Aker Solutions Raises 2022 Revenue Outlook

Norwegian oil service firm Aker Solutions raised its 2022 revenue outlook on Tuesday and said its earnings margin is likely to increase this year while order intake is headed for a record high.

The company now expects its revenue to rise by more than 20% in 2022 to at least 35 billion Norwegian crowns ($3.97 billion), up from an earlier guidance of growing by 15%, as the oil industry is expected to step up spending amid supply tightness.

The company has decided to pay a dividend of 0.20 crowns per share for 2021, the first such payout to owners since 2014.

“A tight supply-and-demand balance in the oil and gas market is expected to result in an attractive investment environment for the company’s customers, supported by greater confidence in the oil-price environment,” Aker Solutions said.

“This is projected to lead to a substantial step-up in capital spending, and Aker Solutions is well positioned to capitalize on such a cyclical recovery,” it added.

The company projected revenue would grow to around 45 billion Norwegian crowns in 2025, with a third of that coming from the renewables sector such as the construction and installation of offshore wind turbines.

($1 = 8.8116 Norwegian crowns) 

(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)