Aker Solutions Expects Drop in 2020 Revenue

Terje Solsvik
Friday, February 7, 2020

Aker Solutions will likely see a 14% drop in revenue in 2020, reversing the gains made last year, the company said while reporting a decline in fourth-quarter earnings on Friday.

Earnings before interest, tax, depreciation and amortization (EBITDA), excluding one-offs, fell to 434 million Norwegian crowns ($47.04 million) in the final quarter of 2019 from 495 million crowns a year earlier.

In 2019, revenue grew to 29.3 billion crowns from 25.2 billion the previous year.

"Aker Solutions expects overall 2020 revenue at around the 2018 level," the company said in a statement.

The order intake of Norway's largest oil services firm last year fell by almost a quarter to 19.6 billion crowns.

"The company expects the 2020 EBITDA margin to remain around underlying (fourth-quarter) levels, reflecting delayed project sanctioning, continued progress on our new backlog - won in a very competitive market - as well as a different revenue mix with a high share of lower-margin brownfield activity," it added.

($1 = 9.2260 Norwegian crowns) 

(Reporting by Terje Solsvik, editing by Gwladys Fouche)

Categories: Technology Engineering Subsea Europe

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