Aker results hit by project issues

Aker Solutions (Oslo Børs:AKSO) says its 1Q 2013 financial results were impacted by cost issues at various projects offshore Norway.

Offshore staff

FORNEBU, Norway – Aker Solutions (Oslo Børs:AKSO) says its 1Q 2013 financial results were impacted by cost issues at various projects offshore Norway.

Costs for ConocoPhillips’ Ekofisk Zulu platform have risen for two reasons. One was the need to speed up work to ensure the platform is transported from the Egersund yard to theEkofisk field in mid-June, ready to produce first oil by October. The other was extra work arising from quality issues related to cables delivered by a sub-supplier.

Aker Solutions’ Maintenance, Modifications, and Operations business area manages 60% of the project, and its Engineering business area handles the remainder.

The company’s Umbilicals business area incurred a 1Q 2013 loss of $10.8 million due to what the company calls “operational challenges” at various Norwegian projects. A turnaround plan will be implemented.

Oilfield Services and Marine Assets also took a 1Q 2013 hit of $9.3 million, with both theAker Wayfarer and Skandi Aker vessels remaining idle. They should re-enter service respectively in mid-June and mid-July.

4/29/2013

More in Business Briefs