Norwegian oil and gas engineering and construction company Aker Solutions saw its revenues fall amid declining subsea services demand. The company said the drop in demand was especially felt in the North Sea region.
Revenue for the third quarter was NOK 7.5 billion, down from NOK 8.3 billion in 2014. Profit for the period was NOK 205 million, down from NOK 270 million in 3Q 2014. The company won NOK 4 billion in new orders during the quarter, up from NOK 3.6 billion a year earlier.
In line with its peers, Aker Solutions is optimistic about the long term outlook for the offshore and deepwater oil and gas developments.
However, Aker Solutions has repeated what has been said in the industry time and time again: “In the short term there is great uncertainty because oil companies are cutting spending to counter the drop in oil prices.”
“The slowdown has been acute in Norway, particularly in the Maintenance, Modifications and Operations (MMO) market, and is expected to last one to two years, the company added.”
In order to cut costs, and due to a falling demand for some of its services, Aker Solutions so far this year laid off more than ten percent of its global workforce, the majority in Subsea, followed by MMO and Engineering.