Reduced risk and solid foundation for greater value creation (07.05.2010)
Aker has reduced its portfolio risk and strengthened its foundation for future value creation. In the first quarter of 2010, both rigs belonging to Aker’s wholly owned subsidiary, Aker Drilling, entered operations for the oil companies Statoil and Det norske. The rigs generate stable revenue streams. Aker’s net asset value (NAV) increased by NOK 0.9 billion in the first three months of the year to NOK 20.4 billion (excluding allocations for dividend payments) or NOK 281.70 per Aker share.
Aker has a strong balance sheet, sound liquidity, and considerable financial freedom. This position was further strengthened in the first quarter of 2010. Aker Drilling’s two large offshore rigs contributed their first positive cash flow.
Aker Spitsbergen had two months of full operations in the first quarter of 2010; Aker Barents had 1.5 months of operations in the reporting period. Experience from Aker Barents’ start-up enabled Aker Spitsbergen operation to begin for Statoil in late January without significant challenges. The rigs have established stable operations with paid rig uptime of approximately 90 percent. Aker Drilling has passed a turning point, following a demanding period of delays and start-up difficulties.
Throughout the first quarter of the year, Aker contributed to the strategic develop-ment of operational companies and played an active role in the refinancing of Aker BioMarine and Aker Drilling.
Aker Solutions is pursuing a strategy that focuses on oil and gas products, technologies, and solutions for deepwater fields and Arctic, harsh-climate regions.
Aker’s financial position is strong. Interest-bearing debt decreased by NOK 0.2 billion to NOK 2.7 billion in the first quarter of 2010. Equity ratio was 81 percent. Cash and cash equivalents amounted to NOK 2.7 billion. Interest-bearing receivables from subsidiaries and associated companies decreased by NOK 0.2 billion to NOK 6.7 billion in the quarter.
By the end of April 2010, Aker Drilling had completed its placement of a new three-year, NOK 1.5 billion bond loan with Aker ASA as guarantor. Aker Drilling will pay interest of NIBOR plus a margin of 400 basis points. Without the guarantee provided by Aker, Aker Drilling’s loan costs would have been significantly higher. Refinancing at market terms of the company’s NOK 800 million convertible bond loan was thus achieved, and Aker Drilling will need to borrow less from Aker than originally projected. Previously, the estimated funding requirement was approximately USD 150 million during the first three quarters of 2010.
The Aker BioMarine refinancing plan implies that Aker’s net NOK 0.5 billion receivable from the biotechnology company will be converted into equity in the second quarter of 2010.
Through the refinancing of Aker Drilling and Aker BioMarine, and the sale of approximately NOK 0.5 billion in Aker Solutions bonds in the first quarter followed by a similar sale in April 2010, Aker ASA has strengthened its financial position.
Please find attached the Q1 2010 report and presentation.
Please find an interveiw with Aker‘s CEO, Øyvind Eriksen
Aker Spitsbergen had two months of full operations in the first quarter of 2010; Aker Barents had 1.5 months of operations in the reporting period. Experience from Aker Barents’ start-up enabled Aker Spitsbergen operation to begin for Statoil in late January without significant challenges. The rigs have established stable operations with paid rig uptime of approximately 90 percent. Aker Drilling has passed a turning point, following a demanding period of delays and start-up difficulties.
Throughout the first quarter of the year, Aker contributed to the strategic develop-ment of operational companies and played an active role in the refinancing of Aker BioMarine and Aker Drilling.
Aker Solutions is pursuing a strategy that focuses on oil and gas products, technologies, and solutions for deepwater fields and Arctic, harsh-climate regions.
Aker’s financial position is strong. Interest-bearing debt decreased by NOK 0.2 billion to NOK 2.7 billion in the first quarter of 2010. Equity ratio was 81 percent. Cash and cash equivalents amounted to NOK 2.7 billion. Interest-bearing receivables from subsidiaries and associated companies decreased by NOK 0.2 billion to NOK 6.7 billion in the quarter.
By the end of April 2010, Aker Drilling had completed its placement of a new three-year, NOK 1.5 billion bond loan with Aker ASA as guarantor. Aker Drilling will pay interest of NIBOR plus a margin of 400 basis points. Without the guarantee provided by Aker, Aker Drilling’s loan costs would have been significantly higher. Refinancing at market terms of the company’s NOK 800 million convertible bond loan was thus achieved, and Aker Drilling will need to borrow less from Aker than originally projected. Previously, the estimated funding requirement was approximately USD 150 million during the first three quarters of 2010.
The Aker BioMarine refinancing plan implies that Aker’s net NOK 0.5 billion receivable from the biotechnology company will be converted into equity in the second quarter of 2010.
Through the refinancing of Aker Drilling and Aker BioMarine, and the sale of approximately NOK 0.5 billion in Aker Solutions bonds in the first quarter followed by a similar sale in April 2010, Aker ASA has strengthened its financial position.
Please find attached the Q1 2010 report and presentation.
Please find an interveiw with Aker‘s CEO, Øyvind Eriksen
2Q 2010 Report