Akastor ASA ((NO:AKAST)) has held its Q1 earnings call. Read on for the main highlights of the call.
Aker Solutions’ Earnings Call Reveals Strong Growth Amid Challenges
Aker Solutions’ recent earnings call painted a picture of robust financial health, with the company showcasing significant revenue growth and a strong order intake. However, the sentiment was tempered by ongoing challenges with legacy renewable projects and potential risks from geopolitical uncertainties.
Strong Revenue Growth
Aker Solutions reported a remarkable first-quarter revenue of NOK 14.4 billion, which represents a 25% increase compared to the same period last year. The company achieved an EBITDA margin of 8.4%, underscoring its strong financial performance and effective cost management strategies.
Significant Order Intake
The quarter was marked by a significant order intake of NOK 25.6 billion, driven primarily by projects in the Offshore Wind and Carbon Capture and Storage (CCS) sectors. This influx of new orders highlights Aker Solutions’ strategic focus on sustainable energy solutions and its ability to secure large-scale projects.
Successful Project Milestones
Aker Solutions celebrated key project milestones, including the commencement of production on the Johan Castberg FPSO and notable progress on Aker BP projects. These achievements demonstrate the company’s operational capabilities and commitment to delivering on complex projects.
OneSubsea Performance
OneSubsea, a key contributor to Aker Solutions’ financial performance, delivered impressive EBITDA margins of over 20%. Additionally, it contributed NOK 152 million in dividends, reflecting its strong operational performance and attractive dividend policy.
Challenges with Legacy Renewable Projects
Despite the positive financial results, Aker Solutions continues to face challenges with its legacy renewable projects. These projects have been operationally and commercially demanding, negatively affecting the company’s margins. Efforts are underway to address these issues and improve project outcomes.
Geopolitical and Market Uncertainties
The company is vigilant about geopolitical and market uncertainties, particularly tariffs and trade restrictions, which could impact its supply chain and investment decisions. Aker Solutions is closely monitoring these developments to mitigate potential risks.
Forward-Looking Guidance
Looking ahead, Aker Solutions expects its 2025 revenue to exceed NOK 55 billion, with an EBITDA margin between 7% and 7.5%, excluding OneSubsea net income. The company has a robust tender pipeline valued at approximately NOK 85 billion, with a strong focus on Europe. The approved NOK 3.3 per share cash dividend for 2024 reflects confidence in future growth and shareholder returns.
In summary, Aker Solutions’ earnings call highlighted a strong financial performance with significant revenue growth and order intake. While challenges with legacy renewable projects and geopolitical uncertainties remain, the company’s strategic focus on sustainable energy solutions and a robust tender pipeline position it well for future growth.