Aker Solutions Swings to 4th-Quarter Net Loss
12 February 2016 - 6:19PM
Dow Jones News
By Kjetil Malkenes Hovland
Norway's Aker Solutions ASA (AKSO.OS) said Friday it swung to a
fourth-quarter net loss year over year on weaker revenue.
The oil-services company also said it would cut its dividend
after its maintenance unit Thursday agreed on a deal to reduce
wages.
The group's net loss was 225 million Norwegian kroner ($26.26
million) in the three months ended Dec. 31, from a NOK352 million
net profit in the year-ago period. Analysts had expected a net
profit of NOK216 million in the latest period. Revenue dropped 14%
to NOK7.86 billion from a year ago. Analysts had expected NOK7.43
billion.
Aker Solutions said that it wouldn't pay out a dividend,
compared with NOK1.45 a share a year ago, and that the board deemed
it "prudent to exercise caution amid the current uncertain market
outlook."
The company, which is suffering from weak spending by oil
companies operating in the North Sea, said late Thursday it had
agreed to a deal with unions to reduce wages in its maintenance,
modifications and operations, or MMO, unit by 5%, and that it would
cut MMO executive pay by 10%. It had previously announced that it
would shed up to 900 jobs in the unit after losing a key Statoil
ASA (STL.OS) contract amid tougher competition.
Its streamlining efforts in the MMO and subsea units would save
NOOK600 million a year, Aker Solutions said.
The company in 2014 slimmed down by spinning off several
subsidiaries and real-estate assets into investment company Akastor
ASA (AKA.OS), which was listed separately in Oslo.
Aker Solutions said the market was challenging, but the sector's
cost cuts were paying off and more projects might be given the
go-ahead in the next 12 to 18 months, which could provide more work
for the company.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
(END) Dow Jones Newswires
February 12, 2016 02:04 ET (07:04 GMT)
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