Q4 2024 Aker Solutions ASA Earnings Call Transcript
Key Points
- Aker Solutions ASA (AKRTF) achieved significant revenue growth, increasing from NOK20 billion in 2020 to over NOK50 billion in 2024, with a 50% growth in 2024 alone.
- The company delivered an improved EBITA margin of 8.7% in 2024, marking an increase of over 500 basis points since 2020.
- Aker Solutions ASA (AKRTF) secured a strong order intake of about NOK40 billion in 2024, with a high-quality order backlog of NOK61 billion at year-end.
- The company's energy consulting business saw a 50% increase in revenues for the second consecutive year, with double-digit margins.
- Aker Solutions ASA (AKRTF) has a robust financial position with a net cash position of NOK2.9 billion at year-end, enabling continued development and shareholder returns.
- The company faced additional losses in its legacy renewable projects, increasing loss provisions by approximately NOK1 billion in 2024.
- Despite strong performance, the EBITDA margin guidance for 2025 is lower, between 7% and 7.5%, compared to the adjusted 9% margin in 2024.
- Aker Solutions ASA (AKRTF) experienced increased carryover work from subcontractors, negatively impacting results in the renewable segment.
- The company is still dealing with challenges from legacy projects tendered on lump sum terms with immature designs, leading to execution issues.
- Volatile energy prices and geopolitical instability pose ongoing risks to the company's market outlook.
Good morning and welcome to Aker Solutions presentation of our fourth quarter and full year results. My name is Preben Orbeck, and I am the Head of Investor Relations. With me today is our CEO, Kjetel Digre; and our CFO, Idar Eikrem. They will take you through the main developments of the quarter and the full year. (Event Instructions) And with that, I leave the floor to Kjetel Digre.
Thank you, Preben, and welcome to everyone tuning in. As we are putting 2024 behind us and are embarking on 2025, I wanted to start the presentation today, highlighting some of the achievements we have made since the merger between Aker Solutions and Kvaerner back in 2020.
At that time we set ambitious targets for the new company, and I am very proud to see that we have delivered over and beyond our targets, generating solid returns to our shareholders. I think these achievements are a clear testament to the competences and capabilities of
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