Aker Solutions Raises Dividend and Launches Buyback — Update

Analysts polled by FactSet had forecast net profit of NOK270 million on revenue of NOK9.46 billion. Earnings surged above expectations due to the recent closing of a subsea joint venture, which saw it receive $700 million and retain a 20% ownership in a larger subsea entity.

The company last year completed the formation of a joint venture with Schlumberger and Subsea 7, with the companies combining their subsea technology businesses. The joint venture reported revenues in the fourth quarter of NOK10.7 billion with an earnings before interest, tax, depreciation and amortization margin of 19%.

The outlook for the joint venture is strong with a secured backlog of more than NOK50 billion, it said.

“Financial robustness remains a core priority for the company going forward,” it said.

“To ensure a more right-sized capital structure for its operational segments, Aker Solutions will implement a new structure with a fully owned entity responsible for managing financial assets and industrial holdings.”

The company expects 2024 revenue to be up around 15%, with the Ebitda margin excluding the subsea joint venture to pick up significantly and reach around 6%-7%.

Order intake in the quarter was NOK14.6 billion from NOK45.2 billion a year earlier, as the backlog fell to NOK72.7 billion from NOK72.8 billion.

A FactSet poll had seen order intake of NOK8.32 billion with a backlog of NOK91.61 billion.

The tender pipeline at the end of the year was NOK74 billion.

The company proposed a dividend of NOK2, up from NOK1 in 2022, and said it will buy back shares worth up to NOK500 million in 2024.

Write to Dominic Chopping at [email protected]

Corrections & Amplifications

This article was corrected at 1416 GMT because it incorrectly said Aker’s order intake in the quarter was NOK14.6 billion from NOK45.2 billion last year. Order intake in the quarter was NOK14.6 billion from NOK45.2 billion a year earlier.