Aker Solutions booked Q1 2020 lack of NOK 742 million, towards revenue of NOK 149 million identical time final yr.
Lower exercise ranges in direction of the tip of the quarter impacted the outcomes, as operators postponed offshore work to mitigate the unfold of the coronavirus.
Loss per share was NOK 2.73. Excluding particular gadgets, Q1 2020 EPS was NOK zero.64.
The backside line was primarily hit by depreciation, amortization and impairment for the quarter of NOK 850 million.
Impairments of NOK 548 million are primarily associated to non-cash impairments of intangible belongings and different long-lived belongings.
In the identical interval final yr the corporate reported NOK 310 million expenses.
The Norwegian providers participant additionally acknowledged NOK 155 million restructuring expenses impacting EPS.
Revenue additionally fell 10 per cent to NOK 6.5 billion within the quarter from NOK 7.three billion a yr earlier.
Aker Solutions Q1 orders totaled NOK 6.6 billion, bringing the backlog to NOK 26.four billion.
Further cost-cutting and outlook
The affect of the COVID-19 pandemic and the sharp drop in oil costs precipitated vital disruption to the worldwide financial system in the course of the quarter.
“Under these excessive and unprecedented circumstances, after defending the well being and security of our individuals, our focus is to safeguard the monetary power of our firm,” stated Luis Araujo, chief government officer of Aker Solutions.
The firm’s liquidity place on the finish of the primary quarter was NOK 5.eight billion (NOK 2.eight billion in money).
Aker Solutions is chopping price additional now aiming at about NOK 1 billion yearly, up from projected NOK 750 million.
The firm can be chopping capex investments by 40 p.c from the 2019 degree, to NOK 500 million in 2020.
“The depth and scale of the decline remains to be unclear, however the second quarter is more likely to be probably the most unsure and disruptive quarters our trade has been by means of,” stated Araujo.
Given the numerous market uncertainty, the corporate finds it difficult to supply detailed steerage.
The firm expects full-year revenues to say no about 30 p.c versus the total yr 2019 degree.
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