Aker Solutions ASA (AKKVF.PK), a provider of oilfield products, systems and services, reported that its earnings before interest and taxes or EBIT for the first-quarter fell 22 percent to 409 million Norwegian kroner from last year's 521 million kroner in the same quarter last year.
Earnings were impacted by costs of overcapacity in the maintenance, modifications and operations (MMO) workforce, a 52 million kroner provision to cover lease costs for vacated office space and a 26 million kroner write-off on some subsea technology. The results were also affected by a slow start to the year for subsea services, particularly in the North Sea, and some unfavorable outcomes of late-stage commercial discussions on a few subsea projects. These developments were partly offset by operational improvements and better capacity utilization in the engineering business.
Earnings before interest, taxes, depreciation and amortization or EBITDA also declined to 591 million kroner from, 666 million kroner a year earlier.
Earnings per share were 0.79 kroner down from 1.03 kroner last year.
Order intake was 9 billion kroner compared to 5.9 billion kroner a year earlier.
Aker Solutions' revenue rose 14 percent to 8.5 billion kroner in the first quarter of 2015 from a year earlier, boosted by progress on major projects from Angola to Brazil and Norway.
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