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Investing.com -- Aker Solutions (OL:AKSOA) on Tuesday reported strong revenue growth and improved margins for 2024, closing the year with a solid order backlog and a growing tender pipeline.
The company’s total revenue for the year reached NOK 53.2 billion, a 47% increase from 2023, with an EBITDA of NOK 4.6 billion and an EBITDA margin of 8.7%.
Earnings per share stood at NOK 6.62. The Board of Directors has proposed a dividend of NOK 3.30 per share, representing roughly half of the company’s net income, pending approval at the Annual General Meeting on April 28.
The fourth quarter of 2024 saw revenue rise to NOK 15.7 billion, up 43% from the same period last year. EBITDA for the quarter was NOK 1.2 billion, with an EBITDA margin of 7.8%, reflecting the company’s improved profitability.
Order intake during the quarter was NOK 11.6 billion, translating to a book-to-bill ratio of 0.7x. By the end of the year, Aker Solutions’ total order backlog stood at NOK 60.9 billion, largely driven by projects executed under its alliance model with Aker BP (NYSE:BP).
Aker Solutions’ results were boosted by a strong showing in its Life Cycle segment. However, legacy renewables projects continued to weigh on results, with anticipated losses from these projects set to be realized in 2025.
Despite this, the company maintained a net cash position of NOK 2.9 billion at year-end, supported in part by a one-off NOK 1.3 billion cash inflow from its joint venture in Dubai.
Aker Solutions anticipates revenues between NOK 50 billion and NOK 55 billion in 2025, with an EBITDA margin between 7.0% and 7.5%, excluding OneSubsea’s income. Over USD 250 million in dividends will be distributed to shareholders next year by OneSubsea, in which the company holds a 20% stake.
Aker Solutions’ order intake for 2024 totaled NOK 40.1 billion, reflecting a book-to-bill ratio of 0.8x.
The company ended the year with a tender pipeline of NOK 86 billion, a sign of continued market demand.
Revenue from its consultancy business grew by over 50% during the year, as Aker Solutions remained selective in contract acquisition to maintain operational efficiency.
Capital allocation remains a priority for the company. Following an extraordinary dividend payout of NOK 10 billion in the fourth quarter, the proposed NOK 3.30 per share dividend aligns with the company’s policy of distributing around 50% of net income, excluding special items.