Bloomberg News

Aker Solutions Climbs on Deepest Norway Subsea Deal: Oslo Mover

February 01, 2013

Aker Solutions ASA (AKSO), the oil services provider controlled by billionaire Kjell Inge Roekke, climbed the most in more than a week in Oslo after winning a contract from Statoil ASA (STL) for the deepest subsea development off Norway.

Shares in the company, based at Lysaker near Oslo, reversed an earlier loss and rose as much as 1.2 percent, the most since Jan. 23, and traded up 1.1 percent at 120.8 kroner as of 3:50 p.m. in the Norwegian capital. More than 880,000 shares have been traded so far today, compared with a three-month average daily volume of about 935,000.

Aker Solutions won a 2 billion-krone ($366 million) deal to supply a subsea production system to the Aasta Hansteen field in the Norwegian Sea, it said in a statement today. That comes a week after the engineer won a 280 million-krone contract for the supply of deepwater umbilicals to the project, it said.

“Aker Solutions continues to benefit from a unique position in its home market,” Goeran Andreassen, an analyst at RS Platou Markets AS, wrote in an e-mail to clients. It’s “positive to see a subsea equipment contract of this size on the Norwegian Continental Shelf,” he said.

With established fields maturing and new finds becoming more difficult to develop, demand is rising for the drilling and subsea services offered by companies including Aker Solutions, Subsea 7 SA, and Seadrill Ltd.

‘Biggest Discoveries’

Explorers operating off Norway, spurred by the biggest oil discoveries since the late 1970s, are estimated to increase investment in the country’s oil and gas industry by 15 percent to a record 207.8 billion kroner next year, according to Statistics Norway.

Aker Solutions aims to double sales by 2017 and is seeking to boost its margin on earnings before interest, tax, depreciation and amortisation to 15 percent from about 10 percent, the company said on Dec. 6. RS Platou’s Andreassen, based in Oslo, sees Ebitda margins of about 11 percent to 12 percent for work on Aasta Hansteen, he said.

Aker Solutions has said it plans to position itself to become Statoil’s “preferred partner.” Statoil, Norway’s largest oil and gas company, is responsible for about 55 percent of all spending offshore Norway, Aker Solutions said, citing data from Rystad Energy, an energy consultant.

To contact the reporter on this story: Stephen Treloar in Oslo at streloar1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net


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