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Aker Solutions Investor Presentation 2024
3531_rns_2024-07-12_9998a6e6-f458-48c9-b933-e4f1de880287.pdf
Investor Presentation
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2Q 2024
July 12, 2024
Kjetel Digre, CEO Idar Eikrem, CFO
2Q 2024 | Strong Performance Driven by Solid Execution
Financials
- Significant revenue growth and improved profitability
- High order intake and solid secured backlog creating good visibility on future activity levels
- Robust financial position
Operational
- High activity across locations with good progress on project portfolio
- Important milestones achieved on several projects
- Launch of the new ENTR brand for the energy consultancy
Outlook and Developments
- Key focus on safeguarding delivery of large order backlog through solid and predictable project execution
- Strong underlying market creating high activity in tendering, FEED and early phase studies positioning Aker Solutions for future profitable growth
2Q 2024 | Operational Highlights
Johan Castberg FPSO Adriatic LNG Northern Lights Carbon Storage
2Q 2024 | Solid Progress on Aker BP Portfolio
- Alliance model with balanced risk-reward profile and aligned incentives
- 4 topsides and jacket substructures with a combined dry weight of about 90,000 tons
- High activity across own and partner locations
- Innovative technology and digital solutions
- Fenris topside pre-drilling module and jacket successfully installed at the Valhall field in 2Q 2024
2Q 2024 | New Orders of NOK 15.5 Billion in the Quarter
Renewables and Field Development
- Growth in existing contracts
- High activity in consultancy and FEED studies
Life Cycle
- Topside modification for the Bestla (prev. Brasse) tie-back project for Okea in Norway
- Upgrade of the Mongstad waste-water treatment plant for Equinor in Norway
- Long-term brownfield and modification frame agreement for Azule (BP/ ENI) in Angola
- Growth in existing contracts and call-offs in frame agreements
2Q 2024 | Broad Portfolio of Offerings in Life Cycle
- Long term frame agreements w/operators
- Integrated delivery models
-
Presence on more than 250 platforms in Norway, UK, Canada, Angola and Brunei
-
Modification of existing oil and gas assets
- Tie-backs to maximize existing infrastructure
- Life-time extension scopes
Frame Agreements Modifications Hook-Up & Commissioning Transitional Energy
• Cost-effective, predictable and safe completion deliveries that prepare for the start-up of oil and gas production
- Leading position for electrification of offshore oil and gas assets
- Emission reduction studies and digital tools
- Drones and data analytics
2Q 2024 | Tender Value at about NOK 70 Billion
Majority related to opportunities in Norway and Europe
2Q 2024 | Navigating the Energy Transition Together
Aker Solutions' dedicated consultancy arm launched in 2Q 2024
Our mission is to provide customers with unrivalled, impactful advice, data, and insights. Building on a rich heritage of successful technological innovation, project development, and seamless delivery.
Ideas, Insights & Impact Across our Key Markets
Low Carbon
Oil & Gas Ocean & Wind Electrical
| Electrical | |
|---|---|
Transmission
Hydrogen & CO2
| Origination and Decision Support |
Front-end Engineering |
Owner's Engineering / PMC |
Operational Phase Services |
|---|---|---|---|
| Opportunity framing and guidance to navigate the complexity of new energy projects and enable robust decisions |
Engineering excellence and project execution know-how to deliver and develop optimized concepts |
Project management and technical excellence to deliver on time and to budget |
Operational and brownfield experience to assure operations, maximize yield and lower OPEX |
| Specialized Services | Deep subject matter expertise using analysis tools to provide valuable insights |
2Q 2024 | Outlook
- Delivering on financial targets
- Strong operational performance
- Large secured backlog with balanced risk reward profile
- Well positioned in global energy trends
- Energy security and affordability
- Renewables and transitional energy solutions
- Technology and digitalization
- Robust financial position
- Net cash position1 of NOK 11.0 billion
- Target to distribute 40-60% of net income to shareholders
1 Including investments in liquid funds not treated as cash or cash equivalents under IFRS
Financial Performance
July 12, 2024
Idar Eikrem, CFO
2Q 2024 | Key Figures
| NOK million | 2Q 2024 | 2Q 2023 | 1H 2024 | 1H 2023 | 2023 |
|---|---|---|---|---|---|
| Revenue | 12,826 | 8,881 | 24,307 | 16,094 | 36,262 |
| Revenue ex. special items | 12,827 | 8,826 | 24,303 | 15,971 | 36,107 |
| Of which Net profit equity accounted investees | 166 | 1 | 373 | 1 | 205 |
| EBITDA | 1,206 | 193 | 2,173 | 422 | 1,166 |
| EBITDA margin | 9.4% | 2.2% | 8.9% | 2.6% | 3.2% |
| EBITDA ex. special items1 | 1,216 | 218 | 2,203 | 466 | 1,295 |
| EBITDA margin ex. special items1 | 9.5% | 2.5% | 9.1% | 2.9% | 3.6% |
| Depreciation, amortization and impairment | (267) | (160) | (534) | (309) | (744) |
| EBIT | 940 | 33 | 1,639 | 112 | 422 |
| EBIT margin | 7.3% | 0.4% | 6.7% | 0.7% | 1.2% |
| EBIT ex. special items1 | 959 | 60 | 1,682 | 159 | 611 |
| EBIT margin ex. special items1 | 7.5% | 0.7% | 6.9% | 1.0% | 1.7% |
| Net financial items | (272) | 60 | 152 | 28 | (328) |
| Income (loss) before tax | 668 | 93 | 1,791 | 140 | 95 |
| Income tax | (136) | (67) | (365) | (91) | (110) |
| Net income (loss) from continuing operations | 532 | 27 | 1,426 | 49 | (15) |
| Net income (loss) from discontinued operations | - | 513 | - | 880 | 11,540 |
| Net income (loss) | 532 | 539 | 1,426 | 929 | 11,525 |
| Net income (loss) ex. special items1 | 862 | 571 | 1,552 | 1,023 | 2,428 |
| Earnings per share (NOK) | 1.10 | 1.08 | 2.93 | 1.87 | 23.81 |
| Earnings per share (NOK) ex. special items1 | 1.78 | 1.14 | 3.19 | 2.07 | 5.20 |
| Dividend per share (NOK) | - | - | - | - | 2.00 |
1Special items mainly include gain/loss on sale of assets, M&A costs, restructuring costs, impairments, costs linked to the impact of currency derivatives not qualifying for hedge accounting and changes in value of SLB shares. See the appendix and interim report for details on special items
Financials and Highlights
- Revenue1 of NOK 12.8 billion for the quarter
- Strong growth driven by Renewables and Field Development
- Quarterly and half year revenues up by 45% and 52% compared to same periods last year
■ EBITDA1 of NOK 1.2 billion (9.5% margin)
- Strong operational performance across project portfolio
- Positively impacted by oil and gas projects reaching progress milestones
- Legacy renewables projects negatively affecting margins
- Net income from equity accounted investees of NOK 166 million, of which NOK 185 million related to OneSubsea
- EPS1 for the quarter increased to NOK 1.78 from NOK 1.14 in the same period last year
2Q 2024 | Net Cash Position of NOK 11.0 Billion
Working Capital1 of minus NOK 8.9 billion
■ Working capital continues to be expected to normalize during 2024 with a cash outflow of around NOK 3 billion during the second half of the year
CAPEX2 in the quarter was NOK 0.4 billion
■ Mainly related to investments to safeguard delivery of the large order backlog
Net Cash Position2 of NOK 11.0 billion
■ Includes NOK 6.2 billion in liquid funds, not treated as cash under IFRS
1See definition under Alternative Performance Measures in Interim Report
2Excluding the effects of IFRS 16 as covenants are based on frozen GAAP
Working Capital1 NOK BILLION
Second-Quarter Results 2024 July 12, 2024 12
2Q 2024 | Cash Generation
Change in Cash and Cash Equivalents NOK MILLION
Improved Cash Position in the Quarter
- Cash flow from operations of NOK 1.4 billion in the second quarter
- Driven by improved operational performance
- CAPEX investments of NOK 413 million
- Mainly related to upgrades and modifications of yards in connection with major awards
- Subsea proceeds of NOK 1.9 billion
- Final cash settlement from Subsea7
- Closing account settlement from OneSubsea
- Dividends and share buybacks of NOK 1.3 billion
- Dividends of NOK 2.0 per share paid in April
- NOK 302 million in buybacks in period
- Negative effect from exchange rate adjustments
2Q 2024 | Renewables and Field Development
Order Intake
| 200 100 0 |
4% 2Q23 |
3Q23 | 4Q23 | 1Q24 | 2Q24 | |
|---|---|---|---|---|---|---|
| 887 | NOK MILLION | |||||
| Order Backlog | ||||||
| 60 | ||||||
| 50 | ||||||
| 40 | ||||||
| 30 |
46.8 NOK BILLION
2Q23 3Q23 4Q23 1Q24 2Q24
0 10 20
Financials and Highlights
- Revenue of NOK 9.4 billion in quarter
- Substantial increase compared to same period last year
- EBITDA of NOK 887 million (9.4% margin) in quarter
- Positively impacted by oil and gas projects reaching progress milestones
- Legacy renewables projects negatively affecting margins
- Order intake of NOK 8.8 billion (0.9x book-to-bill) in quarter
- Mainly driven by growth in existing projects
- Continued strong order backlog of NOK 46.8 billion
- Majority related to projects executed under the well-proven alliance model with Aker BP
- Revenues are now expected to increase by around 65% in 2024
2Q 2024 | Life Cycle
Order Intake
| 150 | 6% | 7% | 6% | ||
|---|---|---|---|---|---|
| 100 5% |
5% | 6% | 4% | ||
| 50 | 2% | ||||
| 0 | 0% | ||||
| 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | |
| 205 | NOK MILLION | ||||
Order Backlog
Financials and Highlights
- Revenue of NOK 3.0 billion in quarter
- Decrease from same period last year due to lower third-party costs
- EBITDA of NOK 205 million (6.8% margin) in quarter
- Continued solid performance on ongoing projects and multi-year frame agreements
- Order intake of NOK 6.6 billion (2.2x book-to-bill)
- Mainly related to modifications for Equinor on the Mongstad wastewater facility, tie-in modification for OKEA and the frame agreement with Azule Energy in Angola
- All-time high order backlog of NOK 23.8 billion
- Excluding potential growth in existing contracts and frame agreements, and value of extension options
- Solid visibility on activity level moving forward
- Revenue in 2024 expected to continue at close to 2023-levels
- Predictable revenue profile over time, driven by large multi-year frame agreements for maintenance and modification
2Q 2024 | Order Intake and Backlog
Quarterly Order Intake NOK BILLION
(Book-to-bill is based on revenue from customer contracts, see Half-Year Report for details)
Order Backlog by Type
Quarterly Order Backlog NOK BILLION
1 Alliance model: Contracts under the Aker BP alliance model with balanced risk and upside potential through incentives 2 Reimbursable: Contracts with less than 20% lump sum exposure as share of contract value
3 Lump sum: Contracts with more than 20% lump sum exposure as share of contract value – mainly related to legacy renewables projects 4 See appendix for definition
Summary
- Significant increase in revenues and improved margins in the quarter compared to last year
- Strong operational performance with several milestones met during the quarter
- Continued high backlog of NOK 71 billion ensuring good visibility on future activity levels
- Key focus on delivering predictable project execution
- High tendering and early-phase study activity positioning the company for future profitable growth
- Solid financial position
Outlook
- 2024 revenue is now expected to grow around 40% from 2023 driven by the solid backlog
- 2024 EBITDA-margin is now expected to be around 7.5% excluding the net income from OneSubsea
- Working Capital will start to normalize in the second half of 2024 with an expected negative cash impact of around NOK 3 billion
- CAPEX is expected to be in the range of 2.5-3.0% of revenues in 2024. Long term CAPEX forecasted to be around 1.5% of revenues
- Ordinary dividend policy of 40-60% of annual net profit, excluding special items, through dividends and share buybacks
Forward-looking information and statements are subject to significant risks, uncertainties and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections.
Q&A
Additional Information
July 12, 2024
Timing of selected large projects in the portfolio, by Segment
Renewables and Field Development Life Cycle
| Project | Customer | Award year | Delivery year (est.) | |
|---|---|---|---|---|
| Johan Castberg FPSO |
Equinor | 2017 | 2024 | |
| Hugin A Platform | Aker BP | 2022 | 2026 | |
| Hugin B Platform | Aker BP | 2022 | 2026 | |
| Valhall PWP Platform |
Aker BP | 2022 | 2026 | |
| Fenris UI | Aker BP | 2022 | 2026 | |
| Rosebank FPSO | Altera | 2023 | 2025 | |
| Jackdaw WHP | Shell | 2022 | 2024 | |
| Sunrise Wind HVDC | Ørsted & Eversource | 2021 | 2025 | |
| East Anglia 3 HVDC | ScottishPower | 2022 | 2025 | |
| Heidelberg Brevik Carbon Capture |
Aker Carbon Capture |
2020 | 2025 | |
| Norfolk Vanguard West HVDC (pending regulatory approval and FID) |
RWE | 2023 | TBA | |
| Norfolk Vanguard East HVDC (pending regulatory approval and FID) |
RWE | 2023 | TBA |
| Project | Customer | Award year | Delivery year (est.) |
|---|---|---|---|
| Aker BP EMM /Modific. Alliance (FA) | Aker BP | 2015 | 2025 |
| Equinor H (FA) | Equinor | 2016 | 2026 |
| Brunei (FA) | Brunei Shell Petr. | 2020 | 2025 |
| ConocoPhillips M&M (FA) | ConocoPhillips | 2016 | 2026 |
| Nyhamna M&M (FA) |
Shell | 2007 | 2028 |
| Shell Modification Contract (FA) | Shell | 2017 | 2028 |
| Draugen Electrification | OKEA | 2023 | 2027 |
| Troll West, electrification | Equinor | 2021 | 2026 |
| Hebron Brownfield EPCM | Exxon | 2015 | 2025 |
| Angola EPC Services | Azule Energy (BP/ENI) |
2024 | 2027 |
| Mongstad Waste-Water Upgrade | Equinor | 2024 | 2026 |
| Bestla tie-in to Brage |
OKEA | 2024 | 2026 |
(FA = frame agreement)
(Disclaimer: the tables on this slide show the estimated timing of a selection of large projects in Aker Solutions' backlog per 2Q 2024. This information is unaudited and subject to change)
Renewables and Transitional Energy Solutions
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Total revenue (excl. special items) | 7,228 | 6,619 | 8,274 | 27,461 | 7,145 | 8,826 | 9,114 | 11,021 | 36,107 | 11,477 | 12,827 |
| Renewables and Transitional Energy Solutions | 1,335 | 1,568 | 2,136 | 6,100 | 1,756 | 1,668 | 1,585 | 1,736 | 6,744 | 1,856 | 2,071 |
| Renewables and Transitional Energy Solutions (%) | 18 % | 24 % | 26 % | 22 % | 25 % | 19 % | 17 % | 16 % | 19 % | 16 % | 16 % |
| Order intake | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Total order intake | 9,995 | 6,680 | 45,165 | 67,811 | 7,805 | 7,889 | 4,963 | 14,646 | 35,303 | 6,981 | 15,550 |
| Renewables and Transitional Energy Solutions | 3,301 | 1,446 | 1,113 | 6,611 | 2,965 | 902 | 717 | 5,227 | 9,810 | 285 | 3,805 |
| Renewables and Transitional Energy Solutions (%) | 33 % | 22 % | 2 % | 10 % | 38 % | 11 % | 14 % | 36 % | 28 % | 4 % | 24 % |
| Order backlog | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Total order backlog | 36,167 | 36,152 | 72,784 | 72,784 | 73,761 | 73,080 | 68,918 | 72,680 | 72,680 | 68,669 | 71,417 |
| Renewables and Transitional Energy Solutions | 11,797 | 11,675 | 10,652 | 10,652 | 11,861 | 11,095 | 10,227 | 13,718 | 13,718 | 12,147 | 13,881 |
| Renewables and Transitional Energy Solutions (%) | 33 % | 32 % | 15 % | 15 % | 16 % | 15 % | 15 % | 19 % | 19 % | 18 % | 19 % |
Definition
Revenue, order intake and order backlog from work related to renewables and transitional energy solutions. This mainly includes projects with solutions and technologies for offshore wind, hydropower, aquaculture, carbon capture and storage (CCS), hydrogen, electrification of offshore and onshore facilities, and decommissioning & recycling.
These figures are compiled from a bottom-up approach of projects and work in Aker Solutions for the relevant periods. The figures are unaudited and subject to change.
Special Items
NOK million, (Gain) / Loss
| Special items (EBITDA) | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Restructuring | 0 | (0) | (0) | 1 | 2 | 0 | 3 | 19 | 24 | 0 | 3 |
| Non-qualifying hedges | 32 | (4) | 2 | 12 | 5 | 10 | 3 | (0) | 17 | (2) | 0 |
| Other special items | 0 | 2 | 7 | 10 | 11 | 16 | 15 | 46 | 87 | 22 | 7 |
| Total special items EBITDA | 32 | (2) | 9 | 23 | 19 | 25 | 21 | 64 | 128 | 20 | 10 |
| Impairments | 11 | (54) | 12 | (30) | 0 | 2 | 2 | 55 | 60 | 4 | 9 |
| Total special items EBIT | 43 | (56) | 21 | (8) | 19 | 27 | 23 | 119 | 189 | 23 | 19 |
Income Statement
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement consolidated | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Revenue | 7,276 | 6,614 | 8,248 | 27,468 | 7,213 | 8,880 | 9,094 | 10,870 | 36,057 | 11,273 | 12,661 |
| Net profit equity accounted investees | 6 | (1) | 27 | 33 | 0 | 1 | 8 | 197 | 205 | 207 | 166 |
| Total revenue and other income | 7,283 | 6,613 | 8,275 | 27,500 | 7,213 | 8,881 | 9,102 | 11,066 | 36,262 | 11,481 | 12,826 |
| Operating expenses | (7,161) | (6,463) | (8,055) (26,854) | (6,985) | (8,688) | (8,908) (10,515) (35,096) (10,514) (11,620) | |||||
| EBITDA | 121 | 150 | 220 | 647 | 229 | 193 | 194 | 551 | 1,166 | 967 | 1,206 |
| Of which related to hedging | (32) | 4 | (2) | (12) | (5) | (10) | (3) | 0 | (17) | 2 | (0) |
| Depreciation and amortization | (139) | (152) | (134) | (559) | (135) | (158) | (155) | (222) | (670) | (264) | (258) |
| Impairment | (11) | 54 | (20) | 22 | (14) | (2) | (2) | (55) | (74) | (4) | (9) |
| EBIT | (29) | 52 | 66 | 109 | 79 | 33 | 36 | 274 | 422 | 700 | 940 |
| Net interest | (60) | (40) | (22) | (185) | (17) | (3) | 42 | 104 | 126 | 83 | 49 |
| Net other financial items | 79 | (27) | 8 | 26 | (16) | 63 | (109) | (391) | (453) | 341 | (321) |
| Net financial items | 19 | (67) | (15) | (160) | (32) | 60 | (68) | (288) | (328) | 423 | (272) |
| Net income (loss) before tax | (10) | (15) | 51 | (50) | 47 | 93 | (32) | (14) | 95 | 1,123 | 668 |
| Income tax | (34) | (46) | 3 | (92) | (25) | (67) | (56) | 37 | (110) | (229) | (136) |
| Net income (loss) from continuing operations | (45) | (61) | 54 | (142) | 22 | 27 | (88) | 23 | (15) | 894 | 532 |
| Net income from discontinued operations | 320 | 346 | 381 | 1,312 | 367 | 513 | 965 | 9,695 | 11,540 | - | - |
| Net income from total operations | 276 | 285 | 435 | 1,170 | 390 | 539 | 877 | 9,719 | 11,525 | 894 | 532 |
| Net income attributable to: | |||||||||||
| Equity holders of the parent company | 269 | 305 | 441 | 1,179 | 387 | 528 | 920 | 9,802 | 11,637 | 890 | 535 |
| Non-controlling interests | 7 | (20) | (6) | (8) | 2 | 12 | (43) | (83) | (112) | 4 | (3) |
| EBITDA margin | 1.7 % | 2.3 % | 2.7 % | 2.4 % | 3.2 % | 2.2 % | 2.1 % | 5.0 % | 3.2 % | 8.4 % | 9.4 % |
| Basic earnings per share from continuing operations (NOK) | (0.10) | (0.08) | 0.12 | (0.27) | 0.04 | 0.03 | (0.09) | 0.22 | 0.20 | 1.82 | 1.10 |
| Basic earnings per share from discontinued operations (NOK) | 0.65 | 0.71 | 0.78 | 2.70 | 0.75 | 1.05 | 1.97 | 19.83 | 23.61 | - | - |
| Basic earnings per share from total operations (NOK) | 0.55 | 0.62 | 0.91 | 2.42 | 0.79 | 1.08 | 1.88 | 20.05 | 23.81 | 1.82 | 1.10 |
| Dividend per share (NOK) | - | - | - | 1.00 | - | - | - | - | 2.00 | - | - |
Cash Flow
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash flow | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| EBITDA continuing operations | 121 | 150 | 220 | 647 | 229 | 193 | 194 | 551 | 1,166 | 967 | 1,206 |
| EBITDA discontinued operations | 532 | 586 | 727 | 2,288 | 640 | 906 | 1,225 | 0 | 2,772 | - | - |
| Change in cash flow from operating activities | (681) | 33 | 1,245 | 1,584 | 832 | 695 | 434 | 317 | 2,278 | 52 | 217 |
| Net cash flow from operating activities | (28) | 769 | 2,193 | 4,518 | 1,701 | 1,794 | 1,853 | 868 | 6,216 | 1,019 | 1,423 |
| Acquisition of property, plant and equipment | (91) | (151) | (233) | (507) | (217) | (414) | (624) | (579) | (1,833) | (567) | (399) |
| Payments for capitalized development | (26) | (25) | (33) | (113) | (61) | (20) | (288) | (20) | (388) | (16) | (14) |
| Acquisition of subsidiaries, net of cash acquired | 8 | (4) | (47) | (169) | (13) | (0) | 0 | (0) | (13) | - | (44) |
| Disposal of subsidiaries | 0 | 17 | - | 17 | - | (0) | (0) | 621 | 621 | 0 | 1,943 |
| Change in current interest-bearing receivables | (0) | 9 | - | - | - | - | - | (106) | (106) | - | 58 |
| Change in current investments | - | - | - | - | - | - | (1,001) | (1,999) | (3,000) | (3,000) | (0) |
| Sub-lease income received | 32 | 33 | 16 | 110 | 28 | 32 | 31 | 27 | 119 | 30 | 30 |
| Interest received | 28 | 38 | 49 | 128 | 51 | 102 | 108 | 107 | 368 | 71 | 136 |
| Interest received on sub-leases | 5 | 5 | 14 | 29 | 8 | 5 | 6 | 10 | 27 | 7 | 8 |
| Cash flow from other investing activities | 1 | 8 | 16 | 29 | 1 | 1 | 10 | 45 | 58 | (33) | 4 |
| Net cash flow from investing activities | (44) | (70) | (216) | (476) | (203) | (294) | (1,758) | (1,893) | (4,147) | (3,509) | 1,721 |
| Change in external borrowings | (22) | (950) | 19 | (1,444) | (499) | (31) | (0) | (437) | (967) | 0 | - |
| Lease installments paid | (166) | (169) | (186) | (695) | (201) | (188) | (204) | (180) | (774) | (173) | (160) |
| Paid dividends | (97) | (0) | 0 | (97) | 0 | (489) | - | 0 | (489) | - | (970) |
| Acquisition of treasury shares | 0 | (0) | (0) | (0) | 0 | 0 | 0 | 0 | 0 | (152) | (302) |
| Interest paid | (37) | (27) | (22) | (124) | (18) | (17) | 0 | (30) | (64) | (8) | (9) |
| Interest paid on leases | (49) | (48) | (47) | (195) | (48) | (48) | (47) | (38) | (181) | (40) | (40) |
| Other financing activities | 0 | (2) | (9) | (11) | (0) | (0) | (8) | (0) | (8) | (0) | (0) |
| Net cash flow from financing activities | (372) | (1,196) | (245) | (2,566) | (767) | (773) | (259) | (685) | (2,483) | (373) | (1,481) |
| Net increase (decrease) in cash and cash equivalents | (443) | (497) | 1,732 | 1,476 | 731 | 727 | (163) | (1,710) | (415) | (2,863) | 1,663 |
| Cash and cash equivalents at the beginning of the period | 5,198 | 5,026 | 4,469 | 4,560 | 6,170 | 7,102 | 8,078 | 7,787 | 6,170 | 6,003 | 3,293 |
| Effect of exchange rate changes on cash and cash equivalents | 272 | (60) | (31) | 134 | 201 | 249 | (128) | (75) | 248 | 153 | (98) |
| Cash and cash equivalents at the end of the period | 5,026 | 4,469 | 6,170 | 6,170 | 7,102 | 8,078 | 7,787 | 6,003 | 6,003 | 3,293 | 4,857 |
Balance Sheet – Assets
NOK million
| Assets | 2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 |
|---|---|---|---|---|---|---|---|---|---|
| Property, plant and equipment | 3,424 | 3,533 | 3,596 | 3,762 | 4,246 | 2,883 | 3,487 | 3,830 | 3,956 |
| Intangible assets including Goodwill | 6,101 | 6,064 | 5,949 | 5,958 | 5,933 | 3,413 | 3,563 | 3,536 | 3,510 |
| Right-of-use assets and investment property | 2,824 | 2,693 | 2,723 | 2,764 | 2,809 | 1,904 | 1,911 | 1,862 | 1,832 |
| Deferred tax assets | 671 | 593 | 584 | 543 | 605 | 345 | 491 | 317 | 380 |
| Non-current lease receivables | 572 | 580 | 561 | 560 | 561 | 501 | 529 | 511 | 461 |
| Equity accounted investees | 67 | 75 | 103 | 94 | 95 | 99 | 6,555 | 6,845 | 7,090 |
| Investments in other companies | 28 | 26 | 25 | 22 | 21 | 39 | 19 | 17 | 17 |
| Interest-bearing receivables | 212 | 215 | 201 | 205 | 209 | 211 | 197 | 200 | 204 |
| Other non-current assets | 28 | 20 | 26 | 27 | 61 | 55 | 506 | 425 | 204 |
| Total non-current assets | 13,927 | 13,800 | 13,768 | 13,936 | 14,540 | 9,450 | 17,258 | 17,542 | 17,653 |
| Current tax assets | 79 | 97 | 67 | 80 | 88 | 68 | 75 | 73 | 67 |
| Inventories | 229 | 258 | 275 | 270 | 353 | 49 | 44 | 48 | 44 |
| Trade receivables | 4,782 | 5,546 | 5,857 | 6,151 | 6,046 | 3,271 | 5,268 | 5,915 | 5,442 |
| Customer contract assets and other receivables | 4,648 | 4,630 | 4,419 | 5,646 | 5,748 | 2,685 | 2,317 | 2,526 | 3,162 |
| Prepayments | 1,652 | 1,917 | 1,981 | 2,325 | 2,601 | 786 | 1,214 | 1,091 | 1,281 |
| Derivative financial instruments | 502 | 484 | 406 | 550 | 565 | 240 | 258 | 388 | 307 |
| Interest-bearing receivables | 150 | 133 | 146 | 157 | 167 | 1,160 | 3,103 | 3,367 | 1,562 |
| Financial investments | - | - | - | - | - | - | 5,714 | 9,106 | 8,717 |
| Cash and cash equivalents | 5,026 | 4,469 | 6,170 | 7,102 | 8,078 | 7,272 | 6,003 | 3,293 | 4,857 |
| Assets classified as held for sale | - | - | - | - | - | 14,230 | - | - | - |
| Total current assets | 17,068 | 17,534 | 19,320 | 22,282 | 23,646 | 29,760 | 23,996 | 25,807 | 25,439 |
| Total assets | 30,995 | 31,334 | 33,088 | 36,218 | 38,185 | 39,210 | 41,253 | 43,349 | 43,092 |
Balance Sheet – Liabilities and Equity
| NOK million | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Liabilities and equity | 2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 |
| Total equity attributable to the parent | 8,727 | 9,129 | 9,244 | 9,940 | 10,506 | 11,187 | 19,082 | 20,176 | 19,379 |
| Non-controlling interests | 64 | 41 | (4) | (3) | (3) | (56) | (129) | (134) | (134) |
| Total equity | 8,791 | 9,169 | 9,240 | 9,938 | 10,502 | 11,132 | 18,953 | 20,042 | 19,245 |
| Non-current borrowings | 958 | 960 | 962 | 469 | 417 | (0) | (0) | - | - |
| Non-current lease liabilities | 3,942 | 3,707 | 3,679 | 3,729 | 3,792 | 2,795 | 2,921 | 2,869 | 2,722 |
| Pension obligations | 982 | 962 | 1,031 | 1,009 | 1,039 | 1,019 | 895 | 875 | 859 |
| Deferred tax liabilities | 517 | 524 | 459 | 549 | 647 | 39 | 140 | 150 | 335 |
| Other non-current liabilities | 25 | 26 | 36 | 36 | 36 | 36 | 119 | 127 | 83 |
| Total non-current liabilities | 6,423 | 6,179 | 6,168 | 5,792 | 5,931 | 3,889 | 4,074 | 4,021 | 3,998 |
| Current tax liabilities | 55 | 70 | 65 | 66 | 128 | 51 | 62 | 48 | 53 |
| Current borrowings | 996 | 40 | 60 | 37 | 6 | 426 | (0) | - | - |
| Current lease liabilities | 707 | 705 | 734 | 737 | 736 | 586 | 619 | 616 | 649 |
| Provisions | 1,519 | 1,774 | 1,719 | 1,833 | 2,389 | 2,285 | 3,405 | 3,536 | 3,917 |
| Trade payables | 2,360 | 2,660 | 2,645 | 3,271 | 3,463 | 2,273 | 2,554 | 2,767 | 3,269 |
| Other payables | 7,790 | 7,963 | 9,066 | 9,931 | 10,165 | 5,008 | 6,550 | 6,948 | 7,395 |
| Customer contract liabilities | 1,974 | 2,329 | 3,134 | 4,289 | 4,443 | 3,873 | 4,831 | 5,129 | 4,260 |
| Derivative financial instruments | 380 | 446 | 255 | 324 | 422 | 193 | 204 | 242 | 306 |
| Liabilities classified as held for sale | - | - | - | - | - | 9,495 | - | - | - |
| Total current liabilities | 15,781 | 15,985 | 17,679 | 20,488 | 21,752 | 24,190 | 18,226 | 19,286 | 19,849 |
| Total liabilities and equity | 30,995 | 31,334 | 33,088 | 36,218 | 38,185 | 39,210 | 41,253 | 43,349 | 43,092 |
Split per Segment
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 3,958 | 3,551 | 4,553 | 14,857 | 4,128 | 5,369 | 5,576 | 7,447 | 22,520 | 8,003 | 9,402 |
| Life Cycle | 3,160 | 2,938 | 3,576 | 12,164 | 2,933 | 3,343 | 3,249 | 3,547 | 13,072 | 3,031 | 2,988 |
| Other | 170 | 138 | 165 | 544 | 177 | 215 | 512 | 296 | 1,201 | 470 | 462 |
| Eliminations | (5) | (13) | (20) | (64) | (24) | (47) | (235) | (224) | (531) | (23) | (26) |
| Revenue | 7,283 | 6,613 | 8,275 | 27,500 | 7,213 | 8,881 | 9,102 | 11,066 | 36,262 | 11,481 | 12,826 |
| EBITDA | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 76 | 124 | 185 | 487 | 169 | 208 | 236 | 361 | 973 | 617 | 887 |
| Life Cycle | 189 | 146 | 188 | 663 | 161 | 164 | 163 | 197 | 686 | 195 | 205 |
| Other | (144) | (120) | (153) | (504) | (101) | (179) | (205) | (7) | (492) | 154 | 115 |
| EBITDA | 121 | 150 | 220 | 647 | 229 | 193 | 194 | 551 | 1,166 | 967 | 1,206 |
| EBITDA margin | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 1.9 % | 3.5 % | 4.1 % | 3.3 % | 4.1 % | 3.9 % | 4.2 % | 4.9 % | 4.3 % | 7.7 % | 9.4 % |
| Life Cycle | 6.0 % | 5.0 % | 5.3 % | 5.5 % | 5.5 % | 4.9 % | 5.0 % | 5.6 % | 5.2 % | 6.4 % | 6.8 % |
| EBITDA margin | 1.7 % | 2.3 % | 2.7 % | 2.4 % | 3.2 % | 2.2 % | 2.1 % | 5.0 % | 3.2 % | 8.4 % | 9.4 % |
| EBIT | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 0 | 48 | 106 | 185 | 87 | 120 | 149 | 241 | 597 | 449 | 724 |
| Life Cycle | 163 | 120 | 161 | 558 | 132 | 133 | 134 | 166 | 565 | 163 | 170 |
| Other | (192) | (116) | (201) | (634) | (140) | (220) | (246) | (134) | (740) | 88 | 45 |
| EBIT | (29) | 52 | 66 | 109 | 79 | 33 | 36 | 274 | 422 | 700 | 940 |
| EBIT margin | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 0.0 % | 1.3 % | 2.3 % | 1.2 % | 2.1 % | 2.2 % | 2.7 % | 3.2 % | 2.7 % | 5.6 % | 7.7 % |
| Life Cycle | 5.1 % | 4.1 % | 4.5 % | 4.6 % | 4.5 % | 4.0 % | 4.1 % | 4.7 % | 4.3 % | 5.4 % | 5.7 % |
| EBIT margin | -0.4 % | 0.8 % | 0.8 % | 0.4 % | 1.1 % | 0.4 % | 0.4 % | 2.5 % | 1.2 % | 6.1 % | 7.3 % |
Split per Segment
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| NCOA | 2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | ||
| NCOA | (2,307) | (2,347) | (4,032) | (4,920) | (5,753) | (6,631) | (8,484) | (8,774) | (8,898) | ||
| Order intake | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 6,040 | 4,881 | 38,934 | 51,398 | 2,851 | 6,716 | 1,066 | 11,890 | 22,523 | 3,956 | 8,789 |
| Life Cycle | 3,858 | 1,766 | 6,108 | 16,190 | 4,827 | 933 | 3,467 | 2,554 | 11,781 | 2,644 | 6,595 |
| Other and eliminations | 98 | 33 | 123 | 222 | 128 | 240 | 429 | 203 | 999 | 381 | 148 |
| Order intake | 9,995 | 6,680 | 45,165 | 67,811 | 7,805 | 7,889 | 4,963 | 14,646 | 35,303 | 6,981 | 15,532 |
| Order backlog | 2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | ||
| Renewables and Field Development | 15,139 | 16,255 | 50,790 | 49,656 | 51,556 | 46,596 | 51,405 | 47,499 | 46,802 | ||
| Life Cycle | 20,626 | 19,542 | 21,617 | 23,716 | 21,464 | 21,630 | 20,579 | 20,297 | 23,814 | ||
| Other and eliminations | 402 | 355 | 377 | 390 | 60 | 692 | 696 | 874 | 801 | ||
| Order backlog | 36,167 | 36,152 | 72,784 | 73,761 | 73,080 | 68,918 | 72,680 | 68,669 | 71,417 | ||
| Own employees | 2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | ||
| Renewables and Field Development | 4,962 | 5,274 | 5,484 | 5,607 | 5,876 | 6,037 | 6,121 | 6,204 | 6,364 | ||
| Life Cycle | 4,435 | 4,408 | 4,381 | 4,464 | 4,224 | 4,361 | 4,220 | 4,015 | 4,078 | ||
| Other | 893 | 919 | 1,139 | 1,159 | 1,119 | 1,122 | 1,132 | 1,137 | 1,163 | ||
| Own employees | 10,290 | 10,601 | 11,004 | 11,230 | 11,219 | 11,520 | 11,473 | 11,356 | 11,605 |
Split per Segment – Excluding Special Items
| NOK million | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA (excl. special items) | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 76 | 124 | 185 | 488 | 171 | 208 | 239 | 362 | 979 | 617 | 887 |
| Life Cycle | 189 | 146 | 188 | 663 | 161 | 164 | 163 | 197 | 686 | 195 | 205 |
| Other | (112) | (122) | (145) | (481) | (85) | (153) | (187) | 56 | (370) | 175 | 125 |
| EBITDA (excl. special items) | 153 | 148 | 229 | 669 | 247 | 218 | 214 | 615 | 1,295 | 987 | 1,216 |
| EBITDA margin (excl. special items) | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 1.9 % | 3.5 % | 4.1 % | 3.3 % | 4.1 % | 3.9 % | 4.3 % | 4.9 % | 4.3 % | 7.7 % | 9.4 % |
| Life Cycle | 6.0 % | 5.0 % | 5.3 % | 5.5 % | 5.5 % | 4.9 % | 5.0 % | 5.6 % | 5.2 % | 6.4 % | 6.8 % |
| EBITDA margin (excl. special items) | 2.1 % | 2.2 % | 2.8 % | 2.4 % | 3.5 % | 2.5 % | 2.4 % | 5.6 % | 3.6 % | 8.6 % | 9.5 % |
| EBIT (excl. special items) | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 3 | 48 | 106 | 189 | 90 | 119 | 152 | 242 | 603 | 448 | 724 |
| Life Cycle | 163 | 120 | 161 | 558 | 132 | 133 | 134 | 166 | 565 | 163 | 170 |
| Other | (152) | (172) | (181) | (645) | (123) | (192) | (226) | (15) | (557) | 112 | 64 |
| EBIT (excl. special items) | 14 | (4) | 86 | 102 | 98 | 60 | 59 | 393 | 611 | 723 | 959 |
| EBIT margin (excl. special items) | 2Q 2022 | 3Q 2022 | 4Q 2022 | FY 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | FY 2023 | 1Q 2024 | 2Q 2024 |
| Renewables and Field Development | 0.1 % | 1.3 % | 2.3 % | 1.3 % | 2.2 % | 2.2 % | 2.7 % | 3.3 % | 2.7 % | 5.6 % | 7.7 % |
| Life Cycle | 5.1 % | 4.1 % | 4.5 % | 4.6 % | 4.5 % | 4.0 % | 4.1 % | 4.7 % | 4.3 % | 5.4 % | 5.7 % |
| EBIT margin (excl. special items) | 0.2 % | -0.1 % | 1.0 % | 0.4 % | 1.4 % | 0.7 % | 0.6 % | 3.6 % | 1.7 % | 6.3 % | 7.5 % |
Order Backlog by Market
NOK billion, %
| Order Backlog by Market | 2Q 2023 | 2Q 2024 |
|---|---|---|
| Norway | 82 % | 84 % |
| Europe | 10 % | 9 % |
| North America | 5 % | 4 % |
| Asia Pacific | 3 % | 2 % |
| Africa | 0 % | 2 % |
| Total | 100 % | 100 % |
| Total backlog (NOK billion) | 73.1 | 71.4 |
Copyright and Disclaimer
Copyright
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Disclaimer
This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Solutions ASA and Aker Solutions ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Solutions' businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Aker Solutions ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Aker Solutions ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Aker Solutions ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
Aker Solutions consists of many legally independent entities, constituting their own separate identities. Aker Solutions is used as the common brand or trade mark for most of these entities. In this presentation we may sometimes use "Aker Solutions", "we" or "us" when we refer to Aker Solutions companies in general or where no useful purpose is served by identifying any particular Aker Solutions company.
