Oil services company Aker Solutions (OSE: AKSO) releasedQ4 2011 and full-year accounts on Friday. Fourth quarter revenues of 11.6 billion NOK are an 18% improvement. EBITDA rose by nearly 30% to topple one billion NOK (9% EBITDA margin). Quarterly order intake was 7.9 billion. The result reflects the current strong oil and gas sector market and operational improvements.
In 2011 revenue growth reached 9.3% resulting in 36.5 billion NOK in total revenues. Net profit climber marked to 5.3 billion. The two billion net profit growth is explained by the Process & Construction (P&C ) business divestment to Jacobs Engineering Group Inc in the beginning of the year, which resulted in over 2 billion gain and demerger of Kvaerner (OSE: KVAER). There was also a 757 million NOK gain from the transaction of Aker Marine Contractors to Ezra Holdings Ltd.
Operating margin was down half a percent for the year. Q4 EPS was 2.50 and full-year 19.37 on the above mentioned one-off gains. The Board Of Directors suggests a dividend of 3.90 NOK per share (2.75 in 2010). The dividend policy is to return 30-50% of net profit to shareholders either as dividends or in share buy-backs.
Current order backlog is 41.4 billion. Aker Solutions aims for 9-15% annual growth until 2015 and seeks to improve margins by 3-4%. The company sees supplier capacity as a constraint on growth and worries about inflation. The short term market outlook is strong with high tender activity. In Aker Solutions’ view increased demand has not yet fully shifted into prices. Investors were overjoyed by the strong short and medium term outlook and pushed the stock up over 21% to 96 NOK at close.
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