2,244 | 149 | 232 | 938 |
| EBITDA margin | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 7.1 % | 6.2 % | 6.8 % | 8.0 % | 7.8 % | 8.1 % | 5.9 % | 7.5 % | 3.4 % | 5.7 % | 5.3 % |
| Services | 14.3 % | 14.2 % | 13.3 % | 14.3 % | 13.6 % | 10.5 % | 10.2 % | 12.0 % | 4.5 % | 6.6 % | 11.8 % |
| EBITDA margin | 7.1 % | 7.0 % | 7.2 % | 8.7 % | 8.3 % | 7.8 % | 5.9 % | 7.7 % | 2.3 % | 4.3 % | 17.1 % |
| EBIT | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 254 | 214 | 843 | 280 | 189 | 251 | 117 | 837 | (403) | 47 | 19 |
| Services | 141 | 145 | 511 | 120 | 122 | 100 | 58 | 399 | (123) | 12 | 61 |
| Other | (114) | (72) | (305) | (75) | (213) | (105) | (137) | (531) | (175) | (122) | 557 |
| EBIT | 282 | 287 | 1,049 | 325 | 98 | 245 | 37 | 705 | (701) | (63) | 637 |
| EBIT margin | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Projects | 4.9 % | 3.8 % | 4.2 % | 4.7 % | 3.1 % | 4.5 % | 2.1 % | 3.6 % | -7.9 % | 1.1 % | 0.5 % |
| Services | 11.1 % | 11.0 % | 10.0 % | 9.2 % | 8.1 % | 6.4 % | 3.5 % | 6.7 % | -8.9 % | 1.0 % | 5.5 % |
| EBIT margin | 4.3 % | 4.1 % | 4.2 % | 4.5 % | 1.3 % | 3.4 % | 0.5 % | 2.4 % | -10.8 % | -1.2 % | 11.6 % |
Split Per Segment
| NCOA | (1,024) | (753) | 248 | 731 | 1,327 | 781 | 1,053 | 920 | 429 |
|---|---|---|---|---|---|---|---|---|---|
| Other | (591) | (306) | (398) | (139) | (71) | 176 | 117 | 351 | 17 |
| Services | 633 | 693 | 908 | 936 | 896 | 844 | 909 | 479 | 393 |
| Projects | (1,067) (1,141) | (262) | (66) | 502 | (239) | 27 | 91 | 20 | |
| NCOA | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| NOK million |
| Order intake | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Projects | 3,806 | 4,417 19,642 | 3,482 | 2,860 | 3,282 | 4,404 14,029 | 2,699 | 6,331 | 5,411 | ||
| Services | 2,102 | 759 | 5,756 | 1,975 | 902 | 1,408 | 1,080 | 5,365 | 3,918 | 614 | 1,697 |
| Other | 77 | 92 | 223 | 70 | 77 | 41 | 110 | 297 | 37 | 53 | 3 |
| Eliminations | (127) | (16) | (200) | (3) | (17) | (18) | (33) | (71) | (10) | (27) | (5) |
| Order intake | 5,857 | 5,252 25,421 | 5,523 | 3,822 | 4,713 | 5,561 19,620 | 6,643 | 6,971 | 7,107 |
| Order backlog | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
|---|---|---|---|---|---|---|---|---|---|
| Projects | 25,716 25,014 | 22,547 19,311 17,251 15,887 | 14,204 16,050 17,804 | ||||||
| Services | 10,507 10,294 | 10,917 10,275 10,256 | 9,613 | 12,245 10,887 11,469 | |||||
| Other | 50 | (0) | (6) | 2 | (0) | (6) | 3 | 2 | (26) |
| Eliminations | (192) | (159) | (126) | (115) | (114) | (91) | (84) | (75) | (73) |
| Order backlog | 36,081 35,148 | 33,332 29,473 27,393 25,403 | 26,367 26,864 29,174 |
| Own employees | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
|---|---|---|---|---|---|---|---|---|---|
| Projects | 7,091 | 7,188 | 7,459 | 7,729 | 7,794 | 7,737 | 7,276 | 7,104 | 6,792 |
| Services | 5,276 | 5,473 | 5,720 | 5,426 | 5,900 | 5,669 | 5,759 | 3,801 | 3,312 |
Split Per Segment – Excluding Special Items
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA (excl. special items) | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 373 | 348 | 1,371 | 478 | 475 | 455 | 372 | 1,780 | 305 | 268 | 190 |
| Services | 190 | 194 | 692 | 187 | 210 | 174 | 169 | 740 | 78 | 126 | 131 |
| Other | (70) | (46) | (251) | (29) | (56) | (59) | (60) | (204) | (68) | (41) | (77) |
| EBITDA (excl. special items) | 492 | 495 | 1,812 | 636 | 629 | 570 | 480 | 2,316 | 314 | 353 | 243 |
| EBITDA margin (excl. special items) | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 7.2 % | 6.2 % | 6.9 % | 8.0 % | 7.9 % | 8.1 % | 6.6 % | 7.7 % | 6.0 % | 6.6 % | 5.3 % |
| Services | 14.9 % | 14.6 % | 13.6 % | 14.4 % | 14.0 % | 11.2 % | 10.3 % | 12.3 % | 5.6 % | 9.8 % | 11.8 % |
| EBITDA margin (excl. special items) | 7.5 % | 7.1 % | 7.2 % | 8.8 % | 8.4 % | 8.0 % | 6.5 % | 7.9 % | 4.8 % | 6.6 % | 5.2 % |
| EBIT (excl. special items) | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 255 | 217 | 874 | 281 | 270 | 250 | 159 | 960 | 101 | 72 | 3 |
| Services | 148 | 154 | 528 | 120 | 147 | 112 | 107 | 486 | 15 | 63 | 69 |
| Other | (90) | (66) | (329) | (72) | (91) | (100) | (101) | (365) | (104) | (73) | (111) |
| EBIT (excl. special items) | 313 | 305 | 1,074 | 329 | 325 | 262 | 165 | 1,081 | 12 | 62 | (39) |
| EBIT margin (excl. special items) | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Projects | 4.9 % | 3.9 % | 4.4 % | 4.7 % | 4.5 % | 4.4 % | 2.8 % | 4.1 % | 2.0 % | 1.8 % | 0.1 % |
| Services | 11.6 % | 11.6 % | 10.4 % | 9.3 % | 9.8 % | 7.2 % | 6.5 % | 8.1 % | 1.1 % | 4.9 % | 6.2 % |
| EBIT margin (excl. special items) | 4.8 % | 4.4 % | 4.3 % | 4.5 % | 4.3 % | 3.7 % | 2.2 % | 3.7 % | 0.2 % | 1.1 % | -0.8 % |
Projects | Subsea and Field Design
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Subsea | 2,079 | 2,042 | 8,162 | 2,439 | 2,343 | 2,171 | 2,309 | 9,262 | 2,349 | 1,895 | 1,576 |
| Field Design | 3,170 | 3,551 11,814 | 3,512 | 3,680 | 3,450 | 3,362 14,004 | 2,770 | 2,164 | 1,985 | ||
| Eliminations/other | (38) | 15 | (57) | 1 | (8) | 6 | (12) | (13) | (1) | (1) | (1) |
| Revenue | 5,211 | 5,608 19,920 | 5,952 | 6,015 | 5,627 | 5,658 23,253 | 5,119 | 4,058 | 3,560 | ||
| Order intake | 3Q 2018 | 4Q 2018 | FY 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | FY 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 |
| Subsea | 1,074 | 2,866 | 8,049 | 1,418 | 1,846 | 1,386 | 1,749 | 6,399 | 1,404 | 2,967 | 2,011 |
| Field Design | 2,715 | 1,566 11,635 | 2,064 | 999 | 1,899 | 2,652 | 7,615 | 1,295 | 3,365 | 3,401 | |
| Eliminations/other | 17 | (15) | (42) | - | 15 | (3) | 3 | 15 | (1) | (1) | (1) |
| Order intake | 3,806 | 4,417 19,642 | 3,482 | 2,860 | 3,282 | 4,404 14,029 | 2,699 | 6,331 | 5,411 | ||
| Order backlog | 3Q 2018 | 4Q 2018 | 1Q 2019 | 2Q 2019 | 3Q 2019 | 4Q 2019 | 1Q 2020 | 2Q 2020 | 3Q 2020 | ||
| Subsea | 8,621 | 9,837 | 8,784 | 8,239 | 7,704 | 7,011 | 6,732 | 7,412 | 7,855 | ||
| Field Design | 17,043 15,161 | 13,721 11,021 | 9,499 | 8,829 | 7,431 | 8,527 | 9,954 | ||||
| Eliminations/other | 52 | 16 | 42 | 51 | 48 | 46 | 41 | 111 | (5) | ||
| Order backlog | 25,716 25,014 | 22,547 19,311 17,251 15,887 | 14,204 16,050 17,804 |
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