Aker Solutions Logs 42 Percent YoY Growth in Q4 Revenue

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Aker Solutions Logs 42 Percent YoY Growth in Q4 Revenue

Aker Solutions ASA has reported NOK 15.71 billion ($1.41 billion) in revenue for the fourth quarter (Q4) of 2024, up 41.97 percent from the same three-month period last year, attributing the increase to high activity across segments and locations. Revenue excluding special items totaled NOK 15.708 billion for Q4 2024, up 42.53 percent year-on-year (YoY). […]

Revenue excluding special items totaled NOK 15.708 billion for Q4 2024, up 42.53 percent year-on-year (YoY). The adjustments were mainly acquisition costs, restructuring costs, impairments, costs linked to the impact of currency derivatives not qualifying for hedge accounting and changes in the value of SLB shares, Aker Solutions said in its quarterly report.

Aker Solutions, SLB and Subsea7 are co-venturers in subsea supplier One Subsea, which contributed NOK 166 million to Aker Solutions’ Q4 net profit.

Net profit excluding special items rose 117.4 percent year-over-year to NOK 837 million, or NOK 1.7 per share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 99.78 percent year-on-year to NOK 1.19 billion. EBITDA excluding special items increased 5.6 percent year-on-year to NOK 1.2 billion. “This was driven by continued strong performance in our Life Cycle segment, while negatively affected by additional losses in the legacy renewables projects, which will be delivered in 2025”, the energy engineering company said in its quarterly report.

EBIT increased 209.85 percent year-on-year to NOK 849 million. Excluding special items, EBIT increased 125.95 percent to NOK 888 million.

Net cash flow from operating activities was NOK 1.18 billion, up 99.86 percent year-on-year.

Oslo-listed Aker Solutions distributed NOK 10 billion in extraordinary dividends during Q4. The board is proposing NOK 3.3 dividend per share for 2024. “The dividend payment represents approximately 50 percent of net income excl. special items, in line with the ordinary dividend policy”, the company said.

Aker Solutions ended 2024 with NOK 17.92 billion in current assets including NOK 2.86 billion in cash and cash equivalents. Its current liabilities stood at NOK 21.19 billion.

“The outlook remains positive for Aker Solutions, with a solid order backlog and high activity within tenders and early-phase studies”, the company said. Backlog totaled NOK 61 billion.

“The company is actively engaged in early-phase studies on future large-scale opportunities across the energy market, with revenues in the consultancy business growing more than 50 percent in 2024”, Aker Solutions added. The consultancy arm was launched in Q2 2024.

“The company remains very selective about which contracts it takes on and continues to be vigilant about capacity”, it said.

Aker Solutions expects 2025 revenue to land between NOK 50 billion and NOK 55 billion.

Chef executive Kjetel Digre said, “Throughout 2024, we continued to raise the bar on our financial performance, carrying a strong momentum into 2025”.

“It is also encouraging to see the value creation enabled through our 20 percent ownership in OneSubsea”, Digre added. “As a proud co-owner and strategic partner, we see great opportunities going forward, which is well reflected in OneSubsea’s target to distribute more than USD 250 million to its shareholders in 2025”.

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Ireland says there will be no computation without generation

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His projections account for recent advances in AI and data center efficiency, he says. For example, the open-source AI model from Chinese company DeepSeek seems to have shown that an LLM can produce very high-quality results at a very low cost with some clever architectural changes to how the models work. These improvements are likely to be quickly replicated by other AI companies. “A lot of these companies are trying to push out more efficient models,” says Fung. “There’s a lot of effort to reduce costs and to make it more efficient.” In addition, hyperscalers are designing and building their own chips, optimized for their AI workloads. Just the accelerator market alone is projected to reach $392 billion by 2029, Dell’Oro predicts. By that time, custom accelerators will outpace commercially available accelerators such as GPUs. The deployment of dedicated AI servers also has an impact on networking, power and cooling. As a result, spending on data center physical infrastructure (DCPI) will also increase, though at a more moderate pace, growing by 14% annually to $61 billion in 2029. “DCPI deployments are a prerequisite to support AI workloads,” says Tam Dell’Oro, founder of Dell’Oro Group, in the report. The research firm raised its outlook in this area due to the fact that actual 2024 results exceeded its expectations, and demand is spreading from tier one to tier two cloud service providers. In addition, governments and tier one telecom operators are getting involved in data center expansion, making it a long-term trend.

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