Aker Solutions (AKSO) Q3 2024 earnings summary

Executive summary

• Q3 revenue reached NOK 13.2 billion, up 45% year-over-year, driven by strong operational performance and project execution.

• EBITDA was NOK 1.2 billion with a 9.2% margin, significantly higher than last year.

• Major project milestones included Johan Castberg FPSO anchoring and Troll West electrification, contributing to emission reductions.

• Order backlog remains robust at NOK 64.7 billion, ensuring strong visibility for future activity.

• Board proposes an extraordinary dividend of NOK 21 per share (~NOK 10 billion), reflecting robust financial position and positive outlook.

Financial highlights

• Revenue grew 45% year-over-year to NOK 13.2 billion; underlying EBITDA rose to NOK 1.2 billion (margin 9.2%).

• Net income excluding special items was NOK 812 million; EPS was NOK 1.70.

• Operational cash flow was negative NOK 519 million, mainly due to a NOK 1.2 billion working capital reversal.

• Net cash position stands at NOK 11.7 billion, including liquid funds.

• Order intake was NOK 6.0 billion in the quarter.

Outlook and guidance

• 2024 revenues expected to grow by more than 40% compared to 2023, with EBITDA margin around 7.5%.

• CapEx for 2024 guided at NOK 1.5 billion; working capital expected to normalize to between -NOK 4 billion and -NOK 6 billion over time.

• High activity levels and tender pipeline at NOK 82 billion support a positive outlook.

• Positive outlook maintained despite geopolitical uncertainty and volatile energy prices.