By Dominic Chopping
Aker Solutions ASA on Wednesday reiterated recently released second-quarter revenue and order intake, and said it is cautiously optimistic around new projects as commodity prices stabilize.
The oil-and-gas industry service provider Monday said it benefited from higher activity than first anticipated in the second quarter and from a faster-than-expected implementation of cost-saving measures in response to the coronavirus pandemic.
It confirmed second quarter revenue of 5.4 billion Norwegian kroner ($573 million) and order intake of NOK7 billion.
Earnings before interest, taxes, depreciation and amortization for the second quarter came in at NOK232 million compared to its estimate of NOK230 million. The net loss attributable widened to NOK177 million from NOK130 million, against a FactSet estimate of NOK203 million.
The Covid-19 pandemic affected activity levels, especially at the start of the second quarter, but for the second half of the year the company said it is cautiously optimistic about an improved outlook for project sanctioning, supported by government measures to boost activity and more stable commodity prices.
Activity is likely to be driven by the home market and the low-carbon agenda, it added.
"Sanctioning of new projects in international markets, that are not supported by government measures, may take longer to materialize. In total, Aker Solutions sees overall revenue at around NOK21 billion-NOK22 billion in 2020."
Order intake in the second quarter rose to NOK7 billion from NOK3.8 billion and the company has an order backlog of NOK26.9 billion compared with NOK29.5 billion at the end of the second quarter 2019.
Write to Dominic Chopping at firstname.lastname@example.org