The supplier company will sprinkle billions over the shareholders.
Aker Solutions will present its results for the third quarter on Thursday.
- The pre-tax profit landed at 712 million kroner, up from minus 32 million kroner in the third quarter last year.
- The operating profit was 900 million kroner in the quarter, up from 36 million kroner in the same period last year.
- At the top of the income statement, revenues totaled 13.2 billion kroner, compared to 9.1 billion in the same period last year.
- According to Bloomberg, analysts on average expected a pre-tax profit of 872 million kroner on revenues of 13.3 billion kroner in the third quarter.
Will pay billion dividend
The supplier company, in which Kjell Inge Røkke’s Aker is the largest owner, holds a large cash reserve alongside its regular operations after the divestment in the subsea business and the establishment of the OneSubsea collaboration.
Now the money will go out to the shareholders.
On Wednesday, Aker Solutions announced that it will pay an extraordinary dividend of 21 kroner per share, amounting to a total payout of 10 billion kroner.
Aker Solutions stated that it had a net cash balance of 11.7 billion kroner in the third quarter, including funds placed in liquidity funds.
The company also reported that it received remaining payments from the OneSubsea transaction in the quarter. This consisted of a receivable of 87.5 million dollars and working capital loans of 37 million dollars, collectively providing 1.3 billion kroner to Aker Solutions.
OneSubsea has decided to pay a quarterly dividend based on the company’s “strong cash position” of 35 million dollars, with Aker Solutions set to receive around 75 million kroner, Aker Solutions stated.
Still sees high activity
Aker Solutions points to a continued high activity level across the company’s various segments.
Aker Solutions is involved in the construction and maintenance of oil and gas platforms and provides services within offshore wind and carbon capture and storage.
In the quarter, order intake was 6 billion kroner. The order book amounted to 64.7 billion kroner at the end of the quarter, down from 68.9 billion at the same time last year.
Aker Solutions expects revenues in 2024 to increase by more than 40 percent from the levels in 2023.
Aker Solutions stated in the presentation material that growth was expected to be over 45 percent. The company clarifies that this was incorrect. The correct figure is over 40 percent.
Ed a substantial order influx during the quarter, contributing to its improved financial performance. This increase in business activity showcases Aker Solutions’ robust market positioning and operational efficiency.
The upcoming dividend reflects the company’s commitment to returning value to its shareholders, highlighting confidence in its future cash flows. The extraordinary dividend of 21 kroner per share represents a significant return, especially in light of the company’s strong profit recovery compared to the previous year, when it faced losses.
Aker Solutions has positioned itself well for growth in the energy sector, leveraging its cash reserves and operational expertise to capitalize on new opportunities. As it prepares to present its third-quarter earnings, all eyes will be on the company’s strategic plans moving forward, particularly in light of its collaborative efforts in the subsea business and other ventures.