Aker Solutions Delivers Strong Results in 2024, Driven by Energy Sector Growth
Generated by AI AgentWesley Park
Tuesday, Feb 11, 2025 1:50 am ET1min read
ASA--
Aker Solutions ASA, a leading provider of products, systems, and services to the energy industry, has reported strong financial results for the fourth quarter and full year of 2024. The company's robust performance can be attributed to its strategic focus, successful project execution, and the growing energy sector. In this article, we will explore the key drivers behind Aker Solutions' impressive results and discuss the outlook for the company in 2025.
Strong Revenue Growth and Improved Margins in 2024
In 2024, Aker Solutions achieved a 47% year-on-year growth in revenue, reaching NOK 53.2 billion. The company's EBITDA margin also improved significantly, from 3.6% in 2023 to 8.7% in 2024. This impressive performance was driven by the company's continued strong performance in its Life Cycle segment and the successful execution of projects under the well-proven alliance model with Aker BP.
Robust Order Backlog and Tender Pipeline
Aker Solutions' solid order backlog and high activity within tenders and early-phase studies are further indicators of the company's strong position in the energy market. The company's order backlog at the end of 2024 was NOK 60.9 billion, dominated by projects under the alliance model with Aker BP. The tender pipeline at the end of the year was about NOK 86 billion, reflecting the company's positive outlook and the growing demand for its services.
Positive Outlook for 2025
Based on the secured order backlog and ongoing projects, Aker Solutions expects full-year revenue in 2025 to be between NOK 50 and 55 billion. The company's 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
Given its robust financial position and positive outlook, the Board of Directors of Aker Solutions will propose a dividend of NOK 3.30 per share for the fiscal year 2024, to be paid in 2025. This dividend represents approximately 50 percent of net income excluding special items, in line with the ordinary dividend policy.
In conclusion, Aker Solutions' strong financial results in 2024 are a testament to the company's strategic focus, successful project execution, and the growing energy sector. With a solid order backlog, high activity within tenders, and a positive outlook for 2025, Aker Solutions is well-positioned to continue its strong performance and capitalize on growth opportunities across the energy market.
BP--
Aker Solutions ASA, a leading provider of products, systems, and services to the energy industry, has reported strong financial results for the fourth quarter and full year of 2024. The company's robust performance can be attributed to its strategic focus, successful project execution, and the growing energy sector. In this article, we will explore the key drivers behind Aker Solutions' impressive results and discuss the outlook for the company in 2025.
Strong Revenue Growth and Improved Margins in 2024
In 2024, Aker Solutions achieved a 47% year-on-year growth in revenue, reaching NOK 53.2 billion. The company's EBITDA margin also improved significantly, from 3.6% in 2023 to 8.7% in 2024. This impressive performance was driven by the company's continued strong performance in its Life Cycle segment and the successful execution of projects under the well-proven alliance model with Aker BP.
Robust Order Backlog and Tender Pipeline
Aker Solutions' solid order backlog and high activity within tenders and early-phase studies are further indicators of the company's strong position in the energy market. The company's order backlog at the end of 2024 was NOK 60.9 billion, dominated by projects under the alliance model with Aker BP. The tender pipeline at the end of the year was about NOK 86 billion, reflecting the company's positive outlook and the growing demand for its services.
Positive Outlook for 2025
Based on the secured order backlog and ongoing projects, Aker Solutions expects full-year revenue in 2025 to be between NOK 50 and 55 billion. The company's 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
Given its robust financial position and positive outlook, the Board of Directors of Aker Solutions will propose a dividend of NOK 3.30 per share for the fiscal year 2024, to be paid in 2025. This dividend represents approximately 50 percent of net income excluding special items, in line with the ordinary dividend policy.
In conclusion, Aker Solutions' strong financial results in 2024 are a testament to the company's strategic focus, successful project execution, and the growing energy sector. With a solid order backlog, high activity within tenders, and a positive outlook for 2025, Aker Solutions is well-positioned to continue its strong performance and capitalize on growth opportunities across the energy market.
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