Akastor ASA: Third-Quarter Results 2014
Please note that Akastor releases its quarterly results on November 6 while Aker Solutions will release its quarterly results on Friday November 7. In order for Akastor not to release sensitive information related to Aker Solutions, Akastor has removed all figures related to discontinued operations in the quarterly release on November 6. A full and updated version of the Akastor's results for the third quarter 2014 according to IAS 34 Interim Financial Reporting will be released when Aker Solutions has released its results on Friday November 7.
Key events 3Q 2014
- Demerger completed, listed on Oslo Stock Exchange as Akastor ASA (AKA).
- New organization and governance model established
- Aker Wayfarer: Secured 5-year contract of NOK 3 billion with Petrobras
- Skandi Santos: Secured 5-year contract extension of NOK 2.5 billion with Petrobras
- Challenging rig market for MHWirth, but stable after-market activity
- EBITDA of NOK 228 million, ex reversal of provision of NOK 624 million
Akastor ASA (Akastor) has operated as an oilfield services investment company since September 29th 2014, following the split of Aker Solutions ASA into two separate companies. Key management positions have been filled and the organisational structures and governance models are in place. Establishment of revised value creation plans for each portfolio company is underway, with a mandate to maximize long-term shareholder value.
Summary and Highlights 3Q
The Akastor group's revenue increased 20 percent in the third quarter from a year earlier to NOK 5 096 million. Year to date revenues has grown by 20 percent to NOK 16.1 billion. The growth comes mainly from MHWirth and AKOFS Offshore. The EBITDA of NOK 852 million in the quarter was impacted by a reversal of the remaining onerous lease provision of NOK 624 million for the vessel Aker Wayfarer (further details given under the chapters "Financials" and "AKOFS Offshore"), as well as NOK 29 million of costs related to the demerger. Hedges not qualifying for hedging accounting represents positive NOK 32 million under EBITDA in the quarter. Around NOK 61 million of impairment and depreciations related to the demerger was booked in the quarter, explaining the high NOK 274 million of depreciations, amortizations and impairments.
Further, net financial items of NOK 339 million were impacted by the demerger and hedging effects. Hedges not qualifying for hedge accounting booked under financial items had a negative effect of NOK 229 million, of which NOK 156 million relates to tender hedges booked in the quarter. Interest costs in the quarter were high due to the fact that the demerger was concluded by the end of September, and interest cost was allocated between Akastor and "New Aker Solutions". In future quarters interest cost will reflect the cost of the actual funding of the group. Based on these numbers, the net profit for the continuing operations ended at NOK 190 million in the third quarter.
The group had a strong order intake of NOK 11.4 billion in the quarter, of which NOK 3.6 billion was Frontica taking in order backlog for the first time (previously the revenue of Frontica from New Aker Solutions was excluded from the backlog). AKOFS Offshore had a strong order intake of NOK 5.5 billion, coming from the two contracts with Petrobras on Skandi Santos and Aker Wayfarer. The backlog amounted to NOK 20.3 billion at the end of the quarter compared with NOK 17.3 billion a year earlier.
The report and presentation can be downloaded from www.akastor.com.
For further information, please contact:
Tore D. Langballe
Head of Communications and Investor Relations
Mob: +47 907 77 841
Akastor ASA is an oilfield services investment company with a flexible mandate for long-term value creation. The company exercises active ownership combining a range of strategic, operational and financial measures to develop and unlock the full value potential of its portfolio of companies. Akastor ASA employs approximately 7,400 people.
This information is subject of the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Akastor ASA via Globenewswire