Aker Solutions ASA: Fourth-quarter and full-year 2024 results

Rhea-AI Summary

Aker Solutions reported strong financial results for 2024, with revenue reaching NOK 53.2 billion, representing a 47% year-on-year growth. The company's EBITDA excluding special items was NOK 4.6 billion with an 8.7% margin, up from NOK 1.3 billion in 2023. The order backlog remains solid at NOK 61 billion, with a tender pipeline of NOK 86 billion.

For 2025, Aker Solutions projects revenues between NOK 50-55 billion with EBITDA margins of 7.0-7.5%. The company's 20% stake in OneSubsea is expected to yield significant returns, with OneSubsea targeting dividend distributions exceeding USD 250 million to shareholders in 2025. The Board proposes a dividend of NOK 3.30 per share for 2024, representing approximately 50% of net income excluding special items.

Positive

• Revenue grew 47% year-over-year to NOK 53.2 billion
• EBITDA margin improved to 8.7% from 3.6% in 2023
• Strong net cash position of NOK 2.9 billion
• Solid order backlog of NOK 60.9 billion
• Expected OneSubsea dividend distribution exceeding USD 250 million in 2025

Negative

• Book-to-bill ratio declined to 0.7x in Q4 2024
• Additional losses reported in legacy renewables projects
• Order intake decreased to NOK 40.1 billion (0.8x book-to-bill for full year)

OSLO, Norway, Feb. 11, 2025 /PRNewswire/ -- Aker Solutions delivered strong revenue growth with improved margins in 2024. The order backlog remains solid at NOK 61 billion and the tender pipeline grew to about NOK 86 billion at year end.  Revenues in 2025 are expected to be around NOK 50 to 55 billion with EBITDA margins of 7.0 to 7.5 percent, excluding net income from OneSubsea. In addition, OneSubsea, where Aker Solutions owns 20 percent, has an ambition to distribute dividends of more than USD 250 million to its shareholders in 2025. Based on its robust financial position and positive outlook, Aker Solutions intends to pay out dividends of NOK 3.30 per share for 2024.

2024 Full-Year Financial Highlights
(excluding special items)           

• Revenue NOK 53.2 billion           
• EBITDA NOK 4.6 billion          
• EBITDA margin 8.7 percent           
• Earnings per share NOK 6.62           
• Order intake NOK 40.1 billion (0.8x book-to-bill)           
• Board of Directors will propose dividend of NOK 3.30 per share for 2024.

4Q 2024 Financial Highlights
(excluding special items)           

• Revenue NOK 15.7 billion           
• EBITDA NOK 1.2 billion           
• EBITDA margin 7.8 percent           
• Earnings per share NOK 1.70           
• Order intake NOK 11.6 billion (0.7x book-to-bill)           
• Order backlog NOK 60.9 billion

"Throughout 2024, we continued to raise the bar on our financial performance, carrying a strong momentum into 2025. I am also pleased to see how well our organization is managing the dual challenge of delivering an extensive project portfolio while developing the skills and solutions for the future," said Kjetel Digre, chief executive officer of Aker Solutions.

"It is also encouraging to see the value creation enabled through our 20 percent ownership in OneSubsea. As a proud co-owner and strategic partner, we see great opportunities going forward, which is well reflected in OneSubsea's target to distribute more than USD 250 million to its shareholders in 2025," said Digre.

Key developments

In the fourth quarter, revenue increased to NOK 15.7 billion from NOK 11.0 billion in the same period last year, representing a 43 percent increase. EBITDA excl. special items grew to NOK 1.2 billion or 7.8 percent, up from NOK 0.6 billion or 5.6 percent in the previous year. This was driven by continued strong performance in our Life Cycle segment, while negatively affected by additional losses in the legacy renewables projects, which will be delivered in 2025.

For the full year, revenues increased to NOK 53.2 billion, a year-on-year growth of 47 percent. EBITDA excl. special items for the full year was NOK 4.6 billion or 8.7 percent, up from NOK 1.3 billion or 3.6 percent in 2023. The underlying EBITDA-margin for 2024 excluding net income from OneSubsea was 7.3 percent.

Aker Solutions secured new orders worth NOK 11.6 billion in the quarter, which means a book-to-bill ratio of 0.7x for the period. The total order intake for 2024 was NOK 40.1 billion. The secured backlog at the end of the year was NOK 60.9 billion, dominated by projects under the well-proven alliance model with Aker BP.

During the fourth quarter, Aker Solutions paid out an extraordinary dividend of NOK 10 billion. Net cash position at year-end was NOK 2.9 billion, positively affected by a one-off effect of about NOK 1.3 billion from cash in transit related to the joint venture in Dubai.  

Outlook

The outlook remains positive for Aker Solutions, with a solid order backlog and high activity within tenders and early-phase studies. The tender pipeline at the end of the year was about NOK 86 billion. The company is actively engaged in early-phase studies on future large-scale opportunities across the energy market, with revenues in the consultancy business growing more than 50 percent in 2024. The company remains very selective about which contracts it takes on and continues to be vigilant about capacity.

Based on the secured order backlog and ongoing projects, the company expects full-year revenue in 2025 to be between NOK 50 and 55 billion. EBITDA margins are expected to be in the range of 7.0 to 7.5 percent, excluding net income from OneSubsea. In addition, OneSubsea, where Aker Solutions owns 20 percent, is expected to pay out dividends of more than USD 250 million to its shareholders in 2025.

Capital Allocation and Dividend

Based on Aker Solutions' financial position and positive outlook, the Board of Directors will propose a dividend of NOK 3.30 per share for the fiscal year 2024, to be paid in 2025, pending approval in the Annual General Meeting on April 28, 2025. The dividend payment represents approximately 50 percent of net income excl. special items, in line with the ordinary dividend policy. 

Preben Ørbeck
investor relations
preben.orbeck@akersolutions.com
+47 470 10 611

Hallvard Norum
media contact
hallvard.norum@akersolutions.com
+47 913 80 820

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/aker-solutions-asa/r/aker-solutions-asa-fourth-quarter-and-full-year-2024-results,c4103466

The following files are available for download:

https://mb.cision.com/Public/18353/4103466/9097906e24ea815b.pdf

4Q-2024-Presentation

 

View original content:https://www.prnewswire.com/news-releases/aker-solutions-asa-fourth-quarter-and-full-year-2024-results-302373144.html

SOURCE Aker Solutions ASA

FAQ

What is Aker Solutions' (AKRYY) revenue guidance for 2025?

Aker Solutions expects full-year revenue in 2025 to be between NOK 50 and 55 billion, with EBITDA margins ranging from 7.0 to 7.5% excluding OneSubsea income.

How much dividend will AKRYY pay for fiscal year 2024?

The Board of Directors has proposed a dividend of NOK 3.30 per share for fiscal year 2024, to be paid in 2025 subject to approval at the Annual General Meeting.

What was Aker Solutions' (AKRYY) order backlog at the end of 2024?

Aker Solutions' order backlog at the end of 2024 stood at NOK 60.9 billion.

What was AKRYY's EBITDA margin in Q4 2024?

Aker Solutions reported an EBITDA margin of 7.8% in Q4 2024, up from 5.6% in the same period last year.

How much is OneSubsea expected to distribute in dividends for 2025?

OneSubsea, in which Aker Solutions owns 20%, aims to distribute more than USD 250 million in dividends to its shareholders in 2025.