Annual report 2008 - Aker Solutions

About us 

Historical facts 

Who we are and what we do 

Aker Solutions delivers engineering, construction, 

manufacturing, technology products, maintenance 

and other specialised services, often as total solutions 

for complete projects. 

Global scale 

Aker Solutions has annual revenues totalling 

NOK 58.3 billion and more than 23 000 

employees. We have offices in around 30 

countries worldwide. 

Markets and customers 

Aker Solutions delivers products, services 

and solutions to customers worldwide in 

the oil and gas, refining, chemicals, metals 

and other process industries, including 

mining, nuclear and power generation. 

Our deliveries enable our customers to 

build, efficiently operate and effectively 

maintain their facilities. Examples include 

complete offshoreplatforms for oil and gas 

projects and onshore petrochemical 

plants. 

Ownership 

Aker Solutions is part of Aker (www.myaker. 

net) and was listed on the Oslo Stock 

Exchange in 2004 under the name Aker 

Kværner ASA. Aker Solutions’ largest 

shareholder is Aker Holding AS, with a 

40.27 percent stake in the company. 

Aker Holding AS is owned by Aker ASA 

(60 percent), the Norwegian Government 

(30 percent), SAAB AB (7.5 percent) and 

Investor AB (2.5 percent). 

The companies brought together to 

create Aker Solutions were established 

in the first half of the 19th 

century, during the Industrial 

Revolution. Cutting-edge technology 

and engineering providers from the 

very beginning, they delivered 

products including steam engines 

for rail and marine use and arange 

of industrial ironworks. 

Over the next 100 years, the 

businesses grew significantly. Inthe 

mid-1900s, both Aker and Kvaerner 

were international corporations with 

activities in ship building, hydro 

power, wood processing and other 

process operations, mechanical 

workshops and other industries. 

Through the 1970s, 80s and 90s, 

they developed their capabilities 

and experience as suppliers of 

complete solutions to offshore and 

onshore oil and gas and processing 

projects. They each grew –organically 

and through international 

acquisitions –tobeleaders in their 

markets. 

On 11 March 2002, the former 

Kvaerner group and the Aker 

Maritime group (comprising the oil 

and gas activities of the wider Aker 

group) were merged, and started to 

operate as one company under the 

name Kvaerner. 

On 29 March 2004, following 

arestructuring of both Aker and 

Kvaerner, Aker Kvaerner was 

established. 

On 3April 2008 Aker Kvaerner 

changed its name to Aker Solutions. 

Aker Solutions annual report 2008 3

About us 

Value chain 

An impressive portfolio of proven solutions 

Few contractors can match our wide portfolio of solutions for 

the oil, gas, energy and process industries. We have adecadeslong 

track record ofdeveloping and delivering complete 

projects, and we are the world’s leading supplier with respect 

to market share for most of the individual solutions we offer. 

Aker Solutions covers the full value chain 

for developing new projects, from conceptual 

and feasibility studies, front end design 

and detailed engineering through procurement, 

project management, fabrication, and 

hook-up to installation, commissioning, and 

lifecycle and decommissioning services. 

To our customers and other business 

partners, the benefit of our wide portfolio is 

our ability to assist in the selection of the 

concept best suited to their particular 

needs. This approach adds value to our 

customers’ businesses, and is an important 

part of Aker Solutions’ competitive edge. 

1 Concrete structure ConGas, supporting LNG 

storage and an LNG regasification plant 

2 Onshore liquefied natural gas (LNG) receiving 

terminals 

3 Power generation 

4 Mining and metals processing facilities 

5 Petrochemical/chemical processing plants 

6 Decommissioning, waste management and 

clean-up services for nuclear power facilities 

7 Water and wastewater treatment facilities 

8 Onshore gas receiving, processing and 

export plant 

9 Marine deck machinery and steering gear 

10 Jacket structure for shallow waters, with 

drilling and production facilities 

11 Tension leg platform for production and drilling 

12 Marine operations and subsea installation 

services 

13 Semisubmersible production platform for 

extreme water depths, may include drilling 

facilities 

14 Harsh environment CONDEEP MonoFloater, 

with production facilities and storage capacity 

15 Mooring, offshore bow loading and offloading 

systems 

16 Process systems offshore 

17 Aker H-6e, advanced semisubmersible drilling 

unit with RamRig 

18 Well intervention vessel 

19 Shallow water subsea production system 

20 Steel tube umbilicals 

21 Marine drilling risers 

22 Subsea processing and boosting 

23 Deepwater subsea production system 

24 Well services 

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Aker Solutions annual report 2008

About us 

Value chain 

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About us 

Contents 

■ 

■ 

■ 

About us 

7 Key figures 2008 

9 Goals and strategy 

10 Vision and values 

12 President &CEO interview 

14 Clarity, innovation and drive 

Our business 

17 Business areas 

18 Energy Development &Services 

24 Subsea 

30 Products &Technologies 

36 Process &Construction 

42 Anticipating change 

44 Health, safety and environment 

48 People and development 

52 Corporate responsibility 

Our performance 

56 Board ofDirectors’ report 

72 Annual accounts 

116 Annual accounts –parent company 

124 Auditor’s report 

126 Share and shareholder information 

130 Analytical information 

■ 

Our organisation and governance 

132 Corporate governance 

136 Board ofDirectors 

138 Executive management team 

140 Company information 

Financial calendar 2009 

24 February 4th quarter results 2008/ 

preliminary annual results 2008 

2 April Annual General Meeting 

30 April 1st quarter results 2009 

13 August 2nd quarter results 2009 

22 October 3rd quarter results 2009 

26 November Capital Markets Day 

highlights 2008 

Achievements 

Subsea full field delivery to Reliance 

Adriatic LNG terminal delivered to ExxonMobil 

Five metals EPCM projects awarded in 

South America 

Four production facilities for the Kashagan field 

Seven drilling equipment packages to various 

customers 

Acquisitions 

Aker Marine Contractors AS, an international 

provider of marine operations and installation 

services to the oil and gas industry 

Qserv Ltd, aleading provider of well, process and 

pipeline services in the North Sea and international 

markets 

From Aker Kvaerner to Aker Solutions 

Aker Kvaerner re-branded to Aker Solutions in April 

The new name represents asimplification and 

strengthening of our corporate identity and outlines 

our offering of comprehensive industrial solutions 

It identifies our connection with Aker, and 

communicates Aker’s long term committed 

ownership of our company 

Major contract awards 

Modification contracts for StatoilHydro 

(NOK 3.2 billion) 

FEED for greater Ekofisk area contract for 

ConocoPhillips (NOK 120 million) 

Refinery EPCM frame contract with Shell, Germany 

(EUR 100 million) 

LNG terminal contract for US Gulf LNG Energy JV 

(USD 680 million) 

Esperanza &Toromocho copper and gold 

contracts in Chile and Peru (USD 50 million) 

Twelve drilling equipment contracts (USD 1.4 billion) 

Eight drilling risers system contracts 


45 subsea trees contract for Petrobas, Brazil 


6 


About us 

key figures 2008 

Orders and results 2008 2007 2006 

Order backlog 31.12 NOK mill 58 016 58 261 59 695 

Order intake NOK mill 55 590 57 942 62 271 

Operating revenues NOK mill 58 252 57 957 50 592 

EBITDA NOK mill 3382 3913 2872 

EBITDA margin Percent 5.8 6.8 5.7 

Net profit NOK mill 1513 2464 1294 

Cash flow 2008 2007 2006 

Cash flow from operating activities NOK mill -868 2675 2636 

Balance sheet 2008 2007 2006 

Interest-bearing debt NOK mill 6716 1615 1568 

Equity ratio Percent 20.1 25.5 25.8 

Return onequity Percent 17.6 33.9 46.7 

Return oncaptial employed Percent 8.8 17.0 12.5 

Share 2008 2007 2006 

Share price 31.12 NOK 45.00 144.50 155.60 

Dividend per share NOK 1.60 3.00 8.00 

Earnings per share NOK 5.34 8.84 4.53 

Employees 2008 2007 2006 

Employees 31.12 Full time equivalents 23 360 21 298 19 230 

HSE 2008 2007 2006 

Lost time incident frequency Per mill worked hours 0.93 0.68 1.00 

Sick leave rate Percent of work hours 2.27 2.41 2.28 

1) Incl. subordinated loan 

Operating revenues 

Amounts in NOK million 

EBITDA 


Order intake 


Order backlog 


ED&S 22 684 

ED&S -475 

ED&S 16 681 

ED&S 18 315 

Subsea 11 206 

Subsea 1228 

Subsea 11 466 

Subsea 11 876 

P&T 14 216 

P&T 1448 

P&T 16 121 

P&T 14 705 

P&C 10 702 

P&C 904 

P&C 11 291 

P&C 13 300 


About us 

 

The preferred 

partner 

8 


About us 

Goals and strategy 

Aker Solutions’ goals 

and strategy 

Aker Solutions’ vision is to be the preferred partner 

for solutions in the energy and process industries 

through: 

Targeting selected areas and markets where we 

can apply our unique skill sets in field development, 

operations and maintenance services 

Cold climates 

Harsh environments 

Deeper waters 

Creating the preferred subsea lifecycle partner 

Be closer to thecustomercore, move towardsthe well stream and reservoir 

Combine offerings and technology leadership throughout the subsea 

value chain 

Achieve profitable growth 

Developing further unique technologies and 

know-how 

Advanced drilling and subsea products 

Technologies for floating production 

Grow Process &Construction in Asia and South America 

Continuing to grow our service business 

Product- and technology-based services 

Well intervention and processing services 

Lifecycle offering in partnership with the customer 

Increasing the efficiency and flexibility of our 

cost base 

Risk management and project execution 

Improvement programmes and cost consciousness 

Sound financial management 

Continuing to enhance health, safety and 

environmental (HSE) performance 

Further develop our Just Care HSE culture 

Continue to improve our responsibilities as acorporate citizen 

Be apreferred employer in our markets 


About us 

Vision and values 


In any organisation, values are 

essential for building trust –in 

each other, inour partners, in 

our customers and with society. 

All the Aker companies share 

acommon set of values – 

the compass that guides our 

policies, our operations and, 

ultimately, our behaviour. 

HSE mindset Customer drive Delivering results 

We take personal responsibility for 

HSE because we care 

All incidents can beprevented. Westrive 

continuously for zeroaccidents to personnel, 

material and non-material assets. We focus 

on employee health and on continuously 

improving the work environment. 

We conduct our operations through 

efficient use of materials and energy, with 

minimum waste and damage to the environment. 

We design products and services to 

have no undue environmental impact, to 

be safe and to be efficient in consuming 

energy and natural resources. We seek to 

ensure that our products can be recycled 

or disposed of safely. 

“We take personal responsibility for 

HSE because we care about people, the 

environment and our company.” 

Just Care 

Building customer trust iskey to 

our business 

After all, without customer trust and satisfaction, 

the rest doesn’t matter. Good 

customer references build our reputation – 

and the only way to achieve this is by 

consistent and predictable performance. 

Our customers will recognise us for our 

global execution excellence. We find new 

ways, always linked to real customer needs 

and business priorities. 

We deliver consistently and strive to 

beat our goals 

When doing ajob, weunderstand both the 

risks and the opportunities involved and 

know how to manage them. We take pride 

in delivering as we promise. 

Making money creates new opportunities 

and the resources for going forward, 

both for us and for our customers and partners. 

Commercial edge benefits us all. 

We reward performance – what you 

achieve; and alignment with our values – 

how you behave. 

10 


About us 


Our vision is to be the preferred 

partner for solutions in the 

energy and process industries 

through living our values. 

Hands-on management Open and direct dialogue People and teams 

We know our business and get 

things done 

Once decisions are made we combine all 

our efforts and focus all our energies on 

execution. 

We are accountable and solutionsoriented, 

focusing on the right details at 

the right time. We follow through and 

ensure accountability. 

We believe in empowering people close 

to the action to take responsibility. Handson 

does not mean hands-in. 

We stimulate entrepreneurship and 

challenge bureaucracy, complicated hierarchies 

and ‘silo’ mentalities. We are a 

single company. 

We encourage early and honest 

communication 

We listen hard and talk straight: no sugar 

coating, no filters. 

We value early, accurate and reliable 

communication –after all, the first problem 

we encounter is usually the easiest one to 

cope with. 

We challenge each other. The best 

decisions aremade when different opinions 

and different cultures meet in open and 

direct dialogue. 

We expect the highest standards of 

ethical behaviour and integrity –from all of 

us, everywhere. 

All our major achievements are 

team efforts 

In theend,itcomes down to thetalentand 

motivation of youand me. Delivering strong 

results is impossible without a highly 

capable workforce. We learn onthe job, 

through challenging tasks, coaching and 

training. 

Development of people and teams in 

our company has one purpose –tocreate 

afoundation for long-term sustainable value 

creation through efficient project execution 

and asound business operation. 

We respect and encourage diversity 

and build strong, energised and effective 

teams –and we have fun together, making 

us even better. 

Our goal is to be the preferred employer 

in our industry. 


About us 

President &CEO interview 

12 


About us 

President &CEO interview 

Customer driven 

In January 2008, Simen Lieungh was appointed President &CEO of 

Aker Solutions. The former Aker Kvaerner executive vice president and 

20-year company veteran has spent his first year restructuring the 

company’s operations, positioning Aker Solutions to anticipate key 

market trends. We sat down with Lieungh to ask him about his thoughts 

looking back at 2008, and the way forward. 

How would you describe the company’s 

performance in 2008? 

“2008 has been agood year for us. Iam 

very satisfied with the way we continue to 

improve our HSE performance. Incident 

rates and sick leave remain low, and our 

serious injuries are down compared 

to 2007. That proves our Just Care 

programme works, and is helping us 

improve our business. In terms of major 

achievements Iwould also like to highlight 

our full subsea field delivery to Reliance; 

the Adriatic LNG project delivered to 

ExxonMobil; the award of five metals 

EPCM projects in South America; the 

delivery of four production facilities for the 

Kashagan project; and the delivery of 

seven drilling equipment packages. With 

regards to our financial performance, we 

regrettably ended the year disappointing 

our investors. We failed to meet our ambitious 

targets because of issues related to 

two key projects in our portfolio. That said, 

we should not lose sight of the fact that the 

EBITDA result for 2008 is the second best 

in our company’shistory.Weentered 2009 

with asolid balance sheet, good liquidity 

and no additional financing requirements. 

We also remain confident that we will 

achieve the financial targets set for 2009.” 

An important development in 2008 has 

been the internal reorganisation of Aker 

Solutions’ business areas. Why did you 

decide to merge the Field Development 

and Maintenance, Modifications and 

Operations (MMO) business areas into 

the new Energy Development &Services 

(ED&S)? 

“Our customers are increasingly looking at 

the development and maintenance of their 

fields as one large, integrated operation. 

At the same time, offshore oil and gas 

developments are moving towards deeper 

waters and harsher environments. We 

believe that these new perspectives will 

gradually change our customers’ buying 

patterns. By merging our Field Development 

and MMO businesses into one, we 

believe that we have created a unique 

combination of technologies, services and 

solutions that will meet the developments 

in our customers’ demands better than 

ever before.” 

The second step involved arepositioning 

of Aker Solutions’ Subsea and Products 

& Technologies (P&T) business areas. 

What was the rationale behind that? 

“We decided to do this to reinforce our 

offering throughout the value chain of 

subsea technologies, products and services. 

Against the backdrop of a record order 

backlog and further opportunities in the 

drilling market, we also resolved to align 

our offering of drilling solutions, topside 

technology products and services in a 

restructured P&T. Asaconsequence our 

marine operations, well service and geological 

consultancy business units were 

integrated into our Subsea business area, 

while the drilling risers business was 

reorganised into P&T.” 

2008 seems to have been a year of 

significant change in Aker Solutions. 

How would you describe the process? 

“I am very satisfied with how effectively 

we’ve managed to reorganise our business. 

It is inspiring to see how adaptive we 

are as an organisation, and it’s also a 

strength that we manage these changes 

without losing focus on what we deliver 

every day. The best companies in our 

industries are the ones that are capable of 

constantly adapting to change, both in 

their markets and the wider economy.” 

Considering the ongoing downturn in 

the world economy, how do you look at 

the future? 

“It is too early to say how the financial crisis 

will impact our business and our markets, 

and it is still unclear how long it will last. 

But we have been through crises before, 

and the key changes we initiated in 2008 

have given us ahead start in facing the 

global downturn. Early in the year we made 

further improvements to the flexibility of 

our cost base as part of our effort to 

strengthen our competitiveness and adapt 

to market developments. As aresult, when 

the crisis hit, we werealready implementing 

measures that would soon prove necessary 

right across our industries –and identifying 

further opportunities to reduce costs will 

continue to be an integral part of our 

agenda in 2009. We also won anumber of 

significant contracts in 2008, securing a 

solid foundation for the medium term. Iam 

confident that, while short-term activity 

levels might slow down, the fundamental 

drivers of demand in our markets will lead 

to long-term growth in our business.” 


About us 

Clarity, innovation and drive 


In January 2009 Aker Solutions held its annual Operating 

Managers’ Conference (OMC), bringing its executive 

management team together with some 200 other leaders from 

its international operations. At the OMC these leaders work 

together to share best practice, discuss opportunities and 

challenges and get aligned for the year ahead. 

Aker Solutions entered 2009 with a 

restructured organisation, prepared for 

new trends in its markets and in its 

customers’ behaviours, and set to respond 

effectively to the increased uncertainties in 

the global economy. The OMC provided 

the opportunity for its new executive 

management team –restructured like the 

company and with asimilar track recordof 

long-term excellence –toset the direction 

for all the leaders who, together, share 

the responsibility of delivering on the 

company’s vision: to be the preferred 

partner.Focusing on what it takes to realise 

that vision, the theme of this year’s 

conference was clarity, innovation and 

drive. 

Our leaders’ ability to identify the needs 

of each of Aker Solutions’ individual 

customers –and the commercial edge to 

understand the opportunities those needs 

create –isall about clarity. The capacity 

for innovation is key to the continuous 

improvement of our competitive position – 

to developing and commercialising novel 

technologies and new solutions to our 

customers’ needs while ensuring that our 

company performs better, day after day. 

Developing Aker Solutions and delivering 

on our strategy requires drive – the 

commitment that secures predictable, 

excellent performance meeting the expectations 

of all our investors, customers, 

employees and other stakeholders. 

Clarity, innovation and drive are the 

“brand values” of Aker Solutions, encapsulated 

in our new identity and endorsed by 

President &CEO Simen Lieungh and his 

executive management team. 

The executive management team at 

Aker Solutions’ Operating Managers’ 

Conference 2009. 

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About us 


Executive management team 

Aker Solutions ASA 

Simen Lieungh 

President &CEO 

Niels Didrich Buch 

Chief of Staff &EVP 

Leif Borge 

CFO &EVP 

Energy Development 

&Services 

Jarle Tautra 

EVP 

Subsea 

Mads Andersen 

EVP 

Products &Technologies 

Per Harald Kongelf 

EVP 

Process &Construction 

Gary Mandel 

EVP 

For more information about the 

executive management team’s 

background, refer to page 138. 


Our business 

 

Our business 

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Our business 

Business areas 

business areas 

Energy Development &Services 

ED&S develops new oil and gas production facilities 

offshore and on land, as well as lifecycle 

services for the operational phase of such 

installations. The business area delivers the full value 

chain from studies, front-end design and detailed 

engineering, through procurement, project management, 

fabrication and hook-up, to installation, 

maintenance and modifications. 

Page 18 

Subsea 

Aglobal provider across the value chain of subsea 

and sub-surface technologies, solutions and services. 

Our offerings cover all phases of the life of fields, from 

concept screening and design through manufacturing 

and commissioning to operational support and maintenance 

services. Our ability as aprovider of subsea 

production systems is backed by an extensive portfolio 

of additional capabilities such as well services, 

marine operations including installation, and geological 

services. 

Page 24 


Aleading global provider of specialised products and 

services to the upstream oil and gas industry,based on 

proprietary technology and know-how.Key deliverables 

include advanced drilling equipment, systems and 

risers, upstream processing technology and mooring 

systems, as well as loading and offloading technology. 

Page 30 


A global provider of management, design and 

construction of major projects across refining, petrochemical 

processing and biorefinery,mining and metals, 

liquefied natural gas (LNG), gas- and coal-fired power 

generation, acid plants, nuclear cleanup services and 

water treatment. 

Page 36 


Our business 


Energy Development 

&Services 

18 


Our business 


Positioned for the future 

The Energy Development &Services (ED&S) business area 

develops new oil and gas production facilities, both offshore and 

onshore, and delivers operational services for the entire lifecycle of 

such facilities. 

Highlights 2008 

Successful delivery of the 

world’s first offshore receiving 

and regasification terminal for 

liquefied natural gas -the 

Adriatic LNG project 

Construction of the world’s 

most advanced semisubmersible 

drilling rigs, the 

Aker Spitsbergen and Aker 

Barents of Aker H-6e design 

Long-term repeat business for 

maintenance and modifications 

work in the North Sea 

Front-end engineering and 

design (FEED) contract for 

substantial work on the Greater 

Ekofisk Area, one of the major 

upcoming redevelopments on 

the Norwegian Continental Shelf 

Contract award injoint venture 

with partners WorleyParsons 

and Chicago Bridge &Iron 

(CB&I) for full field development 

FEED for the Kashagan 

development 

Merger of two business areas to 

create Energy Development & 

Services, apowerful, focused 

engineering and technology, 

fabrication and installation force 

with aflexible cost base 

Development EBITDA 

NOK million 

1500 

Proven track record 

With experience from more than 20 percent 

of the oil and gas related floater designs in 

the world, few if any contractors can match 

our wide portfolio of solutions and services 

across segments including floaters, 

concrete and arctic technologies. We have 

50 percent of our home market on the 

Norwegian Continental Shelf in both new 

build developments and maintenance and 

modifications services. Within the maintenance 

and modifications arena, Aker 

Solutions is the only major contractor that 

has apresence in both the Norwegian and 

the UK markets. 

Over the years we have achieved a 

strong position in the northern Caspian 

region, most recently through our work on 

phase one of the giant Kashagan field offshore 

Kazakhstan. 

We are well positioned for upcoming 

field developments in the Arctic region, 

including projects like the concrete gravity 

base structure for Sakhalin Ionthe east 

coast of Russia; the large gas field development, 

Shtokman, in the Barents Sea; and 

for developments in the deepwater region 

of the Gulf of Mexico. 

Close toour customers 

The business area maintains astrong base 

in Norway. Three main engineering and 

management centres are located in Oslo, 

Stavanger and Bergen, while smaller 

offices are kept close to our key customers’ 

operational centres. Three fully-owned 

construction yards on the coast of Norway, 

in Egersund, Stord and Verdal, are strategically 

located on the doorstep of the 

North Sea market. 

Internationally, wehave afull fledged 

service base in Aberdeen in the UK and 

have established local offices in Attyrau 

and Aktau in Kazhakstan. Remaining close 

to our customers we also have engineering 

offices in Houston in the US, Perth in 

Australia, St. Johns in Canada, Kuala 

Lumpur in Malaysia and Pori in Finland. 

The power to deliver 

ED&S had an annual revenue of NOK 

22 684 million and 8 542 employees at 

year end 2008. This powerful resource 

includes 4000 engineers as well as avast 

pool of 3600 skilled operators. In 2008 we 

also engaged an average of approximately 

4000 contract staff. 

Our three construction yards operate 

individually as centres of excellence for 

different construction tasks and, when 

combined with our engineering and 

management resources, are astrong EPC 

turnkey supplier for small and large 

projects. 

Changing with our customers 

In March 2008, Aker Solutions decided 

to combine the strengths and streamline 

the operations of the previous business 

areas Maintenance, Modifications and 

Operations (MMO) and Field Development 

(FD). The new business area, ED&S, 

became operational on 1September 2008. 

Our large international organisation 

of skilled engineers, proven project 

managers and experienced operators 

is recognised for its ability to see 

opportunities, for adding value to customer 

businesses and for its predictable 

deliveries. The new organisation is tailored 

1200 

900 

600 

Key figures ED&S 2008 2007 2006 

300 

0 

-300 

-600 

2006 

2007 

2008 

Operating revenue NOK mill 22 684 24 921 24 594 

EBITDA NOK mill -475 1391 1244 

EBITDA margin Percent -2.1 5.6 5.1 



Number of employees 31.12 Man years 8542 8163 8493 


Our business 


Entering the European windmill 

market. In 2008 Aker Solutions 

delivered six substructures for the first 

German offshore test field “Alpha 

Ventus”. The 700 tonne, 45 metre 

substructures will be installed ata 

water depth of approximately 30 

metres. 

for increased international operations 

and will leverage new build activities to 

win maintenance and modifications work 

on awider scale. 

Competitive advantages 

Deepwater challenges, arctic conditions 

and harsh environments are typical of our 

home market, making us apreferred partner 

for international developments with 

similar characteristics. Floating production 

technologies, marine concrete structures, 

the gas value chain and particularly 

complex multidiscipline developments are 

all key areas of our expertise. 

This unique expertise is part of the basis 

for our delivery of the Gjøa semisubmersible 

production platform to StatoilHydro in 

2010. 

Ready for harsher environments 

Oil companies are concentrating their 

exploration activities and new develop- 

Long term repeat business in maintenance and modifications 

High oil prices over the last few 

years have driven the development 

of the maintenance and 

modifications market in the North 

Sea. Where once the debate was 

dominated by tail end production, 

cost saving programmes and 

decommissioning, the focus 

today is on developing existing 

infrastructure through annual 

investments of up to NOK 100 

billion. Low pressure production, 

tie-ins, safety upgrades and 

extended lifetime upgrades are 

all examples of projects within the 

maintenance and modification 

portfolio aimed at extending 

fields’ production lifetimes by up 

to 30 years. 

With a50percent shareofthis market 

in the North Sea, Aker Solutions 

plays asignificant role. In 2008 we 

succeeded in releasing options for 

repeat work on two significant 

contracts: Tampen and Statfjord 

Late Life. 

Ensuring high productivity 

on nine platforms in the 

Tampen area 

In the Tampen area, outside mid 

Norway, our scope of maintenance 

and modification work now includes 

nine platforms in the Gullfaks, Snorre, 

Statfjordand Vigdis fields. We deliver 

approximately 1.8 million manhours 

each year and ensurehigh productivity 

and safe operations for these giant 

platforms –all but one constructed 

by Aker Solutions over the last 30 

years. In July,options werereleased 

by StatoilHydro toAker Solutions 

extending the work to 2011. The 

contract for the whole area was 

established in 2002 and, if all options 

aredeclared, will run to March 2013. 

Rebuilding Statfjord from 

oil to gas production 

The Statfjord field, discovered in 

1974, has been one of the key oil 

producers in the North Sea. Through 

aseparate contract from April 2005, 

StatfjordLate Life, Aker Solutions 

has taken on the challenge of 

rebuilding the StatfjordBand C 

platforms from oil production to the 

production of gas. In December 

2008, options were released by 

StatoilHydrofor phase three of the 

contract, extending the work to 2011. 

By exercising their options on these 

two contracts, our customer, 

StatoilHydro, shows their satisfaction 

with the services we provided in the 

first phases of the strategically 

important Statfjord Late Life and 

Tampen projects. 

Long term contract. 

Our contract with 

StatoilHydro for the 

Tampen area lasts until 

March2011, with options 

to extend to March 

2013. This long term 

involvement creates the 

basis for developing a 

close alignment 

between customer and 

contractor. 

20 


Our business 


“We are well positioned for the 

major developments in our target 

markets” 

ments in ever deeper waters and harsher 

environments. US Geological Survey anticipates 

that up to 25 percent of the world’s 

unproven reserves are tobefound in the 

Arctic and surrounding regions. For us this 

represents agreat opportunity, since field 

developments for arctic conditions, 

environmentally sensitive areas and deep 

waters are our core competence. 

New achievements and repeat 

business 

Our construction of the world’s most 

advanced semisubmersible drilling rigs, 

the Aker Spitsbergen and Aker Barents, 

and the construction and installation of the 

world’s first offshore terminal for the 

receiving and regasification of liquefied 

natural gas, stand out in 2008. Both 

projects rank as international milestones. 

In September, ConocoPhillips awarded 

us a front-end engineering and design 

(FEED) contract covering the first three 

phases of asignificant part of the Greater 

Ekofisk Area, including FEED work for two 

platform topsides, three jackets, bridges 

and substructures. 

In the Caspian region we hold astrong 

position in the ongoing phase one development 

of the giant Kashagan field offshore 

Kazakhstan. During 2008 we delivered four 

topsides and utility modules from our own 

yards. We also mobilised for alarger role in 

the hook-up phase of the field modules, 

employing more than 1400 people on the 

project by the end of 2008. 

In joint venture with CB&I and Worley- 

Parsons, we received aletter of intent from 

Agip KCO in October, followed by a 

contract award in December for FEED 

services for phase two of the full-field 

development of the Kashagan field. The 

scope of work includes both onshore and 

offshore facilities and pipelines. It also 

includes options for further involvement in 

following phases as well as neighbouring 

field developments. 

The maintenance and modifications 

market has along term, steady level of 

investment in order to maintain safe and 

efficient operations, increase recovery 

rates and ensure compliance with local 

regulations. Activity within this market has 

been high in 2008 with significant repeat, 

long term business. Our maintenance and 

modifications contract at Tampen covers 

nine platforms and employs 500 engineers. 

StatoilHydro released two options under 

this contract to Aker Solutions in July 2008. 

In December 2008, an option under the 

Statfjord Late Life project was exercised, 

extending work on the Statfjord Band C 

topsides to 2011. 

Goals and objectives for 2009 

Our main emphasis is on growing the business 

by maintaining our North Sea market 

share, expanding in the international 

market and strengthening our technology 

base. We will secure our share ofthe: 

growing gas market 

field life extensions for North Sea 

facilities 

emerging floating LNG market 

growing deepwater market 

emerging opportunities in arctic areas 

stable North Sea development market 

expanding northern Caspian Sea 

activities 

sustainable shallow water business 

in South East Asia 

Strong fundamentals 

Due tothe global financial crisis evolving 

in 2008, weexpect to see some delays in 

awarding new build projects in 2009. However, 

the long term outlook for strategic 

new build activities is still promising and 

we are well positioned for the major 

developments in all our target markets. We 

expect continued high demand for maintenance 

and modifications services in 2009. 

Gjøa –anFPS with environmental 

focus. Our unique floating platform 

expertise ispart ofthe basis for our 

delivery of the Gjøa platform to 

StatoilHydro in 2010. Gjøa will be the 

second field off Norway tobe 

powered by hydroelectric power 

transmitted via cable from land. This 

will reduce carbon emissions. 

Developing the Kashagan field. 

We are playing asignificant part in 

developing one of the world’s largest 

oil fields, the Kashagan field inthe 

Caspian Sea. In this demanding field 

development wedemonstrate our 

competitive strength inoffshore technology 

inenvironmentally sensitive 

areas and for harsh climatic 

conditions. 


Our business 


Apioneer project in LNG 

Aker Solutions designed and 

managed the development of the 

Adriatic liquefied natural gas 

(LNG) facility, the world’s first 

offshore LNG receiving and 

regasification terminal, for 

ExxonMobil. Our scope covered 

the entire terminal project including 

engineering, procurement, 

construction management, 

assembly and hook-up, marine 

operations and offshore completion. 

The terminal consists of a 

concrete gravity base structure 

(GBS), two LNG tanks, topsides 

facilities and two concrete 

mooring dolphins. Tenpercent of 

Italy’s gas consumption will be 

supplied from this man-made 

island. 

The Adriatic LNG terminal is the 

first of its kind and represents an 

international milestone. All previous 

LNG terminals have been installed 

onshore. This pioneer project has 

been made possible by combining 

Aker Solutions’ leading marine concrete 

technology and regasification 

expertise with our broad offshore 

experience. 

The terminal was constructed 

and assembled in adry dock in 

Pioneer project delivered in 2008. The world’s first offshore receiving and regasification 

terminal for LNG has been made possible by combining our world 

leading marine concrete technology with our regasification expertise and broad 

offshore experience. 

Algeciras, Spain. Then we relocated 

the entire structure, towing it to the 

final destination in the Adriatic Sea, 

17 km off the coast of Venice in 

Italy. The location was chosen with 

the particular aim of ensuring the 

terminal is not visible from shore. 

Moving the completed terminal 

from Spain to Italy was amajor 

marine operation, carried out by 

Aker Solutions. The 1700 nautical 

mile trip to the Adriatic took three 

weeks and used four large, oceangoing 

tugs. 

The project focus following 

installation has been on the hookup 

and completion works for the 

topsides. Initial operation of the 

terminal –LNG cool-down –is 

planned for the first quarter of 

2009. 

The terminal will be owned and 

operated by Adriatic LNG, ajoint 

venturecomprising 45 percent Qatar 

Petroleum, 45 percent ExxonMobil 

and ten percent Edison. 

Drilling into the future 

Aker Solutions’ assembly yard at 

StordinNorway dedicated most 

of 2008 to completing the two 

Aker H-6e “extreme” drilling rigs, 

Aker Spitsbergen and Aker Barents 

for customer Aker Drilling. They 

are the biggest, most advanced 

semisubmersible drilling rigs in 

the world and can operate for 

decades to come in the world’s 

most challenging waters. 

The Aker H-6e design is intended 

both for worldwide deepwater operations 

and for harsh environments. 

It is configured for dynamic positioning 

in water depths of up to 3000 

metres. The designers’ environmental 

goals have been that there 

will be no harmful discharges from 

the rigs to the sea and very low 

emissions to the atmosphere. The 

rigs are designed to use so-called 

“green” chemicals, substances 

without harmful effects on the 

environment, and are equipped 

with state-of-the-art waste 

management systems. 

The rigs are also fully winterised: 

their equipment and systems can 

operate down to -20°C. Fully heated 

and air-conditioned living quarters, 

with single bed cabins as well as 

dining and recreational facilities, 

make the working environment 

onboard the rigs unique. 

With our new generation of drilling 

rigs, Aker Solutions enables the offshoredrilling 

industry to operate in a 

safe and environmentally friendly way 

in the most challenging surroundings. 

At the project’s peak, around 

4500 people from 40 nations were 

involved in the assembly. With such 

alarge, multinational work force, 

communication was areal challenge. 

To meet the challenge, the project 

embraced four “official” languages: 

Norwegian, English, Polish and 

Russian. 

State-of-the-art drilling rigs. The Aker H-6e semisubmersible rigs are the 

world’s most advanced drilling units, tailored to operate safely in harsh 

environments and ultra deep waters. 

22 


Our business 


1 

9 

8 

7 

2 

6 

3 

5 

4 

1 Tension leg platform for production and drilling 

2 Onshore gas receiving, processing and export 

plant 

3 CO 2 capture plant offlue gas from el-power 

production 

4 Jacket structure for shallow waters, with drilling 

and production facilities 

5 Harsh environment CONDEEP MonoFloater, 

with production facilities and storage capacity 

6 Concrete structure ConGas, supporting LNG 

storage and an LNG regasification plant 

7 Wind turbinefoundations forshallow waterlocations 

8 Aker H-6e, the world’s largest and most advanced 

drilling semisubmersible 

9 Semisubmersible production platform extreme 

water depths –may include drilling facilities 


Our business 

Subsea 

Subsea 

24 


Our business 

Subsea 

Subsea lifecycle partner 

Aker Solutions is one of the world’s top four providers of subsea 

systems and related services. We aim to be apreferred partner 

throughout the value chain of subsea and sub-surface 

technologies, solutions and services for the oil and gas industry. 


Record high activity and 

financial performance following 

strong market development 

Successful expansion and 

restructuring of Subsea 

business area to reinforce our 

position throughout the value 

chain of subsea and subsurface 

technologies, solutions 

and services 

First oil produced at Reliance 

Industries’ MA-D6 field offshore 

India 

Strengthened market position in 

Brazil through frame agreement 

with Petrobras for 45 subsea 

trees plus first pre-salt layer 

contract for the Tupi field 

Long term subsea equipment 

frame agreements signed with 

Shell (Malaysia and UK), Murphy 

Exploration &Production 

Company (Gulf of Mexico) and 

BP (Angola and UK) 

Well Intervention Academy 

opened in Stavanger, Norway 

Key investment made through 

acquisition of Qserv Ltd, aleading 

well service company operating 

on the UK continental shelf 

Achieved 100 percent 

ownership in Aker Marine 

Contractors AS, and second 

deepwater construction vessel 

put into operation 


NOK million 

1500 

Our offerings cover all phases of the life of 

field, from concept screening and design 

through manufacturing, fabrication, installation 

and commissioning to operational 

support, maintenance and services. Our 

capabilities areavailable either as individual 

products and services or as complete 

engineering, procurement, construction 

and installation (EPCI) deliveries. Our portfolio 

of products and services includes: 

reservoir evaluation services 

subsea field development 

subsea production systems 

subsea trees 

subsea control systems 

subsea manifolds and templates 

steel tube umbilicals and subsea 

power cables 

subsea processing and boosting 

technologies 

tie-in and connection systems 

surface and subsea wellheads 

marine operations and subsea 

installation services (SURF) 

subsea lifecycle service support 

well intervention technologies and 

services 

The restructured business area employs 

approximately 6250 skilled and dedicated 

people, including 1000 contract staff, based 

in 26 locations around the world. 

Our headquarters are located in Oslo, 

Norway. Wehave regional sales and engineering 

offices, as well as manufacturing 

and service facilities, near all the key oil and 

gas hubs and deepwater regions in the 

world, including the Gulf of Mexico, the 

North Sea, West Africa, Brazil and the Asia 

Pacific region –including India, Malaysia 

and Australia. 

In 2008, we had operating revenues of 

NOK 11 206 million, an increase of 13.8 

percent compared to 2007, and an EBITDA 

of NOK 1228 million, an increase of 27.9 

percent from 2007. 

Lifecycle partner 

Our ability as afull lifecycle provider for 

subsea field developments is unrivalled in 

the marketplace. 

An internal restructuring, announced in 

September 2008, combined all of Aker 

Solutions’ subsea production system technologies, 

marine installation capabilities 

and sub-surface know-how, technologies 

and services, including well intervention, 

into one business area. 

One objective of this restructuring was to 

facilitate the development of amore technology-driven 

service business, fuelled by 

our customers’ drive for increased oil recovery. 

With declining oil production rates 

around the globe, the drive for increased oil 

recovery is moreimportant than ever. 

We have over the years developed a 

strong market position in subsea processing 

and boosting technologies. This has been 

further highlighted this year through the 

completion of the subsea raw seawater 

injection pumps that will be installed at 

StatoilHydro’s Tyrihans field in the 

Norwegian Sea in 2009. Once installed, the 

pumps are expected to increase the field’s 

oil production by ten percent. 

Well intervention is another way to 

increase oil recovery from existing fields. 

We have addressed this market actively for 

many years, but the acquisition of Qserv Ltd 

1200 

Key figures Subsea 1 2008 2007 2006 

900 

600 

300 

0 

Operating revenue NOK mill 11 206 9851 6941 




Order backlog 31.12 NOK mill 11 876 10 951 8775 


2006 

2007 


1) All numbers are based on old Subsea structure. 


Our business 

Subsea 

Work on asubsea tree at our manufacturing 

facility in Curitiba, Brazil, 

which will see its manufacturing 

capacity doubled by2010 –ahead of 

the future wave of subsea developments 

inthe Brazilian pre-salt layer. 

–aprovider of well, process and pipeline 

services –further expanded our offering 

both in terms of products, services and 

geographical footprint. 

Our ability to install our own subsea 

equipment is another competitive advantage. 

That is why we acquired the remaining 

shares in Aker Marine Contractors AS in 

2008. This acquisition reflects our long 

term strategy to expand our foothold and 

further strengthen our position across the 

value chain of marine operations and 

subsea oilfield services. 

Record-breaking first oil 

When India’slargest private sector 

oil company, Reliance Industries, 

produced first oil from its MA-D6 

field located in the Bay of Bengal 

offshore India on 17 September 

2008, it marked aproud milestone 

for Aker Solutions and the rest of 

the Aker family. 

The entire field development – 

from discovery to production of first 

oil –happened within the space of 

less than two and ahalf years. 

Never has asupplier delivered such 

acomplex deepwater project so 

quickly, and never has afield 

been developed in such ashort 

time. 

The Aker family of companies 

was responsible for the entire 

MA-D6 field development. Delivering 

this unique development has been a 

testament to the fast-track approach 

taken with Reliance Industries and 

the combination of strengths and 

know-how brought by Aker. 

Aker Solutions manufactured 

and delivered acomplete subsea 

production system, including steel 

tube umbilicals, and managed the 

installation of the subsea equipment. 

Aker Floating Production converted 

and delivered the floating production, 

storage and offloading vessel (FPSO) 

Dhirubhai 1,while Aker Solutions 

also delivered process equipment 

and amooring and offloading 

system to the FPSO. Both the 

subsea system and FPSO were 

delivered in less than 16 months – 

atruly remarkable achievement. 

The subsea trees, manifold, 

control systems and steel tube 

umbilicals for this project were 

manufactured at our facilities 

across the globe including in 

Norway, Malaysia and the UK. 

Long-term growth expected 

The subsea market continued to grow in 

2008. Over the next 20 years, the International 

Energy Agency (IEA) predicts that production 

of oil and gas from deepwater fields 

will increase by seven percent per annum. 

Market analysts predict that investments 

in subsea equipment will continue 

to grow at an annual rate of approximately 

ten percent in the coming three years, 

reaching acapex of USD 10 billion. 

The subsea umbilical market also remains 

strong. According to Quest Offshore, we 

were in2008 once again the leading global 

manufacturer of steel tube umbilicals, with 

amarket share of40percent. 

High activity 

2008 was agood year, with record high 

revenue and results. 

Among key contracts awarded in 2008 

werethe USD 223 million frame agreement 

with Petrobras for the delivery of 45 subsea 

trees, and the USD 235 million deal with 

Reliance Industries for the installation and 

commissioning of phase two of the 

company’s MA-D6 field development. 

The contracts to deliver asubsea production 

system to Eni’s Oyo development 

offshore Nigeria, and nine subsea trees 

and controls to Petrobras’ Tupi field offshoreBrazil 

werealso important milestones. 

Several other frame agreements were 

signed in 2008: afive-year deal with Shell 

UK to supply subsea control systems to its 

North Sea developments; aframe contract 

with BP for delivery of subsea umbilicals to 

its PSVM ultra-deepwater field development 

offshore Angola; a five-year supply 

agreement with Shell Malaysia for supply of 

subsea production systems; and an agree- 

26 


Our business 

Subsea 

Aftermeeting the 2008 salestargets 

for our RapidSolution well set programme 

as early asApril, adecision 

was made to double the size ofthe 

programme which offers fast-track 

deliveries of subsea well sets. 

ment with Murphy Exploration &Production 

Company to provide subsea trees, control 

systems and umbilicals to the company’s 

Gulf of Mexico programme. 

Long-term frame agreements with key 

customers underpin our ambition to be the 

preferred subsea lifecycle partner. Such 

agreements also offer acertain level of predictability 

with regards to both order intake 

and project execution, and play an important 

part in our growth strategy going forward. 

2008 has also seen key investments into 

our facilities around the world. At the end of 

May, we opened the Well Intervention 

Academy, afacility in Stavanger, Norway, 

which aims to give new generations of 

offshoreoperators and engineers first-hand 

experience in critical well intervention activities. 

Anew operations base was opened in 

Perth, Australia, in June. In September the 

decision was made to invest in our manufacturing 

plant for subsea trees in Curitiba, Brazil, 

to double its production capacity by 2010. 

2009 goals 

Our ability to be our customers’ partner 

throughout the life of afield is unrivalled in 

the market. We will ensureweare organised 

to capitalise on the opportunities this offers 

through an efficient restructuring of our 

resources. 

Increasing our service revenue –through 

both growth in installed base and amore 

complete offering of technology-driven services 

such as well intervention –will be akey 

focus. Further investments into our service 

facilities worldwide and our rental tool business 

will be additional drivers to achieve this. 

We also have an objective of increasing 

our market share in subsea trees, while 

continuing to be selective about the 

projects we undertake. 

Exciting times 

An increasing number of subsea developments 

will move into deeper waters. This 

trend will continue to drive demand for 

new technology and more subsea support 

infrastructure. Our technology portfolio and 

the skill set of our people arewell suited to 

capitalise on this opportunity. 

Despite some short term uncertainties, 

the medium- and long-term market outlook 

is very positive, and tendering activity 

remains high as aresult. 

Boosting production from Tyrihans 

Increasing oil recovery and 

production rates from their reservoirs 

is an appealing prospect for 

any oil operating company.That is 

why StatoilHydrowill be utilising 

Aker Solutions’ SeaBooster 

pump system technology for its 

Tyrihans development in the 

Norwegian Sea. 

In June 2006, Aker Solutions signed 

aletter of intent with StatoilHydro 

to provide asubsea raw seawater 

injection (SRSWI) pump system to 

the Tyrihans field. The task was to 

develop technology that would 

increase oil production from the 

field by ten percent. 

At the end of 2008, the manufacture 

ofthe three pumps was 

completed and they were transported 

from Aker Solutions’ facility 

at Tranby, Norway, toHorten, 

Norway, where they underwent 

installation testing. 

At the heart of the SeaBooster 

system for Tyrihans will be two 

LiquidBooster centrifugal pumps, 

adesign evolved from Aker Solutions’ 

long-established proprietary 

pump technology for exporting 

crude oil and pumping produced 

water. The pump system will be 

installed in 270 metres water depth 

approximately 31 kilometres from 

the Kristin platform. Both the tested 

pump duty of 2.7 megawatt and the 

31 kilometre step-out represent 

new records for subsea pumps. 

The pumps will draw in 14 000 

cubic metres of untreated seawater 

each day,injecting it into the sea bed 

between the oil reservoirs Tyrihans 

North and South. When this is combined 

with gas injection, optimal 

pressure support is obtained in the 

reservoir and ahigher degree of oil 

recovery and production is achieved. 

It is expected that the pumps alone 

will help increase production by 19 

million barrels of oil during the field’s 

lifetime. 

Production from the Tyrihans 

field is due to start in 2009. 

In 2007, the SeaBooster system 

was acknowledged with aprestigious 

“Spotlight on New Technology 

Award” at the Offshore Technology 

Conference (OTC) in Houston. 

One ofthe Tyrihans 

LiquidBooster pumps 

during installation testing 

in Horten, Norway. 


Our business 

Subsea 

Down in the ultra-deep 

An increasing percentage of future 

subsea production is expected to 

occur in ultra-deep waters. Suppliers 

to the world’soil and gas 

companies continue to push the 

development of technologies to 

make production moreeconomic 

with less risk. Aker Solutions has 

been in aleading position in this 

evolving market for many years. 

One of the milestones in this area 

of excellence for Aker Solutions is 

Petrobras’ Cascade &Chinook 

project in the Gulf of Mexico. We are 

delivering 65 kilometreofpower and 

control umbilicals for this subsea 

development in water depths of 

2700 metres. The medium-voltage 

power umbilicals will be tied back 

to an FPSO at 2500 metres water 

depth, making these the deepest 

ever dynamic power umbilicals. 

Traditional power umbilical design 

has relied on steel reinforcement. 

At greater depths, steel becomes 

counter-productive as increasing 

weight causes unacceptable strain 

in the umbilical. At water depths of 

more than 2000 metres, new ideas 

wererequired. Our talented engineers 

came up with the innovative idea of 

using carbon fibre reinforcement 

rods instead of steel. This met the 

challenge of strengthening the 

umbilical with minimum added 

weight, acrucial combination for 

ultra-deep water umbilical design. 

Another challenge presented by 

the Cascade &Chinook power 

umbilicals is the connection to the 

FPSO, the first ever deployed in the 

Gulf of Mexico. The power umbilicals 

are designed to connect to a 

buoy mounted at the bottom of the 

FPSO. In the event of atropical 

storm, the buoy will detach from 

the FPSO and drop, along with the 

umbilicals, to apredetermined 

water depth, allowing the host 

vessel to retreat to safety. Here 

again the role of the carbon fibre 

rods is important, as they make the 

umbilicals more capable of 

handling the load without being 

damaged. 

This innovative design has been 

patented by Aker Solutions. The 

power umbilicals are scheduled for 

delivery to Petrobras in late 2009. 

Marine operations –into the deep 

Aker Solutions successfully executed 

their first major marine 

operations contract in the Gulf of 

Mexico, the Blind Faith project 

for the Chevron group, in 2008. 

The Blind Faith deepwater 

development is asemisubmersible 

platform located in Mississippi 

Canyon block 650, approximately 

162 miles south east of New Orleans, 

in 6500 feet (2 000 metres) water 

depth. The offshore facility, which 

is Chevron’sdeepest, achieved first 

oil on 11 November 2008 and is 

designed to produce 65 000 

barrels of crude oil and 55 million 

cubic feet of gas per day. 

This complex delivery demonstrates 

our leadership on this new 

deepwater frontier. The project 

introduced the BOA Sub Coffshore 

construction vessel to the Gulf of 

Mexico in October 2007, and 

together with BOA Deep C, the two 

state-of-the-art multi-purpose 

offshore construction vessels 

worked in tandem to meet the 

requirements of this demanding 

project. 

The scope of the project was 

divided into several phases, 

including five separate major 

mobilisations to gather vessels, 

equipment and personnel in port 

for the different transport and 

installation marine operations. The 

complete scope of work included 

engineering, procurement and construction 

(EPC), delivery of the off-hull 

mooring components, transportation 

of the hull from Norway to Texas, 

and transportation of the topside 

facilities from Louisiana to Texas. 

The offshore installation included 

suction piles and mooring components 

and asubsea system, 

including subsea trees, manifold, 

umbilical jumpers, and flying leads. 

The semisubmersible platform was 

towed from Ingleside, Texas, out to 

the Gulf of Mexico for final mooring 

and hook-up, prior to the steel 

catenary risers and umbilicals being 

installed and tied in to the platform 

production system. Numerous 

cross-functional groups within 

Aker Solutions collaborated to 

successfully deliver the project. 

Aker Solutions 

strengthened its subsea 

installation capabilities 

through acquiring 100 

percent ownership of Aker 

Marine Contractors ASin 

2008. Two state-of-the-art 

deepwater construction 

vessels –BOA Deep Cand 

BOA Sub C–are chartered 

by Aker Solutions. 

28 


Our business 

Subsea 

2 

5 

1 

6 

3 

7 

4 

1 Well intervention vessel 

2 Marine operations and subsea installation 

services 

3 Deepwater subsea production system 

4 Subsea processing and boosting 

5 Shallow water subsea production system 

6 Steel tube umbilicals 

7 Well services 


Our business 


Products & 

Technologies 

30 


Our business 


Technology &lifecycle offering 

Aker Solutions’ business area Products &Technologies (P&T) 

delivers specialised products and services to the upstream oil and 

gas industry. Our business is driven by two main segments: 

deepwater and harsh environment drilling, and floating production. 


Strong growth in all business 

segments with record high 

EBITDA 

12 drilling equipment contracts 

awarded worth approximately 

USD 1.4 billion 

Maintained market share greater 

than 40 percent on drilling 

solutions for deepwater drilling 

rigs. 

Seven drilling equipment 

packages delivered successfully 

Six drilling riser contracts 

signed worth approximately 

USD 260 million 

Record high order backlog for 

the marine segment 

Strong demand for upstream 

process systems for FPSO 

conversions and new builds 

Steadily growing installed base 

is driving astrong lifecycle 

market 

Acquisition of First Interactive 

AS (60% ownership) 

Strengthened market position in 

Brazil through the opening of 

new drilling risers facility and 

reinforcement of local support 

office 


NOK million 

Key deliverables for the business area 

include: 

advanced drilling equipment, solutions 

and risers 

upstream processing technology 

mooring systems 

loading and offloading technology 

Our customer base includes the world’s 

largest oil companies, contractors and 

shipyards. Our products and technologies 

wereinitially developed for and used in the 

North Sea market, but are now being used 

extensively around the world as exports 

make up the bulk of our deliveries. 

After the restructure we have 2860 

employees and 900 contract staff contributing 

to our international business in more 

than 27 locations worldwide. Our headquarters 

areinNorway and we have offices, 

service bases and production facilities in 

key oil and gas producing regions all over 

the world. Our increasing installed base 

provides significant lifecycle opportunities. 

In 2008, we had operating revenues of 

NOK 14 216 million, an increase of 15.1 

percent compared to 2007. 

Deepwater and harsh environment 

drilling 

Aker Solutions isaworld class provider of 

drilling solutions, equipment and risers. 

With our own engineering, procurement, 

fabrication and operational support teams 

delivering drilling and mud equipment, 

modules, RamRig and conventional 

solutions for the high-efficiency drilling 

market, we are well positioned for future 

demand. Aker Solutions is acomplete drilling 

risers supplier including buoyancy,with 

project support, execution and service 

teams being built up in Norway, the US, 

Malaysia and Brazil. 

FPSOs, upstream process and 

marine equipment 

The upstream oil and gas market’s trend 

towards new frontiers, deeper waters and 

increased natural gas production will 

boost the demand for advanced floating 

production and upstream processing 

systems. Aker Solutions meets this 

demand by offering leading edge process 

equipment for the treatment of oil, gas, 

produced water and solids for the 

upstream oil and gas industry, offshore 

and onshore. We are aworld leader in the 

design and supply of all types of deck 

machinery and mooring systems for 

marine and offshore applications, as well 

as oil and gas loading and offloading 

solutions. 

Aker Solutions has delivered strong 

results and we have strategically positioned 

ourselves as aglobal provider of specialised 

products and services to the upstream 

oil and gas industry. We realise our full 

potential within the drilling and topside 

technology sector and strive to continuously 

develop our international base. 

Capacity, competence and wellproven 

technology 

The markets for our products and services, 

in particular the drilling equipment segment 

for deepwater rigs, experienced significant 

growth during 2008. We have demon- 

1500 

1200 

Key figures P&T 1 2008 2007 2006 

900 

600 

300 

0 

Operating revenue NOK mill 14 216 12 353 7572 






2006 

2007 


1) All numbers are based on old P&T structure. 


Our business 


The Maersk Resolute, ahigh 

efficiency jack-up rig, was delivered 

in 2008. 

Market conditions 

During 2008 the market has remained 

strong in all segments and high activity 

levels have been maintained throughout 

the year. Contracts for twelve drilling 

equipment systems have been awarded, 

three seawater treatment/sulphate removal 

systems were ordered and anumber of 

offloading system contracts were also 

secured. Strong growth in new builds of 

deepwater drilling units has resulted in a 

high order intake for our facilities in Brazil 

and Malaysia. The order backlog going 

into 2009 is at arecord high, and more 

importantly is of high quality. 

The global financial crisis is predicted to 

result in amarket slowdown in the short 

term, but will be partly offset by more 

upgrades and service contracts. Our view 

on the long term fundamentals for the P&T 

business area remains positive. 

strated our strong market position by 

winning twelve complete drilling equipment 

packages and six drilling riser 

contracts in 2008. We have proven our 

ability to execute advanced drilling equipment 

projects. A total of seven mobile 

drilling rigs with Aker Solutions’ drilling 

packages have been completed during 

2008. We also hold a major position in 

several upstream technology segments 

including advanced drilling equipment 

solutions, process systems and mooring 

and offloading systems. Our growing 

installed base in all our target segments 

yields asteadily growing lifecycle business 

serviced by our established worldwide 

presence. 

3D visualisation of drilling 

operations 

Aker Solutions’ operator training simulator 

is amajor breakthrough in operator training 

for complete drilling crews. The simulator 

is developed by First Interactive (60 

percent owned by Aker Solutions) and the 

safety training is organised and facilitated 

by Aker Solutions’ drilling equipment unit. 

Worldwide there is a requirement for 

8000–10 000 trained crew members. Aker 

Solutions’ new generation drilling simulator 

includes realistic 3D visualisation and realtime 

scenario building. The simulator will 

primarily be used for training rig operators, 

but also enables significant reductions in 

commissioning costs for drilling rigs 

currently under construction. The 3D 

technology and competence can also be 

applied to other parts of Aker Solutions’ 

business including marine installation, 

subsea and well services. 

New facilities for riser production 

and assembly inMalaysia and Brazil 

In 2008, Aker Solutions opened Brazil’s 

sole manufacturing centre for deepwater 

drilling risers. Located in Rio das Ostras, 

the unit is ideally positioned to serve the 

fast-growing Brazilian oil industry,with the 

ability to deliver to other regions of the 

world and to capitalise on the growth in 

the global rig market. This further strengthens 

our service base, complementing our 

facility opened in Port Klang, Malaysia, 

in 2007. 

Astate-of-the-art deepwater 

marine drilling riser 

system,including buoyancy. 

32 


Our business 


“Our combined capacity, competence and well 

proven technology ensures continued growth and 

value creation for our stakeholders” 

Developments in 2008 

Throughout 2008, our positions in the 

drilling and topside equipment-related 

industries have been strengthened and our 

significant order backlog now stretches far 

into 2012. 

2008 proved to be avery successful 

year with records established for both 

revenues (NOK 14 216 million) and EBITDA 

(NOK 1 448 million, up from NOK 959 

million last year). Key developments in 2008 

included an excellent order intake with the 

award of two new drilling equipment 

contracts from the Jurong shipyard in 

Singapore with atotal value of USD 419 

million. In addition, acontract was signed 

with Daewoo in Korea for the delivery of 

drilling equipment for two rigs for the end 

user Odebrecht. 

At the beginning of 2008, Aker Solutions 

acquired a majority shareholding in the 

Norwegian company First Interactive AS. 

Using Aker Solutions’ First Interactive 

technology, we are now developing a 

service-based drilling optimisation solution 

with full real-time 3D coverage for the 

entire drilling operation. 

In 2007, Aker Solutions acquired 50 

percent of the shares in German company 

Wirth GmbH. During 2008, there has been 

an ongoing harmonisation process 

between Wirth and Aker Solutions’ drilling 

equipment unit. This process will continue, 

further optimising the excellent fit of 

complementary technologies between the 

units. In January 2009, Aker Solutions 

entered into an agreement to acquire the 

remaining 50 percent share ofWirth. 

Goals for 2009 

We will continue to focus on two target 

markets for the development of our business: 

deepwater drilling including topside 

drilling equipment and solutions, drilling 

risers and mooring systems; and floating 

production units (mooring and offloading 

equipment and upstream processing technologies). 

In addition we will increase our 

focus on upgrades of drilling packages in 

the North Sea as well as global sales of 

drilling equipment with attractive lifecycle 

potential. We will continue to develop our 

deepwater drilling and floating production 

offering organically and through carefully 

evaluated acquisitions. With a growing 

installed base of equipment and technologies, 

our aim is to increase service 

and lifecycle revenues. Our business 

portfolio will also be strengthened by our 

customers’ increased demand for simulatorbased 

and conventional training and 

condition-based monitoring. 

Moving forward 

Our business has grown rapidly over the 

last few years. Although the short-term 

market outlook is uncertain, we believe the 

fundamentals remain strong for mediumand 

long term growth. Due to the strong 

order situation our expected activity level 

in 2009 will be comparable to previous 

years within most of our segments. Lifecycle 

and service volumes are steadily 

increasing as the installed base grows, 

which we expect to continue. Moreover, 

the demand for upgrades and overhauls is 

likely to increase, both in the North Sea 

and elsewhere. At year end our order backlog 

amounted to NOK 14 705 million, with 

deliveries through 2012 –forming asolid 

foundation for our future. 

Strengthening products and topside 

technologies offering 

To be in the forefront of key development 

trends in our markets, Aker Solutions 

decided in 2008 to change the structure of 

its Subsea and P&T business areas. These 

changes would meet the developing needs 

of our customers, provide for strengthened 

growth and take full advantage of the synergies 

in our deep water drilling business. 

Bringing our drilling risers business into the 

P&T business area further enhanced our 

drilling solutions and topside technologies 

offering. 

Through the restructuring of the P&T 

business area we gain astronger global 

drilling and topside portfolio to better 

position ourselves for future growth and 

value creation. From this reorganisation we 

have increased access to competence and 

technologies and we have strengthened 

Aker Solutions’ ability to mature projects 

and pursue business opportunities. 

Arctic opportunities 

During 2008, the offloading of 

crude oil from terminal to shuttle 

tanker was successfully performed 

at the Varandey field in the 

Barents Sea. The offloading, from 

the Fixed Offshore Ice-Resistant 

Off-Loading Terminal (FOIROT) 

with the purpose-built, ice 

classed shuttle tanker, Vasily 

Dinkov, was the first of its kind. 

The FOIROT is owned by the 

Russian oil company Lukoil, 

which holds the operator license 

for the Varandey field, while the 

Vasily Dinkov is owned by 

Sovcomflot. 

Aker Solutions designed and delivered 

the Pusnes offshore loading 

system installed on the Varandey 

FOIROT. The system allows for the 

safe and efficient offshore transfer 

of crude oil onto highly sophisticated 

ice-classed shuttle tankers. 

These specialised loading systems 

are developed for arctic conditions 

and the protection of the arctic 

environment, which has the highest 

environmental standards. 

The Vasily Dinkov is equipped 

with the Pusnes bow loading 

system, as are all shuttle tankers 

operating on the field. Aker 

Solutions has received orders for 

the bow loading systems, which 

include additional safety features 

for the protection of the arctic 

environment, for atotal of 12 arctic 

shuttle tankers. 

The Varandey field has approximately 

245 days each year with 

temperatures as low as -48 ºC, 

and an ice thickness of 1.25–1.8 

metres. The equipment developed 

for the FOIROT by Aker Solutions is 

unique to this type of operation. 

It includes an advanced control 

system for regulating the physical 

interface between the terminal and 

tanker during loading. 


Our business 


Clearer outlook 

with vapour 

recovery 

Reduced emissions of volatile 

organic compounds (VOCs) 

during oil loading operations 

offshore and onshore has increasingly 

been arequirement of the 

Norwegian Pollution Control 

Authority (SFT) and international 

environmental agreements. Aker 

Solutions delivered StatoilHydro’s 

new oil vapour recovery plant at 

Mongstad, which meets the 

requirements set by the SFT. 

In June 2006, Aker Solutions signed 

acontract for the design and delivery 

of aVOC unit to the Mongstad 

terminal. These systems reduce the 

discharge of environmentally hazardous 

substances and significantly 

reduce the loss of valuable energy 

resources through the vaporisation 

of oil. In addition, they reduce the 

safety risks of distributing and 

handling oil vapour. 

Delivery was achieved in June 

2008. The new VOC plant captures 

crude oil vapours, which are then 

purified and piped back into the 

ship’s hold as oil components in 

liquid form. The plant has recently 

encountered some regularity issues 

in relation to the stability of its 

operations which are now being 

overcome. 

The plant’s peak capacity is 

36 000 cubic metres of vapour per 

hour. Itrecovers at least 90 percent 

of the non-methane VOC emissions 

that were previously released to 

atmosphere, which reflects 

positively on the environment. The 

plant actively recovers vapours 

from two jetties simultaneously. 

The RamWinch, an on-vessel mooring system, was developed in 1997 and isdesigned asanalternative 

to conventional rotating winches. Several systems have been delivered for various floater applications. 

Well positioned drilling equipment 

West Taurus, adeepwater semisubmersible, 

was delivered to 

our customer Seadrill aweek 

ahead of schedule in early 

November 2008. The rig was built 

at the Jurong Shipyard in 

Singapore and is now in Brazil 

whereitisexpected to commence 

drilling operations for Petrobas in 

February 2009. 

The first rig to commence drilling 

operations in Brazil with the new 

generation Aker Solutions drilling 

package, West Taurus is contracted 

to Petrobas under asix year agreement. 

West Taurus represents a 

major construction milestone for the 

Jurong Shipyard, Aker Solutions 

and the owner. 

The scope of work for Aker 

Solutions included acomplete 

drilling equipment package 

including drilling equipment, stateof-the-art 

control systems, blow out 

preventer/marine riser system, 

management, engineering and 

commissioning. 

In 2008 we successfully delivered 

seven drilling equipment packages 

including three jack-ups, three 

conventional semisubmersibles and 

one RamRig. Our strong order 

backlog for drilling equipment 

packages includes 11 for delivery in 

2009, five for 2010 and afurther 

nine for 2011. 

West Taurus, an ultra 

deepwater semisubmersible 

drilling 

platform was the first rig 

to commence drilling 

operations in Brazil. 

34 


Our business 


1 

8 

2 

3 

4 

6 

5 

7 

1 Conventional rig 

2 Process systems onshore 

3 Offshore bow loading and offloading system 

4 Process systems offshore 

5 Mooring systems 

6 RamRig 

7 Marine drilling risers 

8 Marine deck machinery and steering gear 


Our business 


Process & 

Construction 

36 


Our business 


Aniche process power house 

Aker Solutions’ Process &Construction business area (P&C) is aglobal 

provider of project management, design and construction of major 

projects on all continents. We supply niche process expertise with high 

technology know-how for projects across chemicals, polymers, syngas 

and refining; mining and metals; liquefied natural gas (LNG); power 

generation; acid plants; nuclear clean-up services; and water treatment. 


Delivering on strategy with 

expansion in niches with growth 

and high margin potential 

Revenue development reflecting 

selective bidding and increased 

reimbursable business 

Order backlog maintained 

despite impact on order intake 

from economic slowdown 

17 percent EBITDA growth – 

EBITDA margin from 6.7 percent 

in 2007 to 8.4 percent in 2008 

Strong cash flow from operating 

activities 

Five EPCM metals projects 

awarded in South America 

Investment in new fabrication 

facility in Canada 

New offices in Republic of 

South Africa and Peru 

Established flexible cost base 

and healthy project portfolio 


NOK million 

1000 

With an ever-growing emphasis on creating 

strong sustainable solutions, we provide 

the full lifecycle of services –from initial 

concept through technology development, 

process technology application, design, 

procurement, construction and commissioning 

to maintenance, decommissioning 

and lifecycle services. 

Strong position in niche segments 

With 5417 employees and 4080 contract 

staff globally wehave considerable workforce 

flexibility when positioning our business 

to manage the cyclical workload of 

our markets. 

Mining and metals 

Within mining and metals, we provide services 

for processing plants in fast-growing 

segments like copper, silver, nickel, gold 

and iron ore. We are currently number one 

in South America and number two globally 

in terms of market share. We are the 

number one contractor to the copper 

industry worldwide, with experience accumulated 

over more than 50 projects. 

Chemicals, polymers, syngas and refining 

In petrochemicals, we have strong knowhow 

and expertise and have established 

solid, long-term relationships over many 

years with licensors of select niche technologies. 

We also serve the refining and 

biofuels markets. 

LNG regasification 

Our LNG regasification position is particularly 

strong in North America, where we 

areranked number one in terms of number 

of contracts and value. 

Nuclear 

We arealso one of few companies with the 

necessary expertise to create and deliver 

safe, sustainable and environmentallysound 

solutions to the challenges of 

nuclear clean-up and waste management. 

Our current activities are focused on the 

UK nuclear industry. 

Power generation 

Our power plant activities arelargely directed 

at the North American market, whereweprovide 

gas- and coal-fired power plant new 

builds and environmental upgrade projects. 

Construction 

We provide construction and global construction 

management for all the market 

segments we serve. Our major construction 

operation in North America ensures we are 

well placed to build on our success in this 

important market. 

Additional environmental expertise 

Our environmental and technology 

capability also spans water treatment, 

bleaching, chlor-alkali and acid plants, 

primarily in the UK and the Americas. 

Our acid recovery and concentration 

technologies are helping customers in the 

non-ferrous metallurgical, fertiliser and 

chemical industries treat sulphurous feeds 

and comply with emission regulations. 

Robust performance in 2008 

Over the last few years, P&C has prioritised 

margin expansion ahead of top line 

growth. We have been selective in terms of 

the types of projects we bid for. 

800 

600 

Key figures P&C 2008 2007 2006 

400 

200 

0 

2006 

2007 


Operating revenue NOK mill 10 702 11 597 13 215 







Our business 


The Boddington gold mine in 

Australia –one of the world’s largest 

undeveloped gold projects. Upon 

completion, the plant will produce 

approximately 850 000 ounces of gold 

and 200 000 tonnes ofcopper 

concentrate per annum. 

In 2008, we delivered robust growth 

with an EBITDA increase of 17 percent and 

an order backlog at year end 2008 of NOK 

13.3 billion, increased six percent over the 

previous year. Weachieved atotal of NOK 

10.7 billion in operating revenues in 2008, 

compared to 11.6 billion in 2007. Our 

continued focus on improving profitability 

versus revenue growth over the last four 

years yielded an EBITDA margin of 8.4 percent 

in 2008, up from 6.7 percent in 2007. 

Key developments underpinning 

growth 

In metals we have astrong order backlog 

and excellent market position. In South 

America we further strengthened our 

number one position, winning five large 

EPCM projects including Esperanza, the 

world’s largest copper project. To deliver 

these projects most effectively we have 

doubled our resource base in Chile and 

established an office in Lima, Peru. 

Supporting our strategy to expand in 

Africa, we opened anew office in South 

Africa. This operation will provide the local 

capability to service our global metals customers 

operating in the region. 

In petrochemicals, we have gradually 

converted our project focus from EPC 

lump sum to reimbursable EPCM services, 

resulting in a lower top line, but higher 

margins and alower risk profile. In the UK, 

with our partner Praj Industries, we are 

delivering the largest bioethanol plant in 

Europe in an EPCM project for BP, DuPont 

and British Sugar.ElsewhereinEurope, we 

have signed long-term engineering 

services agreements with BP and Shell. In 

Saudi Arabia we are providing extensive 

front-end work for the Ras Tanura 

Petrochemical complex, a joint venture 

between The Dow Chemical Company 

and Saudi Aramco. 

In China, our technology partnerships 

have been instrumental in a number of 

projects, including the Fushun and Sichuan 

polyolefins projects for PetroChina. 

Through asourcing hub in our Shanghai 

office, we have been able to further lower 

our own and our customers procurement 

costs. We plan to substantially grow this 

hub to further leverage our global sourcing 

capability. 

With office expansions in 2008 and a 

pool of some 1700 engineers, our Indian 

operations continue as a high value 

engineering centre both domestically and 

for Aker Solutions worldwide. They deliver 

important input to many projects and we 

plan to continue to grow, and to increase 

our utilisation of, this skilled resource base 

in Mumbai. 

We have agood position in our niche 

power market, particularly in the US. The 

Longview power plant project in West 

Virginia is progressing well and, when 

completed, is expected to be one of the 

cleanest and most efficient coal-fired 

plants in the US. 

Goals for 2009 

Our strategy is confirmed: we have planned 

expansion in niches that provide sustainable 

growth and high margin potential. We 

continue to be astrong technology and 

know-how player that is the preferred 

partner for customers in our selected niches. 

We have worked to build arobust and 

sustainable revenue base, with abusiness 

mix balanced between mature and growing 

markets, based on strong customer 

relationships and long-term contracts. Our 

strategy has been, and continues to be, to 

prioritise low risk and high margin potential 

ahead of top line growth. 

We continue to focus on delivering 

environmentally-sound, value-adding solutions 

that support asustainable future. 

Market outlook 

Strong mining and metals position 

Our emphasis in mining and metals will remain 

on Australia and the Americas, where 

the major global ore deposits are located. 

Our strategy has been to grow within 

copper, where many new projects are 

being planned over the next five to ten 

years. As the largest copper regions in the 

world, Chile and Peru together account for 

almost half of the reserves. In terms of 

production capability, weare the market 

leader in this sector and are well positioned 

to benefit from the huge investments 

planned over the coming years. We also 

38 


Our business 


“We have planned expansion in niches that 

provide sustainable growth and high 

margin potential and we continue to be a 

strong technology and know-how player” 

Doe Run Peru, 

La Oroya Peru: 

Aproject for the 

people of La Oroya 

have strong positions within other metals 

like gold, nickel, silver and iron ore. 

Long term growth opportunities 

Despite some short-term market uncertainties, 

India has high ambitions for its 

chemicals sector and targets to more than 

double it from 2008 to 2015. We hold an 

exceptionally good position to serve this 

growing market. 

We also see that the fundamentals are 

in place for future long-term growth in 

China. We have agood order backlog for 

2009 and are well positioned to capitalise 

when the market regains momentum. Our 

next step will be to further broaden our 

offering within specialty and consumer 

chemicals in China, giving us access to an 

even larger market. 

Reducing emissions. Aker Solutions 

has more than 30years’ experience 

delivering proven sulphuric acid technology 

and proprietary acid plant equipment to 

base metals producers worldwide. 

Continued focus on niches 

Though investment decisions are being 

deferred in the Middle East, we arestrengthening 

our offering from our operations in 

Saudi Arabia. At the same time, in Europe 

we are looking to selectively expand our 

footprint into Russia and Kazakhstan. 

In mature regions like North America 

and Europe we will continue to serve the 

needs of our key accounts, and focus on 

niches with growth potential. These include 

service and modification work, biofuels, 

power generation, nuclear decommissioning 

and construction. Whilst construction 

in the US is not expected to grow in the 

downstream sector,weare well positioned 

within the power sector with strong project 

execution experience. 

Over more than 45 years in nuclear 

services in the UK we have accumulated 

valuable experience in waste management 

and decommissioning. With our global 

presence we see opportunities in the 

longer term to take this specialised expertise 

to countries such as the US, South 

Africa, China and India. 

Strong customer relationships. Under 

afive year framework contract with 

Deutsche BP AG, Aker Solutions is 

providing engineering and construction 

management services atthe 

Erdöl-Raffinerie Emsland (BP -Lingen) 

production facility in Germany. 

Aker Solutions is providing the 

detailed engineering and proprietary 

equipment supply for Doe 

Run Peru’s copper line acid plant 

project located in the Andean city 

of La Oroya, 150 km east of Lima, 

Peru at an elevation of 3800 

metres. The project is part of a 

USD 400 million investment by 

Doe Run Peru at La Oroya to 

modernise its smelting operation. 

Amajor portion of this investment 

is dedicated to HSE components 

which, when complete in October 

2009, will bring the operations at 

La Oroya into full compliance 

with new environmental emission 

standards mandated by the 

Peruvian Government. 

Doe Run Peru’s operation at La 

Oroya is acustom smelter 

producing commodity and precious 

metals (copper, lead, zinc, silver 

and gold). The city of La Oroya has 

grown up around this 70 year old 

facility. Doe Run has been steadily 

investing in improving conditions at 

and around the site and in the local 

community since it acquired the 

facility ten years ago. The culmination 

of these efforts is the present 

modernisation project. 

The HSE components include 

improvements to the existing zinc 

line acid plant and effluent treatment 

facilities; abrand new acid plant for 

its lead smelter and abrand new 

acid plant for its copper smelter. 

The copper line acid plant is the 

largest of the three La Oroya acid 

plants at 1000 tonnes per day of 

sulphuric acid production from 

smelter stack gases. It will come 

online in the third quarter of 2009. 

With all three acid plants in operation 

Doe Run will be in full compliance 

with government-mandated 

requirements; capturing more than 

80% of all sulphuric acid gas emissions 

resulting from its operations. 

The copper line acid plant detail 

design was executed by Aker 

Solutions from our Vancouver 

office. It is astate-of-the-art double 

contact, double absorption acid 

plant incorporating our industryleading 

technology and proprietary 

equipment, manufactured at our 

equipment division in Toronto, 

Ontario, Canada. 

In addition to detailed design 

and proprietary equipment, 

Aker Solutions is also providing 

on-site advisory services for plant 

construction, check-out and 

commissioning through our office 

in Lima. 


Our business 


Nuclear decommissioning at Trawsfynydd –amodel for excellence 

Aker Solutions has been involved 

in one of the UK’s major nuclear 

decommissioning projects since 

2006, having been selected by 

Magnox North as aframework 

partner to undertake works in 

North Wales at the Trawsfynydd 

Decommissioning Site. The project, 

the Trawsfynydd Strategic 

Integrated Framework (TSIF), was 

established under aprocurement 

model designed to promote 

innovation and performance 

improvements in what is a 

relatively traditional industry. 

The three year contract that was 

initially awarded has now been 

extended by two years, with a 

possibility for further extensions 

if excellent performance is 

maintained. 

Aker Solutions’ work involves the 

clean up of the nuclear wastes that 

resulted from 30 years of nuclear 

power generation at the site. This 

requires us to design, construct, 

commission, and operate facilities 

that retrieve and safely package the 

nuclear waste and finally to decontaminate 

the associated facilities. 

This work is being delivered as, at 

any one time, six or more interrelated 

projects. At peak, atotal of 

12 decommissioning projects were 

being executed at site. 

Aker Solutions is partnering with 

three other major contractors to 

undertake the works and, through 

this partnership arrangement, is 

demonstrating the benefits of 

collaborative working in the nuclear 

industry. Inrecognition of the 

success of the TSIF approach, the 

project was recently accepted as a 

Demonstration Project by 

Constructing Excellence Wales, a 

cross-industry body for improving 

construction. This is the first time a 

nuclear industry project has entered 

the Demonstration Project 

programme, which is designed to: 

stimulate excellence in construction 

project delivery though the application 

of best practice and innovation 

through collaborative working. 

The importance of the collaborative 

approach has been fundamental 

to the success of the project. This 

success has the potential to 

strongly influence the design of 

future procurement models across 

the whole of the nuclear industry. 

Esperanza: sustainable solutions for the world’s largest copper project 

In 2008, Aker Solutions was 

awarded the engineering, 

procurement, and construction 

management (EPCM) contract to 

develop the Esperanza coppergold 

project in northern Chile. 

Owned by Minera Esperanza, a 

partnership between Antofagasta 

Minerals plc. (70%) and Marubeni 

Corporation of Japan (30%), the 

project is located northeast of 

the city of Antofagasta at an 

elevation of 2100 metres above 

sea level. Esperanza is asulphide 

deposit which will produce 

copper concentrate containing 

gold and silver by-product 

credits through aconventional 

milling and flotation process. 

Having conducted the feasibility 

study and early works studies, Aker 

Solutions’ EPCM scope includes 

the design of the facilities for the 

production of copper concentrates, 

construction management of the 

global works from the ore extracted 

from the deposit, mine infrastructure 

and port facilities. Also in scope are 

asea water pipeline to feed the 

process plant, along distance ore 

pipeline for copper concentrates 

and the processing plant to 

produce 200 000 tonnes per year of 

copper concentrates. 

Sustainable design 

practices 

From the outset of the project, 

Esperanza has sought to be a 

model mining project for the 21st 

century,considering all HSE aspects, 

from design to commissioning. 

Helping our customers reduce 

the environmental footprint of their 

operations is of increasing importance 

to Aker Solutions. Using 

sustainable design technology in this 

project means the facility will use 

only sea water in its production 

process, instead of valuable “desert 

water” from the limited resources in 

the area. 

On this project Aker Solutions is 

also pioneering anew, environmentally-friendly, 

state-of-the-art 

technology for concentrated 

tailings. This technology avoids 

heavy metals infiltration to underground 

desert waters, dramatically 

reduces desert water consumption 

and cuts dust emissions into the 

atmosphere. It is also expected to 

bring higher durability through 

lifecycle structures and decommissioning. 

Currently the world’s largest copper project. Using 

sustainable design technology inthis project means the 

facility will use only sea water inits production process, 

instead ofvaluable “desert water” from the limited 

resources inthe area. 

40 


Our business 


1 

2 

5 

4 

3 

6 

1 Power generation 

2 Decommissioning, waste management and 

clean-up services for nuclear power facilities 

3 Mining and metals processing facilities 

4 Waterand wastewater treatmentfacilities 

5 Petrochemical/chemical processing plants 

6 Onshore liquefied natural gas (LNG) receiving 

terminals 


Our business 

Anticipating change 

Aker Solutions people atthe Ormen 

Lange gas facility, which was delivered 

to StatoilHydro in 2007. Ormen 

Lange came onstream on1October 

2007, and will be able to cover as 

much as 20 percent of Britain’s gas 

needs, for upto40years 3 . 

carbon emissions, the world of 2030 will 

still largely depend on fossil fuels for its 

energy supply. 


Financial turbulence and afalling oil price dominated the 

headlines in 2008, and have triggered some uncertainty about the 

short-term outlook for both the process and energy industries. 

The fundamental drivers, however, remain positive and in the 

longer term Aker Solutions is positioned to benefit from them. 

In the short term, thereisnodoubt that the 

oil and gas industry could experience 

some difficult times because of the financial 

crisis and alower oil price, relative to 

the extreme highs of 2007 and early 2008. 

Achange in the economic climate could 

lead to project delays. At the same time, 

there are still good reasons to be optimistic 

about the industry’s outlook. 

“While market imbalances could temporarily 

cause prices to fall back, it is becoming 

increasingly apparent that the era of cheap 

oil is over,” the International Energy Agency 

(IEA) writes in its annual energy outlook 1 . 

Prices will be supported by a rising 

global demand for energy, driven by 

continuing economic growth in Asian 

countries. According to the IEA’s reference 

scenario, world energy demand will surge 

by 45 percent in the period to 2030. This is 

equivalent to an average growth rate of 1.6 

percent per year, with countries from 

outside the OECD accounting for nearly 90 

percent of the increase. The IEA expects 

India and China to be behind more than 

half the increase in energy demand. 

While rapidly developing renewable 

energy technologies will boost the supply 

of alternative energy sources, the rise will 

not be enough to cover surging demand. 

In the IEA’s reference scenario, fossil fuels 

will account for 80 percent of the world’s 

energy demand in 2030. Even if new 

policies are introduced to reduce global 

Meeting tomorrow’s demands today 

Technology improvements and increased 

exploration activity have led to an increase 

in the average volume of oil discovered 

each year since 2000 being higher than in 

the 1990s, according to the IEA. Yetthe 

fields that are currently in production or 

development are not enough to meet the 

expected demand in the next 20 or 30 

years. This means the oil companies have 

to make even more new discoveries. The 

industry has already found the oil that is 

easily available, onshore or in shallow 

waters offthe coast. The “easy finds” have 

more orless been developed –and that 

means the oil companies are looking in 

new areas. These include deeper waters 

and harsher environments, where Aker 

Solutions is positioned to be the preferred 

partner in the industry. 

This is not the future –itishappening 

today. Itishappening in Kashagan; in the 

many new discoveries off the coast of 

Brazil; it is happening in new developments 

such as the Shtokman project; it is 

happening in the Gulf of Mexico, the Asia 

Pacific region and offshore West Africa. 

Overall capital investment in offshore 

developments is set to rise by 20 percent 

between now and 2012 2 . 

In Brazil, where some of the biggest 

discoveries since the turn ofthe century 

have been made, Aker Solutions has 

delivered several deepwater subsea trees 

and is contracted to deliver more. We have 

opened Brazil’s only manufacturing centre 

for deepwater drilling risers. Our investment 

in the Brazilian market continues, 

as the region becomes increasingly 

important. 

42 


Our business 


Oil production and demand 1 

Million barrels per day 

120 

100 

OPEC spare capacity 

Global demand 

80 

60 

40 

20 

Production 

Declining production 

Dhirubhai 1. Aker Floating Production’s 

FPSO over the MA-D6 field. 

0 

1980 1985 1990 1995 2000 2005 2010 2015 2020 

In India, Aker Solutions and sister company 

Aker Floating Production celebrated 

first oil from the country’s first offshore 

field. Aker Solutions delivered the subsea, 

process control and mooring systems, 

delivering to both the field and the FPSO 

Dhirubhai 1,which is owned by Aker Floating 

Production. Oil demand in India is forecast 

to be the fastest growing in the world over 

the coming two decades, and the country 

is putting alot of effort into boosting its 

own energy production, making it avery 

interesting opportunity for Aker Solutions. 

Harsh environments: more presence, 

less impact 

Aker Solutionsisaninternational company 

with aglobal reach. We are taking the lead 

in arange of significant developments with 

one common denominator: harsh environments 

in cold climates. 

From Russia to Canada, northern areas 

are becoming increasingly important. In 

Aker Solutions, with our vast experience 

from the Norwegian Continental Shelf, we 

are used to thinking about tough weather 

conditions when we plan projects and 

“Our goal remains to 

be our customers’ 

preferred partner by 

delivering the 

products and 

services they need 

through their entire 

lifecycle” 

create new structures. Agood example is 

the pair of H-6e (or H-6 extreme) rigs that 

Aker Solutions is delivering to Aker Drilling 

in 2009. They are the largest, most 

advanced drilling rigs in the world, 

designed and built especially to work in 

the challenging conditions of the oceans’ 

deep water and arctic regions. 

The design of the H-6e also highlights 

another very important trend: it is azero 

emissions unit. As we move into these new 

territories, it is vital that we strive to further 

minimise the impact of new developments 

on their surroundings. We benefit from this 

increasing environmental focus because 

we are atechnology company -and the 

operators of these fields want the very 

best environmental technology. 

In addition to fuelling high exploration 

activity, the need for more oil has also 

driven demand for increased oil recovery 

(IOR) technologies, to produce more from 

existing fields. We see no signs of this 

trend diminishing. 

Meeting the changing needs ofour 

customers 

In 2008 we further enhanced our portfolio 

of technology services and products both 

through restructuring and through completing 

aseries of strategically important 

acquisitions. The integration of our marine 

operations, well intervention and geological 

consulting offerings into our Subsea 

business area, in combination with our 

ownership and cooperation with Aker 

Oilfield Services, means we can offer a 

more focused portfolio of lifecycle and 

IOR products and services, including our 

extensive well intervention offering – a 

unique one-stop-shop for subsea fields. 

In our Products &Technologies business 

area, we have consolidated our drilling 

risers and equipment activities with topside 

technology products and services. 

Together with an enhanced IOR offering, 

this will better service customers worldwide 

with the equipment and services they 

require, onshore and above the waterline. 

Our customers increasingly focus on 

the development and maintenance of their 

fields as one large, integrated operation. 

Therefore, in 2008 we brought together 

our existing Field Development and 

Maintenance, Modifications and Operations 

business areas to create Energy 

Development & Services, increasing our 

capacity to serve our customers through a 

larger and more flexible pool of engineers. 

We have also refocused our Process & 

Construction business area, bringing 

together Aker Solutions’ energy, process 

and related construction activities to 

achieve greater synergies and better 

resource utilisation. We see continued 

market potential in South America, India 

and China with key global customers. China 

is expected to continue as the main driver 

for petrochemical process investments and 

the emphasis in metals and mining will 

remain on Australia and South America. 

Aker Solutions has made these organisational 

changes to reflect the changing 

demands we see coming in the energy and 

process industries. We believe adapting to 

these trends secures our medium- and 

long-term outlook, in atime of short-term 

uncertainty. 

Our goal remains to be our customers’ 

preferred partner by delivering the products 

and services they need through their 

entire lifecycle –from feasibility study to 

operations and beyond. 

1) IEA 2008 World Energy Outlook 

2) Douglas-Westwood: the world offshore oil and gas 

production and spend forecast 2008-2012 

3) www.statoilhydro.com 


Our business 

Health, safety and environment 

Taking personal responsibility for HSE 

One dangerous incident is one too many. Aker Solutions’ 

guiding principle is that all incidents are preventable. 

Taking care ofhealth, safety and the environment 

(HSE) is acore value among all 

Aker companies. It commits each and 

every employee to promoting better HSE 

performance in their daily life. 

In Aker Solutions our core HSE value is 

expressed in our HSE Mindset: 

All incidents can be prevented. We 

strive continuously for zero harm to 

personnel, material and non-material 

assets 

We focus on employee health and on 

continuously improving the work environment 

We conduct our operations through 

efficient use of materials and energy, 

with minimum waste and damage to 

the environment 

We design products and services to 

have no undue environmental impact, 

to be safe and to be efficient in consuming 

energy and natural resources. 

We seek to ensure that our products 

can be recycled or disposed of safely 

Leading indicators 

Some of the key activities that contribute 

to improved HSE performance and prevention 

of incidents are measured and encouraged 

through a set of leading 

indicators. 

Risk observations 

Per employee per year 

3.5 

3.0 

2.5 

Near misses 


0.20 

0.15 

2.0 

1.5 

0.10 

1.0 

0.5 

0.0 

0.05 

0.00 

2005 

2006 

2007 


2005 

2006 

2007 


Task risk analyses 


Inspections 


HSE training 

Percent of worked hours 

12 

3.0 

2.0 

10 

8 

2.5 

2.0 

1.5 

6 

1.5 

1.0 

4 

2 

1.0 

0.5 

0.5 

0 

0.0 

0.0 

2005 

2006 

2007 


2005 

2006 

2007 


2005 

2006 

2007 


44 


Our business 


Driven by care 

Our Just Care programme has helped engage our employees 

around the world through asimple message: we take personal 

responsibility for HSE, based on caring for people, the 

environment, and the company. 

Through extensive communication, arange 

of training programmes and, most importantly, 

the examples set by people from 

management to the shop floor, our HSE 

message reaches every corner of the 

organisation. 

By considering health, safety and environmental 

issues in all our activities –in 

offices, on construction sites or at home – 

we reinforce the right attitudes and achieve 

better HSE and business results. 

Increased environmental focus 

The role of companies like ours in relation 

to the environment is of increasing importance. 

We are motivated to be part of the 

solution. We aim to continually improve our 

products and services, play arole in new 

energy sectors, and minimise the footprint 

of our own operations. We strive to design 

each new product and service to be not 

just technologically better, but to be safer 

and to have less harmful impact on the 

environment than the one before. Some 

examples include our solutions for recovering 

volatile vapours, reducing sulphur 

and ammonia emissions and drilling rigs 

with minimised impact on arctic environments. 

We also contribute, with project 

execution and technology, tonew energy 

sectors such as CO 2 capture, next generation 

biofuels and wind power. 

During 2008 we have raised the bar on 

the environmental footprint of our own 

operations. We have initiated anumber of 

activities to further increase our focus in 

this area. The definition and reporting of 

environmental parameters has been 

improved, and from 2008 energy consumption, 

greenhouse gas emissions and 

waste disposal are being reported with 

greater accuracy and in ways that better 

enable our individual businesses to guide 

their improvements. To increase competence 

and awareness across the organisation we 

have introduced adedicated environmental 

eLearning module intended for all employees. 

By year end, 9000 employees had 

completed this module. Five additional 

business units were certified according to 

the ISO 14001 environmental standard in 

2008, bringing the total to 19. Video conferencing 

facilities are being improved and 

we aim to utilise these to further reduce 

travel. These arejust some of the activities 

we expect will contribute to minimising our 

environmental footprint. 

1 

LTIF 

Per mill. work hours, incl. subcontr. 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

8 

7 

6 

5 

4 

3 

2 

1 

0 

2003 

2003 

2004 

2004 

2005 

2 

TRIF 

Per mill. work hours, incl. subcontr. 

2005 

2006 

2006 

2007 

2007 



Energy 2008 

Energy consumption MWH 623 049 

Energy intensity MWH per mill. worked hours 6560 

Sick leave rate 

Percent of work hours 

5 

4 

Emissions 2008 

3 

CO 2 emissions Tonnes 146 654 

CO 2 emissions intensity Tonnes per mill. worked hours 1544 

2 

1 

Waste 2008 

Recycled waste Tonnes 22 021 

Total waste Tonnes 35 756 

Recycling factor Percent 61.6 

Hazardous waste Tonnes 2200 

0 

2003 

2004 

2005 

2006 

1) Lost Time Incident Frequency 

2) Total Recordable Incident Frequency 

2007 



Our business 


Competence and compliance 

Through developing competence, learning from experience and setting 

high standards, we increase the likelihood of preventing the next incident. 

Leaders in the driver’s seat 

More than 2200 leaders had graduated 

from our HSE leadership programme by 

the end of 2008. This programme has been 

key in further developing our HSE culture, 

enabling our leaders to be more effective 

role models and to drive HSE improvements 

efficiently. 

Reaching out 

To help deliver the important HSE messages 

effectively across the organisation, we 

have developed asuite of HSE eLearning 

programmes. To date, more than 57 000 

individual training sessions have been 

completed with the different HSE eLearning 

modules. Additional training and awarenessraising 

activities take place on every worksite, 

and HSE considerations are always 

part of the planning and execution of 

tasks. 

High expectations 

We maintain a common HSE operating 

system to set expectations, assess gaps 

and implement improvements. Each operating 

unit performs an annual assessment 

against the expectations of the HSE 

operating system. In addition anumber of 

strategic, in-depth HSE reviews are 

performed for selected units across the 

organisation. These reviews increase the 

transparency of HSE performance throughout 

our operations, and help to ensurethat 

potential risks are avoided. 

Just Rules 

Based on an analysis of previous incidents 

and industry best practice, aset of clear, 

simple safety rules for specific work 

activities has been developed and rolled 

out across the organisation. Over 32 000 

employees, contract staffand subcontractor 

employees had been through dedicated Just 

Rules training sessions by year end 2008. 

Therehas been asignificant decrease in 

the number of serious injuries from 2007 to 

2008. 

Serious injuries 

■ 2007 ■ 2008 

25 

20 

15 

10 

5 

0 

Fatalities 

Disabling 

injuries 

Other serious 

injuries 

“From experience, 

we know that 

certain activities 

account for the 

majority of serious 

incidents in our 

work. For these 

activities we have 

made specific rules 

to prevent injury or 

harm. These are our 

Just Rules, part of 

our Just Care 

programme.” 

-Simen Lieungh, 


Just Rules training includes 

educational videos. 

46 


Our business 


Just Care awards 

To recognise outstanding achievements within HSE and to reinforce the 

behaviours that led to them, every year our President &CEO presents 

four Just Care awards: the President’s HSE award for the best overall 

HSE achievement, and one award each for achievements in health, safety 

and the environment. 

President’s HSE award 

The Kashagan epF project received the President’s HSE award for their fabrication and 

assembly of seven process and utility modules, spanning over 12 million worked hours 

with 35 nationalities at locations in Norway, Poland, Romania and Russia. Through 

extensive efforts in training, communication and management visibility, coupled with the 

right performance incentives, the project successfully exported Aker Solutions’ HSE 

mindset and standards to sites that historically had aless mature HSE culture, achieving 

zero serious injuries over the project’s five years and leaving apositive legacy at all 

subcontractor sites. 

Health award 

Aker Solutions in Verdal, Norway received 

the Health award for their ’Multivago’ 

welding automation. Developed by welders 

in Verdal, the Multivago system enables 

the automated welding of long and large 

tubular weld seams, avoiding static 

and unfavourable welding positions while 

achieving increased efficiency and reduced 

health risks. Multivago was initiated for the 

production of a series of tripod wind 

turbine foundations, and has now been 

shared and is in use on other projects. 

Safety award 

Our drilling equipment business received 

the Safety award for their drilling equipment 

simulator. The simulator has been 

developed by First Interactive AS (60 percent 

owned by Aker Solutions) and the 

safety training is organised and facilitated 

by our drilling equipment unit. The training 

enables safe and cost efficient training 

of drilling crews, improved safety for 

operators on the historically dangerous 

drill floor and, ultimately, improved and 

safer drilling operations. The drilling equipment 

simulator has introduced a step 

change, bringing to the drilling industry 

what the flight simulator has brought to the 

aviation industry. 

Environmental award 

The Ekofisk tank cell cleaning project 

received the Environmental award. Through 

the use of aspecially developed, remote 

operated cleaning tool, 99% of the oil and 

wax layer was removed from nine tank 

cells and re-injected into the Ekofisk reservoir. 

The project was executed within the 

agreed time frame, exceeding the customer’s 

requirement for oil and wax removal, 

and with an excellent HSE cultureresulting 

in zero spills to the environment and zero 

injuries. 


Our business 

People and development 

Driving performance 

Aker Solutions’ achievements and profitability are generated by our 

people –people who take on challenges and deliver solutions. 

“Aker Solutions focus 

attention on achieving 

results in both the 

short and long term” 

Teamwork, know-how and skills are the 

driving forces for enhanced performance 

and continual business development. Our 

values guide the development of our people 

and the company. 

Our commitment 

All Aker companies shareacommitment to 

their people: to establish a working 

environment that is safe, tolerant, and fair. 

Continuous personal and professional 

development is vital to the competitiveness 

of Aker Solutions. The power of the 

company’scollective know-how reinforces 

customer confidence and enhances our 

ability to win new contracts and execute 

them profitably.Weseek to give our people 

challenging assignments and ample 

opportunities for development and growth. 

Performance management and 

reward 

We want our organisation and each 

employee to focus attention on achieving 

results in both the short and long term. 

Processes for determining targets and 

measuring performance, and for rewarding 

employees in relation to the results 

achieved, are important tools in this 

context. Performance targets for managers 

and employees are determined on the 

basis of strategies and budgets in each 

unit. Targets are set on an annual basis, 

but are monitored and further developed 

as necessary throughout the year. The 

annual target-setting processes embrace 

both financial goals and the development 

and improvement of products, project 

management, customer service and the like. 

In addition, targets are established for 

health, safety and the environment and for 

the personal development of the individual 

manager and employee. 

To ensurethe development and optimum 

utilisation of our management resources, 

an annual evaluation of managers is conducted 

as input for determining plans for 

management development programmes, 

management mobility and the development 

of leadership talents. 

We want to reward managers and 

employees in relation to the results 

achieved. This is achieved by differentiation 

of individual base pay and establishing 

programmes for variable annual payments 

to managers and employees. 

Our annual variable pay programmes 

reward employees on the basis of the 

commercial results achieved in the 

individual company or project. Managers 

earn variable pay on the basis of 

commercial results in the units in which 

they exercise influence and the extent to 

which the manager lives our values. Senior 

management have their variable pay 

spread over several years to encourage 

long-term performance and lasting commitment. 

Details of the remuneration of our 

senior management are provided in note 

18 to the consolidated accounts on pay 

and social costs. 

Unique skills create 

unique solutions. 

48 


Our business 


Preferred employer in achallenging market 

It is our people that enable Aker Solutions to offer our customers a 

service superior to our competitors. Our reputation in the employment 

market is key to attracting the most talented people. 

In 2008 we started to see the effect of our 

streamlined, recruitment process, with over 

40 000 candidate applications from more 

than 35 countries. The global recruitment 

process, featuring hands-on recruitment 

principles and supported by arecruitment 

management system, ensures transparency 

across our business. Together with a 

common interview guide based on our 

values, candidates wereexposed to ahigh 

quality recruitment experience supporting 

our vision of being the preferred employer. 

It has been achallenging market, with a 

shortage of suitably skilled people entering 

the engineering industry generally, and the 

energy sector in particular.Despite increasing 

competition for qualified resources, we 

successfully managed to hire a total of 

4108 new employees in 2008. Through 

focusing on retention activities we have 

increased the stability of our workforce, 

reducing turnover to below nine percent. 

Attracting new employees 

Following a successful national recruitment 

campaign in Norway in late 2007, 

similar campaigns wereconducted in other 

regions in 2008. Aker’s new recruitment 

programme for the US market was 

launched in May in connection with the 

Offshore Technology Conference 2008 in 

Houston, Texas. The programme covers 

all the Aker companies with activities in the 

US and is based on the employees‘ own 

attitude and commitment. It also features a 

regional web site and even anew word 

–Akertude (see www.akertude.com). 

Our efforts in attracting employees are 

also validated by our People Survey,where 

the top development area since the last 

survey was “Weattract talented people”. It 

showed that avast majority of our people 

would strongly recommend Aker Solutions 

as an employer in our industry. 

Recruitment of employees 

Regional distribution 

Total workforce 


Norway 32.5% 

Americas 23.8% 

Africa &Middle 

East 0.6% 

Asia Pacific 18.2% 

Europe (ex. Norway) 24.2% 

Norway 49.7% 



East 0.6% 

Asia Pacific 

13.7% 


Co-operation in focus 

In Aker Solutions there isalong 

tradition of including employees 

and their representatives in 

decision-making processes. This 

ensures abroad basis for making 

good decisions, balancing the 

interests of the many stakeholder 

groups that any company 

engages with –especially those 

interests related to welfare and 

working conditions. These 

traditions are well established in 

Norway, though this is not yet the 

case everywhere the company 

operates. 

Aker Solutions operates in a 

context characterised by increasing 

globalisation and fierce competition. 

This means we must make 

significant efforts to maintain our 

competitiveness in all our markets. 

Employee representatives and 

management must work together on 

an ongoing basis to seek solutions 

that promote socio-economic 

progress in the regions in which we 

operate, while ensuring the longterm 

performance of our company. 

In October 2008, Aker Solutions’ 

major shareholder, Aker ASA, signed 

an international framework agreement 

with the Norwegian United 

Federation of Trades Unions and 

the International Metalworkers 

Federation on behalf of all the 

companies that arepart of Aker.The 

agreement commits all the parties 

to work towards the development 

of good working relations. 

Aker, the Norwegian United Federation of Trades Unions and 

the International Metalworkers Federation enter ajoint agreement. 

Employees 


Contract staff 


Norway 49.7% 



East 0.6% 

Asia Pacific 

14.6% 


Norway 49.6% 



East 0.6% 

Asia Pacific 

11.7% 



Our business 


Alearning arena 

The Aker Academy creates opportunities for people and teams 

throughout Aker Solutions. It delivers aligned, professional training 

and development activities founded on our values and core 

competence and strives to expand the competence of individuals 

and teams to improve our business performance. 

“Developing an even 

higher quality learning 

environment remains 

our main focus in 2009” 

In 2008, eight different leadership programmes, 

totalling more than 60 sessions, 

werecompleted by over 1300 participants. 

Our leadership programmes have been 

implemented internationally. 

One major focus of the Academy in 

2008 was to encourage cooperation 

across business areas and to further align 

our development activities. In an increasingly 

global environment, cross-cultural 

awareness has moved up the agenda as a 

key factor in minimising risks in all our 

activities. Each one of our leadership 

programmes includes modules designed 

to improve “cultural intelligence” within 

Aker Solutions. These efforts will be intensified 

in 2009. 

Developing an even higher quality 

learning environment will be our main 

focus in 2009. This means that still-closer 

cooperation and active sharing between 

the business areas will be promoted. 

In addition to cross-cultural awareness, 

the further development of our leadership 

programmes; aligned concepts for coaching 

and mentoring across the business 

areas; and aclear focus on commercial 

awareness have all been identified as 

focus points for 2009. 

Well intervention academy 

On 29 May 2008, Aker Solutions opened 

its new well intervention academy in 

Stavanger, Norway. This facility will give 

new generations of offshoreoperators and 

engineers first hand experience in critical 

well intervention activities. The centre 

consists of an intervention tower, two test 

wells and state-of-the-art intervention 

equipment combined with high-tech 3D 

simulators to facilitate realistic and 

practical training in an environment as 

close to actual offshore conditions as 

possible. 

Participants from all over the world 

are brought together in our learning 

and development activities. 

Leadership programmes 

Participants, Aker Academy 2008 

Becoming aleader 572 

Develop your leadership 152 

Business 

leadership 38 

Commercial 

awareness 54 

HSE leadership 

492 

Senior project 

management 26 

50 


Our business 


Aker international trainee programme 

2008 was the thirdyear of the Aker international trainee programme. 

With the participation of Aker Solutions, Aker Floating Production, 

Aker Drilling and other Aker companies the programme has 

provided 66 assignments. Trainees have achance to work in our 

key markets including Norway, the US, UK and Malaysia. 

In September 2008, the first team of 

trainees graduated from the programme 

and joined our pool of future leaders. Each 

of the eight graduating trainees accepted 

permanent positions within Aker Solutions 

in the US, Brazil, China, Malaysia and 

Norway, working in different business 

areas and involved in business development, 

procurement, finance and business 

management. 

“During my two years as atrainee within 

the company, I have been exposed to 

different disciplines including qualifications 

and clarifications for tenders, cost 

estimates for projects, our Project Execution 

Model, and branch management issues. 

Ihave worked in the general organisation 

and also had afantastic opportunity to be 

on abig international project –Adriatic LNG. 

My experience on the project formed my 

firm desire tobeapart of aproject team 

again. That is why Iamnow assigned to 

the Sakhalin IArkutun-Dagi project, working 

in procurement,” said Yulia Semenchenko, 

aRussian trainee who graduated in 2008. 

In September 2008, a third team of 

trainees joined the programme. The team 

consists of ten recent graduates who were 

recruited in the autumn of 2007 from India, 

Malaysia, Norway and Russia. The worldwide 

recruitment campaign received 

an impressive 1500 applications for the 

Team III visiting Egersund Yard in 

September 2008. 

ten positions. To address our business 

needs we recruited trainees with amixed 

background in both engineering and in 

business. 

New programmes 

A number of new, specially-developed 

courses werelaunched on the portal during 

2008. As asupplier to fossil fuel producers, 

it is important that we address climate 

challenges and the need to reduce greeneLearning 

With more than 80 000 courses completed so far, eLearning 

has become an effective way of enhancing expertise for our 

employees. 

We offer alarge number of courses through 

our eLearning portal, which is used actively 

by all the business. More than 40 000 

programmes werecompleted in 2008 alone. 

A number of the courses are obligatory, 

and the local business units can document 

the progress of their employees for 

themselves. Such documentation is important, 

not least for ISO certification of the 

businesses. Employees can take courses 

via their own home PCs, whenever they 

want and regardless of their geographical 

location. Compared with classroom-based 

teaching, eLearning substantially reduces 

the cost of travel and use of resources. 

house gas emissions. Our new course on 

“the environment –our common responsibility” 

raises these issues and the way our 

employees can take personal responsibility 

for the environment. 

A number of courses have been 

launched on key issues such as health, 

safety and the environment (HSE), corporate 

responsibility (CR) and Aker Solutions’ 

Project Execution Model (PEM). 

More than eLearning 

In 2008,our first classroom-basedcourses 

were registered with the Academy. This 

represents an important step towards realising 

the vision of acommon education 

portal for the whole of Aker Solutions, no 

matter the medium used, and will reduce 

the cost of maintaining several different 

systems. 

Classroom teaching is also used in 

combination with eLearning. 

eLearning 

Completed courses by end of 2008 

Stress management 14 207 

Caring for the environment 8820 

Other HSE 18 637 

PEM 11 137 

Other and BA/BU 

specific 11 207 

CR 1227 

Protect 2894 

Just Care 18 893 


Our business 

Corporate responsibility 

Demonstrating corporate responsibility 

Aker Solutions’ overriding concern istoprovide products and services 

in an environmentally sound, ethical and socially responsible manner. 

The way in which we achieve growth and 

profitability is as important as the achievements 

themselves. 

Finding environmentally and socially 

responsible ways to meet the world’s 

energy needs has world scale impact – 

politically, ethically and environmentally. 

Our contribution to that impact depends 

on each and every one of us, every day, 

everywhere, taking personal responsibility 

and caring for people, for the environment, 

for integrity and for our communities. 

Our history,our values and international 

norms such as the UN Global Compact, 

the Global Reporting Initiative (GRI) and 

the OECD guidelines are the basis of our 

corporate responsibility principles. We are 

committed to continually improving our 

performance against them. 

Our corporate responsibility 

principles 

Caring about people: acompetent and 

motivated workforce, driving toward the 

same goals, is vital to our success. With 

thousands of employees around the 

world representing many cultures, religions 

and ethnic groups, our focus is to 

help each individual employee realise 

his or her potential and look after his or 

her own health and safety. All our efforts 

are guided by acommitment to protecting 

the human rights of our employees 

and the stakeholders we influence. 

Caring about environment: the 

environment depends on companies 

like ours to contribute to its positive 

development. We therefore work to 

minimise negative impact on the environment 

by continuously developing 

technologies, practices and business 

opportunities compatible with sustainable 

development. 

Caring about integrity: we depend on 

areliable, predictable business 

environment. We therefore strive to 

maintain high ethical standards. We 

build aculture that values honesty, 

integrity and transparency, and we 

encourage the same behaviour among 

our partners. 

Caring about community: as alarge 

company we are asignificant part of 

the societies in which we operate, both 

locally and globally. Webelieve in playing 

our part in the community through 

investing in the building of ahealthy, 

safe and stable society. 

Local content 

We are committed to building on local 

capabilities in, and sharing our technology 

with, the markets we enter. Wedraw on 

local resources to create jobs, customise 

product strategies, and work with local 

governments. For example: 

Currently we employ approximately 

4 000 people in the Asia Pacific region, 

including around 600 located in Malaysia. 

Of those 600, most work at the high-tech 

manufacturing centre we established in 

2007. Nearly 100 of the engineers and 

technicians employed in the centre atPort 

Klang were trained at our Norwegian and 

British subsea facilities. The centre has 

also created opportunities for local vendors 

supplying components and services. 

Our subsea operations in Brazil have 

approximately 500 people in an almost 

exclusively Brazilian workforce. 150 of those 

were hired in the 12 months to mid-2008 

and our plans for growth in the region are 

extensive. We expect to fill an additional 

130 vacancies by the end of 2009. 

In Angola we have developed West Africa’s 

most advanced subsea base. To 

promote the effective sharing of our knowhow 

in the region, an active training 

programme has brought employees from 

An international company with global 

reach. Aker Solutions employees outside 

our facility in Malaysia. 

the region to be trained at other Aker 

Solutions facilities. We are making similar 

efforts with local employees in several 

other countries. 

CO 2 capture 

Aker ASA and Aker Solutions have established 

the company Aker Clean Carbon to 

accelerate the commercialisation of CO 2 

capture technology. Aker Solutions will 

provide the technology, engineering and 

project management expertise for developments 

supported by Aker’s industrial and 

financial strength. Aker Clean Carbon’score 

CO 2 capture technology was originally 

developed by Aker Solutions. 

Aker Solutions and Aker Clean Carbon 

are also part of the consortium, led by 

Scottish Power,which recently qualified as 

an entrant to the UK government’s competition 

to develop the UK’s first commercial 

scale carbon capture and storage (CCS) 

project. 

Global partnership with the 

Norwegian Red Cross 

Aker Solutions signed a strategic three 

year partnership agreement with the 

Norwegian Red Cross on 19 December 

2007. The partnership encompasses 

financial support, exchanges of expertise 

between the organisations and volunteer 

activities. 

52 


Our business 


Membersofamedicalteam from theHunan Provincial 

RedCrossSociety,treating apatientatatemporary 

medical centre setupfor earthquake survivorsinShifang, 

Sichuan in 2008.Thousands of people whosehomes 

were flattened were living in tentsbythe side of theroad. 

Aker Solutions people in Chinawere also proactive in 

supporting thereliefefforts. 




54 



Contents 

56 Board ofDirectors’ report 

Annual accounts Aker Solutions group 

72 Consolidated income statement 

73 Consolidated balance sheet 

74 Consolidated statement of cash flow 

75 Consolidated statement of changes to equity 

76 Notes to consolidated accounts 

Annual accounts Aker Solutions ASA 

116 Parent company income statement 

117 Parent company balance sheet 

118 Parent company statement of cash flow 

119 Notes to parent company accounts 

124 Auditor’s report 

126 Share and shareholder information 

130 Analytical information 

132 Corporate governance 

136 Board ofDirectors 

138 Executive management team 

140 Company information 



Board ofDirectors’ report 

Well prepared in an unpredictable market 

Aker Solutions had operating revenues of NOK 58 252 million in 2008, 

on apar with the previous year. Cost overruns on the Frigg and Aker 

H-6e projects contributed to reduced earnings before interest, tax, 

depreciation and amortisation (EBITDA), down by 13.6 percent from 

2007 to NOK 3382 million, while the EBITDA margin declined from 6.8 

to 5.8 percent. The group has asolid, high quality order backlog. Efforts 

to reduce costs are likely to have asignificant effect in 2009, when 

EBITDA is expected to exceed NOK 4500 million although some decline 

in the level of income is anticipated. An ordinary dividend of NOK 1.60 

per share isproposed by the Board for the fiscal year 2008, 

corresponding to NOK 430 million. 

Although the high revenues recorded in 

2007 were boosted by anumber of major 

projects completed in that year, Aker 

Solutions succeeded in maintaining the 

same high level of income in 2008. Growth 

in the Products &Technologies (P&T) and 

Subsea business areas contributed to 

this performance. Activity in the Energy 

Development &Services (ED&S) and Process 

&Construction (P&C) business areas was 

lower than in 2007. 

Anumber of important projects in the 

group’s portfolio were completed in 2008. 

A complete subsea production system 

was delivered to Reliance Industries Ltd 

for the MA-D6 field off India, and the 

world’s first offshore liquefied natural gas 

(LNG) terminal was delivered to ExxonMobil 

in the Adriatic. Four production facilities for 

the Kashagan project in the Caspian Sea 

werecompleted during the year,and seven 

complete drilling equipment packages 

supplied in 2008 are inoperation on rigs 

for various customers. The subsea water 

injection system for the Tyrihans field in 

the Norwegian Sea was also ready for 

delivery in late 2008. This is a groundbreaking 

project which strengthens the 

group’s position as asupplier of solutions 

for increased oil recovery (IOR) from existing 

fields. During the year, Aker Solutions was 

also awarded five engineering, procurement 

and construction management (EPCM) contracts 

for metal projects in South America. 

The Subsea, P&C and P&T business 

areas substantially improved their profitability, 

and delivered record margins and 

results in 2008. Creating the ED&S business 

area has strengthened the group’s 

position as aleading supplier of complete 

development solutions for demanding oil 

and gas projects. Operational challenges 

faced on individual projects by ED&S during 

2008 meant that its profitability did not 

strengthen to the same extent as in the 

other three business areas. 

To reduce vulnerability to fluctuations in 

the levels of activity in the various markets, 

efforts were made –particularly by Subsea 

and P&T –tobuild up bases and organisations 

for delivering services and products 

to the group’s installed base of solutions. 

This forms part of the group’s long-term 

strategy to strengthen its position in the 

lifecycle services market. This strategy is 

expected to contribute to higher margins. 

An extensive cost-cutting programme 

was launched in the second half of 2007 

and continued throughout 2008. The instability 

of the world economy means that 

high priority will continue to be given to the 

work of enhancing efficiency and flexibility 

in the cost base. 

Aker Solutions has asolid order backlog 

with aportfolio dominated by reputable 

national and international companies. The 

total order intake in 2008 came to NOK 

55 590 million, and the group’s order backlog 

at 31 December was NOK 58 016 

million. This backlog is of high quality, and 

offers the potential to realise margin 

improvements. The group has so far had 

no significant cancellations of existing 

contracts, but certain anticipated new 

awards have been postponed. 

In the short term, some uncertainty 

prevails about the level of activity in Aker 

Solutions’ main markets. However, independent 

market analyses show that the oil 

companies must maintain ahigh level of 

activity within exploration for and development 

of oil and gas resources to replace 

declining production from existing fields 

while also meeting the anticipated growth 

in world energy consumption. The longterm 

market foundation is accordingly 

regarded as sound and interesting. 

The group has set ambitious targets for 

work on health, safety and the environment 

(HSE). The various programmes in this 

area continued in 2008 to help the group 

meet its ambition of zero harm to people, 

material and non-material assets and the 

environment. These efforts are yielding 

good results, with adecline in both sick 

leave and the total injury frequencies in 

2008 compared with the year before. 

The business 

Principal operations 

Aker Solutions is a leading international 

supplier of engineering services, fabrication, 

technology products, maintenance, 

specialised services and total solutions for 

the energy and process industries. Its main 

operations embrace deliveries to oil, gas 

and petrochemical facilities. The group also 

pursues substantial activities related to 

deliveries to projects for gas- and coal-fired 

power stations, metal processing plants 

and other selected industries. 

To achieve an organisation of the business 

which better reflects customer 

requirements, the group’s business areas 

were restructured during 2008. 

The Field Development (FD) and Maintenance, 

Modifications and Operations 

(MMO) business areas were merged to 

create ED&S with operational effect from 

1September 2008 and accounting effect 

from 1January 2008. 

Structural changes were also implemented 

in Subsea and P&T in order to 

streamline the technology, solutions and 

services offered by the group to its 

customers and market segments. 

The business is thereafter organised in 

the following four business areas and 

reporting segments: 

Energy Development &Services (ED&S) 

Subsea 

Products &Technologies (P&T) 

Process &Construction (P&C) 

The group had 23 360 employees at 

31 December 2008, including 11 464 in 

Norway, plus 10 601 contract staff. Aker 

56 




Solutions has operations in about 30 countries. 

Its head office is in Norway, at 

Snarøya outside Oslo. 

The parent company Aker Solutions 

ASA is listed on the Oslo Stock Exchange 

with ticker code AKSO. The largest shareholder 

is Aker Holding AS, with 40.27 

percent of the shares. 

Strategic target areas 

Aker Solutions’ vision is to be the preferred 

partner for projects, products and services 

in the energy and process industries. 

Its employees represent leading-edge 

expertise in anumber of areas, and the 

group enjoys areputation as an attractive 

business partner and employer. 

Aker Solutions occupies astrong market 

position, which will be consolidated 

and further developed. That calls for 

significant commitment and substantial 

resources. Expectations from investors, 

customers and employees, and from the 

community and the market in general, will 

be met by delivering responsibly,profitably 

and consistently. 

The group’s long-term strategy remains 

unchanged, and defines the following target 

areas for 2009 to help realise its vision. 

Commitment to solutions for harsh 

environments and deeper waters 

Aker Solutionsisone of theworld’s leading 

suppliers of solutions for energy and 

processing facilities in harsh environment 

regions, both offshore and on land. The 

group has an extensive list of project references 

in concrete technology, floating 

deepwater platforms, subsea technology 

and land-based plants suited for harsh 

weather conditions in arctic areas and 

deep water. A large proportion of the 

remaining unexploited oil and gas 

resources are expected to lie in such 

regions. The position of Aker Solutions as 

one of the few suppliers to combine 

advanced technology with the ability to 

deliver complete solutions makes the 

group an attractive partner for customers 

with demanding projects in deep waters 

and harsh environments. 

Solutions for well stream and reservoirs 

Alarge proportion of newoil and gas fields 

have high development costs. Making better 

use of existing oil and gas fields offers 

significant potential for many operators. 

Aker Solutions has specialised businesses 

with expertise in reservoir analysis and 

optimisation of well streams. That makes it 

possible for oil and gas operators to improve 

the recovery factor for existing fields 

where they have already invested in installations 

and other infrastructure. 

Other,smaller reservoirs aretobefound 

in the vicinity of many large fields. 

Advanced drilling and well technologies 

from Aker Solutions make it possible to 

drill new wells horizontally from existing 

installations to reach satellite reservoirs, 

permitting better utilisation of the installations’ 

capacity. For fields where reservoir 

pressure has declined after anumber of 

years on stream, Aker Solutions delivers 

technology to increase pressure through 

water or gas injection. The group also has 

advanced solutions for maintaining and 

improving oil and gas flows from existing 

fields. This IOR segment is expected to 

make favourable progress. 

Grow service business 

Aker Solutions isamajor supplier of complete 

production facilities for the energy 

and process sectors. It also offers products 

and systems such as subsea installations 

and drilling solutions. The detailed 

knowledge of the plant or its products, 

gained when aproject is delivered, opens 

up opportunities to provide efficient 

models for later maintenance, upgrades 

and other services throughout the lifecycle 

of the product or installation. These models 

often call for specialised expertise, which 

gives suppliers with alarge installed base 

an interesting and long-term market. 

During recent years, Aker Solutions has 

substantially increased deliveries of its 

systems and plants, and the market for 

services throughout the lifecycle of its 

solutions establishes abasis for attractive 

margins. 

While a new development project, 

product or system delivery usually lasts one 

to five years, an installation must be maintained 

over several decades. The service 

market is accordingly very long-term and 

rather less cyclical than the market for new 

projects. 

Further development of strong position in 

the growing MMO market in the North 

Sea basin 

Aker Solutions has delivered a large 

proportion of the offshore installations in 

the North Sea basin, particularly on the 

Norwegian Continental Shelf. The maintenance 

market embraces ongoing services, 

“Aker Solutions has 

asolid order backlog 

with aportfolio 

dominated by 

reputable national 

and international 

companies” 

major upgrades and efficiency improvements. 

The last of these segments 

demands an in-depth understanding of 

doing work on installations in production, 

combined with expertise in executing 

major changes and delivering new components 

and modules to those installations. 

A number of the installations in the 

North Sea basin have been in operation for 

many years, and need extensive upgrades. 

Aker Solutions has an experienced and 

highly competent organisation of engineers 

and operators which, combined with 

its fabrication capacity, will be utilised in 

competing for major maintenance and 

upgrade assignments. 

Shifting P&C’s centre ofgravity towards 

China, India and South America 

Efforts toexpand the activities of the process 

and metals businesses in Asia and 

South America will continue. Much of their 

new capacity will be concentrated in these 

regions. In addition, moreemphasis will be 

given to facilitating the transfer of technology 

and expertise from Europe to this business 

area’soperations in other parts of the 

world, particularly in growth markets such 

as India and China. 

Increasing the efficiency and flexibility of 

our cost base 

An extensive cost-cutting programme was 

initiatedinthe second half of 2007 and has 

continued through 2008. Going forward, 

the key initiatives and programmes in this 

area will address risk management, project 

execution, cost consciousness and yard 

capacity adjustments, in addition to the 

utilisation of low cost hubs in India, Brazil 

and Malaysia. 

Continuing to enhance Health, Safety 

and Environmental (HSE) performance 

Aker Solutions will continue to enhance 

HSE and further develop the Just Care 

culture designed to strengthen the focus 




on HSE in every project and product delivered. 

The strong commitment to HSE 

education will continue throughout 2009 

and the group will continue to develop its 

responsibilities as acorporate citizen. 

Markets 

Aker Solutions’ principal markets have 

long been characterised by good progress 

and high demand. With reserves in existing 

fields contracting and their production in 

decline, afundamental need for many new 

developments continues to exist in the 

longer term. Following the international 

financial crisis, however, there is great 

uncertainty about market prospects for 

the next few years. 

It is still too early to judge how the turbulence 

in the world economy will affect 

markets, and it remains uncertain how 

long the crisis will persist. 

In the short term, levels of activity in 

Aker Solutions’ main markets are likely to 

decline. Demand is expected to recover in 

the longer term, based on growing shortages 

of oil, gas and important metals. As a 

result, the fundamental basis for further 

market growth probably exists in arather 

longer perspective. 

Oil prices affect activity in anumber of 

Aker Solutions’ main markets. Their level 

also influences oil company priorities for, 

and choices between, new developments, 

upgrading existing facilities and committing 

to improved recovery from producing 

fields. The group’s share ofnew deliveries 

compared with service assignments may 

accordingly vary over time in line with oil 

price trends. 

More difficult access to capital and 

project finance reduces opportunities for a 

number of customers to launch new 

projects. The level of activity at many oil 

companies is closely related to developments 

in their cash flow, which means that 

some operators will postpone large new 

developments. In anumber of cases, these 

will be replaced by an increased focus on 

upgrading existing installations which can 

help to reduce costs per unit produced. 

Oil company interest in upgrading existing 

facilities or investing in improved recovery 

from producing oil and gas fields is 

usually closely related to marginal costs 

per unit produced. In recent years, new 

technology has already yielded more automated 

operations and lower costs for a 

number of installations, and the recovery 

factor on anumber of fields has exceeded 

the levels previously considered feasible. 

Nevertheless, operators of agreat many 

producing fields around the world consider 

it interesting to invest in substantial 

upgrading and improved recovery. Aker 

Solutions has solid experience and 

proprietary technologies which give it a 

strong position in this part of the market. 

The bulk of the world’s oil and gas production 

comes from facilities on land and 

in shallower waters offshore. These fields 

were developed early because their 

reserves could be accessed with relative 

ease. Most of the installations on these 

fields are now old and offer limited opportunities 

for further production increases. 

Both recoverable reserves and output are 

declining on many of them. As aresult, a 

number of discoveries have been developed 

in deeper water over the past 15 

years, and asignificant proportion of undeveloped 

reserves arethought to lie in deep 

waters and harsh environments. Anumber 

of oil companies have substantial interests 

in and fairly specific plans for such 

developments, but costs lie in many cases 

at alevel which requires arelatively high oil 

price to make their realisation commercially 

interesting. Current doubts about the 

world economy and its possible effect on 

short-term oil price trends mean that the 

timing of development decisions is uncertain 

for anumber of projects. 

It usually takes many years before a 

major new project results in production. 

Despite the general market downturn, 

some customers with strong liquidity 

report that they plan to maintain their 

investment programmes. Their intention is 

to benefit from having new production 

capacity available when demand starts to 

rise again. 

Most international industrial sectors 

have experienced sharp price increases 

for materials and labour in recent years, 

while production capacity has also been 

exploited to the full in many cases. The 

current economic downturn has eased the 

pressure onthe whole supplier chain, with 

the result that customers increasingly 

expect lower prices. Pressure on prices 

must be expected to rise as competition 

stiffens when spare capacity becomes 

available at agrowing number of suppliers. 

Aker Solutions will make active use of its 

attractive technology, solid order backlog 

and strong financial position to compete 

for new assignments. The group intends to 

maintain its strategy of selecting, winning 

and executing the projects in which it 

would be appropriate to become involved, 

and thereby seek to avoid contracts which 

fail to provide a basis for satisfactory 

results. 

Risk management 

Aker Solutions’ commercial operations will 

normally involve risk. The group works 

systematically with risk management 

through extensive systems and procedures 

in all its business areas. The aim is to 

ensure a thorough assessment of both 

new and existing deliveries. Risk management 

and risk awareness also represent 

key elements in educational activities and 

the corporate culture. The goal is not to 

avoid all risk, but to understand, manage 

and be paid for accepting it. Thorough risk 

assessment is acore competence which 

can provide the group with competitive 

advantages. 

The group has a corporate treasury 

function which comprises the operational 

activities and corporate functions involved 

in managing financial risk. Risk also represents 

akey element and area of expertise 

for other corporate staff departments, 

such as legal affairs and accounting. In 

addition, certain special departments have 

risk as their particular focus area. 

Enterprise risk has been established to 

coordinate group risk management not 

included in the traditional project and 

finance areas. 

Internal audit inspect that policies, 

instructions and experience of best practice 

areimplemented and followed up. 

Project and operational support assists 

the operational businesses and 

executive management with project 

assessments. 

An extensive system of common principles, 

procedures and instructions has been 

established to define how different types of 

risk aretobeidentified, reported and treated. 

This ensures that all the businesses in the 

group have well-entrenched guidelines to 

follow for most relevant risk conditions. 

Advisory committees have been established 

at corporate level to undertake 

quality assurance on a wide range of 

matters before afinal decision is taken by 

executive management or the Board of 

Directors. The decision-making system 

has been developed as an authorisation 

structure that defines which decisions can 

58 




be taken at different levels in the group. 

The following committees have been established 

at corporate level to evaluate 

matters before adecision by the executive 

management or main BoardofDirectors: 

the corporate risk committee considers 

project-specific risk 

the investment committee considers 

risk associated with the acquisition 

and sale of businesses as well as other 

investment decisions 

the finance committee considers 

financial market risk. 

Operational project risk: responsibility 

for ongoing risk assessment rests with the 

various operational business areas. Typical 

examples of such risks are the ability to 

deliver existing contracts at the agreed 

time, quality,functionality and price. Results 

also depend on costs –both Aker Solutions’ 

own and those charged by suppliers; interest 

expenses; exchange rates; and the risk 

related to the customer’s ability to pay. 

Delivering projects and equipment in 

accordance with the contract terms and 

within the anticipated cost framework represents 

asubstantial risk element, which 

will be among the most significant factors 

affecting the group’s results. 

Aker Solutions has acommon model for 

the execution and follow-up of every phase 

of adelivery including evaluation, tendering, 

decision making, execution and completion. 

This Project Execution Model 

(PEM) is common to all the business 

areas for project execution and deliveries. 

The PEM allows for each business area’s 

differing types of projects and deliveries, 

while securing a unified approach and 

providing opportunities for cross-organisational 

deliveries. The group has established 

decision-making and evaluation 

bodies at various levels to deal with project 

and equipment deliveries. At the pinnacle 

of this system sits the corporate risk committee, 

which assesses and recommends 

contracts to the appropriate decisionmaking 

authority (the President &CEO or the 

Board). This committee, which typically 

assesses the largest and most extensive 

tenders, reviewed about 40 projects in 2008. 

Acquisition/sale of businesses and other 

investment decisions: major business 

acquisitions or sales and substantial 

spending on fixed assets (property, 

machinery and equipment) are submitted 

to the investment committee for arecommendation 

before final approval by the 

executive management or the Board. The 

committee becomes involved at an early 

stage in such processes, and evaluations 

from the relevant specialist staff functions 

form an important part of the assessment 

process. Such work provides proactive 

quality assurance that all necessary considerations 

have been properly assessed, 

including the question of whether the 

investment satisfies the group’s required 

rate of return. The committee often provides 

guidance for further work by the 

business areas on acquisitions and investments, 

and ensures that capital spending 

is followed up with requirements for 

calculations of the results achieved. 

Financial market risk: Aker Solutions has 

established guidelines and systems to 

manage its exposure infinancial markets. 

These cover currency, interest rate, counterparty 

and liquidity risk. Significant bank 

guarantees have also been issued to 

customers in connection with the group’s 

activities. 

Currency risk: operational units cover 

their foreign currency positions via the 

corporate treasury department when 

contracts are awarded. In turn, the 

treasury department covers these positions 

directly against external banks. 

Operational units are required to cover 

their currency positions against their 

functional currency. All major contracts 

are hedged and documented in such a 

way that they qualify for hedge 

accounting. Qualified hedges account 

for about 80 percent of the group’s 

total currency exposure. The remaining 

20 percent is secured through net positions 

which do not qualify for hedge 

accounting under the relevant accounting 

standards. The corporate treasury 

department is also mandated to take a 

limited open position. This activity 

yielded earnings of NOK 37 million in 

2008. Total currency turnover for the 

company against external banks in 

2008 was almost NOK 107 billion. 

Interest rate risk: the corporate goal is 

to have 30–50 percent of gross debt 

on fixed interest rates for three to five 

years. At 31 December, about 40 percent 

of the outstanding debt had fixed 

interest rates. 

Counterparty risk: specific and continuous 

assessments are made of major 

 

 

“The group intends to 

maintain its strategy 

of selecting, winning 

and executing the 

projects in which it 

would be appropriate 

to become involved” 

contractual counterparties, and efforts 

are made to cover risk through parent 

company guarantees, structuring of 

payment terms or bank guarantees. 

Where bank risk and the placement 

risk for surplus liquidity are concerned, 

specific maximum levels have been set 

for the group’s exposure toeach financial 

institution. 

Liquidity risk: in addition to seeking to 

ensure that all projects have apositive 

or neutral cash flow, the group’s policy 

is to maintain satisfactory liquidity at 

corporate level. This liquidity buffer is 

expressed as the sum of undrawn bank 

credit facilities and available cash and 

bank deposits. Experience indicates 

that the buffer should correspond to 

about three to four weeks of turnover or 

six to eight percent of annual revenues. 

The working capital will vary over time, 

depending on the composition of revenues 

in the various segments. Efforts 

will be made to ensurethat debt has an 

average remaining term of three to five 

years. Anew bank credit facility of NOK 

2.0 billion with athree-year term was 

secured in December 2008 to strengthen 

the group’sliquidity buffer,which 

amounted at 31 December to NOK 

8157 million or roughly 14 percent of 

2008 revenues. The average weighted 

duration of existing outstanding debt 

and committed credit facilities is 3.21 

years. Aker Solutions is in compliance 

with all the financial covenants in its loan 

agreements (see note 25.6 Borrowings 

and other non-current liabilities to the 

consolidated accounts). 

Guarantee portfolio: asignificant 

proportion of business area contracts 

are supported by bank or insurance 

guarantees. On-demand guarantees 

account for alarge share ofthese, 

particularly in ED&S, Subsea and P&T. 

This means that they can fall due for 




payment at short notice. Careful 

assessments are made before providing 

such on-demand guarantees, with 

insurance policies taken out if necessary 

to protect against unfriendly 

claims under the guarantees. The 

group’s guarantee portfolio at 31 

December totalled NOK 7855 million. 

The increase from NOK 5500 million in 

2007 reflects mainly exchange rate 

fluctuations. NOK 2624 million in new 

guarantees were provided during 2008. 

Further details about uncertainties and 

contingent events are presented in 

note 13 Contingent events to the 

consolidated accounts. 

The year 2008 

New name 

The Board’s proposal to change the company 

name from Aker Kværner ASA to 

Aker Solutions ASA was approved by the 

Annual General Meeting (AGM) on 3April 

2008. This change was aconsequence of 

the clarifications obtained in 2007 concerning 

the company’sownership structure. 

The new Aker Solutions name represents 

the culmination of an integration process 

between two historical competitors, Aker 

Maritime and Kvaerner, and describes an 

enterprise which develops complete 

industrial solutions for its customers. The 

new name will symbolise clarity, innovation 

and progress while emphasising its 

family affiliation and the commercial opportunities 

created through collaboration with 

other Aker companies. In connection with 

the name change, anew logo and visual 

identity wereintroduced for Aker Solutions. 

Restructuring of the business areas 

In order tostreamline the organisation of 

the business even further, aninternal process 

pursued in the course of 2008 led to 

the merger of the FD and MMO business 

areas, forming ED&S with operational 

effect from 1September 2008. The goal of 

this new business area is to make better 

use of its specialist resources and leadingedge 

expertise. That creates opportunities 

for cost savings and for exploiting synergies 

between the development and servicing of 

oil and gas installations. One aim for the 

merger is to contribute to asharpening of 

the group’s commercial and technological 

image, and to expansion in existing and 

selected new markets. 

Structural changes were also made in 

Subsea and P&T with the goal of streamlining 

the group’s offers of technology, 

solutions and services to customers of 

these two business areas. The changes 

mean that Aker Marine Contractors, Aker 

Well Service and Aker Geo business units, 

previously part of the P&T business area, 

arenow integrated in the Subsea business 

area, while the drilling risers have been 

moved from Subsea to P&T. Anoperational 

adjustment began on 1October 2008, and 

the full effect in organisational and accounting 

terms applied from 1 January 2009. 

The driving force behind the restructuring 

has been to concentrate all the group’s 

subsea and sub-surface activities in the 

same business areas in order to improve 

opportunities to create and exploit commercial 

synergies. The changes moreover 

mean that Subsea and P&T have further 

tailored the solutions, technological products 

and services they offer to market 

requirements. 

Investments 

As part of the strategy of complementing 

the portfolio of products and solutions, 

some NOK 1.8 billion in total was devoted 

in 2008 to the acquisition of businesses. 

Other investments totalled about NOK 1.6 

billion. Conducted in line with the group’s 

strategy, the investments were largely 

carried out by Subsea and P&T to meet 

customer requirements. A commitment 

has been made, for instance, to building 

up aglobal service organisation to meet 

the local needs of customers. 

British company Qserv Ltd, which specialises 

in well intervention, was acquired 

in July 2008. Demand for products and 

services able to enhance the efficiency of 

existing wells is growing sharply, and the 

acquisition strengthens Aker Solutions’ 

position in the well intervention market. 

Qserv has almost 400 employees, including 

250 offshore, and had annual revenues 

of NOK 711 million in 2008. 

During the second half of 2008, Aker 

Solutions acquired afurther 40 percent of 

the shares in Aker Marine Contractors AS 

and thereby converted this company into a 

wholly-owned subsidiary. The acquisition 

formed part of the long-term strategy of 

strengthening the group’s position along 

the value chain for marine operations and 

oil and gas services. Both Qserv and Aker 

Marine Contractors will form part of the 

Subsea business area. 

The Well Intervention Academy, atest 

and training centre for well services, 

opened in Stavanger during May. Its objective 

is to provide new generations of offshore 

operators and engineers with first-hand 

experience of activities in the well services 

segment. Investment was also made in 

new office buildings and a new service 

base for Subsea at Perth in Australia, and 

it was resolved in September 2008 to 

expand the Brazilian production facility at 

Curitiba in order to double capacity for 

manufacturing subsea trees by 2010. 

Acquiring amajority shareholding in First 

Interactive AS is highly significant for P&T. 

This company pursues three-dimensional 

visualisation and simulation of drilling 

operations, in part for training customer 

drilling personnel. The acquisition will help 

to strengthen the group’s market position 

even further in this field. Aker Solutions also 

has an option to acquire the remaining 

shares in the company. 

In Canada, an investment was made in 

expanding production facilities for Aker 

Chemetics in Toronto. Construction of this 

facility increases manufacturing and lifting 

capacity and permits further development 

of expertise in specialised welding, as well 

as in working with stainless and high-alloy 

steels. 

Presentation of the accounts 

Aker Solutions presents its accounts in accordance 

with the International Financial 

Reporting Standards (IFRS). 

Income statement 

Consolidated operating revenues for 2008 

were NOK 58 252 million, and the group 

thereby met the goal of at least NOK 58 

billion communicated in the Board of 

Directors’ report for 2007 and on other 

occasions. This represented a0.5 percent 

increase from NOK 57 957 million in 2007. 

Considerable activity related to the completion 

of Ormen Lange and Snøhvit 

contributed to the high level of revenues in 

2007. In these circumstances, the Boardis 

satisfied that the goal of maintaining the 

level of revenues was met. 

Earnings before interest, tax, depreciation 

and amortisation (EBITDA) amounted 

to NOK 3382 million, adecline of 13.6 percent 

from NOK 3913 million in 2007. The 

EBITDA margin was 5.8 percent as against 

6.8 percent in 2007. The EBITDA decline is 

primarily attributable to cost overruns in 

the Frigg and Aker H-6e projects. 

Depreciation, impairment charges and 

amortisation totalled NOK 615 million, 

60 




compared with NOK 431 million in 2007. 

Consolidated earnings before interest and 

taxes (EBIT) were NOK 2767 million as 

against NOK 3482 million in 2007. 

Net financial expenses amounted to 

NOK 225 million, compared with NOK 106 

million in 2007. 

The group hedges currency risk for all 

project exposures in accordance with wellestablished 

practice. Although this provides 

afull currency hedge, parts of the 

hedging (about 20 percent) fail to meet the 

requirements for hedge accounting specified 

in the IAS 39 international accounting 

standard. Fluctuations in the value of the 

associated hedging instruments are recognised 

as afinancial item in the accounts. 

The accounting effect appears as an 

expense of NOK 439 million in aseparate 

line under financial items for 2008. The 2007 

figurewas an income of NOK 162 million. 

The loss from associated companies 

was NOK 21 million, compared with aloss 

of NOK 2million in 2007. Taxexpense was 

NOK 590 million as against NOK 1074 million 

the year before. This corresponds to 

an effective tax rate of 28 percent, compared 

with 30 percent in 2007. 

Consolidated net profit for 2008 was 

NOK 1513 million, compared with NOK 

2464 million the year before. This represented 

earnings per share ofNOK 5.34, 

down from NOK 8.84 in 2007. 

Cash flow 

Net cash flow from operations was 

negative NOK 868 million, compared 

with positive NOK 2675 million in 2007. 

Consolidated cash flow from operating 

activities depends on anumber of factors 

including progress with and delivery of 

projects and pre-payments from customers 

which lead to asignificant increase in 

working capital during the period. 

Net cash flow from investment activities 

in 2008 was negative NOK 3732 million, 

primarily as aresult of investment in the 

Subsea and P&T business areas. The figure 

for 2007 was negative NOK 1576 million. 

Net cash flow from financing activities 

was NOK 4 105 million, compared with 

negative NOK 3013 million in 2007. The 

2008 figure includes NOK 807 million in 

dividend paid in 2008 and NOK 70 million 

in buying back the company’s own shares. 

Balance sheet and liquidity 

Consolidated interest-bearing debt amounted 

to NOK 6.7 billion at 31 December, up 

from NOK 1.6 billion at the same date the 

year before. Long-term debt comprised 

four bond loans in the Norwegian market. 

These loans were for NOK 500 million maturing 

in 2009, NOK 650 million maturing in 

2011, and NOK 150 million and NOK 300 

million respectively, maturing in 2013. They 

have floating interest rates with the exception 

of the loan for NOK 150 million maturing 

in 2013, which has afixed rate. Parts of 

the loans with floating rates have been converted 

to fixed rates through interest swap 

agreements. Fifty percent of the total bond 

loans accordingly have fixed rates. The 

average term to maturity for these loans is 

about three years. 

Asyndicated bank facility of EUR 750 

million (corresponding to NOK 7410 750 

million at 31 December 2008) was established 

on 25 October 2006, and has four 

years remaining to maturity.The bank facility 

had been drawn at 31 December 2008. 

Anew credit facility of NOK 2000 million 

was established by the company in December 

2008 with a term of 18 months to 

maturity and an option to extend this term 

by afurther 18 months to atotal of three 

years. This facility had not been drawn at 

31 December 2008. 

As an alternative to drawing on the bank 

facility in 2008, use was made of the 

Norwegian certificate market. 

Net interest-bearing debt amounted to 

NOK 2311 million at 31 December 2008, 

compared with assets of NOK 2463 million 

ayear earlier. This reduction reflects acquisitions, 

investments, increased working 

capital and the payment of dividend. 

Current liabilities of NOK 25 172 million 

at 31 December 2008 consisted primarily of 

trade and other payables. The corresponding 

figure in2007 was NOK 17 127 million. 

Aker Solutions’ current assets totalled 

NOK 25 217 million at 31 December 2008, 

compared with NOK 19 866 million ayear 

earlier. 

Consolidated non-current assets totalled 

NOK 13 150 million at 31 December, compared 

with NOK 8650 million ayear earlier. 

The largest item was goodwill, which 

amounted to NOK 6959 million as against 

NOK 4938 million. This goodwill relates 

primarily to the acquisition of Trafalgar 

House in 1996, the merger with Aker Maritime 

in 2001 and the acquisition of Qserv 

Ltd and Aker Marine Contactors AS in 2008. 

Book equity including minority interests 

totalled NOK 8606 million at 31 December, 

compared with NOK 7267 million ayear 

“Conducted in line 

with the group’s 

strategy, the 

investments were 

largely carried out by 

Subsea and P&T to 

meet customer 

requirements” 

earlier.Minority interests amounted to NOK 

156 million. The group’s equity ratio was 

20.1 percent of the total balance sheet at 

31 December,compared with 25.5 percent 

a year earlier. Financial adequacy and 

liquidity are good, and help to place the 

group in agood position to meet the challenges 

and opportunities presented over 

the next few years. 

The business areas 

Energy Development &Services results 

from amerger between the former FD and 

MMO business areas. With some 8500 

employees, ED&S ranks as asubstantial 

business in its own right. An efficient merger 

process was implemented in the summer 

of 2008 through good planning and positive 

collaboration with the workforce. 

The business area maintained ahigh level 

of revenues in 2008. The year before was 

characterised by record revenues related 

in part to great activity on projects such as 

Ormen Lange and Snøhvit. Operating 

revenues came to NOK 22 684 million, compared 

with NOK 24 921 million in 2007. 

Major projects pursued during 2008 

included construction and delivery of the 

world’s first offshore regasification terminal 

for ExxonMobil’s Adriatic LNG project. In 

the course of 2009, this facility will deliver 

10 percent of Italian gas consumption. One 

of Italy’s most extensive projects, this 

development is regarded as an international 

milestone. Another project which 

characterised activities in 2008 was the 

construction of the world’smost advanced 

drilling rigs, the Aker H-6e units Aker 

Spitsbergen and Aker Barents, for Aker 

Drilling. They are expected to be completed 

and delivered during the first half of 

2009. 

EBITDA for 2008 was negative at 

NOK 475 million, compared with apositive 




NOK 1391 million in 2007. The EBITDA 

margin was negative at 2.1 percent as 

against a positive 5.6 percent in 2007. 

Efforts to strengthen profitability in 2008, 

in line with the group’s overall strategy, 

have been impacted both by the removal 

of the Frigg field’s platforms, which proved 

more demanding and thereby more expensive 

than expected, and by cost overruns 

driven by operational challenges related to 

the Aker H-6e rig project 

New contracts weresecured in anumber 

of areas during 2008. Long-term, ongoing 

frame agreements for operation and maintenance 

work in the North Sea basin were 

concluded, while an extensive front-end 

engineering and design (FEED) contract was 

obtained for renewal work on the Ekofisk 

field. Together with WorleyParsons and 

Chicago Bridge &Iron(CB&I), Aker Solutions 

also won the FEED contract for the next 

development phase on the Kashagan field in 

the Caspian Sea. The order backlog at 1January 

2009 was NOK 18 315 million, compared 

with NOK 24 317 million ayear earlier. 

The financial crisis is expected to contribute 

to some postponement of new build 

activity in 2009, but the long-term market 

outlook for new builds is regarded as positive. 

Activity in the MMO market should 

remain at ahigh level in 2009, since the 

planned work makes asignificant contribution 

to maintaining and reinforcing efficient 

running of installations by their operators. In 

the operations and maintenance segment, 

ED&S holds anumber of long-term frame 

agreements with the biggest operators. 

The new business area’s combined 

expertise and capacity allows it to undertake 

even more and larger projects than 

before inregions outside the North Sea 

basin. One ED&S goal is to maintain its 

shareofthe traditional MMO and new build 

markets on the Norwegian and UK continental 

shelves. Acommitment will simultaneously 

be made to strengthening its 

market position in such areas as Russia, 

the Barents Sea, the Caspian Sea, the 

deepwater Gulf of Mexico and regions 

wherethe business has competitive advantages 

in technological terms. 

Subsea underwent a successful expansion 

and restructuring in the autumn of 

2008 with the aim of strengthening the 

range of subsea technologies, solutions 

and services offered throughout the value 

chain. As aresult, Aker Marine Contractors, 

Aker Well Service and Aker Geo business 

units were integrated in the business 

area, while the drilling riser business was 

transferred to P&T. Aspart of its strategy, 

Aker Solutions also acquired Qserv in July 

2008, aleading well service company that 

operates on the UK Continental Shelf. 

Through these moves, Aker Solutions 

has established its Subsea business area 

as the industry’s most complete supplier 

for advanced subsea solutions, with the 

ability to serve as apartner throughout the 

full lifecycle of asubsea field. 

The business area had ahigh level of 

activity in 2008, making good operational 

and financial progress, and the aftermarket 

segment continued to grow throughout the 

year. Total operating revenues rose by 13.8 

percent from 2007 to NOK 11 206 million. 

EBITDA was NOK 1228 million, compared 

with NOK 960 million in 2007. Profitability 

strengthened substantially in 2008. 

The EBITDA margin improved from 9.7 

percent the year before to11percent as a 

result of good progress for lifecycle 

services and excellent project execution. 

In the North Sea basin, Subsea progressed 

well with the execution of the Morvin 

and Ormen Lange projects for Statoil- 

Hydro. First oil was produced by Reliance 

Industries from its MA-D6 field on the 

Indian Continental Shelf in September, 

only 16 months after awarding Aker Solutions 

the contract to deliver acomplete 

subsea production system. The group also 

won asubstantial contract in 2008 to install 

the field’s second phase. 

Aker Solutions secured several other 

substantial assignments during the year. A 

frame agreement was awarded in Brazil 

with Petrobras for delivering 45 subsea 

trees. Long-term frame agreements for 

subsea equipment were also signed with 

Shell (Malaysia and the UK), Murphy 

Exploration &Production Company (Gulf 

of Mexico) and BP (Angola and the UK). 

Markets areexpected to be uncertain in 

the immediate future, but positive in the 

longer term. The order backlog at 1January 

2009 was NOK 11 876 million, compared 

with NOK 10 951 million ayear earlier. 

Subsea has continued the strategy of 

investing in production and lifecycle capacity 

to achieve closeness to regional markets 

and deepwater regions. The business area 

has a very modern and well-developed 

production and lifecycle network, and is 

well positioned for further growth. A 

commitment will also be maintained to 

technology development in selected areas, 

in part to improve recovery factors for 

producing fields. This is a market where 

Aker Solutions already holds a leading 

position for both technological and maintenance 

services. 

Products &Technologies experienced a 

high level of activity in its market segments 

during 2008. Operating revenues rose by 

15.1 percent from the year before toreach 

NOK 14 216 million. 

Atotal of seven drilling equipment packages 

were completed during the year and 

are operating on rigs for various customers. 

P&T also contributed important deliveries 

to the Dhirubhai 1 floating production, 

storage and offloading (FPSO) unit for 

Reliance Industries. 

EBITDA for 2008 came to NOK 1448 

million as against NOK 959 million the year 

before. The EBITDA margin was significantly 

strengthened, from 7.8 percent in 

2007 to 10.2 percent. This improvement in 

profitability reflects good project execution 

as well as the contribution from an 

expanding service business. 

The market for drilling equipment continued 

to grow. The strong market position 

held by Aker Solutions was confirmed by 

the award ofcontracts to deliver 12 complete 

drilling equipment packages and six 

drilling riser contracts. Order intake was 

good in 2008, and the backlog at 31 December 

had risen from NOK 11 520 million in 

2007 to NOK 14 705 million. 

Through its successful acquisition of 

important technology companies, Aker 

Solutions is well positioned to grow in the 

market for drilling equipment. P&T has, for 

many years, received important components 

for its drilling systems from Wirth 

GmbH, aGermany-based drilling technology 

specialist. Acquiring this company is 

an example of complementing the most 

high-tech sections of the value chain, while 

also expanding the customer base. With 

Wirth as awholly-owned subsidiary, Aker 

Solutions expects to be able to strengthen 

deliveries of complete drilling equipment 

packages. An investment has also been 

made in amanufacturing plant for deepwater 

drilling risers. Opened in 2008, this facility is 

strategically located in Rio das Ostras, Brazil, 

in order to serve both the fast-growing Brazilian 

oil industry and the global rig market. 

As areflection of the high level of activity 

in the oil and gas industry, over the last 

three years, drilling contractors have 

ordered alarge number of units for both 

62 




deep and shallow water. Following the 

award ofmany new contracts, P&T has 

expanded its market share and ranks as 

one of the market leaders for advanced 

deepwater drilling systems. Demand for 

new rigs is expected to decline in the short 

term. This will be partly offset by an 

expanding market for upgrades and 

increased service activity. In the longer 

term, market drivers are expected to 

ensure acontinued high level of activity 

and demand for advanced drilling rigs and 

equipment deliveries to FPSOs. Asteadily 

larger share of offshore operations is 

expected to lie in deep water and harsh 

weather areas, where only the most 

advanced rigs can work. More complex 

wells, challenging areas of operation and 

environmental requirements are likely to 

strengthen demand for such units. 

Short-term market conditions are 

expected to be challenging, and could 

lead to adecline in activity. However, a 

large, high quality order backlog will help 

to maintain the level of activity in 2009 and, 

to some extent, in 2010 and 2011. 

Process & Construction reduced its 

operating revenues in 2008 through acontinued 

concentration of the business. They 

came to NOK 10 702 million as against 

NOK 11 597 million in 2007. 

In line with the goal of strengthening 

profitability, high priority was given to 

margin growth. EBITDA was NOK 904 

million, up 16.5 percent from 2007. The 

EBITDA margin increased from 6.7 percent 

to 8.4 percent. The order backlog was 

NOK 13 300 million at 1January 2009 compared 

to NOK 12 519 million ayear earlier. 

The metals business has asolid order 

backlog and agood market position. In 

South America, the group’s leading position 

was further strengthened during 2008 

through the awardoffive new EPCM metal 

processing projects including Esperanza, 

the world’s largest copper development. 

New offices were opened in South Africa 

and Namibia to serve Aker Solutions’ 

global metals customers. 

In the petrochemicals sector, Aker 

Solutions’ projects have been gradually 

converted from lump sum EPC contracts 

to reimbursable EPCM deals. This deliberate 

conversion yields rather lower revenues 

but better margins and less risk. Aker 

Solutions has a good petrochemicals 

position in China and India. Uncertainty 

prevails about these markets for the immediate 

future, but the market outlook is 

positive in the longer term. The group 

occupies astrong position in niches of the 

market for power plant construction, particularly 

in the US. 

Engineering capacity in India was 

expanded during 2008, and the staffisnow 

roughly 1700 engineers. The Indian business 

has become established as acentre for 

engineering services and is involved in 

many projects both locally and for Aker 

Solutions worldwide. 

The work of prioritising profitability 

rather than top-line growth will continue 

during 2009. Acommitment will be made 

to further strengthen P&C’s position in the 

metals market, especially within copper 

and in South America where many new 

projects are planned in the coming years. 

The business area will continue to concentrate 

on being a niche supplier to the 

process industry, and China and India will 

remain important growth markets. 

Research and development 

New technologies and new products are 

important requirements for safeguarding 

Aker Solutions’ future competitiveness. 

The group’s large and highly competent 

engineering teams work closely with partners 

and customers worldwide, and have 

first-hand knowledge of the latter’s technology 

challenges and requirements. This close 

collaboration initiates ideas and concepts 

which develop into innovative technology. 

That in turn generates high value creation 

for customers. It also ensures that research 

and development work is market driven 

and cost efficient. 

Atypical focus area is technologies for 

increased production and reservoir utilisation 

and for improved drilling processes. 

Important priorities in this context are solutions 

for subsea pumps which permit 

pipeline transport of oil and gas over longer 

distances, or gas compression to increase 

pressure. Aker Solutions has apilot installation 

of subsea pumps on the UK Continental 

Shelf, which has been operating 

with good results since 2005. The first 

commercial installation was put in place in 

the Gulf of Mexico during 2008. This is the 

deepest subsea pump solution ever 

installed. At the same time, the pumping 

station stands further from the platform to 

which it is tied than any similar facility. 

New and groundbreaking solutions are 

to be installed on StatoilHydro’s Tyrihans 

field in 2009. These involve pumps to inject 

“The group’s large and 

highly competent 

engineering teams 

work closely with 

partners and 

customers worldwide, 

and have first-hand 

knowledge of the 

latter’s technology 

challenges and 

requirements” 

seawater into the reservoir in order to 

improve production and recovery. The 

pumps will be the first of their kind delivered 

by Aker Solutions, and the largest 

ever installed on the seabed. 

Work is also continuing on seabed gas 

compression systems in close cooperation 

with StatoilHydro and its partners on 

Ormen Lange. The first objective of this 

project is a 12.5 MW gas compression 

pilot, currently under construction and due 

to be delivered for testing in 2010. 

Aker Solutions invested NOK 188 million 

during 2008 in research and development 

through selected projects, compared with 

NOK 166 million the year before. The group 

also received NOK 21 million in funds for 

technology development from customers 

and government, as against NOK 77 million 

in 2007. 

Events after the balance sheet date 

With partners CB&I and WorleyParsons, 

Aker Solutions was awarded a FEED 

contract in mid-January related to phase II 

of the Kashagan field development in the 

Caspian Sea. This order is worth GBP 90 

million (USD 135 million). 

A share purchase programme for 

employees was announced in January 2009, 

with Aker Solutions offering some 14 100 

employees in Norway,the Netherlands, the 

UK, Chile and Canada the opportunity to 

buy shares in the company at adiscount. 

The latter is set at NOK 1500 per employee 

up to amaximum purchase of NOK 15 000 

over the 12 months of the programme. 

This begins in March 2009. 

At the end of January, Aker Solutions 

exercised its option to acquirethe remaining 




50 percent of the shares in Wirth GmbH, 

which accordingly is considered as awholly 

owned subsidiary. Wirth and Aker Solutions 

have agood and long-standing relationship, 

and the acquisition will strengthen the 

group’stotal offering to the market for drilling 

equipment solutions while also providing 

synergy opportunities between the two 

companies. 

The composition of the group’s executive 

management team was changed in 

February 2009. Jarle Tautra took over as 

executive vice president (EVP) of ED&S in 

succession to Nils Arne Hatleskog, while 

Gary Mandel became EVP for P&C in succession 

to Jarle Tautra. 

Share and share capital 

During the year,Aker Solutions had bought 

back 595 000 of its own shares, corresponding 

to 0.2 percent of the issued total. 

The company owns atotal of 4966 830 

shares (1.8 percent). The buy-back programme 

for the company’s own shares 

continued under amandate awarded to the 

Board bythe AGM on 3April 2008. This 

mandate gives the company the 

opportunity to buy back shares with atotal 

nominal value of NOK 54 800 000, corresponding 

to ten percent of the outstanding 

shares. The Boardhas mandated the administration 

to buy back up to five percent. 

Repurchases above that percentage but 

within the AGM’s mandate must be 

considered by the Board. The mandate 

runs until the 2009 AGM, which will be 

held on 2April 2009. At 28 February 2009, 

no shares had been acquired under the 

mandate. The Board will propose an 

extension of the mandate from the date of 

the AGM’s decision until the next AGM. 

New terms will then be set for the buyback 

programme. The Boardwas not mandated 

in 2008 to increase the sharecapital. 

Going concern 

Based onthe group’s financial results and 

position, the Board affirms that the annual 

accounts for 2008 have been prepared on 

the assumption that the company is a 

going concern. 

Dividend policy 

Aker Solutions’ dividend policy specifies 

an intention to pay shareholders an annual 

dividend of 30–50 percent of net profit. 

Dividend will be paid in cash and/or 

through share buy-backs. The Board will 

propose atotal dividend of NOK 1.60 per 

share tothe AGM for 2008. Shareholders 

will then have received 33 percent of net 

profit in the form of share buy-backs and 

dividend for the fiscal year. 

Parent company accounts and 

allocation of net profit 

Parent company Aker Solutions ASA had a 

net profit of NOK 205 million for 2008. 

Pursuant to the company’s dividend 

policy,the Boardproposes that an ordinary 

dividend of NOK 1.60 per share bepaid. 

This amounts to NOK 430 million. 

The Board thereby proposes the 

following allocation of net profit: 

Dividend¹ NOK 430 million 

Other equity 

NOK -225 million 

Total allocated NOK 205 million 

1) Excluding dividend on own shares. 

Unrestricted equity after the proposed 

dividend payment amounts to NOK 3105 

million. 

Health, safety and the environment 

Concern for health, safety and the environment 

(HSE) isone of Aker Solutions’ core 

values. The fundamental vision and attitude 

is that all incidents can be prevented. 

On that basis, Aker Solutions works continuously 

to prevent incidents which could 

cause harm to personnel, material or nonmaterial 

assets. 

Driven by care 

The Just Care concept has been established 

as asymbol for the group’s HSE 

culture and work. Akey element is that 

each person accepts personal responsibility 

for HSE based on care for people and the 

environment. Through Just Care, the HSE 

message reaches the individual employee 

more effectively. Managers as role models 

and astrong commitment to communication 

and training create attitudes which integrate 

HSE in everyday work. That contributes to 

good projects and better HSE results. 

Acommon HSE culture 

Educationoccupies acentral place in Aker 

Solutions’ HSE programme. Since it was 

introduced in 2005, atailored HSE leadership 

programme, developed in-house, has 

been completed by morethan 2200 leaders. 

This programme equips managers with the 

competence required to become better 

role models and to drive HSE improvements. 

To reach out to all employees in an efficient 

way, the group has also developed its own 

eLearning programmes for important areas. 

These include the Just Care culture and 

HSE as acorevalue, as well as morespecific 

topics on mastering stress and protecting 

the natural environment. More than 57 000 

eLearning sessions have been completed 

since the programmes wereintroduced. 

Clear expectations 

Acommon HSE management system for 

the whole company sets standards for the 

most important elements in HSE management 

and leadership. Regular audits uncover 

possible gaps in relation to expectations, 

and the necessary countermeasures 

are identified and initiated. This system 

also functions as aframework for crossorganisational 

sharing and learning. 

Learning from accidents 

On the basis of an analysis of incidents in 

recent years and exchange of experience 

in the industry, Aker Solutions has developed 

and adopted anew component in its 

HSE programme. Entitled Just Rules, this 

is aset of simple but specific safety regulations 

for particular work operations which 

are judged, on the basis of experience, to 

pose higher risks. The categories within 

Just Rules are: lifting operations, work at 

height, energy isolation, confined space 

entry, excavation and mobile equipment. 

These rules were implemented throughout 

Aker Solutions during 2008. More than 

32 000 employees, contract staff and subcontractor 

personnel participated during 

the year in presentations of Just Rules as 

part of their extensive roll-out. By making 

the most important preventative measures 

obligatory, clear and simple, Just Rules 

will be an important contribution to preventing 

serious incidents. 

The number of accidents causing serious 

personal injury declined from 30 in 2007 to 

17 in 2008. The total recordable injury frequency 

(TRIF) per million working hours fell 

from 3.7 to 3.6 in 2008. The lost time incident 

frequency (LTIF) per million working hours 

rose from 0.68 in 2007 to 0.93 in 2008. 

These figures also include Aker Solutions’ 

subcontractors. All significant accidents 

and near-misses are investigated and the 

treatment of each case is systematically 

stored in Aker Solutions’ database. The 

lessons learned from these accident and 

near-misses are implemented with the aim 

of preventing similar incidents in the future. 

64 




Sick leave 

Sick leaveamountedto2.3 percent of total 

working hours in 2008, compared with 2.4 

percent the year before. The trend is for 

sick leave in the group to remain stable at 

alow level after aclear decline in 2003-2006. 

However, it should be noted that differences 

in local regulations complicate a 

direct comparison of sick leave between 

different countries. 

Natural environment 

The Board takes the view that Aker 

Solutions’ activities pose only a limited 

direct burden on the natural environment. 

No unintentional discharges or emissions 

to the surrounding environment were 

recorded in 2008. Total energy consumption 

by the business in 2008, based on 

recorded use of oil, gas and electricity, 

amounted to 623 049 megawatt hours. 

Carbon emissions related to this usage are 

calculated at 146 654 tonnes. The amount 

of waste recorded in connection with the 

business totalled 35 756 tonnes, of which 

62 percent was recycled. Reporting processes 

for environmental parameters have 

been improved, and the figures above are 

being reported from 2008 with greater 

accuracy than before. 

The group’starget for 2009 is to increase 

employees’ environmental knowledge and 

awareness. Initiatives will be rolled out 

through acommon, global environmental 

campaign including: further implementation 

of eLearning courses for all employees, 

additional focus on environmental 

reporting, workshops for top managers, 

encouraging more business units to be 

certified to the ISO 14001 standard, and 

an environmental portal on the intranet. All 

these activities will be carried out in 

conjunction with an increased focus on 

environmental conditions internally, with 

customers, subcontractors, authorities and 

society in general. The most important 

result is that the employees develop their 

personal relationship with the environment. 

19 of the group’sbusiness units arenow 

certified to the ISO 14001 environmental 

standard. Five of these were certified in 

2008. An eLearning programme with aparticular 

focus on the natural environment 

was introduced during the year, and 9000 

employees have so far completed it. The 

already mentioned HSE initiatives on leadership 

development, eLearning and the 

management system also incorporate 

clear components which focus attention 

on the environment. Collectively, these 

contribute to continuous improvements in 

environmental awareness and attitudes 

among managers and other employees. 

That inspires the organisation to achieve 

further gains in environmental performance 

in Aker Solutions’ own activities, and to 

assist customers in making environmental 

improvements through the products developed 

by the group. Examples can be found 

in such areas as carbon capture, drilling 

rigs with astrong environmental performance 

in arctic conditions, treatment of 

volatile organic compounds, treatment of 

sulphur and ammonia discharges, and the 

next generation of biofuels. 

People and organisation 

Developing human resources 

Aker Solutions is strongly committed to 

leadership and expertise development as 

acompetitive advantage. The Aker Academy 

offers programmes in important 

professional subject areas such as general 

leadership, project execution, commercial 

management and HSE. Implemented to 

date primarily in Europe, the US and Asia, 

these programmes had atotal of 1334 

participants in 2008. 

Emphasis has also been given to implementing 

eLearning programmes, with 

24 000 active users in over 30 countries. 

Over 80 000 eLearning courses have been 

completed since 2005. The group’s global 

eLearning portal offers more than 30 

tailored programmes which support both 

global and corporate initiatives. The portfolio 

of eLearning programmes covers areas 

including PEM, HSE and Just Care, 

environmental considerations, social 

responsibility and more group-specific 

topics. A new eLearning programme on 

mastering stress was launched in connection 

with improvement measures identified 

through the employee survey carried out in 

Aker Solutions during 2007. The commitment 

to eLearning has helped to provide 

all employees with aunifying, cost-effective 

and accessible range of courses. In addition 

to the professional expertise they 

provide in key areas, these courses make 

a strong contribution to building a common 

corporate culture through auniform 

approach and consistent message, as well 

as opportunities for mandatory certification 

in special areas. Corporate programmes 

offered across the group are 

supplemented by a number of training 

courses organised by local units. 

“A key element is that 

each person accepts 

personal responsibility 

for HSE based on 

care for people and 

the environment” 

Aker Solutions’ international trainee 

programme is now in its thirdyear.Trainees 

have rotated globally between different 

positions in the group, completing atotal 

of 66 assignments, of which morethan half 

were outside Norway. The first batch of 

trainees completed their programme 

during September, and all eight have 

secured full time positions with Aker 

Solutions in the US, Brazil, China, Malaysia 

and Norway. These positions lie within 

such areas as business development, procurement 

and finance. The third batch of 

trainees was recruited in the autumn of 

2008 for atwo year programme with Aker 

Solutions. They come from India, Malaysia, 

Norway and Russia. Aker Solutions 

received more than 1500 applications for 

these ten traineeships. 

A global talent programme was 

launched in connection with the creation 

of the new ED&S business area. Its main 

focus is on developing the business area’s 

management capacity to meet the leadership 

challenges presented by a larger 

proportion of international projects, teams 

with amore global composition and operations 

in unfamiliar regions. 

Aker Solutions also opened its Well 

Intervention Academy in Stavanger during 

the spring of 2008. This test facility will provide 

the next generation of offshoreoperators 

and engineers with first-hand knowledge of, 

and experience with, critical well intervention 

activities. The academy can offer realistic 

and practical training in virtually the same 

environment as that found offshore. 

Organisation 

The Aker Solutions workforce totalled 

33 961 people at 31 December, including 

23 360 employees and 10 601 contract 

staff. Of the group’semployees, 49.7 percent 

worked in Norway, 17.2 percent in the 

Americas, 14.6 percent in Asia and Australia, 

17.5 percent in Europe outside Norway and 

1.1 percent in Africa and the Middle East. 




Workforce turnover in 2008 averaged 

nine percent, areduction of 1.4 percentage 

points from the year before. Aker Solutions 

faced achallenging labour market in 2008, 

and purposeful efforts were made to 

secure qualified resources through recruitment. 

The focus has been on implementing 

acommon global recruitment model in 

the group with acommon interview guide 

rooted in the group’s values, standard 

information materials and training of inhouse 

resources, which has contributed in 

part to amore transparent in-house labour 

market. The aim has been to ensure that 

as many potential candidates as possible 

experience a professional recruitment 

process in amarket and an industry where 

competition over competent labour is ever 

tougher. Common recruitment campaigns 

were also pursued in Norway and the US 

with great success. More than 30 000 

applicants from over 30 countries were 

registered in the group’s recruitment system 

in 2008. Atotal of 4108 new employees 

were recruited from this base during 

the year, ofthese were 25percent female 

and 75 percent male. 

Board and management changes 

Simen Lieungh took over as President & 

CEO of Aker Solutions ASA with effect 

from 1March 2008. He replaced Martinus 

Brandal, who moved to anew position as 

Senior Partner & President in Aker ASA 

with responsibility for Energy Technologies. 

Leif Borge was appointed to replace Bjørn 

Erik Næss as chief financial officer (CFO) 

from April 2008. 

The AGM held on 3April elected Martinus 

Brandal as the new Chairman of the Board, 

while Leif-Arne Langøy and Bjørn Flatgård 

were elected as Directors for atwo year 

term. 

Several changes were made to the 

executive management team during the 

year in connection with the restructuring of 

the business areas. Jarle Tautra was 

appointed EVP of the new ED&S business 

area from February 2009 in succession to 

Nils Arne Hatleskog, who led the process 

of merging FD and MMO. Pål Helsing, 

previously EVP for FD, was appointed 

senior vice president (SVP) for strategy 

and technology in April 2008, reporting 

directly to President &CEO Simen Lieungh. 

Gary Mandel was appointed EVP for the 

P&C business area in succession to Jarle 

Tautra. He had been CEO of Aker American 

Shipping since 2007 and previously worked 

for Aker Solutions, heading the former business 

area Oil, Gas, Process and Energy 

(OGPE) until 2007. Per Harald Kongelf took 

over as EVP for P&T, succeeding Mads 

Andersen who in September 2008 was 

appointed EVP of Subsea. Raymond 

Carlsen, the former head of that business 

area, moved in October 2008 to aposition as 

Partner in Aker ASA. 

Equal opportunities and diversity 

Aker Solutions wants to be an attractive 

employer for people from different backgrounds, 

regardless of their ethnicity,gender, 

religion or age. With operations in around 

30 countries and on every continent, diversity 

is adesirable and positive part of the 

corporate culture and strengthens the 

group’s ability to operate in varying conditions 

and frameworks. Aker Solutions is 

included in athree parties framework agreement 

between Aker ASA, the Norwegian 

United Federation of Trades Unions and the 

International Metalworkers Federation, 

committing the involved parties to working 

towards the development of good working 

relations. The agreement consists of eleven 

main points including discrimination, working 

hours and general working conditions. 

The agreement will be reviewed annually to 

ensurethat the parties comply with their obligations. 

The group will pay the equivalent salary 

for the equivalent work and will reward 

good performance. Key factors in determining 

pay are the area of responsibility 

concerned, what a job involves, the 

employee’s level of expertise and commitment, 

results actually achieved, and local 

pay levels. Average pay in the company is 

somewhat higher for men than for women. 

On average, male employees have greater 

pay seniority than women. Aker Solutions 

has two main categories of employees: 

skilled workers/operators (29 percent) and 

white collar personnel (71 percent). 

The group benefits from diversity in the 

recruitment and development of its leaders. 

The Aker Academy’s leadership programmes 

were composed of 23 percent 

females on mid-level manager courses 

and 11 percent females on its top level 

courses. Aker Solutions prioritises the 

attraction and retention of youthful 

talents. To date the Aker international 

trainee programme has had 69 percent 

females. The corporate executive management 

team had no female members at 

31 December. Three of Aker Solutions’ six 

shareholder-elected Directors are women, 

which corresponds to 50 percent. All of the 

employee-elected Directors are men. 

All-male employee-elected Directors is 

permitted in instances where the number 

of female employees is less than 20 

percent of the total workforce. 

Wherever possible Aker Solutions 

supports and promotes arrangements 

that bring a positive work/life balance, 

including flexible working, remote working 

and part-time working. 

Performance culture and management 

by results 

Aker Solutions wants its organisation and 

each employee to concentrate onachieving 

results in the short and long terms. 

Processes for setting targets and measuring 

their attainment, and for rewarding employees 

in relation to the results achieved, 

represent important instruments in this 

context. Targets for managers and other 

employees are determined on the basis of 

strategies and budgets in each unit. They 

areset on an annual basis, but followed up 

and further developed where necessary 

during the year. The annual performance 

measurement processes embrace financial 

targets, development and improvement of 

products, project management, service 

and the like. Targets are also set for HSE 

and personal development by each 

manager and other employee. 

To ensure development and optimum 

utilisation of the group’s management 

resources, an annual assessment of 

managers is conducted as the basis 

for determining plans for management 

development, manager mobility and the 

development of talented managers. 

Aker Solutions wants to reward managers 

and other employees in accordance 

with the results achieved. This is achieved 

through the determination of individual basic 

pay for groups of employees and remuneration 

systems which pay an annual variable 

amount to managers and other employees. 

Annual variable pay is paid to employees 

on the basis of the commercial results 

achieved by the relevant company or 

project. Managers earnvariable pay on the 

basis of commercial results for the units 

they influence and the extent to which they 

comply with the group’s values. Variable 

pay for senior executives is spread over 

several years to encourage long-term 

achievement of results and a lasting 

employee relationship. Further details of 

66 




the remuneration of senior executives are 

otherwise provided in note 18 Salaries, 

wages and social security costs to the 

consolidated accounts. 

Corporate governance 

Aker Solutions complies onthe whole with 

the principles enshrined in the applicable 

Norwegian code ofpractice for corporate 

governance, which also largely harmonises 

with applicable international recommendations. 

The annual statement on the 

way Aker Solutions observes the code of 

practice issued by the Norwegian Corporate 

Governance Board (NUES) can be found 

on page 132 of this annual report. 


As aNorwegian company with astrong 

international presence, Aker Solutions has 

an impact economically, environmentally 

and in the lives of people globally.With this 

comes responsibility: the responsibility to 

set high standards; to be abusiness that is 

driven by its values; and to be a good 

corporate citizen. 

Aker Solutions’ history and values, as 

well as international norms such as the 

UN Global Compact, the Global Reporting 

Initiative and the OECD Guidelines are the 

basis of its corporate responsibility principles. 

The company is committed to continually 

improving its performance against them. 

As aglobal supplier to the energy and 

process industries, the company has 

singled out two areas of corporate responsibility 

(CR) on which to focus: 

managing the challenges associated 

with entry into new and emerging 

markets 

developing and supporting effective, 

environmentally sound solutions 

In 2008, the company became amember 

of UN Global Compact. Membership opens 

up global and local opportunities to 

dialogue and collaborate with other businesses, 

non-governmental organisations, 

labour organisations and governments on 

critical issues. 

In addition, Aker Solutions’ major shareholder, 

Aker ASA, signed a framework 

agreement with the Norwegian Confederation 

of Trades Unions and the International 

Metalworkers Federation on behalf of 

companies that are a part of Aker. The 

agreement commits Aker Solutions and all 

Aker companies to working towards the 

development of good working relations, 

and to respect human and trade union 

rights in the community. 

As part of Aker Solutions’ efforts to 

build internal awareness and understanding 

for corporate responsibility, the 

company rolled out its CR eLearning 

programme globally mid-year. The course 

is mandatory for all employees. 

In 2008, the company successfully 

implemented the first phase of its strategic 

three year partnership agreement with the 

Norwegian Red Cross. The partnership 

encompassesfinancialsupport,exchanges 

of expertise between the organisations 

and volunteer activities. In phase one, Aker 

Solutions offices in Norway were introduced 

to the Red Cross volunteer activities 

local to them. Several Aker Solutions’ 

offices are now actively engaged in volunteer 

activities. The second phase of the 

partnership is already underway, with the 

aim of expanding the collaboration to Aker 

Solutions’ offices around the world. 

In December, the company published 

its CR report for 2008/2009, Face value. 

The report communicates the CR challenges 

the company faces, the results it has 

achieved and its ambitions going forward. 

The report is available from Aker Solutions’ 

website. 

Customer relations 

Many of Aker Solutions’ customers are 

leading players in their sectors on the 

world stage. They implement extensive 

projects which are usually of such acharacter 

that failure tomeet agreed progress, 

budget, quality and efficiency milestones 

can have major consequences. Aker Solutions 

gives great weight to its ability to deliver, 

and also has areputation for offering 

solutions which create added value for 

customers. 

Those customers have shown great confidence 

in the group over many years by 

awarding it important projects. This 

confidence represents amajor asset, which 

it is important to preserve and continue 

developing. 

The group gives great weight to finding 

the best and most effective solutions for 

each customer. That is done by combining 

an understanding of their specific challenges 

with Aker Solutions’ expertise, 

experience, technology and products –not 

least with the aid of its recognised and 

well-proven model for project execution, 

the Aker Solutions PEM. The group also 

“With operations in 

around 30 countries 

and on every continent, 

diversity is adesirable 

and positive part of the 

corporate culture” 

implemented important organisational 

changes in 2009 in order to even better 

tailor its offer to customer requirements. 

Contact with customers is pursued at 

various levels –between senior executives, 

through the business area concerned, 

through project management and through 

close collaboration with relevant teams of 

experts. 

Both executive management and managers 

at other levels have defined roles for 

ensuring the best possible follow-up of 

each customer. Contact at several levels 

ensures a good overview and understanding 

of the customer’s requirements, 

both in the short term and over alonger 

perspective. 

In addition to direct customer contact, 

Aker Solutions utilises external market 

analyses and surveys of customer satisfaction 

as tools to ensure that it is meeting 

customer expectations and needs. 

The group serves industries where the 

number of customers in each niche is 

relatively small. However, most of these 

represent abroad and long-term potential 

for collaboration. The goal is to establish 

good, long-term relations with customers, 

based on the group’s performance and on 

competitive tendering. 

Mutual confidence, built up through 

business relationships extending over 

many years, often helps to create new 

opportunities. These could involve new 

contracts with even better reward models, 

for instance, or the development of innovative 

solutions and technology in close 

collaboration with the customer.Confidence 

is also valuable when assessing projects in 

new regions. It will often be easier to 

manage risk, for instance, when the customer 

has an established relationship with 

Aker Solutions from earlier collaboration. 

Outlook 

The Board would like topoint out that this 

report includes and is based in part on for- 




ward-looking information and statements 

which are subject to risks and uncertainties 

that could cause actual results to differ. 

At its Capital Markets Day on 30 November 

2007, the group communicated its 

objectives for growth and profitability in 

the periode 2008–2010. These performance 

targets were determined on the basis of 

the group’s solid order backlog and the 

good market outlook for the energy and 

process industries. 

The financial crisis and economic downturn 

during 2008 has created greater 

uncertainty about the market outlook, and 

the general conditions for attaining these 

objectives have changed considerably. As 

aresult, new performance targets for 2009 

werepresented at the Capital Markets Day 

on 9December 2008. Nominal EBITDA is 

expected to increase for 2009 and to 

exceed NOK 4500 million, while revenues 

will be somewhat lower than in 2008. These 

forecasts are based on asolid order backlog 

of high quality and the group’s expectations 

of securing additional contracts. 

Many important organisational adjustments 

and changes were made during 

2008, and these have given Aker Solutions 

agood starting point in meeting the global 

economic downturn. However, itremains 

too early to say with any certainty how this 

downturnwill affect the group’soperations 

and markets. No reliable analyses are 

available for when market activity will 

recover. Market conditions in 2009 will be 

challenging, and further pressureonprices 

is expected. In these circumstances, it will 

be even more important to continue work 

on optimising costs and capacity. 

The extensive cost-cutting programme 

initiated in 2007 continued as expected in 

2008, and will have an effect on results as 

planned in 2009. Thanks to its flexibility, 

Aker Solutions is relatively well equipped 

to handle the challenges expected in the 

immediate future. 

Spare capacity is likely to become available 

in the group during 2009. Existing 

capacity must be utilised where possible, 

and an important measure will be to move 

capacity in-house across both business 

areas and geographical regions. Acareful 

eye is being kept on possible requirements 

for capacity adjustments so that these can 

be made quickly should the need arise. 

Even if the level of activity in Aker 

Solutions’ principal markets weretodecline 

in the short term, the fundamental basis for 

further market growth is likely to be present 

in the longer term. In its annual report on the 

outlook for energy markets, the International 

Energy Agency (IEA) concluded that 

world energy demand is growing, with 

developments in the Asian economies as 

an important driver. The IEA believes that 

global demand for primary energy could 

rise by 45 percent over the next 20 years. Its 

report concludes that new standards will be 

introduced to reduce carbon emissions but 

that, even if these weretoinfluence demand 

for fossil fuels in the long term, they will 

primarily mean the implementation of new 

treatment technologies over the next few 

decades and that world oil and gas demand 

will remain high for many decades to come. 

Development and construction of carbon 

capture technology is also an area where 

Aker Solutions holds an advanced position. 

Existing oil and gas fields will be unable 

to meet all of the demand in the longer term. 

The amount of oil and gas produced each 

year already exceeds the new resources 

which the industry succeeds in discovering 

and developing. Should the pace of new 

field development be low for atime, the 

result is likely to be an accumulated energy 

deficit which could boost the level of activity 

when demand recovers. A substantial 

proportion of future developments are 

expected to be located in deep water and in 

areas with atough climate –precisely the 

conditions where Aker Solutions has a 

strong competitive advantage. 

The level of activity in land-based process 

plants for refined oil products and artificial 

substances, and for metal processing, 

is also expected to decline gradually as a 

result of the international economic 

downturn. China has been a substantial 

consumer of such materials in the recent 

past. Chinese industrial growth is expected 

to be lower for atime than has been the 

case in recent years, but this slowdown 

could be smaller than in most other parts of 

the world. Aker Solutions’ involvement with 

such projects is concentrated on niches 

wherethe group has astrong position, such 

as copper, gold and other selected metals. 

The fundamental conditions are accordingly 

also in place for fresh expansion in 

these segments of the group’s business 

once the world economy starts to recover. 

The energy sector is characterised by a 

limited number of global operators, many 

national oil companies, asmall set of large 

and international suppliers such as Aker 

Solutions, and a substantial number of 

small and medium-sized operators and 

subcontractors. Most players in the industry 

strengthened their financial results during 

the boom of the past few years, but not all 

have the financial strength and liquidity to 

withstand alengthy and deep economic 

downturn without making substantial 

changes. 

The Board extends its thanks to the 

management and workforce for the good 

commitment displayed in 2008. In its view, 

the quality and expertise built up in Aker 

Solutions helps to give the group clear 

competitive advantages which also apply 

in more demanding market conditions. 

Fornebu, 3March 2009 

The Board ofDirectors of Aker Solutions ASA 

Martinus Brandal 

Chairman 

Bjørn Flatgård 

Vice Chairman 

Heidi M. Petersen 

Vibeke Hammer 

Madsen 

Leif-Arne langøy 

Siri Fürst 

Åsmund Knutsen Ingebreth Forus Arve Toft Atle Teigland Simen Lieungh 


68 




Declaration by the Board ofDirectors and 

the President &CEO 

The Boardand the President &CEO have today considered and approved the Aker Solutions ASA annual report and financial statements 

for the Aker Solutions group and its parent company for the 2008 calendar year end as of 31 December 2008. 

The consolidated financial statements have been prepared and presented in accordance with the requirements of IFRS as adopted by 

the EU and associated interpretations, and with additional Norwegian disclosure requirements that were inforce as of 31 December 

2008. The parent company financial statements for the year have been prepared in accordance with the Norwegian Accounting Act and 

generally accepted accounting principles in Norway as of 31 December 2008. The annual report for the group and parent company 

meets the requirements of the Norwegian Accounting Act and Norwegian Accounting Standard 16inforce as of 31 December 2008. 

To the best of our knowledge: 

 

 

 

the 2008 financial statements for the group and parent company have been prepared in accordance with applicable accounting 

standards 

the information provided in the financial statements gives atrue and fair portrayal of the group and parent company’s assets, 

liabilities, financial position, and profit as awhole as of 31 December 2008 

The annual report provides atrue and fair overview of: 

– developments, profit, and the financial position of the group and parent company 

– the most significant risks and uncertainties facing the group and the parent company 


The Board and the President &CEO of Aker Solutions ASA 


Chairman 


Vice Chairman 


Vibeke Hammer 

Madsen 


Siri Fürst 





Annual accounts 

70 




Contents: Accounts and notes 

Aker Solutions group 

72 Consolidated income statement 

73 Consolidated balance sheet 

74 Consolidated statement of cash flow 

75 Consolidated statement of changes in equity 

Notes to consolidated accounts 

76 Note 1 General information 

76 Note 2 Accounting principles 

81 Note 3 Accounting estimates and judgements 

82 Note 4 Acquisitions of subsidiaries and minority interests 

84 Note 5 Related parties 

85 Note 6 Segment information 

87 Note 7 Other operating expenses 

87 Note 8 Net operating assets 

88 Note 9 Current operating assets 

88 Note 10 Current operating liabilities 

88 Note 11 Contracts 

90 Note 12 Provisions 

90 Note 13 Contingent events 

91 Note 14 Property, plant and equipment 

92 Note 15 Operating leases 

92 Note 16 Intangible assets 

93 Note 17 Tax 

95 Note 18 Salaries, wages and social security cost 

98 Note 19 Number of employees 

99 Note 20 Employee benefits -pension 

101 Note 21 Equity accounted investees 

102 Note 22 Investment in joint ventures 

103 Note 23 Financial risk management 

107 Note 24 Financial income and expense 

108 Note 25 Financial instruments 

108 Note 25.1 Cash and cash equivalents 

109 Note 25.2 Investments in other companies 

109 Note 25.3 Derivative financial instruments 

110 Note 25.4 Non-current interest-bearing receivables 

111 Note 25.5 Trade and other receivables 

111 Note 25.6 Borrowings and other non-current liabilities 

113 Note 26 Subsequent events 

113 Note 27 Discontinued operations 

113 Note 28 Group companies as at 31 December 2008 


116 Parent company income statement 

117 Parent company balance sheet 

118 Parent company statement of cash flow 

Notes to parent company accounts 

119 Note 1 Accounting principles 

119 Note 2 Operating expenses 

120 Note 3 Net financial items 

120 Note 4 Tax 

121 Note 5 Investment in subsidiaries and other companies 

121 Note 6 Non interest-bearing items 

122 Note 7 Shareholders’ equity 

122 Note 8 Interest-bearing items 

123 Note 9 Non-current borrowings 

123 Note 10 Guarantees 

123 Note 11 Financial instruments 

123 Note 12 Contingent events and related parties 




Aker Solutions group: 

Consolidated income statement 1.1 –31.12 

Amounts in NOK million Note 2008 2007 2006 

Revenue 6 58 252 57 957 50 592 

Materials, goods and services -34891 -36405 -31299 

Salaries, wages and social security costs 18, 19, 20 -13122 -12197 -10441 

Other operating expenses 7 -6857 -5442 -5980 

Total operating expenses -54870 -54044 -47720 

Operating profit before depreciation, amortisation and impairment 6 3382 3913 2872 

Depreciation, amortisation and impairment 6, 14, 16 - 615 - 431 - 339 

Operating profit 2767 3482 2533 

Financial income 24 175 105 194 

Financial expenses 24 - 379 - 209 -1081 

Share ofprofit (+) /loss (-) of associates 6, 21 - 21 - 2 - 18 

Profit (+) /loss (-) on foreign currency forward contracts 1 24 - 439 162 241 

Profit before tax 2103 3538 1869 

Income tax expense 17 - 590 -1074 - 575 

Net profit from continuing operations 1513 2464 1294 

Profit for the period from discontinued operations net of tax 27 - - 2 495 

Profit for the period 1513 2464 3789 

Attributable to 

Equity holders of the parent company 1438 2401 3738 

Minority interests 75 63 51 

Net profit 1513 2464 3789 

Average number of shares 269 056 995 271 741 367 275 146 170 

Basic and diluted earnings per share continuing operations (NOK) 2 5.34 8.84 4.53 

Basic and diluted earnings per share from discontinued business (NOK) 0.00 0.00 9.06 

Basic and diluted earnings per share (NOK) 2 5.34 8.84 13.59 

1) Profit /loss on foreign currency hedging instruments that do not qualify for hedge accounting. 

2) Equity holders of the parent company’s share ofnet profit (+) /loss (-) /average number of shares. There were nopotentially dilutive securities outstanding. 

72 





Consolidated balance sheet as at 31.12 

Amounts in NOK million Note 2008 2007 

ASSETS 

Non-current assets 

Property, plant and equipment 14 4610 2815 

Deferred tax assets 17 519 548 

Intangible assets 16 7119 4995 

Employee benefit assets 20 234 15 

Interest-bearing non-current receivables 25.4 97 14 

Other non-current operating assets 8 4 9 

Investments in associates 6, 21 444 121 

Investments in other companies 25.2 123 133 

Total non-current assets 13 150 8650 

Current assets 

Current tax assets 17 49 89 

Inventories 9 1321 884 

Trade and other receivables 9, 25.5 20 796 13 361 

Derivative financial instruments 25.3 3100 1468 

Interest-bearing current receivables 25 480 540 

Cash and cash equivalents 25.1 3828 3524 

Total current assets 29 574 19 866 

Total assets 42 724 28 516 

LIABILITIES AND SHAREHOLDERS’ EQUITY 

Equity 

Issued capital 548 548 

Own shares -10 -9 

Other capital paid in 1534 1534 

Other equity 6378 5026 

Total equity attributable to the equity holders of the parent company 8450 7099 

Minority interest 156 168 

Total equity 8606 7267 

Liabilities 

Non-current borrowings 25.6 6163 1591 

Employee benefits obligations 20 758 937 

Deferred tax liabilities 17 831 680 

Other non-current liabilities 25.6 1194 914 

Total non-current liabilities 8946 4122 

Current borrowings 25.6 553 24 

Current tax liabilities 17 252 329 

Provisions 10, 12 912 655 

Trade and other payables 10 21 052 15 165 


Total current liabilities 25 172 17 127 

Total liabilities 34 118 21 249 

Total liabilities and shareholders’ equity 42 724 28 516 


Board ofDirectors of Aker Solutions ASA 


Chairman 


Vice Chairman 


Vibeke Hammer 

Madsen 


Siri Fürst 







Consolidated statement of cash flow 1.1 –31.12 


Cash flow from operating activities 

Profit for the period 1513 2464 

Income tax expense 17 590 1074 

Net interest cost 225 104 

Profit (-) /loss (+) on foreign currency forward contracts 439 -162 

Depreciation, amortisation and impairment 14, 16 615 431 

Profit (-) /loss (+) on disposals /non-cash effects 1 -23 -64 

Share ofprofit (-) /loss (+) of associates 21 21 2 

Interest paid -295 -172 

Interest received 132 43 

Income taxes paid -472 -480 

Changes in other net operating assets -3613 -565 

Net cash from operating activities -868 2675 

Cash flow from investing activities 

Acquisition of subsidiaries and minorities (net of cash acquired) 4 -1817 - 87 

Acquisition of property, plant and equipment 6,14 -1572 -1596 

Proceeds from sale of property, plant and equipment 34 96 

Acquisition of shares in associates and other investments -377 11 

Net cash from investing activities -3732 -1576 

Cash flow from financing activities 

Proceeds from borrowings 4956 - 

Repayment of borrowings -24 -19 

Proceeds from issue of share capital from minority interests 72 - 

Dividends paid to minority interests -22 -31 

Buy-back of own shares 2 -70 -781 

Dividends to shareholders 2 -807 -2182 

Net cash from financing activities 4105 -3013 

Effect of exchange rate changes on cash and bank deposits 799 - 228 

Net increase (+) /decrease (-) in cash and bank deposits 304 -2142 

Cash and cash equivalents at the beginning of the period 3524 5666 

Cash and cash equivalents at the end of the period 3 3828 3524 

Of which is restricted cash 4 976 661 

1) Gain /loss on disposal of property, plant and equipment. 

2) See consolidated statement of changes to equity. 

3) Additional undrawn committed non-current bank revolving credit facilities amounted to NOK 4.4 billion, and is together with cash and cash equivalents giving atotal liquidity buffer 

of NOK 8.2 billion. NOK 500 million of the undrawn committed credit facilities was agreed in February 2009. 

4) Restricted cash includes inter alia cash in joint ventures where the partners must agree before use and cash in business units which is not owned 100 percent by Aker Solutions. 

74 





Consolidated statement of changes in equity 1.1 –31.12 


Number of 

shares 

Share 

capital 

Own 

shares 

Other 

capital 

paid in 

Retained 

earnings 

and other 

reserves 

Hedging 

reserve 

Currency 

translation 

reserve 

Total attributable 

to 

parent company 

equity 

holders 

Minority 

interests 

Total 

equity 

Equity as at 1January 2007 55 029 234 550 - 1 534 5857 203 - 161 7983 131 8114 

Cash flow hedges 

Effective portion of changes in value - - - - 788 - 788 - 788 

Reclassified to income statement - - - - - 633 - - 633 - - 633 

Deferred tax - - - - - 43 - - 43 - - 43 

Currency translation differences - - - - - - 434 - 434 - - 434 

Net income recognised directly in equity 550 - 1 534 5857 315 - 595 7661 131 7792 

Profit for the period - - - 2 401 - - 2401 63 2464 

Total recognised income and expense 550 - 1 534 8258 315 - 595 10 062 194 10 256 

Increase caused by share split (1:5) 220 116 936 

Cancellation of shares -1 146 170 - 2 2 - - - - - - - 

Change in minority interests - 11 - 11 

Dividend - - - - 2182 - - -2182 - 15 - 2197 

Share buy-back - - 11 - - 770 - - - 781 - - 781 

Equity as at 31 December 2007 274 000 000 548 - 9 1534 5306 315 - 595 7099 168 7267 


Effective portion of changes in value - - - - - 241 - - 241 - - 241 

Reclassified to income statement - - - - 373 - 373 - 373 

Deferred tax - - - - - 37 - - 37 - - 37 

Currency translation differences - - - - - 695 695 7 702 

Net income recognised directly in equity 548 - 9 1534 5306 410 100 7889 175 8064 

Profit for the period - - - 1 438 - - 1438 75 1513 

Total recognised income and expense 548 - 9 1534 6744 410 100 9327 250 9577 

Change in minority interests - 72 -72 

Dividend - - - - 807 - - - 807 - 22 -829 

Share buy-back - - 1 - - 69 - - - 70 - -70 

Equity as at 31 December 2008 274 000 000 548 - 10 1 534 5868 410 100 8450 156 8606 

Share capital 

Aker Solutions ASA has one class of shares, ordinary shares, with equal rights for all shares. The holders of ordinary shares areentitled to receive dividends and are 

entitled to one vote per shareatGeneral Meetings. At the end of 2006 Aker Solutions ASA had 55 029 234 ordinary shares at apar value of NOK 10 per share. At the 

Annual General Meeting in March 2007 the shareholders agreed to split one shareatapar value of NOK 10 into five shares at par value of NOK 2. The new number of 

shares after the sharesplit was 275 146 170. At the Annual General Meeting the shareholders also agreed to reduce the sharecapital in Aker Solutions ASA by NOK 

2292 340 to NOK 548 000 000 through the cancellation of 1146 170 treasury shares. Total outstanding shares arenow 274 000 000. All issued shares arefully paid. 

Share buy-back 

At the 2007 Annual General Meeting an authorisation was given to repurchase up to 27.4 million shares, representing 10 percent of the sharecapital of Aker 

Solutions ASA. Aker Solutions ASA purchased 595 000 own shares in 2008 and as at 31 December 2008 Aker Solutions ASA holds 4966 830 own shares 

representing 1.8 percent of total outstanding shares. 

Hedging reserve 

The hedging reserve relates to cash flow hedges of futurerevenues and expenses against exchange rate fluctuations. The income statement effects of such instruments 

arerecognised in accordance with the progress of the underlying construction contract as part of revenues or expenses as appropriate. The hedging reserve represents 

the value of such hedging instruments that arenot yet recognised in the income statement. Users of the financial statement should be awareofthe underlying natureof 

ahedge; e.g. that apositive value on ahedging instrument exists to cover anegative value on the hedged position, see note 24 Financial income and expenses. 

Currency translation reserve 

The currency translation reserve includes exchange differences arising from the translation of the net investment in foreign operations, and foreign exchange gain / 

loss on loans defined as hedges/net investments, see note 24 Financial income and expenses. 

Minority interests 

At 31 December 2008 NOK 99 million (NOK 75 million in 2007) of the minority interests relates to Aker Solutions Powergas Pvt Ltd in which Aker Solutions owns 64 

percent and NOK 44 million (NOK 17 million in 2007) to Step OffshoreASinwhich Aker Solutions owns 51 percent of the shares. The change in minority interests in 

2008 is primarily due to the acquisition of 40 percent in Aker Marine Contractors AS which gives Aker Solutions full control of the company. 

Dividends 1 2008 2007 

Dividend per shareinNOK –paid 3.00 8.00 

Total dividend paid (NOK million) 807 2182 

Ordinary dividend per shareinNOK –proposed by the BoardofDirectors 1.60 3.00 

1) Dividend is adjusted on the basis of the share split. 



Notes to the accounts 



■ Note 1: General Information 

Aker Solutions ASA (the company) is alimited liability company incorporated and domiciled at Fornebu in Bærum, Norway.InApril 2008 the company changed 

its name from Aker Kværner ASA to Aker Solutions ASA. The consolidated financial statements of Aker Solutions ASA incorporate the financial statements of 

the company and its subsidiaries (together referred to as the “group” and separately as group companies) and the group’s interest in associates and jointly 

controlled entities and jointly controlled assets. Aker Solutions is aleading global supplier of engineering services, fabrication, technology products, 

maintenance, specialised services, and total solutions for the energy and process industries. 

The company is listed on the Oslo Stock Exchange under the ticker AKSO. 

All amounts in the financial statements are presented in million Norwegian kroner (NOK), unless otherwise stated. 

■ 

Note 2: Accounting principles 

Summary of significant accounting policies 

The principal accounting policies applied in the 

preparation of these consolidated financial statements 

are set out below. These policies have 

been consistently applied to all the years presented, 

unless otherwise stated. 

The consolidated financial statements were 

authorised for issue by the Board ofDirectors on 

3March 2009. The consolidated statements will 

be authorised during the Annual General Meeting 

on 2April 2009. Until this date the Board of 

Directors have the authority to amend the 

financial statements. 

Statement of compliance 

The consolidated financial statements have been 

prepared in accordance with International Financial 

Reporting Standards (IFRS) approved by the 

European Union and its interpretations adopted 

by the International Accounting Standards Board 

(IASB). 

New standards and interpretations not yet adopted 

The following IFRS/IAS standards have been 

approved but mandatory from 2009, with earlier 

application permitted. The group has not implemented 

these standards with effect for the financial 

statements for 2008: 

IFRS 8–Operating Segments (mandatory 

from 2009) 

Revised IAS 1–Presentation of Financial 

Statements (mandatory from 2009) 

Revised IAS 23 –Borrowing Costs 

(mandatory from 2009) 

IAS 32 –Financial Instruments –Presentation 


Revised IFRS 3–Business Combinations 


IFRIC 14 –The Limit on aDefined Benefit 

Asset Minimum Funding Requirements and 

their Interaction (mandatory from 2009) 

Amended IAS 27 Consolidated and Separate 

Financial Statements (mandatory from 2010) 

Except for IAS 23 Borrowing Costs and Revised 

IFRS 3Business Combinations, it is assumed that 

the new standards will have only insignificant effects 

on reported results or balance sheet items. The 

main effects will relate to presentation formats for 

financial statements and for the note disclosures. 

IAS 23 Borrowing Costs requires that borrowing 

costs be included as part of costs on fixed 

assets and on construction contracts. Today, this 

is the case only when the effects are very 

significant and there are separate financing 

arrangements in place. It is assumed that the 

effect on the consolidated statements will be 

small, but there may be an impact on individual 

projects and business areas. 

Revised IFRS 3–Business Combinations 

incorporates the following changes that are likely 

to be relevant to the group’s operations: 

The definition of abusiness has been 

broadened, which is likely to result in more 

acquisitions being treated as business 

combinations. 

Contingent consideration will be measured 

at fair value, with subsequent changes 

therein recognised in profit or loss. 

Transaction costs, other than share and debt 

issue costs, will be expensed as incurred. 

Any pre-existing interest in the acquiree will 

be measured at fair value with the gain or 

loss recognised in profit or loss. 

Any non-controlling (minority) interest will 

be measured at either fair value, or at its 

proportionate interest in the identifiable 

assets and liabilities of the acquiree, on 

transaction-by-transaction basis. 

Revised IFRS 3will be applied prospectively and 

thereforetherewill be no impact on prior periods in 

the group’sconsolidated financial statements. The 

standardisnot yet endorsed by EU. 

Basis of preparation 

The consolidated financial statements have been 

prepared under the historical cost convention, as 

modified by the revaluation of available-for-sale 

financial assets and financial assets and financial 

liabilities (including derivative instruments) at fair 

value through profit and loss. 

Non-current assets and disposal groups held 

for sale are stated at the lower of carrying 

amount or fair value less costs to sell. 

The preparation of financial statements in 

conformity with IFRS requires management to 

make judgements, estimates and assumptions 

that affect the application of policies and reported 

amounts of assets and liabilities, income 

and expenses. The estimates and associated 

assumptions are based on historical experience 

and various other factors that are believed to be 

reasonable under the circumstances, the results 

of which form the basis of making the judgements 

about carrying values of assets and 

liabilities that are not readily apparent from other 

sources. The areas involving ahigher degree 

of judgement or complexity, orareas where 

assumptions and estimates are significant to the 

consolidated financial statements are disclosed 

in note 1. Actual results may differ from these 

estimates. 

The estimates and underlying assumptions 

are reviewed on an ongoing basis. Revisions 

to accounting estimates are recognised in the 

period in which the estimate is revised if the 

revision affects only that period or in the period 

of the revision and future periods if the revision 

affects both current and future periods. 

Consolidation 

Subsidiaries 

Subsidiaries are entities controlled by the company. 

Control exists when the company has the 

power, directly or indirectly, togovern the financial 

and operating policies of an entity so as to 

obtain benefits from its activities. In assessing 

control, potential voting rights that presently are 

exercisable or convertible are taken into account. 

The financial statements of subsidiaries are 

included in the consolidated financial statements 

from the date that control commences until the 

date that control ceases. 

Intragroup balances and any unrealised gains 

and losses or income and expenses arising from 

intragroup transactions, are eliminated in preparing 

the consolidated financial statements. 

Unrealised gains arising from transactions with 

associates and jointly controlled entities are 

76 




eliminated to the extent of the group’s interest in 

the entity. Unrealised losses are eliminated in the 

same way as unrealised gains, but only to the 

extent that there isnoevidence of impairment. 

In preparing their individual financial statements, 

the accounting policies of some subsidiaries, 

associates and joint ventures do not 

conform to the accounting policies of the group. 

Where appropriate, adjustments are made in 

order to present the consolidated financial statements 

on aconsistent basis. 

Associates 

Associates are those entities in which the group 

has significant influence, but not control, over 

the financial and operating policies. Generally 

this is applicable to ashareholding of between 

20 percent and 50 percent of the voting rights. 

The consolidated financial statements include 

the group’s share ofthe total recognised gains 

and losses of associates on an equity accounted 

basis, from the date that significant influence 

commences until the date that significant influence 

ceases. When the group’s share oflosses 

exceeds its interest in an associate, the group’s 

carrying amount is reduced to nil and recognition 

of further losses is discontinued except to the 

extent that the group has incurred legal or 

constructive obligations or made payments 

on behalf of an associate. 

Joint ventures 

Joint ventures are those entities over whose activities 

the group has joint control, established by 

contractual agreement. The consolidated financial 

statements include the group’s proportionate 

share ofthe entities’ assets, liabilities, revenues 

and expenses with items of asimilar nature ona 

line by line basis, from the date that joint control 

commences until the date that joint control ceases. 

Non-current assets held for sale and 

discontinued operations 

Adiscontinued operation is acomponent of 

the group’s business that represents aseparate 

major line of business or geographical area of 

operations that has been disposed of or is held 

for sale or is asubsidiary acquired exclusively 

with aview to resale. 

Classification as adiscontinued operation 

occurs upon disposal or when the operation 

meets the criteria to be classified as held for 

sale, if earlier. Adisposal group that is to be 

abandoned may also qualify. 

Upon classification of abusiness as adiscontinued 

operation, the historical income statements 

are restated and the applicable individual 

income statement balances are reclassified into 

one separate line under Net profit/loss in the 

income statement for all reporting periods. In the 

balance sheet no reclassifications are made for 

years prior to the year abusiness is first classified 

as adiscontinued operation. 

Segment reporting 

Asegment is adistinguishable component of the 

group that is engaged either in providing products 

or services (business segment), or in providing 

products or services within aparticular 

economic environment (geographical segment), 

which is subject to risks and rewards that are 

different from those of other segments. 

The operating segments are also consistent 

with the group’s organisation into business segments. 

Revenue recognition 

Construction contracts 

Engineering and construction contract revenues 

arerecognised using the percentage of completion 

method, based primarily on contract costs incurred 

to date compared to estimated total contract 

costs. When the final outcome of acontract cannot 

be reliably estimated, contract revenue is 

recognised only to the extent of costs incurred 

that are expected to be recoverable. Losses on 

contracts are fully recognised when identified. 

Contract revenues include variation orders 

and incentive bonuses when it is probable that 

they will result in revenue and the amount can be 

measured reliably. Disputed amounts are recognised 

when their realisation is reasonably certain 

and can be measured reliably. Contract costs 

include costs that relate directly to the specific 

contract and costs that are attributable to contract 

activity in general and can be allocated to 

the contract. Costs that cannot be attributed to 

contract activity are expensed. Bidding costs are 

capitalised when it is probable that the company 

will be the preferred bidder. All other bidding 

costs are expensed as incurred. 

Goods sold and services rendered 

Revenue from the sale of goods is recognised in 

the income statement when the significant risks 

and rewards of ownership have been transferred 

to the buyer. Revenue from services rendered is 

recognised in the income statement in proportion 

to the stage of completion of the transaction at 

the balance sheet date. The stage of completion 

is normally assessed as the proportion that costs 

incurred for work performed to date bear to the 

estimated contract costs. No revenue is recognised 

if there are significant uncertainties regarding 

recovery of the consideration due, the associated 

costs and the possible return ofgoods cannot 

be measured reliably, orthere iscontinuing 

management involvement with the goods. 

Expenses 

Operating lease payments 

Payments made under operating leases are 

recognised in the income statement on a 

straight-line basis over the term of the lease 

when there are variations in the contractual lease 

payments due under the contract terms. Lease 

incentives received are recognised in the income 

statement as an integral part of the total lease 

expense. 

Finance lease payments 

Minimum lease payments are apportioned 

between the finance charge and the reduction 

of the outstanding liability. The finance charge is 

allocated to each period during the lease term so 

as to produce aconstant periodic rate of interest 

on the remaining balance of the liability. 

Financial income and expense 

Financial income and expense comprise interest 

payable on borrowings calculated using the 

effective interest rate method, interest receivable 

on funds invested, dividend income, foreign 

exchange gains and losses, and gains and 

losses on hedging instruments that are recognised 

in the income statement (see Hedging activities). 

Interest income is recognised in the income 

statement as it accrues, using the effective interest 

method. The interest expense component 

of finance lease payments is recognised in the 

income statement using the effective interest 

rate method. 

Gains or losses arising from changes in the 

fair value of the financial assets at fair value 

through profit or loss category are presented in 

the income statement within net financial items, 

in the period in which they arise. 

Dividend income from financial assets at fair 

value through profit or loss is recognised in the 

income statement as part of net financial items 

when the group’s right to receive payments is 

established. 

Changes in the fair value of monetary securities 

denominated in aforeign currency and classified 

as available for sale are analysed between translation 

differences resulting from changes in 

amortised cost of the security and other changes 

in the carrying amount of the security. The translation 

differences on monetary securities are 

recognised in profit and loss; translation differences 

in non-monetary securities are recognised in 

equity. Changes in the fair value of non-monetary 

securities classified as available for sale are 

recognised in equity. 

When securities classified as available for sale 

are sold or impaired, the accumulated fair value 

adjustments recognised in equity are included in 

the income statement as gains and losses from 

investment securities. 

Interest on available-for-sale securities 

calculated using the effective interest method 

is recognised in the income statement as part 

of net financial items when the group’s right 

to receive payments is established. 

Trade and other receivables 

Trade and other receivables are carried at the 

original invoice amount, less an allowance made 

for doubtful receivables. Provision is made when 

there isobjective evidence that the group will be 

unable to recover balances in full. Balances are 

written off when the probability of recovery is 

assessed as being remote. 

Construction work in progress 

Construction work in progress represents the value 

of construction work performed less payments by 

customers. The value of construction work performed 

is measured at revenue recognised to date. 

Payments by customers arededucted from the 

value of the same contract or,tothe extent they 

exceed this value, disclosed as advances from 

customers (see revenue recognition). 

Inventories 

Inventories are stated at the lower of cost and 

net realisable value. Net realisable value is the 

estimated selling price in the ordinary course of 

business, less the estimated costs of completion 

and selling expenses. 

The cost of inventories is based on the first-in 

first-out principle and includes expenditures 

incurred in acquiring the inventories and bringing 

them to their existing location and condition. In 

the case of manufactured inventories and work 

in progress, cost includes an appropriate share 

of overheads based on normal operating capacity. 

Property, plant and equipment 

Owned assets 

Property, plant and equipment are stated at cost 

less accumulated depreciation (see below) and 

impairment losses (see Impairment). The cost 

of self-constructed assets includes the cost of 

materials, direct labour, and, where relevant, the 

estimated costs of dismantling and removing the 

items and restoring the site on which they are 

located, and an appropriate proportion of 

production overheads. 




Where components of property, plant and 

equipment have different useful lives, they are 

accounted for as separate components. 

Leased assets 

Leases where the group assumes substantially 

all the risks and rewards of ownership are 

classified as finance leases. Assets acquired by 

way of finance leases are stated at an amount 

equal to the lower of its fair value or the present 

value of the minimum lease payments at inception 

of the lease, less accumulated depreciation (see 

below) and impairment losses (see Impairment). 

Subsequent costs 

The group capitalises the cost of areplacement 

part or acomponent of property, plant and 

equipment when that cost is incurred if it is probable 

that the future economic benefits embodied 

with the item will flow to the group and the 

cost of the item can be measured reliably. All 

other costs are expensed as incurred. 

Depreciation 

Depreciation is normally recognised on a 

straight-line basis over the estimated useful lives 

of property, plant and equipment. The production 

unit method is used for depreciation in limited 

circumstances when appropriate. 

Intangible assets 

Goodwill 

All business combinations are accounted for 

using the acquisition method. Goodwill represents 

the excess of the cost of an acquisition 

over the fair value of the group’s share ofthe 

net identifiable assets of acquired businesses 

or interest in associates or joint ventures that are 

businesses at the date of acquisition. Goodwill 

on acquisitions of subsidiaries is included in 

intangible assets. Goodwill on acquisitions of 

associates and joint ventures is included in the 

investment balance and is tested for impairment 

as part of the overall balance. Goodwill is carried 

at cost less accumulated impairment losses (see 

Impairment). Gains and losses on the disposal 

of an entity or an interest in an entity include the 

carrying amount of goodwill relating to the 

ownership interest sold. Negative goodwill 

arising on an acquisition is recognised directly 

in the income statement. 

Goodwill is assumed to have an indefinite 

useful life because there isnoforeseeable limit 

to the period over which the asset is expected to 

generate net cash inflows for the entity. The 

acquisition of acompany is based upon its 

strategic fit and anticipated profitability of that 

company over along time period. 

Goodwill is allocated to cash-generating units 

for the purpose of impairment testing. The allocation 

is made to those cash-generating units or 

groups of cash-generating units that are expected 

to benefit from the business combination in 

which goodwill arose. 

Research and development 

Research and development work in Aker Solutions 

related to customer contracts areincluded as 

contract costs. 

Expenditures on research activities, undertaken 

with the prospect of obtaining new scientific or 

technical knowledge and understanding, is recognised 

in the income statement as an expense as 

incurred. 

Expenditures on development activities, 

whereby research findings areapplied to aplan or 

design for the production of new or substantially 

improved products and processes, is capitalised if 

the product or process is technically and commercially 

feasible as well as being aseparable asset. 

Capitalised costs include the cost of materials, 

external contractors and direct labour.Other 

development expenditures arerecognised in the 

income statement as an expense as incurred. 

Capitalised development expenditures arestated 

at cost less accumulated amortisation (see below) 

and impairment losses (see Impairment). 

Other intangible assets 

Other intangible assets that are acquired by the 

group are stated at cost less accumulated amortisation 

(see below) and impairment losses (see 

Impairment). 

Subsequent expenditures 

Subsequent expenditures on capitalised intangible 

assets are capitalised only when they increase 

the future economic benefits embodied in 

the specific asset to which they relate. All other 

expenditures are expensed as incurred. 

Amortisation 

Amortisation is charged to the income statement 

on astraight-line basis over the estimated useful 

lives of intangible assets unless such lives are 

indefinite. Intangible assets are amortised from 

the date they are available for use. 

Impairment 

The carrying amounts of the group’s assets, 

other than inventories (see Inventories) and 

deferred tax assets (see Income tax), are annually 

reviewed to determine whether there isany 

indication of impairment. If any such indication 

exists, the asset’s recoverable amount is estimated 

(see Calculation of recoverable amount). 

For goodwill, assets that have an indefinite 

useful life and intangible assets that are not yet 

available for use, the recoverable amount is estimated 

annually. 

An impairment loss is recognised whenever 

the carrying amount of an asset or its cashgenerating 

unit exceeds its recoverable amount. 

Impairment losses are recognised in the income 

statement. 

Impairment losses recognised in respect 

of cash-generating units are allocated first to 

reduce the carrying amount of any goodwill 

allocated to cash-generating units (group of 

units) and then, to reduce the carrying amount 

of the other assets in the unit (group of units) on 

apro rata basis. 

When adecline in the fair value of an available-for-sale 

financial asset has been recognised 

directly in equity and there isobjective evidence 

that the asset is impaired, the cumulative loss 

that had been recognised directly in equity 

is recognised in profit or loss even though the 

financial asset has not been derecognised. The 

amount of the cumulative loss that is recognised 

in profit or loss is the difference between the 

acquisition cost and current fair value, less any 

impairment loss on that financial asset previously 

recognised in profit or loss. 

Calculation of recoverable amount 

The recoverable amount of the group’s investments 

in held-to-maturity securities and receivables 

carried at amortised cost is calculated as 

the present value of estimated future cash flows, 

discounted at the original effective interest rate 

(i.e., the effective interest rate computed at initial 

recognition of these financial assets). Receivables 

with ashort duration are not discounted. 

The recoverable amount of other assets is the 

greater of their net selling price and value in use. 

In assessing value in use, the estimated future 

cash flows are discounted to their present value 

using apre-tax discount rate that reflects current 

market assessments of the time value of money 

and the risks specific to the asset. For an asset 

that does not generate largely independent cash 

inflows, the recoverable amount is determined 

for the cash-generating unit to which the asset 

belongs. 

Reversals of impairment 

An impairment loss in respect of aheld-to-maturity 

security or receivable carried at amortised 

cost is reversed if the subsequent increase in 

recoverable amount can be related objectively to 

an event occurring after the impairment loss was 

recognised. 

An impairment loss in respect of goodwill is 

not reversed. 

In respect of other assets, an impairment loss 

is reversed if there has been achange in the 

estimates used to determine the recoverable 

amount. 

An impairment loss is reversed only to the 

extent that the asset’s carrying amount does not 

exceed the carrying amount that would have been 

determined, net of depreciation or amortisation, 

if no impairment loss had been recognised. 

Provisions 

Aprovision is recognised in the balance sheet 

when the group has apresent obligation as a 

result of apast event that is probable that the 

group will be required to settle. If the effect is 

material, provisions aredetermined by discounting 

the expected futurecash flows at amarket based 

pre-tax rate that reflects current market assessments 

of the time value of money and, where 

appropriate, the risks specific to the liability. 

Warranties 

Aprovision for warranties is recognised when 

the underlying products or services are sold. 

The provision is based on historical warranty 

data and aweighting of all possible outcomes 

against their associated probabilities. 

Restructuring 

Aprovision for restructuring is recognised when 

the group has approved adetailed and formal 

restructuring plan, and the restructuring either 

has commenced or has been announced publicly. 

Future operating costs are not provided for. 

Site restoration 

In accordance with the group’s applicable legal 

requirements, aprovision for site restoration in 

respect of contaminated land is recognised 

when the land is contaminated. 

Onerous contracts 

Aprovision for onerous contracts is recognised 

when the expected benefits to be derived by the 

group from acontract are lower than the unavoidable 

cost of meeting the obligations under the 

contract. 

Employee benefits 

Defined contribution plans 

Obligations for contributions to defined contribution 

pension plans are recognised as an expense 

in the income statement as incurred. 

Defined benefit plans 

The group’s net obligation in respect of defined 

78 




benefit pension plans is calculated separately 

for each plan by estimating the amount of future 

benefit that employees have earned in return for 

their service in the current and prior periods; that 

benefit is discounted to determine its present 

value, and the fair value of any plan assets is 

deducted. The discount rate is the yield at the 

balance sheet date on government bonds/high 

quality corporate bonds with maturities consistent 

with the terms of the obligations. The calculation 

is performed by aqualified actuary using 

the projected unit credit method. 

When the benefits of aplan to employees are 

increased, the portion of the increased benefit 

relating to past service by employees is recognised 

as an expense in the income statement on 

astraight-line basis over the average period until 

the benefits become vested. To the extent that 

the benefits vest immediately, onexpense is 

recognised immediately in the income statement. 

To the extent that any subsequent cumulative 

unrecognised actuarial gain or loss exceeds 10 

percent of the greater of the present value of the 

defined benefit obligation and the fair value of 

plan assets, that portion is recognised in the 

income statement over the expected average 

remaining working lives of the employees participating 

in the plan. Otherwise, the actuarial gain 

or loss is not recognised. 

When the actual calculation results in abenefit 

to the group, the recognised asset is limited to 

the net total of any unrecognised actuarial losses 

and past service costs and the present value of 

any future refunds from the plan or reductions in 

future contributions to the plan. 

Long-term service benefits 

The group’s net obligation in respect of longterm 

service benefits, other than pension plans, 

is the amount of future benefit that employees 

have earned in return for their service in the current 

and prior periods. The obligation is calculated 

using the projected unit credit method and is 

discounted to its present value and the fair value 

of any related assets is deducted. The discount 

rate is the yield at the balance sheet date on 

government bonds/high quality corporate bonds 

with maturities consistent with the terms of the 

obligations. 

Share-based payment transactions 

For cash-settled share-based payments, aliability 

equal to the portion of the goods or services 

received is recognised at the current fair value 

determined at each balance sheet date. 

Cash and cash equivalents 

Cash and cash equivalents include cash on 

hand, demand deposits held at banks and other 

short-term highly liquid investments with original 

maturity of three months or less. Restricted cash 

is mainly cash tied up in projects through joint 

ventures with external parties. The amounts 

fluctuate with the projects’ life cycle and are 

usually released when the project is delivered or 

close to delivery. 

Derivative financial instruments 

The group uses derivative financial instruments 

to hedge its exposure toforeign exchange and 

interest rate risks arising from operational, 

financial and investment activities. Derivatives 

that do not qualify for hedge accounting are 

accounted for as trading instruments. 

Derivatives are initially recognised at fair value 

on the date aderivative contract is entered into 

and are subsequently measured at their fair 

value. The gain or loss on measurement to fair 

value is recognised immediately in profit and 

loss. Where derivatives qualify for hedge accounting, 

recognition of any resultant gain or loss 

depends on the nature ofthe item being hedged 

(see Hedging activities). 

The fair value of interest rate swaps is the estimated 

amount that the group would receive or 

pay to terminate or eliminate the swap at the 

balance sheet date, taking into account current 

interest rates and the current creditworthiness of 

the swap counterparties. The fair value of forward 

exchange contracts is their quoted market 

price at the balance sheet date, being the present 

value of the quoted forward price. 

The fair values of various derivative instruments 

used for hedging purposes are disclosed 

in note 25.3 Derivative financial instruments. 

Movements on the hedging reserve in shareholders’ 

equity are shown in Statement of changes 

in equity (other reserves). The full fair value of a 

hedging derivative is classified as anon-current 

asset or liability when the remaining hedged item 

is classified as non-current asset or liability. With 

the exception of items related to trade receivables 

and work in progress, this is when the remaining 

maturity is more than 12 months; it is 

classified as acurrent asset or liability when the 

remaining maturity of the hedged item is less 

than 12 months or when it is related to trade 

receivables and work in progress. Trading 

derivatives are classified as current asset or 

liability. 

Interest-bearing borrowings 

Interest-bearing borrowings are recognised initially 

at fair value less attributable transaction 

costs. Subsequent to initial recognition, interestbearing 

borrowings are stated at amortised cost 

with any difference between cost and redemption 

value being recognised in the income statement 

over the period of the borrowings on an effective 

interest basis. 

Income tax 

Income tax on the profit or loss for the year 

comprises current and deferred tax. Income tax 

is recognised in the income statement except to 

the extent that it relates to items recognised directly 

in equity, inwhich case it is recognised in 

equity. 

Deferred tax is provided using the balance 

sheet liability method, providing for temporary 

differences between the carrying amounts of 

assets and liabilities for financial reporting purposes 

and the amounts used for taxation purposes. 

The following temporary differences are 

not provided for: goodwill not deductible for tax 

purposes, the initial recognition of assets or liabilities 

that affect neither accounting nor taxable 

profit, nor differences relating to investments in 

subsidiaries to the extent that they will not reverse 

in the foreseeable future. The amount of deferred 

tax provided is based on the expected manner 

of realisation or settlement of the carrying amount 

of assets and liabilities, using tax rates enacted or 

substantively enacted at the balance sheet date. 

Adeferred tax asset is recognised only to the 

extent that it is probable that future taxable profits 

will be available against which the asset can be 

utilised. Deferred tax assets are reduced to the 

extent that it is no longer probable that the related 

tax benefit will be realised. 

Additional income taxes that arise from the 

distribution of dividends are recognised at the 

same time as the liability to pay the related 

dividend. 

Share capital 

Ordinary shares 

Ordinary shares are classified as equity. Incremental 

costs directly attributable to the issue 

of new share oroptions are shown in equity as 

adeduction, net of tax, from the proceeds. 

Repurchase of share capital 

When share capital recognised as equity is 

repurchased, the amount of the consideration 

paid, including directly attributable costs, is 

recognised as achange in equity. Repurchase 

of share capital is recognised as areduction in 

equity and is classified as treasury shares. 

Financial instruments 

Financial instruments in the Aker Solutions group 

consists of cash and cash equivalents, investments 

in other companies, derivative financial 

instruments, non-current interest-bearing 

receivables, Trade and other receivables and 

non-current borrowings. 

The group classifies its financial assets in the 

following categories: at fair value through profit 

or loss, loans and receivables, and available for 

sale. The classification depends on the purpose 

for which the financial assets were acquired. 

Management determines the classification of its 

financial assets at initial recognition. 

Financial assets at fair value through profit or 

loss 

Financial assets at fair value through profit and 

loss are financial assets held for trading. Afinancial 

asset is classified in this category if acquired 

principally for the purpose of selling in the short 

term. Derivatives are classified as held for 

trading unless they are designated as hedges. 

Assets in this category are classified as 

derivative financial instruments. 

Loans and receivables 

Loans and receivables are non-derivative financial 

assets with fixed or determinable payments 

that are not quoted in an active market. They 

are included in current assets as trade and other 

receivables and interest-bearing receivables, 

except for maturities greater than 12 months 

after the balance sheet date. These are included 

in non-current assets as loans and receivables 

and interest-bearing receivables in the balance 

sheet. 

Available-for-sale financial assets 

Available-for-sale financial assets are non-derivatives 

that are either designated in this category 

or not classified in any other categories. They 

are included in non-current assets as investments 

in other companies, unless management 

intends to dispose of the investment within 12 

months of the balance sheet date. They will then 

be included in current assets as other investments. 

Regular purchases and sales of financial 

assets are recognised on the trade-date –the 

date on which the group commits to purchase 

or sell the asset. Investments are initially recognised 

at fair value plus transaction costs for all 

financial assets not carried at fair value through 

profit and loss. Financial assets carried at fair 

value through profit and loss are initially recognised 

at fair value, and transaction costs are 

expensed in the income statement. Available-forsale 

financial assets and financial assets at fair 

value through profit and loss are subsequently 

carried at fair value. Loans and receivables are 

carried at amortised cost using the effective 

interest method. 




Financial assets are derecognised when the 

rights to receive cash flows from the investments 

have expired or have been transferred and the 

group has transferred substantially all risks and 

rewards of ownership. The fair values of quoted 

investments are based on current bid prices. If 

the market for afinancial asset is not active (and 

for unlisted securities), the group establishes fair 

value by using valuation techniques. These 

include the use of recent arm’s length transactions, 

reference to other instruments that are 

substantially the same, discounted cash flow 

analysis and option pricing models, making 

maximum use of market inputs and relying as 

little as possible on entity-specific inputs. Impairment 

of financial instruments is described under 

the impairment section above. 

Foreign currency 

Functional and presentation currency 

The consolidated financial statements are 

presented in Norwegian kroner (NOK), which is 

Aker Solutions ASA’s functional currency and the 

presentation currency for the group. 

Foreign currency transactions and balances 

Transactions in foreign currencies are translated 

at the foreign exchange rate ruling at the date 

of the transaction. Monetary assets and liabilities 

denominated in foreign currencies at the balance 

sheet date are translated to the functional currency 

at the foreign exchange rate at that date. 

Foreign exchange differences arising on translation 

are recognised in the income statement. 

Non-monetary assets and liabilities that are 

measured in terms of historical cost in aforeign 

currency are translated using the exchange rate 

at the date of the transaction. Non-monetary 

assets and liabilities denominated in foreign currencies 

that are stated at fair value are translated 

to the functional currency at foreign exchange 

rates at the dates the fair value was determined. 

Net investment in foreign operations 

Items included in the financial statements of 

each of the group’s entities are measured using 

the currency of the primary economic environment 

in which the entity operates. The results 

and financial position of all the group entities 

(none of which has the currency of ahyperinflationary 

economy) that have afunctional currency 

different from the group’s presentation currency 

are translated into the presentation currency as 

follows: 

assets and liabilities, including goodwill and 

fair value adjustments, for each balance 

sheet presented are translated at the closing 

rate at the date of that balance sheet; 

income and expenses for each income 

statement are translated at average 

exchange rates for the year, calculated on the 

basis of 12 monthly rates. 

Exchange differences arising from the translation 

of the net investment in foreign operations, and 

of related hedges, are included as acomponent 

of equity (Translation reserve). These translation 

differences are reclassified to the income statement 

upon disposal of the related operations. 

In respect of all foreign operations, any currency 

revaluation differences that have arisen 

since 1April 2004, the date of transition to IFRS, 

are presented as aseparate component of equity. 

Hedging activities 

The group designates certain derivatives as 

either: 

a. hedges of the fair value of assets or liabilities 

(fair value hedge); 

b. hedges of aparticular risk associated with 

arecognised liability or ahighly probable 

forecasted transaction (cash flow hedge); or 

c. hedges of anet investment in aforeign 

operation (net investment hedge). 

Fair value hedges 

The change in fair value of the hedging instrument 

is recognised in the consolidated income 

statement. The change in fair value of the 

hedged item attributable to the risk hedged is 

recorded as part of the carrying value of the hedged 

item. When an unrecognised firm commitment 

is designated as hedged item, the subsequent 

cumulative change in fair value of the 

firm commitment attributable to the hedged risk 

is recognised as an asset or liability with 

corresponding gain or loss recognised in the 

consolidated income statement. 


The effective portion of changes in the fair value 

of derivatives that are designated and qualify as 

cash flow hedges are recognised in equity. The 

gain or loss relating to the ineffective portion 

of derivative hedging instruments is recognised 

immediately in the income statement within net 

financial items. 

Amounts accumulated in equity are reclassified 

to the income statement in the periods when 

the hedged item is recognised in profit or loss. 

However, when the forecast transaction that is 

hedged results in the recognition of anon-financial 

asset or anon-financial liability, the gains 

and losses previously deferred in equity are 

transferred from equity and included in the initial 

measurement of the cost of the asset or liability. 

Hedge accounting is discontinued when the 

group revokes the hedging relationship, the hedging 

instrument expires or is sold, terminated, or 

exercised, or no longer qualifies for hedge accounting. 

Any cumulative gain or loss deferred 

in equity at that time remains in equity and is 

recognised when the forecast transaction is 

ultimately recognised in the income statement. 

When aforecast transaction is no longer expected 

to occur, the cumulative gain or loss that was 

deferred in equity is recognised immediately in 

the income statement. 

Net investment hedge 

Hedges of net investments in foreign operations 

are accounted for similarly to cash flow hedges. 

Any gain or loss on the hedging instrument 

relating to the effective portion of the hedge is 

recognised in equity. The ineffective portion is 

recognised immediately in the income statement 

within net financial items. 

Gains and losses accumulated in equity are 

included in the income statement when the 

foreign operation is partially disposed of or sold. 

80 




■ Note 3: Accounting estimates and judgements 

Estimates and judgements are continually reviewed and are based on historical experiences and other expectations of future events. 

The group makes estimates and assumptions concerning future events. The resulting accounting estimates will, by definition, seldom accurately equal 

the related actual results, but are based on the best estimate at the time. The estimates and assumptions that have asignificant risk of causing material 

adjustments to the carrying amounts of assets and liabilities within the next financial year are discussed below. 

Revenue recognition 

As described in the accounting principles the percentage-of-completion method is used to account for construction contracts. Use of this method requires 

estimates of the final outcome (revenue and costs) of the contract as well as measurement of progress achieved to date as aproportion of the total work 

to be performed. 

The main uncertainty of contract revenue is related to recoverable amounts from variation orders, claims and incentive payments which are recognised 

to the extent that it is in the group’s judgement that it is probable that they will result in revenue, and they are capable of being reliably measured. In many 

projects there are frequent changes in scope of work resulting in anumber of variation orders. Normally the contracts with customers include procedures 

for presentation of and agreement of variation orders. At any point in time, there will be unapproved variation orders and claims included in the project 

revenue. Even though management has extensive experience in assessing the outcome of such negotiations there will always be uncertainties. 

Cost to complete depends on productivity factors as well as the cost level for the input factors. Factors that could significantly impact cost estimates, 

claims and variation orders include weather conditions, the subcontractors and others with an impact on schedules, commodity prices and currency rates. 

Experience, systematic use of the project execution model and focus on core competencies reduces but does not eliminate this risk. 

Progress measurement based on costs has an inherent risk related to the cost estimate as described above. In situations where cost is not seen to 

properly reflect actual progress, alternative measures such as hours or plan progress are used to achieve more precise revenue recognition. The estimation 

uncertainty during the early stages of acontract is mitigated by apolicy of normally not recognising revenue in excess of costs on large projects before the 

contract reaches 20 percent completion. 

Warranties 

At the end of each contract, aprovision is set up to cover any warranty expenditures. The warranty period is normally two years. The provision is often 

set at one percent of the contract value, but can also be ahigher or lower amount following aspecific evaluation of the actual circumstances for each 

contract. Both the general on percent provision and the evaluation of project specific circumstances are based on experience from earlier projects. Factors 

that could impact the estimated claim information include the group’s quality initiatives and project execution model. Reference is made to note 12 Provisions, 

for further information about provisions. 

Property, plant and equipment and intangible assets 

At every balance sheet date, the group considers whether there are indications of impairment on the book values of long term assets. If such indications 

exist, avaluation is performed to assess whether or not and if applicable by which amount the asset should be written down for impairment. 

Such valuations will often have to be based on estimates of future results for anumber of cash flow generating units. 

References are made to note 14 Property, plant and equipment and note 16 Intangible assets. 

Goodwill 

In accordance with the accounting policy stated, the group tests annually whether goodwill has suffered any impairment. The recoverable amounts of 

cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates and are consistent with 

the market valuation of the group. Further details about goodwill and impairment reviews are included in note 16 Intangible assets. 

Income taxes 

The group is subject to income taxes in numerous jurisdictions. Significant judgement is required to determine the worldwide provision for income taxes. 

There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Provisions 

for anticipated tax audit issues are based on estimates of eventual additional taxes. Taxassets arise following tax losses that can be brought forward to 

reduce the income tax on future year’s taxable profits. The recognition of such atax asset, consequently, depends on there being sufficient evidence of the 

future taxable profit which is necessary to use the brought forward loss. Such judgements are reasonably easy in countries with significant group activities, 

but may be more difficult in other tax jurisdictions. Where the final tax outcome of these matters is different from the amounts that were initially recorded, 

such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Reference is made to note 17 

Taxfor further information about income taxes. 

Pension benefits 

The present value of the pension obligations depends on anumber of factors that are determined on an actuarial basis using anumber of assumptions. 

The assumptions used in determining the net cost (income) for pensions include financial factors such as the discount rate, expected salary growth, inflation 

and return onassets as well as demographical factors about mortality, employee turnover, disability and early retirement. Assumptions about all these 

factors are set based on the situation at the time when the assessment is made. However, itisreasonably certain that such factors will change over the 

very long time periods for which pension calculations are made. Any changes in these assumptions will impact the calculated pension obligations. The effect 

on the accounts of such changes are, however, spread over relatively long time periods by the use of the corridor approach, where changes are amortised 

over many years. Further information about the pension obligations and the assumptions used are included in note 20 Employee benefits –pension. 




■ Note 4: Acquisition of subsidiaries and minority interests 

Acquisition of minority interests in 2008 

Aker Marine Contractors AS 

Aker Solutions acquired in July 2008 an additional 30 percent of the shares in Aker Marine Contractors AS from Taubåtkompaniet AS, and in October 10 

percent of the shares, and holds after the transaction 100 percent of the shares in the company. The total price for the 40 percent acquired in 2008 was 

NOK 744 million (NOK 559 million and 185 million respectively) including NOK 2million in transaction costs. The transaction resulted in areduction of 

minority interests of NOK 75 million, and an increase in goodwill of NOK 595 million. 

Acquisition of subsidiaries in 2008 

Qserv Ltd 

Aker Solutions acquired 100 percent of the shares in the company in July 2008. Qserv Ltd is awell service provider in Aberdeen, UK. Aker Solutions has 

paid compensation for the shares totalling GBP 99 million. In addition, there will be performance-based payments, payable in 2011, which depend on 

profit in 2008, 2009 and 2010. Transaction costs amount to NOK 8million. The estimated value of the remaining compensation payable to the sellers has 

been discounted and recognised as aliability in the balance sheet. The current analysis and allocation of fair value is provisional. 

Acquisitions that are not material for the group: 

First Interactive AS 

In February 2008, Aker Solutions acquired 60.2 percent of the shares in the Norwegian company First Interactive AS. The agreement includes an option 

to buy the remaining shares. First Interactive AS is asoftware company specialising in 3D visualisation and simulation for the oil &gas sector. 

Aker Offshore Oy 

In January 2008, Aker Solutions acquired 74 percent of the shares in Aker Offshore Oy, formerly RR Offshore Oy, and holds after the transaction 100 percent 

of the shares in the company. Aker Offshore Oyislocated in Finland and is an engineering and project management company. Aker Solutions has had 

business relations with the company several years prior to the acquisition. 

Aker Solutions has also acquired 100 percent of the shares in Aker Installation Floating Production AS in 2008 (see note 5Related parties). In addition the 

group acquired 100 percent of the shares in Aker Well Services Partners LLC. 

Total acquisition costs amount to NOK 1629 million including acquisition of minority interests and transaction costs of NOK 10 million. Consolidated net 

profit from acquired business in the period from acquisition to year end is NOK 53 million in 2008. 

Values at time of acquisition 1 


Pre-acquisition 

carrying 

amounts 

Fair value 

adjustments 

Recognised 

values on 

acquisition 

Of which 

joint venture 

Plant and equipment 426 222 648 - 

Intangible assets 3 92 95 - 

Non-current investments 7 - 7 - 

Current operating assets 305 - 305 - 

Cash and cash equivalents 46 - 46 - 

Minority interests -5 - - 5 - 

Deferred tax liabilities -35 - 81 - 116 10 

Other non-current liabilities -84 - - 84 - 

Borrowings -150 -3 - 153 - 

Current operating liabilities -402 - - 402 -34 

Net assets and liabilities 111 230 341 -24 

Goodwill on acquisition 2 1288 34 

Deferred payment - 510 - 

Cash 1119 10 

Cash paid -1119 -10 

Cash and overdraft facilities 46 - 

Net cash outflow -1073 -10 

1) Values at time of acquisition relate mainly to the acquisition of Qserv Ltd. 

2) The goodwill arising from the acquisitions is mainly attributable to the anticipated profitability of the operations and to the anticipated synergies. 

82 




Acquisition of subsidiaries and jointly controlled companies in 2007 

Wirth Maschinen- und Bohrgeräte-Fabrik GmbH 

Aker Solutions acquired 50 percent of the shares in the company Wirth Maschinen- und Bohrgeräte-Fabrik GmbH in September 2007 (Wirth). Wirth is a 

German provider of drilling machines and pumps. Aker Solutions MH AS has cooperated with Wirth for more than 20 years. There isashareholders’ 

agreement with the other shareholders of Wirth with put /call option arrangements for the remaining 50 percent ownership to be transferred to Aker 

Solutions at aprice based on future earnings. The agreement also results in the owners exercising joint control of Wirth in the period until the options become 

exercisable. The option was executed in January 2009 (see note 26 Subsequent events for further description of the transaction). The current analysis and 

allocation of fair value is provisional. 

Acquisitions that are not material for the group: 

Phoenix Polymers International Ltd 

In June 2007, Aker Solutions Subsea Ltd acquired 50 percent and obtained control over Phoenix International Ltd in Aberdeen. The company is an 

important sub-supplier of buoyancy elements to Aker Solutions Subseas’ drilling and riser projects. 

Aker Insurance AS 

In August 2007, Aker Solutions acquired 9.9 percent of the shares and now owns 100 percent of the company. 

Total acquisition costs amounted to NOK 217 million. Consolidated net profit from acquired business in the period from acquisition to year end 

is NOK 31 million in 2007. 

Values at time of acquisitions 


Pre-acquisition 

carrying amounts 

Fair value 

adjustments 

Recognised 

values on 

acquisition 

Of which 

joint venture 

Plant and equipment 26 - 26 26 

Intangible assets 1 54 55 54 

Non-current investments 2 - 2 2 

Current operating assets 387 31 418 405 

Cash and cash equivalents 84 - 84 70 

Minority interests 7 - 1 6 - 

Deferred tax liabilities 3 - 32 -29 - 28 

Other non-current liabilities -288 - - 288 -288 

Current operating liabilities -186 - - 186 -164 

Net assets and liabilities 36 52 88 77 

Goodwill on acquisition 1 129 78 

Deferred payment -46 - 46 

Cash 171 109 

Cash paid -171 -109 

Cash and overdraft facilities 84 70 

Net cash outflow -87 - 39 

1) The goodwill arising from the acquisitions is attributable to the anticipated profitability of the operations and to the anticipated synergies. 




■ Note 5: Related parties 

The group has several related party relationships between parents and subsidiaries (see note 28 Group companies as at 31 December 2008), associates 

(see note 21 Equity accounted investees), joint ventures (see note 22 Investments in joint ventures) and with its directors and executive officers (see note 

18 Salaries, wages and social security costs). 

The largest shareholder Aker Holding AS is controlled by Aker ASA which is controlled by Kjell Inge Røkke through TRG Holding AS. All entities which Kjell 

Inge Røkke controls or has significant influence in are considered related parties to Aker Solutions. 

In accordance with recommended accounting practice, information regarding significant related party transactions, benefits and agreements should be disclosed 

where such information may assist users of the financial statements in their understanding of the activities of the group. All transactions have been based on 

arm’s length terms. The transactions below are considered to be significant related party transactions which are not disclosed in the notes listed above. 

Aker Drilling ASA 

In 2005, Aker Drilling and Aker Solutions entered into acontract for the turn-key delivery of two sixth-generation deepwater drilling semi-submersibles. The 

rigs are equipped with Aker Solutions Dual RamRig drilling equipment. The contract value was approximately NOK 7.8 billion. The construction of the two 

H-6e drilling rigs, Aker Spitsbergen and Aker Barents, is now in the completion phase. By the current schedule, Aker Drilling will take delivery in February and 

second quarter 2009 respectively. The sea trials for Aker Spitsbergen were completed in January 2009 with good results; however some damage to the drilling 

equipment will lead to some additional costs for Aker Solutions. The project has experienced cost overruns due to delays and technical challenges. In 2008 

Aker Solutions has recognised NOK 2.1 billion in revenue on the contracts to Aker Drilling (NOK 4.2 billion in 2007 and NOK 2.4 billion in 2006). 

Aker Floating Production ASA 

Aker Floating Production signed acontract for delivery and installation of an FPSO with Reliance Industries Ltd, India in 2007. The installation contract was 

executed through Aker Installation Floating Production, at that time asubsidiary of Aker Floating Production. Aker Solutions managed the marine installation 

of the floating production storage and offloading (FPSO) vessel to be leased out by Aker Floating Production. There was aseparate contract to deliver process 

technology to the FPSO. The total values of Aker Solutions’ contracts wereapproximately USD 250 million and NOK 671 million. The process systems contract 

was completed by year end 2008 and the installation contract is between Aker Solutions and Reliance Industries Ltd following the acquisition of Aker Installation 

Floating Production AS. In 2008, Aker Solutions has recognised NOK 32 million in revenue on the contracts to Aker Floating Production ASA. 

Aker Installation Floating Production AS 

Aker Installation Floating Production was acquired from Aker Floating Production in fourth quarter 2008 for NOK 2million. Before the acquisition NOK 167 

million was recognised in 2008 as revenue on contracts to Aker Installation Floating Production. 

Aker Oilfield Services AS 

Aker Solutions has increased its shareholding in Aker Oilfield Services from 19 percent to 32.3 percent through arights issue of NOK 166 million in first 

quarter 2008. Aker Oilfield Services is aspecialised subsea light well intervention contractor with afleet of subsea and well intervention vessels confirmed 

for delivery in 2009 and 2010. Aker Oilfield Services and Aker Solutions will use complementary strengths to offer light well intervention service packages. 

In addition, Aker Solutions has acontract with Aker Oilfield Services to deliver subsea equipment with avalue of NOK 242 million. Aker Solutions also has 

areimbursable contract based on service provided to Aker Oilfield Services. Step Offshore (owned 51 percent by Aker Solutions) has an agreement for 

fluid and pumping systems with Aker Oilfield Services of NOK 51 million. 

In 2008, Aker Solutions has recognised NOK 61 million in revenue on the contracts to Aker Oilfield Services. Aker Solutions has accounted for the 

investment in the company according to the equity method (see note 21 Equity accounted investees). Aloan has been provided to Aker Oilfield Services 

amounting to NOK 65 million at the end of December 2008 (see note 25.4 Interest-bearing non-current receivables). 

Aker Clean Carbon AS 

Aker Solutions transferred its Just Catch technology for CO 2 capture, valued at NOK 32 million, to the company Aker Clean Carbon, which will develop 

CO 2 capture projects. The transaction took place in 2008 and gave Aker Solutions 30 percent of the shares in Aker Clean Carbon, while Aker ASA owns 70 

percent. The ownership ratio has been determined following valuations and negotiations that have also recognised the value of Aker Solutions’ exclusive 

rights to participate in building future carbon capture facilities in co-operation with Aker Clean Carbon. Aker Solutions has accounted for the investment in 

the company according to the equity method (see note 21 Equity accounted investees). Aker Solutions has provided aloan to Aker Clean Carbon that 

amounted to NOK 15 million at the end of December 2008 (see note 25.4 Interest bearing non-current receivables). 

Intellectual Property Holding AS 

Aker Solutions has an agreement with Intellectual Property Holding that holds all rights, titles and interests in and to registered trademarks and domain names 

containing ”Aker”. Intellectual Property Holding will act as ajoint branding tool wherethe companies in the Aker group join forces in selected initiatives. The 

annual royalty cost for Aker Solutions is approximately NOK 10 million. 

Aker Capital AS 

Aker Solutions acquired in October 2008 shares in Aker Marine Contractors equivalent to 10 percent from Aker Capital. The purchase price was NOK 185 

million (see note 4Acquisitions of subsidiaries and minority interests for further information). 

Aker Asset Management ASA 

Aker Insurance receives investment management services from Aker Asset Management. Annual fee is based on average total capital and amounted to 

approximately NOK 1million. 

Aker Pensjonskasse 

Aker Pensjonskasse was established by Aker ASA to manage the Aker Solutions retirement plan for employees, retirees and related companies. The total 

paid-in equity was NOK 103 million at the end of 2008. Aker Solutions holds 93.4 percent of the shares in the Aker Pensjonskasse. 

Aker ASA 

Aker Subsea Inc and Aker Kvaerner Willfab Inc, which are subsidiaries of Aker Solutions, are sponsoring employers of the US pension plan Kvaerner 

Consolidated Retirement Plan. The principal sponsor for the plan is Kvaerner U.S. Inc, asubsidiary of TH Global Plc. Aker ASA has provided aguarantee 

to the plan in the event that Aker Solutions becomes liable for more than one third ofthe underfunded element of the plan. 

84 




■ Note 6: Segment information 

Asegment is adistinguishable component of the group that is engaged either in providing products or services (business segment), or in providing 

products or services within aparticular economic environment (geographical segment), which is subject to risks and rewards that are different from those 

of other segments. See page 18 –41ofthe annual report for adescription of the business segments. The transactions between the segments have been 

based on arm’s length terms. 

Operating revenue in geographical segments are based on the geographical location of customers whereas segment assets and capital expenditure are 

based on geographical location of the companies. 

Due to the 2008 restructuring of Field Development (FD) and Maintenance, Modification and Operations (MMO) into the new business area named Energy 

Development and Services (ED&S), historical Aker Solutions numbers were restated according to the new structure. The recently announced restructuring 

of the Subsea business area and Products &Technologies business area will be effective as at 1January 2009, hence figures have not been restated in the 

annual report. 

2008 –Business segments 


Note 

Energy 

Development 

&Services 

Subsea 

Products & 

Technologies 

Process & 

Construction 

Unallocated 

Total 

External revenue 

Construction contracts 14 381 8039 9640 6569 295 38 924 

Services revenue 7866 2030 2684 3576 943 17 099 

Products - 1 110 714 144 - 1968 

Other - - 17 165 79 261 

Total revenue from external customers 22 247 11 179 13 055 10 454 1317 58 252 

Inter-segment revenue 437 27 1161 248 -1873 - 

Operating revenue 22 684 11 206 14 216 10 702 -556 58 252 

Operating profit /loss before depreciation, amortisation 

and impairment -475 1228 1448 904 277 3382 

Depreciation, amortisation and impairment -93 - 166 -185 -25 - 146 -615 

Operating profit (+) /loss (-) -568 1062 1263 879 131 2767 

Share ofprofit (+) /loss (-) of associates - - 7 - 3 - 25 -21 

Capital expenditures 165 546 388 337 136 1572 

Net current operating assets excl. tax 8 839 837 994 -1832 12 850 

Net non-current operating assets excl. tax 8 2882 2080 4068 1786 393 11 209 

Net operating assets excl. tax 8 3721 2917 5062 -46 405 12 059 

Tax-related items 8 -515 

Investment in associates 90 - 19 24 311 444 

Investments in other companies 123 

Other operating liabilities -1194 

Net interest-bearing items -2311 

Total equity incl. minority interests 8606 

Order intake (unaudited) 16 681 11 466 16 121 11 291 31 55 590 

Order backlog (unaudited) 18 315 11 876 14 705 13 300 -180 58 016 

Own employees (unaudited) 8542 4108 4003 5417 1290 23 360 

Intangible assets 2323 558 2791 1284 163 7119 

Total operating assets excl. tax 9661 8585 13 100 5641 197 37 184 

Total operating liabilities excl. tax -5940 -5668 -8038 -5687 208 -25125 

Total net operating assets excl. tax 3721 2917 5062 -46 405 12 059 




2007 –Business segments 


Note 

Energy 

Development 

&Services 

Subsea 

Products & 

Technologies 

Process & 

Construction 

Unallocated 

Total 


Construction contracts 18 488 7239 9128 7885 -103 42 637 


Products - 993 494 87 - 1 574 

Other 2 - 32 104 12 150 

Total revenue from external customers 24 955 9669 11 379 11 024 930 57 957 

Inter-segment revenue -34 182 974 573 -1695 - 

Operating revenue 24 921 9851 12 353 11 597 -765 57 957 

Operating profit /loss before depreciation, amortisation 

and impairment 1391 960 959 776 -173 3913 

Depreciation, amortisation and impairment -127 -112 -72 - 24 -96 - 431 

Operating profit (+) /loss (-) 1264 848 887 752 -269 3482 

Share ofprofit (+) /loss (-) of associates - - 2 - -4 -2 

Capital expenditures 490 577 298 53 178 1596 

Net current operating assets excl. tax 8 -776 849 323 -1357 -100 -1061 

Net non-current operating assets excl. tax 8 2726 1624 1217 1035 295 6897 

Net operating assets excl. tax 8 1950 2473 1540 -322 195 5836 

Tax-related items 8 -372 

Investment in associates 53 - 18 21 29 121 

Investments in other companies 133 

Other operating liabilities -914 

Net interest-bearing items 2463 

Total equity incl. minority interests 7267 

Order intake (unaudited) 19 792 12 377 10 733 14 996 44 57 942 

Order backlog (unaudited) 24 317 10 951 11 520 12 519 -1046 58 261 

Own employees (unaudited) 8163 3673 2666 5516 1280 21 298 

Intangible assets 2540 646 824 900 85 4995 

Total operating assets excl. tax 7716 5027 6234 3812 758 23 547 

Total operating liabilities excl. tax -5766 -2554 -4694 -4134 -563 -17711 

Total net operating assets excl. tax 1950 2473 1540 -322 195 5836 

2006 –Business segments 


Energy 

Development 

&Services 

Subsea 

Products & 

Technologies 

Process & 

construction 

Unallocated 

Total 


Construction contracts 17 644 2724 3908 9074 -46 33304 


Products - 2 589 1355 - - 3944 

Other 331 5 7 135 2 480 

Total revenue from external customers 24 029 6592 6697 12 612 662 50 592 

Inter-segment revenue 565 349 875 603 -2392 - 

Operating revenue 24 594 6941 7572 13 215 -1730 50 592 

Operating profit/loss before depreciation, amortisation and impairment 1244 479 531 641 -23 2 872 

Depreciation, amortisation and impairment -60 - 100 -62 - 34 -83 - 339 

Operating profit (+) /loss (-) 1184 379 469 607 -106 2533 

Share ofprofit (+) /loss (-) of associates - 1 -1 3 - 21 -18 

Order intake (unaudited) 24 717 11 747 12 997 14 026 -1216 62 271 

Order backlog (unaudited) 29 764 8775 12 741 10 855 -2440 59 695 

86 




Geographical segments 

Operating revenues Total operating assets Capital expenditure 

by customer location by company location by company location 

Amounts in NOK million 2008 2007 2006 2008 2007 2008 2007 

Norway 21 180 23 396 20 567 19 046 11 029 584 963 

Europe 8704 8628 9619 7873 5713 470 219 

North America 8597 9243 9976 5453 3802 148 101 

Asia 13 939 11 336 5282 1894 1353 317 212 

Other 5832 5354 5148 2918 1650 53 101 

Total 58 252 57 957 50 592 37 184 23 547 1572 1596 

■ 

Note 7: Other operating expenses 

Other operating expenses amount to NOK 6.9 billion in 2008 (NOK 5.4 billion in 2007 and NOK 6.0 billion in 2006). The expenses include agency costs, 

audit fees, operating lease costs, research and development costs and other expenses regarding premises, electricity,maintenance, travelling, IT-equipment 

and insurance fees. 

Fees to auditors 

Other assurance 

Other 

Audit services Taxservices services 

Amounts in NOK million 2008 2007 2008 2007 2008 2007 2008 2007 

Aker Solutions ASA 4 4 - - - - - - 

Subsidiaries 26 22 2 2 4 4 5 2 

Total 30 26 2 2 4 4 5 2 

■ 

Note 8: Net operating assets 


Inventories 1321 884 

Trade and other receivables 9, 25.5 20 796 13 361 

Provisions 12 -912 -655 

Trade and other payables 10 -21052 -15165 

Derivative financial instruments (net assets and liabilities) 25.3 697 514 

Net current operating assets excl. tax 6 850 -1061 

Employee benefit assets 20 234 15 

Other non-current operating assets 4 9 

Intangible assets 6, 16 7119 4995 

Property, plant and equipment 14 4610 2815 

Employee benefits obligations 20 -758 -937 

Net non-current operating assets excl. tax 6 11 209 6897 

Net operating assets excl. tax 6 12 059 5836 

Income tax payable 17 -252 -329 

Prepaid income tax 17 49 89 

Deferred tax assets 17 519 548 

Deferred tax liabilities 17 -831 -680 

Total tax related items 6 -515 -372 

Net operating assets incl. tax 11 544 5464 




■ Note 9: Current operating assets 


Trade debtors 1, 2 25.5 8923 5815 

Other receivables 1 4288 2338 

Work in progress to be invoiced 11 6868 4774 

Advances to suppliers 717 434 

Trade and other receivables 25.5 20 796 13 361 


Inventories 3 1321 884 

Current operating assets excl. tax 25 217 15 713 

1) Trade debtors include NOK 135 million falling due after one year (NOK 89 million in 2007). Book value of trade and other receivables are approximately equal to fair value. 

2) Receivables from related parties at the end of 2008 amounts to NOK 35 million (NOK 425 million in 2007). 

3) Write-downs of inventories are NOK 2million in 2008 (NOK 9million in 2007). 

■ 

Note 10: Current operating liabilities 


Trade creditors 1, 2 4482 3217 

Advances from customers 6860 2852 

Accrued operating and financial costs 7972 8644 

Other current liabilities 2 1738 452 

Trade and other payables 21 052 15 165 

Provisions 12 912 655 


Current operating liabilities excl. tax 24 367 16 774 

1) Trade creditors include NOK 33 million falling due after one year (NOK 11 million in 2007). Book value of trade creditors and other current liabilities are approximately equal to fair value. 

2) Trade creditors and other current liabilities include NOK 43 million to related parties at the end of 2008 (NOK 0million in 2007). 

■ 

Note 11: Contracts 


Value all contracts 163 425 126 967 

Costs from ongoing contracts 93 623 62 013 

Results from ongoing contracts 11 786 6693 

Order backlog 6 58 016 58 261 

Value of work performed 105 409 68 706 

Invoiced 98 541 63 932 

Work in progress to be invoiced 9 6868 4774 

Trade debtors 9 8923 5815 

Recoverable on contracts 15 791 10 589 

Advances from customers 10 6860 2852 

88 




Order intake (unaudited) 

Amounts in NOK million 2008 2007 1 

Energy Development &Services 16 681 19 792 

Subsea 11 466 12 377 

Products &Technologies 16 121 10 733 

Process &Construction 11 291 14 996 

Unallocated 31 44 

Total 55 590 57 942 

Order backlog (unaudited) 


Energy Development &Services 18 315 24 317 

Subsea 11 876 10 951 

Products &Technologies 14 705 11 520 

Process &Construction 13 300 12 519 

Unallocated -180 -1046 

Total 58 016 58 261 

1) Due to the 2008 restructuring of Field Development (FD) and Maintenance, Modification and Operations (MMO) into the new business area named Energy Development &Services (ED&S), 

historical Aker Solutions numbers were restated according to the new structure. The recently announced restructuring of the Subsea business area and Products &Technologies business 

area will be effective as at 1January 2009, hence figures have not been restated in the annual report. 

The group enters into delivery commitments prior to commencement of production. Of the backlog as at 31 December 2008 of NOK 58 billion, NOK 2.3 billion 

(NOK 5.4 billion in 2007) relate to certain major contracts which are not expected to yield any profit. Expected losses on such contracts have been charged to 

profit and loss and based on best estimates. The overall quality of the order backlog has improved during 2008, which is reflected in results from ongoing 

contracts. 

Largest projects in progress at year end 2008 (unaudited) 

Project 

Business 

segment 

Customer 

Estimated 

delivery 

Adriatic LNG Terminal ED&S Terminale GNL Adriatico s.r.l 2009 

Kashagan ePF1 ED&S Agip 2009 

Skarv ED&S BP 2011 

Gjøa ED&S StatoilHydro 2010 

Aker Drilling ED&S Aker Drilling AS 2009 

Statfjord Latelife ED&S StatoilHydro 2009 

Frigg Cessation ED&S Total 2010 

Tampen ED&S StatoilHydro 2011 

Frigstad P&T Frigstad Discoverer Invest 2009 

CNOOC P&T CNOOC 2010 

PetroRig P&T Jurong Shipyard 2009 /2010 

Seadrill P&T Jurong Shipyard 2009 /2010 

Sevan P&T Sevan Drilling 2012 

TMT P&T Daewoo Shipbuilding &Marine Engineering 2009 /2011 

Odebrecht P&T Daewoo Shipyard 2011 

Morvin Subsea StatoilHydro 2009 

Reliance Subsea Reliance 2009 

Dalia Subsea (Phase 2) Subsea Total E&P Angola 2009 

Sempra P&C Cameron LNG 2009 

Yansab P&C Yansab 2009 

Longview Power Project P&C Longview Power 2011 

Boddington Gold Mine P&C BGM Management Company 2009 

Gulf LNG P&C Gulf LNG Energy 2011 

GTA West P&C TransCanada Energy 2010 




■ Note 12: Provisions 

Amounts in NOK million Warranties Other Total 

Balance as at 1January 2008 437 218 655 

Reclassified 19 -19 - 

Provisions made during the year 234 203 437 

Provisions used during the year -105 -51 - 156 

Provisions reversed during the year -62 - 26 -88 

Currency translation differences 34 30 64 

Balance as at 31 December 2008 557 355 912 

Expected timing of payment 

Non-current 143 165 308 

Current 414 190 604 

Balance as at 31 December 2008 557 355 912 

See note 3Accounting estimates and judgements and note 13 Contingent events. 

Warranties 

The provision for warranties relates mainly to the possibility that Aker Solutions, based on contractual agreements, needs to perform guarantee work 

related to products and services delivered to customers. The provision is based on estimates of liabilities arising from existing contracts and the cost 

of the guarantee work. The warranty period is normally two years and any cash effects will arise in this period. 

Other 

Other includes mainly restructuring provisions, provisions for onerous leases and provisions for loss contracts. Provisions for loss contracts are partly 

recorded as reduction of projects under construction in the balance sheet, and partly as short-term provisions in the balance sheet, depending on the 

amount recorded as project under construction for each project. 

■ 

Note 13: Contingent events 

Project risks and uncertainties 

The group’s projects are toalarge extent long-term contracts awarded on acompetitive bidding basis. Failure tomeet schedule or performance guarantees 

or increases in contract costs may result in non-recoverable costs, which could exceed revenues realised from the applicable project. Where aproject 

is identified as loss making, provisions for future losses are made (see note 12 Provisions). The accounting treatment is based on the best estimate at the 

time. Inevitably, such circumstances and information may be subject to changes in subsequent periods and thus the eventual outcome may be better or 

worse than estimated. 

In the group’s view, the following project is subject to estimation uncertainty, the outcome of which could have amaterial impact on the consolidated 

financial statements: 

Sempra –LNG regasification facility 

Cameron LNG LLC (ultimately Sempra LNG –“Sempra”) and Aker Solutions US Inc. /IHI Inc. have entered into an agreement for engineering, procurement, 

construction and commissioning services of an LNG regasification facility located on the south coast of Louisiana in the United States. The original value of the 

contract was USD 470 million. Since the construction of the facility started in 2005, the project has been substantially affected by several force majeureevents, 

including hurricanes, and significant customer requested changes to the initial project scope. These events and scope changes have resulted in significant 

increases to the project cost and delayed the original scheduled completion date. Aker Solutions is seeking recovery for such cost increases under the contract. 

While the final outcome is subject to some uncertainty,the expectation is that the ultimate outcome will not have amaterial financial impact on Aker Solutions’ 

financial position or results. 

Legal proceedings 

With its extensive worldwide operations, companies included in the group are inthe course of their activities involved in legal disputes. Provisions have 

been made to cover the expected outcome of the disputes to the extent negative outcomes are likely and reliable estimates can be made. However, the 

final outcome of these cases will always be subject to uncertainties and resulting liabilities may exceed recorded provisions. 

Blind Faith 

Aker Solutions has delivered asemi-submersible hull for Chevron Corporations’ Blind Faith platform. The platform has been installed in the Gulf of Mexico 

and production started in November 2008. Aker Solutions is in discussions with the customer regarding compensation for acceleration work. Chevron Corporations 

has presented aguarantee claim towards Aker Solutions and initiated an arbitral process in Houston. Although there can be no assurance regarding the 

outcome, the expectation is that this will not have amaterial impact on Aker Solutions’ financial position or results. 

Hitachi –Council Bluffs power plant 

In 2003, Hitachi America Ltd (“Hitachi”) entered into acontract with Aker Construction Inc (“ACI”) for the civil, underground, structural erection, boiler, turbine, 

Air Quality Control System (“AQCS”) and ancillary scopes of work for a790 megawatt pulverized coal-fired power plant to be delivered to 

MidAmerican Energy Company in Council Bluffs, Iowa in the United States. The original value of the contract was USD 331 million. 

Hitachi and ACI’ssubcontractor AZCO Inc (“AZCO”) have filed various claims against ACI. ACI has disputed these claims and filed various counterclaims against 

both Hitachi and AZCO. The disputes between Hitachi and ACI, and ACI and AZCO arecumulated in ajoint hearing, and arbitration hearings areongoing in 

Chicago, Illinois in the United States. Afinal awardonall matters and between all parties is expected in the fourth quarter of 2009. Although therecan be no 

assurance with regards to the final arbitration award, the expectation is that this will not have amaterial impact on Aker Solutions’ financial position or results. 

90 




■ Note 14: Property, plant and equipment 


Buildings 

and sites 

Machinery, 

equipment and 

software 

Construction 

in progress 

Total 

Historical cost 

Balance as at 1January 2007 1162 3107 45 4314 

Additions 371 966 259 1596 

Additions through business combinations 1 - 26 - 26 

Disposals -51 - 279 - - 330 

Currency translation differences -47 - 114 -2 - 163 

Historical cost as at 31 December 2007 1435 3706 302 5443 

Additions 397 798 377 1572 

Additions through business combinations 2 - 648 - 648 

Disposals - - 87 3 - 84 

Currency translation differences 119 220 -11 328 

Historical cost as at 31 December 2008 1951 5285 671 7907 

Accumulated depreciations 

Balance as at 1January 2007 -568 -1984 -1 -2553 

Depreciation for the year -129 - 301 - - 430 

Impairment loss - - - - 

Disposals 62 236 - 298 

Currency translation differences 19 38 - 57 

Accumulated depreciation as at 31 December 2007 -616 -2011 -1 -2628 

Depreciation for the year -189 -376 - - 565 

Impairment loss - - 43 - -43 

Disposals 8 48 - 56 

Currency translation differences -9 -109 1 -117 

Accumulated depreciation as at 31 December 2008 -806 -2491 - -3297 

Book value as at 

31 December 2007 819 1695 301 2815 

31 December 2008 1145 2794 671 4610 

Of which capitalised leases 

31 December 2007 7 - - 7 

31 December 2008 5 245 - 250 

1) Additions relate mainly to the acquisition of 50 percent in Wirth Maschinen- und Bohrgeräte-Fabrik GmbH which is proportionally consolidated in the accounts. 

2) Additions relate mainly to acquisition of 100 percent in Qserv Ltd. 

Assets are depreciated on astraight-line basis over their expected economic lives, as follows: 

Machinery and equipment 

Buildings 

Sites 

3–15years 

8–30years 

No depreciation 

The estimated residual values are reviewed annually. 

See note 25.6 Borrowings and other non-current liabilities for information about bank borrowings which are secured by property, plant and equipment. 




■ Note 15: Operating leases 

Total non-cancellable operating lease commitments 

Amounts in NOK million 2008 2007 

Contracts due within one year 392 522 

Contracts running from one to five years 3420 1635 

Contracts running for more than five years 1634 1253 

Total 5446 3410 

Lease and sublease payments recognised in the income statement in 2008 


Buildings 

Construction 

equipment 

Other plant and 

machinery Other Total 

Minimum lease payments 736 34 208 22 1000 

Contingent payments 31 - 2 9 42 

Sublease payments -8 - - - -8 

Total 759 34 210 31 1034 

Lease and sublease payments recognised in the income statement in 2007 


Buildings 

Construction 

equipment 

Other plant and 

machinery Other Total 

Minimum lease payments 380 160 188 4 732 

Contingent payments 2 - 1 - 3 

Sublease payments 1 - - - 1 

Total 383 160 189 4 736 

The major part of the operating lease costs and commitments relates to rental on alarge number of locations worldwide. Aker Solutions has atwelve year 

leasing agreement with Norwegian Property for the headquarters, Aker Hus, at Fornebu, Bærum expiring in 2019. 

Other plant and machinery costs primarily include leasing of IT equipment, cars, inventory and lease of the vessel Boa Sub C. Leasing of IT equipment is 

based on athree year agreement with Hewlett Packard International Bank PLC. From January 2008, inventory and ICT equipment are leased from SG 

Finans. There isnointention to purchase the equipment and it cannot be sublet. 

None of the leases include significant contingent rent. 

■ 

Note 16: Intangible assets 

Amounts in NOK million Note Goodwill 

Other intangible 

assets 

Total 

Book value as at 1January 2007 5051 3 5 054 

Additions - 3 3 

Additions through business combinations 4 129 55 184 

Disposals - - 3 - 3 

Amortisation for the year - - 1 - 1 

Currency translation differences -242 - - 242 

Book value as at 31 December 2007 6 4938 57 4995 

Additions - 12 12 

Additions through business combinations 4 1883 95 1978 

Disposals - - 7 -7 

Amortisation for the year - - 7 -7 

Currency translation differences 138 10 148 

Book value as at 31 December 2008 6 6959 160 7119 

The increase in goodwill is mainly caused by the acquisitions of Qserv Ltd and Aker Marine Contractors AS with respectively NOK 1206 million and 

NOK 595 million. The acquisition of Qserv Ltd caused an increase in other intangible assets, mainly related to customer relationship, of NOK 84 million. 

See note 4Acquisition of subsidiaries and minority interest for further description. 

92 




Research and development costs 

Most of the costs for research and development in Aker Solutions are related to projects and are booked as contract costs. In addition, research and 

development costs of NOK 188 million have been expensed during the year because the criteria for capitalisation was not met (NOK 166 million in 2007). 

In addition, research and development costs paid by customers totalled NOK 21 million in 2008 (NOK 77 million in 2007). 

Allocation of goodwill 


Energy Development &Services 1 2304 2306 

Subsea 1 556 562 

Products &Technologies 2652 776 

Process &Construction 1284 1127 

Other 163 167 

Total 6959 4938 

1) Decrease in goodwill is related to currency translation effects. 

Cash generating units 

Goodwill originates from anumber of acquisitions. Management monitors goodwill impairment at the business segment level which is also considered the 

cash generating unit (CGU) due to the level of integration within the CGUs. 

Determination of recoverable amounts 

Recoverable amounts are based on value in use calculations. The calculations use cash flow projections based on the future cash flow, budgets and 

strategic forecasts for the periods 2009 –2013 and an annual growth of 2.5 percent for subsequent periods. Adiscount rate (WACC) of 16.5 percent 

before tax has been used for discounted cash flows. 

For all business areas the recoverable amounts are higher then the carrying amounts and consequently the analysis indicates that no impairment 

is required. As asensitivity analysis, recoverable amount has also been calculated using discount rates up to 25 percent, without any effect on the 

conclusions. 

■ 

Note 17: Tax 

Income tax expense 


Current tax expense 

Current year 484 548 318 

Adjustments for prior years -36 9 35 

Total current tax expense 448 557 353 

Deferred tax expense 

Origination and reversal of temporary differences 189 550 244 

Benefit of tax losses /timing differences recognised -47 -33 - 22 

Total deferred tax expense 142 517 222 

Total tax expense in income statement 590 1074 575 

Taxexpense discontinued operations - - 65 

Taxexpense including tax related to discontinued operations 590 1074 640 




Effective tax rate 

The table below reconciles the reported income tax expense to the expected income tax expense according to the corporate income tax rate 

of 28 percent in Norway. 



Expected income taxes (28 percent) of profit before tax 589 991 523 

Taxeffect of prior year adjustments -37 -12 26 

Taxeffect of items booked against equity 4 - 31 

Taxeffect of permanent differences 1 21 23 -32 

Taxeffect of tax losses /other timing differences not included in the period incurred -47 -33 - 22 

Taxeffect of change in tax rates 37 15 - 

Taxeffect of differences in tax rates from 28 percent 2 38 90 49 

Other -15 - - 

Income tax expense 590 1074 575 

Effective tax rate 28 % 30 % 31% 

Taxeffect of differences 1 83 52 

1) In 2006 the main difference was the gain on disposal of Aker Kværner Power &Automation Systems AS. 

2) The major part of the difference relates to the US where the tax rate is 41 percent. 

Recognised deferred tax assets and liabilities 

Assets Liabilities (-) Net 

Amounts in NOK million 2008 2007 2008 2007 2008 2007 

Property, plant and equipment 16 5 -160 -27 -144 -22 

Pensions 137 246 - - 137 246 

Projects -64 - -1722 -1340 -1786 -1340 

Taxloss carry forward 31 114 - - 31 114 

Other 399 183 1051 1 687 1 1450 870 

Total 519 548 -831 -680 -312 -132 

1) Includes the tax effect of tax losses carried forward of NOK 3251 million (NOK 2849 million in 2007) used to offset positive timing differences. 

Change in recognised deferred tax assets and liabilities 


Property, plant 

and equipment Pensions Projects 

Taxloss 

carry forward Other Total 

Net deferred tax assets and liabilities as at 1January 2007 85 246 -1415 91 1485 492 

Recognised in profit and loss -105 - 75 23 - 510 -517 

Recognised in equity - - - - -86 - 86 

Disposal /acquisition of companies - - - - -25 - 25 

Currency translation differences -2 - - - 6 4 

Net deferred tax assets and liabilities as at 31 December 2007 -22 246 -1340 114 870 -132 

Recognised in profit and loss -74 - 109 -452 -103 597 -142 

Recognised in equity - - - - -4 -4 

Disposal /acquisition of companies -35 - - - -81 -116 

Currency translation differences -13 - 6 20 68 82 

Net deferred tax assets and liabilities as at 31 December 2008 -144 137 -1786 31 1450 -312 

94 




Taxlosses carried forward 

Amounts in NOK million Norway Europe 

North 

America 

South 

America Asia Other Total 

2009 - - - - - - - 

2010 - - - - - - - 

2011 - - - - - - - 

2012 - - - - - - - 

2013 - 1 - - - - 1 

2014 and later - - 224 - - - 224 

Indefinite 4389 173 - 60 35 6 4663 

Total tax losses carried forward 4389 174 224 60 35 6 4 888 

Taxlosses not recognised as deferred tax asset - - -2 -28 - 35 -4 -69 

Taxlosses recognised as deferred tax asset 4389 174 222 32 - 2 4819 

Deferred tax losses are recognised in the balance sheet to the extent that forecasts and realistic expectations about results show that Aker Solutions will 

be able to use the tax losses before they expire. 

Geographical split 



Current tax 

expense 

Deferred tax 

expense 

Total tax 

change 

Net deferred 

tax liability 

Net payable 

tax liability 

Norway 13 -20 - 7 - 489 -18 

Europe 65 47 112 -71 - 38 

North America 93 114 207 212 46 

South America 41 -3 38 22 -48 

Asia 234 2 236 -1 -121 

Other countries 2 2 4 15 -24 

Total 448 142 590 -312 -203 

Taxasset 519 49 

Taxliability -831 -252 

2007 


Current tax 

expense 

Deferred tax 

expense 

Total tax 

change 

Net deferred 

tax liability 

Net payable 

tax liability 

Norway 40 566 606 -307 -38 

Europe 29 50 79 -83 - 59 

North America 346 -93 253 236 -105 

South America 21 5 26 16 - 15 

Asia 74 2 76 5 -5 

Other countries 47 -13 34 1 -18 

Total 557 517 1074 -132 -240 

Taxasset 548 89 

Taxliability -680 -329 

■ 

Note 18: Salaries, wages and social security costs 


Salaries and wages including holiday allowance 11 140 9741 8365 

Social security tax /National insurance contribution 1328 1373 1304 

Pension costs 20 322 543 337 

Other employee costs 332 540 435 

Salaries, wages and social security costs 13 122 12 197 10 441 

Loans to employees are shown in note 25.4 Non-current interest-bearing receivables. No guarantees are granted to any employee. 




Directors and nomination committee’s annual fees 

The board fees for 2008 were NOK 3150 000, including NOK 600 000 transferred to the labour union covering occupational activities in the group. 

In addition, fees to the reward committee were NOK 75 000. The amounts are the same as in 2007. The Board ofDirectors did not receive any other 

payments in 2007 or 2008. The members of the Board ofDirectors have no agreements that entitle them to any extraordinary remuneration. 

Fees paid to the nomination committee in 2008 amounted to NOK 90 000, NOK 30 000 per member (NOK 10 000 per member in 2007). 

Board ofDirectors 1 

Amounts in NOK in 2008 

Reward 

committee 

Board fees 

Leif-Arne Langøy 2, 4 25 000 325 000 

Martinus Brandal 2, 4 300 000 

Bjørn Flatgård 25000 350 000 

Heidi Marie Petersen 300 000 

Vibeke Hammer Madsen 25 000 300 000 

Karl Erik Kjelstad 2, 4 75 000 

Siri Fürst 300 000 

Atle Teigland 3 150 000 

Åsmund Knutsen 3 150 000 

Arve Toft 3 150 000 

Ingebreth Forus 3 150 000 

Amounts in NOK in 2007 

Reward 

committee 

Audit 

committee 

Board fees 

Leif-Arne Langøy 25 000 400 000 

Bjørn Flatgård 25000 350 000 

Helge Midttun 25 000 75 000 

Heidi Marie Petersen 225 000 

Vibeke Hammer Madsen 25 000 300 000 

Karl Erik Kjelstad 300 000 

Siri Fürst 25 000 300 000 

Atle Teigland 25 000 150 000 

Åsmund Knutsen 150 000 

Bernt Harald Kilnes 37 500 

Arve Toft 112 500 

Øyvind Hopland 50 000 

Ingebreth Forus 100 000 

1) Members of the Board of Directors, the reward committee and the audit committee are elected for two years at the general meeting. 

2) According to policy in the Aker group, fees to board members employed in Aker companies will be paid to the Aker companies, not to the board member in person. The same policy is 

implemented for fees for the reward committee. Therefore, board and compensation committee fees for Leif-Arne Langøy, and board fees for Martinus Brandal and Karl Erik Kjelstad in 2008 

were paid to Aker ASA. In 2007, board fees to Leif-Arne Langøy and Karl Erik Kjelstad were paid to Aker ASA and Aker Yards ASA. 

3) According to agreement with and initiative from the employees, NOK 150 000 is transferred to the labour union covering occupational activities in the group, for each board member elected 

from the employees. 

4) As at April 2008, Martinus Brandal replaced Leif-Arne Langøy as chairman of the board. Karl Erik Kjelstad resigned as director of the board on the same date. 

The nomination committee 

The Aker Solutions ASA nomination committee comprises the following individuals as at 31 December 2008: Kjell Inge Røkke (Chairman), Kjeld Rimberg 

and Gerhard Heiberg. 

The reward committee 

The reward committee has three independent members elected by and among the Board ofDirectors. As at 31 December 2008 the members of the 

reward committee are Leif-Arne Langøy, Bjørn Flatgård and Vibeke Hammer Madsen. 

The reward committee shall ensure that the company’s reward policy serves the interest of the shareholders and that the company has internally 

consistent and externally competitive remuneration of executives. 

Guidelines for remuneration to the President &CEO and the members of the executive management team 

The main purpose of the executive reward programme is to encourage astrong and sustainable performance-based culture, which supports growth 

in shareholder value. The total remuneration to executives consists of amarket based salary, afew standard employee benefits and avariable pay 

programme. 

The President &CEO and the executive management team participate in the standard pension and insurance schemes applicable to all employees. 

The company practice standard employment contracts and standard terms and conditions regarding notice period and severance pay for President & 

CEO and the members of the executive management team. The company does not offer share option programmes to any managers or employees. 

The objective of the variable pay programme is to contribute to the company achieving good financial results and management according to the 

company’s values and business ethics. 

96 




The variable pay programme is based on the achievement of financial and personal performance targets, leadership performance in accordance with the 

company’s values and the development of the company’s share price. The programme represents apotential for an additional variable pay up to the value 

of 100 percent of base salary. Earnings are paid over three years. The first half of the variable pay is paid the following year. The remaining amount is paid 

two years later with the addition of aretention element provided the executive is still employed by the company. The annual payments are restricted to one 

annual base salary and the restriction will be fully effective from 2009. The actual reward ofleaders for 2008 was according to the guidelines of the company. 

The variable pay in 2008 are amounts earned in 2007 and 2005. 

Remuneration to members of the executive management team 

Members of the executive management team as at 31 December 2008 are: Simen Lieungh, Leif Hejø Borge, Niels Didrich Buch, Mads Andersen, 

Nils Arne Hatleskog, Per Harald Kongelf and Jarle Tautra. Simen Lieungh replaced Martinus Brandal, who returned to Aker ASA, as at 1March 2008. 

Leif Hejø Borge replaced Bjørn Erik Næss as at 1April 2008. Nils Arne Hatleskog replaced Pål Helsing as at 11 April 2008. Mads Andersen replaced 

Raymond Carlsen, who returned to Aker ASA, as at 1October 2008. Per Harald Konelf replaced Mads Andersen, who took over Subsea, as at 1October 

2008. Niels Didrich Buch entered the executive management team as at 1March 2008. Thorleif Gram left the executive management team as at 1March 

2008. Total taxable remuneration of the executive management team for 2008 was NOK 38 927 917 (NOK 61 341 631 in 2007). In addition, Aker Solutions 

also had NOK 919 395 in 2008 (NOK 1290 782 in 2007) in pension costs for the executive management team. 

The following remunerations have been paid: 


Amounts in NOK in 2008 Base salary 1 variable pay 2 Other benefits 3 remuneration 

Total 

Total taxable 

Pension benefit 

earned /cost to 

company 

Simen Lieungh March –December 3456 219 755 051 21 182 4232 452 106 186 4 

Martinus Brandal January –February 1212 235 722 953 - 1 935 188 36 584 4 

Leif Hejø Borge April –December 1702 151 2500 000 20 618 4222 769 36 328 

Bjørn Erik Næss January –February 892 684 3123 251 - 4 015 935 15 988 

Niels Didrich Buch March –December 1396 465 316 057 21 969 1734 491 77 843 

Pål Helsing January –March 832 488 - 21969 854 457 71 374 

Nils Arne Hatleskog April –December 1265 527 444 807 16 219 1726 553 60 250 

Mads Andersen January –December 2279 657 2507 561 21 969 4809 187 54 330 

Torleif Gram January –April 617 817 1379 013 113 192 2110 022 206 299 4, 7 

Raymond Carlsen January –September 2256 456 5178 746 20 788 7455 990 104 066 4 

Per Harald Kongelf October –December 499 160 - 12678 511 838 36 328 

Jarle Tautra January –December 2374 805 2922 261 21 969 5319 035 113 819 

Total 18 785 664 19 849 700 292 553 38 927 917 919 395 

Amounts in NOK in 2007 

Martinus Brandal January –December 3906 965 577 499 19 023 4503 487 76 229 

Bjørn Erik Næss January –December 2496 864 2222 303 22 831 4741 998 89 513 

Simen Lieungh January –September 1984 483 6292 094 45 660 8322 237 71 602 4, 6 

Pål Helsing October –December 512 500 - 21094 533 594 19 135 

Mads Andersen January –December 2303 615 5152 378 28 382 7484 375 59 260 

Torleif Gram January –December 2239 582 5443 460 994 381 8677 423 586 699 4 

Raymond Carlsen January –December 2130 755 8345 521 26 100 10 502 376 206 649 4 

Gary Mandel January –April 1287 029 5701 121 3398 6991 548 47 121 5 

Jarle Tautra January –December 2606 790 6956 552 21 251 9584 593 134 574 

Total 19 468 582 40 690 929 1182 120 61 341 631 1290 782 

1) Includes holiday allowance. 

2) The variable pay in 2008 are amounts earned in 2008, 2007 and 2005 in addition to holiday allowance of variable pay paid in 2007. 

3) Other benefits include insurance agreements, which is membership in the standard employee scheme and an additional executive group life and disability insurance with acover of maximum 

NOK 4402 320. 

4) Includes management pension rights where contributions stopped in 2002 .The schemes were wound up following the merger between Kvaerner and Aker Maritime. 

5) Gary Mandel has adefined contribution plan only. 

6) Simen Lieungh was included in the pension benefit program until 31 December 2007. 

7) Other benefits include NOK 103 455 for car /housing. 

There are no loans granted to members of the executive management team. 




Period of notice, severance pay and pension benefits for each member of the current executive management team 

Name /Title 


Simen Lieungh 

Executive Vice President &CFO 

Leif Hejø Borge 

Executive Vice President 



Mads Andersen 


Nils Arne Hatleskog 


Per Harald Kongelf 


Jarle Tautra 

Agreed period 

of notice Severance pay Pension benefits 

6months 12 months Standard employee defined benefit plan as described in note 20. 

In addition vested company pension rights (see description previous page). 

6months 6months Standard employee defined benefit plan as described in note 20. 






Share-based payments 

Including the members of the executive management team, atotal of 48 managers are entitled to variable pay according to the programme described on 

the previous page. The total accrual for the variable pay programme is NOK 112 million at 31 December 2008. The development of the company’s share 

price is an element of the variable pay programme. 

Amounts in NOK 2008 2007 2006 

Paid in the year 11 665 450 115 419 678 35 122 508 

Expensed in the year -9381 273 - 90094 622 

Accrued at the end of the year - 21 046 724 136 466 401 

Directors’ and executive management team’s shareholding 

The following number of shares were owned by the Directors and the members of the executive management team (and their related parties) as at 

31 December 2008. 

Martinus Brandal, Chairman 7500 

Bjørn Flatgård, Vice Chairman 5535 

Leif-Arne Langøy, Director 175 000 

Åsmund Knutsen, Director 1505 

Simen Lieungh, President &CEO 5014 

Leif Hejø Borge, Executive Vice President &CFO 15 000 

Gary Mandel, Executive Vice President 1350 

Mads Andersen, Executive Vice President 2395 

Shares 

■ 

Note 19: Number of employees (unaudited) 

2008 2007 1 

Energy Development &Services 8542 8163 

Subsea 4108 3673 

Products &Technologies 4003 2666 

Process &Construction 5417 5516 

Other 1290 1280 

Total Aker Solutions employees 23 360 21 298 

Agencies 10 601 11 623 

Total 33 961 32 920 

Employees in Norway 11 464 10 931 

Employees in other countries 11 896 10 367 

1) Due to the 2008 restructuring of Field Development (FD) and Maintenance, Modification and Operations (MMO) into the new business area named Energy Development &Services (ED&S), 

historical Aker Solutions numbers were restated according to the new structure. The recently announced restructuring of the Subsea business area and Products and Technologies business 

area will be effective as at 1January 2009, hence figures have not been restated in the annual report. 

98 




■ Note 20: Employee benefits –pension 

The group’spension costs show the futurepension entitlement earned by employees in the financial year.Inadefined contribution plan the company is responsible 

for paying an agreed contribution to the employee’spension assets. The employee bears the risk related to the investment returnonthe pension assets. 

In adefined benefit plan, the company is responsible for paying an agreed pension to the employee based on his or her final pay. 

Pension plans in Norway 

The Norwegian companies in the group areobligated to follow the Act on Mandatory company pensions and these companies’ pension schemes follow 

the requirements as set in the Act. On 1July 2008 all the Norwegian companies in Aker Solutions changed from adefined benefit plan to adefined contribution 

plan in which the company is responsible for paying an agreed contribution to the employee’spension assets. Employees over 58 years at the time of transition 

remain in the defined benefit plan. The change of pension plan resulted in aone-time positive effect (gain) of NOK 291 million. The gain is mainly related to 

the difference between pension obligations recognised for these employees and the paid up policy received by the employees participating in the plan. 

To ensurethat the employees weretreated fairly on the change over to the new plan the company has introduced aCompensation plan. The basis for deciding 

the compensation amount is the difference between calculated pension capital in the defined benefit plan and the value of the defined benefit plan at the age 

of 67 years. The compensation amount will be adjusted annually in accordance with the adjustment of the employees’ pensionable income, and accrued 

interest according to market interest. If the employee leaves the company voluntarily beforethe age of 67 years, the compensation amount will be reduced. 

The defined benefit plan is covered by the Aker Pension Fund. Aker Solutions participates in amulti-employer plan called AFP together with the Norwegian 

state and other employers. The participating employers pay acontribution to the plan independent of the company’suse of it. The employers also pay 25 

percent of the pension paid to own pensioners. The Norwegian state pays acontribution of 40 percent of paid pensions. The figures regarding defined benefit 

below include Aker Solutions’scost and liability related to the AFP-plan. 

Definied benefit plans in Norway largely consist of adefined benefit plan for employees over 58 years when the plan was changed to defined contribution plan 

on 1July 2008, special pension schemes financed through company operations and contractual early retirement (AFP) schemes. In addition the net pension 

liability will include the accrued liabilities in the compensation plan. 

Pension plans outside Norway 

Group companies in Canada and Germany have defined benefit plans. The benefit plan in Canada was closed to new members as at 1September 2008. Most 

companies in other countries have defined contribution plans wherethe employer only contributes an agreed amount that is separately administered. 

Net periodic pension cost /return (-) 



Service cost 199 263 195 

Interest on projected benefit obligation 171 180 143 

Expected returnonplan assets -150 -138 - 122 

Net amortisations and deferrals 33 68 9 

Curtailments and settlements -296 - - 

Administration cost 19 9 7 

Social security tax 4 53 31 

Pension cost defined benefit plans -20 435 263 

Pension cost compensation plan 51 - - 

Pension cost defined contribution plans 291 108 74 

Total pension cost 18 322 543 337 




Status of pension plans reconciled with the balance sheet 

2008 2007 

Amounts in NOK million Funded Unfunded Total Funded Unfunded Total 


Accumulated benefit obligation 1918 537 2455 2931 509 3440 

Effect of projected futurecompensation levels 225 98 323 827 83 910 

Projected benefit obligation (PBO) 2143 635 2778 3758 592 4350 

Social security tax on plan assets in excess of /less than PBO 46 82 128 150 74 224 

Plan assets at fair value 1872 - 1872 2662 - 2 662 

Plan assets in excess of (+) /less (-) that PBO - 317 - 717 -1034 -1246 - 666 -1912 

Unrecognised net gain (-) /loss (+) 452 109 561 906 84 990 

Net employee benefit assets (+) /employee benefit obligations (-) 135 - 608 - 473 - 340 - 582 - 922 

As presented in the balance sheet: 

Employee benefit assets 234 - 234 15 - 15 

Employee benefit obligation - 99 - 608 - 707 - 355 - 582 - 937 

Compensation plan obligation - - 51 - 51 - - - 

Total employee benefit obligation - 99 - 659 - 758 - 355 - 582 - 937 

NOK 26 million of the pension prepayment at the end of 2008 relates to group companies in Canada (NOK 14 million in 2007). NOK 49 million and 

NOK 33 million of the accrued pension liability at the end of 2008 relates to group companies in Canada and Germany respectively (NOK 43 million and 

NOK 31 million in 2007). 

Economic assumptions 

Economic assumptions (Norwegian plans) 2008 2007 

Discount rate 4.50% 4.50% 5.00% 5.00% 

Asset return 6.50% 6.50% 6.00% 6.00% 

Salary progression 4.25% 4.25% 4.25% 4.25% 

Pension indexation 3.00% 3.00% 2.50% 2.50% 

The discount rate is based on the Norwegian 10-year government bond rate. The asset returnisexpected to be higher than the discount rate because the 

assets areinvested in instruments with ahigher risk than government bonds. Experience has shown that the rate of returnonpension assets has been about 

1percent higher than the discount rate over an extended period of time. 

Generally,a1percent increase in the discount rate will lead to approximately 20 percent decrease in service cost /projected benefit obligation. 

Economic assumptions (outside Norway) 

For the Canadian plans, adiscount rate of 7.5 percent (5.25 percent in 2007), an expected rate of returnonassets of 7.25 percent (unchanged from 2007) 

and an expected salary increase of 3.5 percent (unchanged from 2007). 

Movement in pension obligation and plan asset 


Projected benefit obligation as at 1January 4350 4034 

Service cost incl. cost related to the compensation plan 300 263 

Interest on projected benefit obligation 171 180 

Benefits paid by the plan - 109 - 107 

Curtailment /settlement -1926 - 13 

Acquisition /disposal - 26 

Change in unrecognised gain (-) /loss (+) 18 - 40 

Currency translation differences 9 7 

Projected benefit obligation as at 31 December 2813 4350 

Plan assets at fair value as at 1January 2662 2438 

Expected returnonplan assets 150 138 

Contributions paid into the plan 350 383 

Benefits paid by the plan - 79 - 80 

Curtailment /settlement -1041 - 

Change in unrecognised gain (-) /loss (+) - 159 - 199 

Administration costs - 19 - 20 

Currency translation differences 8 2 

Plan assets at fair value as at 31 December 1872 2662 

100 




Analyses of the plan assets and the expected return onplan assets at the balance sheet date 

Major categories of plan assets in percent of total plan assets (Norwegian plans) 2008 2007 

Equity instruments 3.6% 6.9% 

Debt instruments 94.7% 66.2% 

Money market 0.0% 22.3% 

Other assets 1.7% 4.6% 

Plan assets 100.0% 100.0% 

The estimated contributions expected to be paid to the plans during 2009 areNOK 56 million in Norway and NOK 20 million in Canada. Annual returnonplan 

assets is NOK 138 million in 2008 (NOK 182 million in 2007). 

Overview of net pension obligation and change in unrecognised gains and losses 

Amounts in NOK million 2008 2007 2006 2005 

Projected benefit obligation 2813 4350 4034 3339 

Plan assets at fair value 1872 2662 2438 2073 

Net pension obligation - 941 -1688 -1596 -1266 

Change in unrecognised gain (-) /loss (+) projected benefit obligation 18 - 40 615 112 

Change in unrecognised gain (-) /loss (+) plans assets - 159 - 199 101 4 

■ 

Note 21: Equity accounted investees 

Associated companies 2008 


Book value 

as at 

1.1.2008 

Additions / 

Disposals / 

Payments 

Profit 

after tax / 

Impairment 

Currency 

and other 

adjustments 

Book value 

as at 

31.12.2008 

Aker Offshore Oy 1 15 -15 - - - 

Siva Verdal Eiendom AS 14 - - - 14 

JSC Astrakhan Korabel 31 -31 - - - 

Power Maintenance and Constructors, LLC 19 -2 - 6 23 

Aker Bravo AS 2 - - - 2 

Beijing Bomco –MHOffshore 6 -2 2 - 6 

Aker Clean Carbon AS - 32 - 13 - 19 

Aker Encore AS - 20 - - 20 

Aker Oilfield Services AS - 269 -9 - 260 

Nippon Pusnes Co. Ltd 6 - 2 2 10 

TNT Company LLP - 26 - 6 32 

DOS Marine LLP - 29 - 6 35 

Other companies 28 -2 -3 - 23 

Total 121 324 -21 20 444 

Associated companies 2007 


Book value 

as at 

1.1.2007 

Additions / 

Disposals / 

Payments 

Profit 

after tax / 

Impairment 

Currency 

and other 

adjustments 

Book value 

as at 

31.12.2007 

Aker Offshore Oy 1 16 - - -1 15 

Siva Verdal Eiendom AS 14 - - - 14 

JSC Astrakhan Korabel 31 - - - 31 

Power Maintenance and Constructors, LLC 19 3 - -3 19 

Aker Bravo AS 6 - -4 - 2 

Beijing Bomco –MHOffshore 5 - 1 - 6 

Other companies 31 2 1 - 34 

Total 122 5 - 2 - 4 121 




The group’s interest in its principal associates were asfollows 2 



Business office 

Percentage 

of voting 

rights 

Percentage 

held Assets Liabilities Equity Revenues 

Net profit 

/loss 

Siva Verdal Eiendom AS Trondheim, Norway 46.0% 46.0% 40 4 36 7 - 

Power Maintenance and Constructors, LLC Hammond, USA 49.0% 49.0% 118 70 48 625 - 

Aker Bravo Oslo, Norway 45.0% 45.0% 21 19 2 - -2 

Beijing Bomco –MHOffshore Beijing, China 50.0% 50.0% 17 - 17 17 2 

Nippon Pusnes Co. Ltd Tokyo, Japan 28.0% 28.0% 198 162 36 334 6 

Aker Oilfield Services AS Oslo, Norway 32.3% 32.3% 726 270 456 - - 24 

Aker Clean Carbon AS Oslo, Norway 30.0% 30.0% 140 75 65 8 - 44 

TNT Company LLP Aktau, Kazakhstan 49.0% 49.0% 5 5 - 4 - 

DOS Marine LLP Aktau, Kazakhstan 49.0% 49.0% 1 1 - 1 - 

Aker Encore AS Oslo, Norway 50.0% 50.0% 41 - 41 - - 

2007 


Business office 

Percentage 

of voting 

rights 

Percentage 

held Assets Liabilities Equity Revenues 

Net profit 

/loss 

RR Offshore Oy 1 Ulvila, Finland 40.0% 26.0% 186 183 3 255 7 

Siva Verdal Eiendom AS Trondheim, Norway 46.0% 46.0% 44 8 36 6 1 

JSC Astrakhan Korabel Astrakhan, Russia 56.0% 56.0% 31 - 31 - - 

Power Maintenance and Constructors, LLC Hammond, USA 49.0% 49.0% 69 27 42 306 5 

Aker Bravo AS Oslo, Norway 45.0% 45.0% 24 21 3 2 -10 

Beijing Bomco –MHOffshore Beijing, China 50.0% 50.0% 11 3 8 2 1 

1) Former name RR Offshore Oy, subsidiary from January 2008. 

2) Balance sheet and profit and loss items listed above are 100 percent of total. 

■ 

Note 22: Investment in joint ventures 

The group has interests in several joint venture activities, whose principal activities are construction contracts. The group’s share ofassets, liabilities, 

income and expenses of the joint venture operating agreements and entities are included in the consolidated financial statements. The material agreements 

and entities are listed below. 

Joint venture operating agreements 

Percentage share 2008 2007 

Aker Kvaerner Clough Murray &Robertsen Joint Venture 61% 61% 

Aker Maritime Kiewit Contractors 49% 49% 

AKTIV Joint Venture 40% 40% 

ASC –ERSAI Consortium 50% - 

Angel 50% 50% 

Anglian Water 3Joint Venture 1 - 50% 

Anglian Water 4Joint Venture 50% 50% 

Cameron LNG (Sempra) 50% 50% 

Hull Water 2 - 50% 

IHI Ingleside 3 - 50% 

JV Yansab 50% 50% 

O&G Solutions Joint Venture 50% 50% 

Snøhvit 4 - 65% 

Halton Hills Power Partners Joint Venture 50% 50% 

Siemens /Aker Kvaerner Songer –Longview Consortium 50% 50% 

AK /IHI Gulf 50% 50% 

ASO /IHI 50% - 

KAT Nuclear 45% 45% 

1) Anglian Water 3joint venture agreement was terminated in December 2008. 

2) Hull Water joint venture agreement was terminated in December 2008. 

3) IHI Ingleside was terminated in March 2008. 

4) Snøhvit joint venture agreement was terminated in December 2008. 

102 




Joint venture operating entities 

Percentage share 1 Business Office 2008 2007 

AKCS Offshore Partner Newfoundland, Canada 40% 40% 

K_WAC Ltd Brendford, UK 30% - 

Aker Reinertsen AS Trondheim, Norway 50% 50% 

Aker Kvaerner &Soapro Egenharia Ltda Luanda, Angola 50% 50% 

Wirth Maschinen- und Bohrgeräte-Fabrik GmbH 2 Erkelenz, Germany 50% 50% 

1) The share oflegal ownership equals the share ofvoting shares for all joint ventures. 

2) Subsidiary asatJanuary 2009. 

The table below presents the assets, liabilities, income and expenses included in the annual accounts relating to joint venture operating entities. 


Current assets 845 568 

Non-current assets 215 157 

Current liabilities -541 -363 

Non-current liabilities -263 -229 

Net assets/liabilities 256 133 

Operating income 1142 559 

Operating expenses -973 -492 

Operating profit 169 67 

■ 

Note 23: 

Financial risk management 

Financial risks 

The group is exposed to avariety of financial risks: currency risk, interest rate risk, price risk, credit risk, liquidity risk and capital risk. The market risks 

will affect the group’s income or the value of financial instruments held. The objective of financial risk management is to manage and control financial risk 

exposures, within acceptable parameters. The group’s overall risk management programme focuses on the unpredictability of financial markets and seeks 

to minimise potential adverse effects on the group’s financial performance. The Aker Solutions group uses financial instruments to hedge certain risk 

exposures and seeks to apply hedge accounting in order to reduce the volatility in the income statement. 

Risk management is the responsibility of the business unit and project managers in cooperation with the central treasury department (Corporate Treasury) 

to identify, evaluate and hedge all financial risks under policies approved by the Board ofDirectors. The Board provides written principles for overall risk 

management, as well as written policies covering specific areas. There have been no changes in these policies during the year. 

Currency risk policy 

The group operates internationally and is exposed to currency risk on commercial transactions, recognised assets and liabilities and net investments 

in foreign operations which are denominated in acurrency other than the respective functional currencies of the business unit. The group exposure to 

currency risk is primarily to the USD, EUR, GBP and NOK but is in addition in smaller scale exposed to currencies all over the world. 

The Aker Solutions policy requires group companies to hedge their entire currency risk exposure inany project with Corporate Treasury using forward contracts 

and currency options. This is done for the project’s lifetime. Corporate Treasury manages the internal exposures in accordance with the Corporate 

Treasury’s risk management policy entering into forward contracts or currency options with the financial market place. Any changes to the hedged cash 

flows shall be amended and adjusted as they occur. See note 25.3 Derivative financial instruments for further details. The currency exposure from foreign 

currency investments are not hedged. Dividend or return oncapital invested is hedged when paid. 

For segment reporting purposes, each business unit designates contracts with Corporate Treasury as fair value hedges or cash flow hedges, as appropriate. 

External foreign exchange contracts are designated at group level as hedges of currency risk on specific assets, liabilities or future transactions on 

gross basis, and hedge accounting is applied to more than 80 percent of these hedges. For Aker Solutions segment reporting all foreign currency hedges 

are treated as qualifying hedges. The correction where disqualifying hedges no longer are reflected in accordance to hedge accounting, is performed at 

group level and is included in the “unallocated” part of the segment reporting. 

The principal amounts and interests of the group’s non-current borrowings are denominated in currencies that match the cash flows generated by the 

group companies holding the loans, primarily NOK, but also GBP and USD. This provides an economic hedge without entering into any derivatives. 

Transaction exposure 

The transaction exposure isdefined as the currency risk in projects and working capital. 




The group’s exposure tothe main foreign currencies were asfollows based on notional amounts as at 31 December: 


Amounts in million USD EUR GBP USD EUR GBP 

Bank -324 -70 - 26 -229 -20 - 22 

Intercompany loans 145 25 86 17 -21 35 

External funding -100 - - - - - 

Trade receivables 596 106 28 598 36 - 

Trade payables -105 -79 - 77 -191 -106 -43 

Balance sheet exposure 212 -18 11 195 -111 -30 

Estimated forecast sales 1854 9 - 1243 66 - 

Estimated forecast purchases -431 -334 -27 -198 -219 -49 

Cash flow exposure 1 423 -325 -27 1045 -153 -49 

Forward exchange contracts -1633 344 14 -1250 255 80 

Net exposure 2 1 - 2 -10 - 9 1 

Trade receivables, trade payables and estimated forecast sales and purchases in the table above are calculated based on the group’s hedge transactions. 

These are considered to be the best estimate of the currency exposure given that all currency exposure ishedged, in accordance with the group’s policy. 

The net exposure ishandled by the Corporate Treasury that is allowed to hold positions within an approved trading mandate. This mandate is closely 

monitored and reported on adaily basis to the management. The group also has minor exposure toother currencies. 

Aforeign currency sensitivity analysis indicates that changes in the foreign currency rates result in minor effects on equity and profit and loss. A10percent 

strengthening of the NOK against the following currencies at 31 December would have increased (decreased) equity and profit and loss by the amounts 

shown below. The selected rate of 10 percent reflects the recent years’ changes in currency rates. The sensitivity analysis is calculated based on the 

hedged transactions as in the currency exposure table above, and the effect from hedge accounting rules were fair value effects from non-qualifying 

hedges will be reported as profit and loss. It includes only project related items and assumes that all other variables, in particular interest rates, remain 

constant. Calculations are based on amounts and foreign currency exchange rates as at 31 December, and the outstanding amounts are representative for 

the whole year due to alow degree of seasonality. The analysis is performed on the same basis for 2007. 

Although hedge accounting is not applied to all foreign exchange contracts, these contracts are still “economically” hedged. This means that the effect on 

profit and loss under financial items in the table below, will have an opposite effect on future operating income or expense as progress on projects increase. 


Effect in NOK million Profit and loss Equity 1 Profit and loss Equity 1 

USD 45 133 -262 -328 

EUR 23 243 -4 119 

GBP 32 2 34 22 

1) The effects to equity that follows directly from the effects to profit and loss are not included. 

A10percent weakening of the NOK against the above currencies at 31 December would have had the equal but opposite effect on the above amounts, 

on the basis that all other variables remain constant. 

The most important risk, related to currency, isthe risk of reduced competitiveness abroad in the case of astrengthened NOK. This risk is related to future 

commercial contracts and is not included in the sensitivity analysis above. 

The sensitivity analysis does not include effects on the consolidated result and equity from changed exchange rates used for consolidation of foreign subsidiaries. 

Translation exposure 

The translation exposure isdefined as assets and investments made in foreign currency. 

The group has several investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising 

from the net assets of the group’s foreign operations is normally not hedged. 

Exchange rates 

The following significant exchange rates applied during the year: 

Average rate 

Closing rate 

NOK 2008 2007 2008 2007 

USD 5.649 5.853 7.024 5.403 

EUR 8.307 8.016 9.888 7.966 

GBP 10.356 11.700 10.145 10.792 

Interest rate risk 

The group’s interest rate risk arises from non-current borrowings. Borrowings issued at variable rates expose the group to cash flow interest rate risk. 

Borrowings issued at fixed rates expose the group to fair value interest rate risk, however as these borrowings are measured at amortised cost, interest 

rate variations do not effect profit and loss. Group policy is to maintain approximately 30 –50percent of its borrowings in fixed rate instruments using 

interest rate swaps to achieve this when necessary. 

104 




As the group has no significant interest-bearing operating assets, operating income and operating cash flows are substantially independent of changes 

in market interest rates. At year end 50 percent of the NOK 1.6 billion bond debt interest rate was fixed for the duration of the bonds through interest rate 

swaps. In addition we have entered into aNOK 2000 million fixed rate swap as hedge for drawings on the Revolving Credit Facilities. 

The group does not account for any fixed rate financial assets or liabilities at fair value through profit and loss, and the group does not designate derivatives 

(interest rate swaps) as hedging instruments under afair value hedge accounting model. Therefore achange in interest rates at the reporting date 

would not effect profit and loss with respect to the fixed rate instruments. 

An increase of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit and loss by the amounts shown below. 

This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis as for 2007. 


Amounts in NOK million Profit and loss Equity 1 Profit and loss Equity 1 

Cash and cash equivalents 38 - 35 - 

FRA (forward rate agreement) - - 1 - 

Interest rate swap 35 27 12 19 

Non-current interest-bearing receivables 1 - - - 

Current interest-bearing receivables 5 - 5 - 

Borrowings -62 - -15 - 

Interest-bearing current liabilities -5 - - - 

Cash flow sensitivity (net) 12 27 39 19 

1) The effects to equity that follow directly from the effects to profit and loss are not included. 

Adecrease of 100 basis points in interest rates at the reporting date would have had the equal but opposite effect on the above amounts, on the basis that 

all other variables remain constant. 

Price risk 

The group is exposed to fluctuations in market prices both in the investment portfolio and in the operating businesses related to individual contracts. 

The investment portfolio is limited and does not include shareholdings in listed companies. 

The businesses may be exposed to changes in market price for raw material, equipment and development in wages. This is partly managed in the bid 

phase by locking in committed prices to customers without adequate protection on such costs and partly managed in the execution phase after award. 

The group makes individual assessments of such risks and protects itself either through escalation clauses with customers, locking in subcontractor or 

equipment providers, or by adding risk contingencies to the price calculations. The group does not enter into commodity derivative contracts. 

Credit risk 

Credit risk is the risk of financial losses to the group if customer or counterparty to financial investments /instruments fails to meet its contractual 

obligations, and arises principally from investment securities and group receivables. 

The investment portfolio is primarily related to deposits with banks. Thereisaseparate procedurefor the acceptance of final counterparties both for derivatives 

and deposits, and counterparties have to be investment graded. Credit risk on financial counterparties is reviewed on aregular basis and is monitored closely. 

Assessment of credit risk related to customers and subcontractors is an important requirement in the bid phase and throughout the contract period. Such 

assessments are based on credit ratings, income statement and balance sheet reviews and using credit assessment tools available (e.g. Dun &Bradstreet 

and Credit Watch). Sales to customers are settled in cash. 

Based on estimates of incurred losses in respect of trade and other receivables, the group establishes an allowance for impairment. Main components 

of this allowance are aspecific loss component relating to individually significant exposures, and acollective loss component in respect of losses incurred 

but not yet identified. Provisions for impairment of receivables are low (NOK 116 million in 2008, NOK 83 million in 2007), which is higher than the historical 

losses (NOK 5million in 2008, NOK 4million in 2007). Revenues are mainly related to large and long-term projects closely followed up in terms of payments 

up front and in accordance with agreed milestones. Normally, lack of payments are due to disagreements of project deliveries and are solved by 

change of deliveries (see note 13 Contingent events). The customers are mainly large and highly reputable oil companies with alow credit risk, which reduces 

the credit risk significantly. Based on the above the group’s credit risk is considered to be insignificant. 

At the balance sheet date, there were nosignificant concentrations of credit risk. The maximum exposure tocredit risk at the reporting date equals the fair 

value of each category of financial instruments (see note 25 Financial instruments). The group does not hold collateral as security. 

Aker Solutions ASA gives parent company guarantees to group companies. For further information, see note 9Guarantees in the Aker Solutions ASA accounts. 

Liquidity risk 

Liquidity risk represents the risk that the group will not be able to meet its financial obligations as they fall due. The group’s approach to managing liquidity 

is to ensure, as far as possible, that it will always have sufficient liquidity reserves to meet its liabilities when due. 

Prudent liquidity risk management includes maintaining sufficient cash, the availability of funding from an adequate amount of committed credit facilities 

and the ability to close out market positions. Due to the dynamic nature ofthe underlying businesses, Corporate Treasury maintains flexibility in funding 

by maintaining availability under committed credit lines (note 25.6 Borrowings and other non-current liabilities). 

Management monitors rolling weekly and monthly forecasts of the group’s liquidity reserve on the basis of expected cash flow. For information regarding 

capital expenditures and net operating assets, see note 6Segment information. 




Financial liabilities and the period in which they are mature: 



Total 

6mths 

and 

less 

6-12 

mths 

1-2 

years 

2-5 

years 

More 

than 

5 

years 

Total 

6mths 

and less 

6-12 

mths 

1-2 

years 

2-5 

years 

More 

than 

5 

years 

Unsecured bond issues 1 

Fixed rate bond 

NOK 150 mill. -195 - - 9 - 9 - 177 - -204 -5 -4 -9 -27 - 159 

Floating rate bonds 

NOK 500 mill. -523 -14 - 509 - - - -566 -17 - 17 -533 - - 

NOK 650 mill. -735 -19 - 13 -24 - 679 - -834 -23 - 23 -46 - 742 - 

NOK 300 mill. -380 -9 -6 -12 - 353 - -432 -11 - 11 -22 - 66 -322 

Committed credit facilities 

EUR 750 mill. -5523 -100 -100 -183 -5140 - - - - - - - 

NOK 2000 mill. 

Other non-current borrowings -312 -99 - 9 - 18 -186 - -20 - - - -20 - 

Other non-current liabilities -1194 -126 -126 -126 -816 - -914 -134 -134 -134 -512 - 

Derivative financial instruments 

Assets 24 582 11 211 6121 5873 1377 - 26 210 16 478 6704 2523 505 - 

Liabilities -25637 -11602 -6288 -6263 -1484 - -25647 -16151 -6528 -2480 -488 - 

Trade and other payables -20796 -20306 - - 490 - - -15165 -15141 - - 24 - - 

Interest-bearing current liab. -59 - -59 - - - -25 - -25 - - - 

Total -30772 -21064 -998 -1252 -7458 - -17597 -15004 -38 - 725 -1350 -481 

1) Nominal currency value including interests. 

See note 25.3 Derivative financial instruments for maturity analysis of foreign currency contracts included in cash flow hedge accounting. 

Capital risk 

The group’s objectives when managing capital are tosafeguard the group’s ability to continue as agoing concern inorder to provide returns for shareholders 

and benefits for other stakeholders and to maintain an optimal capital structure toreduce the cost of capital. 

In order to maintain or adjust the capital structure, the group may adjust the amounts of dividends paid to shareholders, return capital to shareholders, 

issue new shares or sell assets to reduce debt. From time to time, the group purchases its own shares in the market; the timing of these purchases is 

depending on market prices. 

During the first quarter of 2007 Aker Solutions announced abuy-back of own shares, and in connection with the Annual General Meeting it was decided 

to cancel some of the own new shares. Furthermore, there were additional share buy-backs in 2008 and as per year end the group holds 1.8 percent of 

outstanding shares. The Statement of changes to equity includes further details. 

The group monitors capital on the basis of agearing ratio (gross debt /EBITDA) and Interest coverage ratio (EBITDA /Net finance cost). The ratios are 

calculated from gross debt, including all interest-bearing liabilities as shown in note 25 Financial instruments, EBITDA (earnings before interest, tax, 

depreciation and amortisation) and consolidated finance cost. The reported ratios are well within the requirements in the loan agreements. 

The ratio as at 31 December 2008 and 2007 were asfollows: 


Gearing ratio 

Gross debt 6716 1615 

EBITDA 3382 3913 

Gross debt /EBITDA 2.0 0.4 

Interest coverage 

EBITDA 3382 3913 

Consolidated finance cost 263 124 

EBITDA /Finance cost 12.9 31.6 

106 




■ Note 24: Financial income and expenses 

Recognised in profit and loss 


Net change in fair value of disqualified hedge instruments 1 -439 155 241 

Interest income on bank deposits 116 85 172 

Net foreign exchange gain /loss 31 18 20 

Ineffective portion of changes in fair value of cash flow hedges -6 7 - 

Other finance income 34 2 2 

Finance income 175 112 194 

Interest expense on financial liabilities measured at amortised cost -379 -209 -429 

Refinancing cost 2 - - - 652 

Finance expenses -379 -209 -1081 

Net finance expense recognised in profit and loss 3 -643 58 -646 

1) Some hedge transactions do not qualify for hedge accounting under IFRS, primarely because alarge number of internal transactions are grouped and netted before external hedge 

transactions are established. The fair value changes on foreign exchange forward contracts, not hedge accounted, have been recorded in the income statement as financial items. Hedge 

accounting is explained in note 25.3 Derivative financial instruments. 

2) Refinancing costs consist of capitalised refinance costs from the refinancing in 2004, unwinding of discount, interest on second priority lien notes due 15 June 2007 and interest on deposit 

for neutralisation of loan 15 June 2007. 

3) Net finance expense recognised in profit and loss includes income and expense from financial instruments only (see note 25 Financial instruments). Share ofprofit or loss from associates is 

therefore not included. 

The above financial income and expense include the following in respect of assets (liabilities) not at fair value through profit or loss. 


Total interest income on financial assets 116 85 172 

Total interest expenses on financial liabilities -379 -209 -1081 

Recognised directly in equity 


Hedging reserve as at 1January 315 203 - 

Fair value of cash flow hedges transferred to profit and loss 373 -633 -178 

Effective portion of changes in fair value of cash flow hedge -241 788 461 

Deferred tax -37 -43 - 80 

Hedging reserve movements 95 112 203 

Hedging reserve as at 31 December 410 315 203 

Currency translation reserve as at 1January -595 -161 -216 

Effective portion of change in fair value of net investment hedge - 120 7 

Foreign currency translation differences for foreign operations 695 -554 48 

Currency translation reserve movements 695 -434 55 

Currency translation reserve as at 31 December 100 -595 -161 

An impairment loss of NOK 5million (NOK 4million in 2007 and NOK 13 million in 2006) in respect of trade receivables was recognised in cost of sales. 

See note 25 Financial instruments for information of the financial income and expenses generating items. 




■ Note 25: Financial instruments 


Amounts in NOK million Note Assets Liabilities Assets Liabilities 

Cash and cash equivalents 25.1 3828 - 3524 - 

Investments in other companies 25.2 123 - 133 - 

Non-current available-for-sale financial assets 123 - 133 - 

Derivative financial instruments 25.3 3100 -2403 1468 -954 

Current financial assets and liabilities through profit or loss 3100 -2403 1468 -954 

Non-current interest-bearing receivables 25.4 97 - 14 - 

Non-current loans and receivables 4 - 9 - 

Trade and other receivables 25.5 20 796 - 13 361 - 

Current interest-bearing receivables 480 - 540 - 

Borrowings 25.6 - - 6163 - - 1591 

Other non-current liabilities - - 1194 - - 914 

Trade and other payables - - 21 052 - - 15 165 

Interest-bearing current liabilities - - 553 - - 24 

Total loans and receivables and financial liabilities at amortised cost 21 377 -28962 13 924 -17694 

Less non-current portion loans and receivables and financial liabilities 

at amortised cost -101 7357 -23 2 505 

Current portion loans and receivables and financial liabilities 

at amortised cost 21 276 -21605 13 901 -15189 

Basis for determining fair values and fair values versus carrying amounts 

Cash and cash equivalents 

The carrying amount is areasonable approximation of fair values for cash and cash equivalents. 

Non-current available-for-sale financial assets 

Available-for-sale financial assets are measured at fair value. Fair values are estimated using market-based pricing techniques. 

Current financial assets and liabilities through profit or loss 

Financial assets and liabilities through profit or loss are measured at fair value. The fair value of financial instruments traded in active markets (such 

as currency forward contracts and options, interest swaps and forward rate agreements) is based on quoted market prices (current bid price) at the balance 

sheet date. 

Loans and receivables and financial liabilities at amortised cost 

Due to the short term nature, the carrying amount is areasonable approximation of fair values for the financial instrument current receivables and liabilities, 

with the exception of financial borrowings, which is detailed in the table below. 


Carrying 

amount 


Fair value 

Carrying 

amount 

Fair value 

Bonds 1 1582 1600 1571 1600 

Other borrowings 5134 5160 44 44 

Total Borrowings 6716 6760 1615 1644 

1) Fair value is quoted prices on the Oslo Stock Exchange. The difference between the carrying amount and the fair value of the bonds is due to amortisation of issue costs and accrued 

interests. 

In all material financial instruments measured at fair value, the measurement is performed by using valuation techniques based on assumptions supported 

by observed market prices or rates. 

■ 

Note 25.1: Cash and cash equivalents 

Group cash pool systems 

The group policy for the purpose of optimising availability and flexibility of cash within the group is to operate acentrally managed cash pooling arrangement. 

Such arrangements are either organised with abank as aservice provider, orasapart of the operation of the internal treasury function. An important 

condition for the participants (business units) in such cash pooling arrangements is that the group as an owner of such pools is financially viable and is 

able to prove its capability to service its obligations concerning repayment of any net deposits made by business units. 

108 




■ Note 25.2: Investments in other companies 


Investments in other companies as at 1January 133 16 

Additions 1 66 119 

Disposals 2 -76 -2 

Investments in other companies as at 31 December 123 133 

1) Additions in 2008 are mainly related to additional investments in Aker Pensjonskasse. In 2007 the additions were mainly related to Aker Solutions ASA’s purchase of 19.1 percent 

of Aker Oilfield Services AS. 

2) Disposals are mainly related to additional investments in Aker Oilfield Services AS which is now classified as an associated company, see note 21 Equity accounted investees. 

■ 

Note 25.3: Derivative financial instruments 

Fair value of financial instruments 


Amounts in NOK million Assets Liabilities Assets Liabilities 

Forward foreign exchange contracts –cash flow hedges 979 -115 925 -409 

Forward foreign exchange contracts –fair value hedges 27 -303 - - 

Forward foreign exchange contracts –embedded derivatives included in ordinary 

commercial contracts 1933 -30 - - 

Forward foreign exchange contracts –not hedge accounted 154 -1895 500 -545 

Forward foreign exchange contracts –hedge of net investments in US entities - - 25 - 

Interest rate swaps –cash flow hedges - - 52 17 - 

Interest rate swaps –not hedge accounted 7 - 8 1 - 

Total 3100 -2403 1468 -954 

Trading derivatives are classified as current assets or liabilities. The full fair value of ahedging derivative is classified as anon-current asset or liability if the 

remaining maturity of the hedged item is more than 12 months, and as acurrent asset or liability if the maturity of the hedged item is less than 12 months. 

If the hedged item is related to projects, such as work in progress or trade receivables, the hedging derivative is always classified as current asset or liability. 

No material embedded derivatives were identified in 2007. 

The ineffective portion recognised in the profit and loss that arises from cash flow hedges amounts to aloss of NOK 6million (gain of NOK 7million in 2007). 

There was no material ineffectiveness on fair value hedges in 2008. In 2007, there were nofair value hedges. 

Derivative contracts 

Corporate Treasury hedge future transactions in foreign currencies. Approximately 80 percent of the exposure toforeign exchange variations in future cash 

flows are related to afew large projects. These projects have been hedged as one-to-one contracts in order to meet the requirements for hedge accounting. 

All other hedges are not designated as IAS 39 hedges and will have an effect on profit or loss. Most qualifying hedges are classified as cash flow hedges 

(hedges of highly probable future revenues and /orexpenses). Some hedges that clearly qualify as hedges of firm commitments, are classified as fair value 

hedges. 

The fair value of the net qualifying forward foreign exchange cash flow hedges recognised in the balance sheet as at 31 December 2008, were NOK 864 

million (NOK 516 million in 2007). 

The hedged transactions in foreign currency are highly probable future transactions expected to occur at various dates during the next 1–7years, depending 

on progress in the projects. Gains and losses on forward foreign exchange contracts recognised in the hedging reserve in equity as at 31 December 2008, 

are recognised in the income statement in the period or periods during which the hedged transactions affect the income statement. This is generally within 

12 months from the balance sheet date unless the gain or loss is over the life of the asset. 

The following table indicates the periods in which the cash flows associated with derivatives that are cash flow hedges are expected to occur and when 

the cash flows related to project revenues are expected to impact profit and loss. Given the hedging policy this table also constitutes amaturity analysis for 

derivative financial assets and liabilities. 






Expected 

cash 

flows 

6mths 

or less 

6-12 

mths 

1-2 

years 

2-5 

years 

More 

than 5 

years 

Expected 

cash flows 

6mths 

or less 

6-12 

mths 

1-2 

years 

2-5 

years 

More 

than 5 

years 

Interest rate swaps 1 

Receivables 76 20 20 17 19 - 288 41 43 77 74 53 

Payables -110 -23 - 36 -28 - 23 - -251 -32 - 38 -69 - 62 -50 

Foreign currency 

forward contracts 2 

Receivables 6760 2645 1621 1982 512 - 10 160 5693 2756 1426 285 - 

Payables -3497 -2364 -332 -590 -211 - -6619 -3861 -1660 -905 -193 - 

Total 3229 278 1273 1381 297 - 3578 1841 1101 529 104 3 

1) 50 percent of the group’s interest exposure related to the Norwegian bonds and part of anticipated drawings on committed facilities are swapped to fixed interest rate. The cash flows in the 

table are based on fixed rate of 4.5 percent and market floating rate. 

2) The figures include the hedges that qualify for hedge accounting, which comprises approximately 400 transactions and 80 percent of the group’s exposure. The amounts are NOK nominal 

values of foreign currency cash flows at NOK closing exchange rates 31 December 2008. The group has economic hedges on the remaining exposures which are not hedge accounted. 

These economic hedges constitute about 1900 transactions. 

The following table shows the unsettled cash flow hedges’ impact on profit and loss and equity as at 31 December: 



Fair value of all 

hedging 

instruments as 

at 31.12.2008 

Recognised 

in profit and 

loss 

Deferred in 

equity (the 

hedging 

reserve) 

Fair value of all 

hedging instruments as 

at 31.12.2007 

Recognised 

in profit and 

loss 

Deferred in 

equity (the 

hedging reserve) 

Interest rate swaps 1 -52 - -52 17 9 17 

Forward exchange contracts 2 864 157 707 516 308 208 

Total 3 812 157 655 533 317 225 

1) The value of the interest swaps is attributable to changes in the interest swap curve for Norwegian kroner during the period from inception of the hedge to the balance sheet date. 

2) The purpose of the hedging instrument is to secure asituation where the hedged item and the hedging instrument together represent apredetermined value independent of fluctuations 

of exchange rates. Revenue and expense on the underlying construction contracts are recognised in the income statement in accordance with progress. Consequently, NOK 308 million of 

the value of the forward contracts have already affected the income statement indirectly as revenues and expenses are recognised based on updated forecasts and progress. The NOK 208 

million that are currently recorded directly in the hedging reserve, will be reclassified to income statement over approximately the next three years. 

Interest rate swaps 

As at 31 December 2008, Aker Solutions has one bond of NOK 150 million with fixed interest rates at 6percent and three bonds with atotal of NOK 1450 

million with floating interest rates. Parts of the cash flow interest rate risks represented by these floating interest rates (mainly NIBOR and LIBOR) are hedged 

to fixed interest rates using interest rate swaps. The share offloating /fixed interest rates is 50 /50. In addition, NOK 2000 million of drawings under 

committed facilities are swapped to 12 months fixed rate from 15 January 2009. Hedge accounting is applied using the cash flow hedge accounting model 

which means that gains and losses on interest rate swap contracts as at 31 December 2008 are recognised in the hedging reserve in equity and will be 

continuously released to the income statement until the repayment of the bank borrowings (Note 25.6 Borrowings and other non-current liabilities). 

The fair value amounts of the outstanding interest rate swap contracts as at 31 December 2008 were NOK -52 million (NOK 17 million in 2007). 

■ 

Note 25.4: Interest-bearing non-current receivables 


Loans to employees 1 6 10 

Loans to related parties 2 88 - 

Other 3 4 

Non-current interest-bearing receivables 97 14 

1) Average interest rate for loans to employees is 5.79 percent in 2008, and was 4.42 percent in 2007. 

2) Related to Aker Bravo AS, Aker Clean Carbon AS and Aker Oilfield Services AS (see note 5Related parties). 

The group has not recognised any impairment losses related to its interest-bearing non-current receivables. 

110 




■ Note 25.5: Trade and other receivables 


Trade receivables 9039 5898 

Less provision for impairment of receivables -116 -83 

Trade receivables net 8923 5815 

Advances to suppliers 717 434 

Work in progress 6868 4774 

Other receivables 4288 2338 

Trade and other receivables 20 796 13 361 

Derivative financial instruments 3100 1468 

Total current trade and other receivables 23 896 14 829 

The aging of loans and receivables as at 31 December 2008 was: 


Not past due 4738 3924 

Past due 0–30days 2276 1219 

Past due 31 –90days 1052 411 

Past due 91 days to one year 844 255 

More than one year 129 89 

Total 9039 5898 

■ 

Note 25.6: Borrowings and other non-current liabilities 

31 December 2008: 


Nominal 

currency value 

Book 

value 

Interest 

rate 

Fixed 

interest 

margin 

Interest 

coupon 

Maturity 

date 

Interest terms 

Norwegian bonds 

ISIN NO 0010341316 NOK 500 million 494 5.93% 0.70% 6.63% 01.12.2009 Floating, 3months 



ISIN NO 0010342587 NOK 150 million 148 6.00% 6.00% 01.12.2013 Fixed 

Total bonds 1 1582 

Bank debt 

Revolving credit facility EUR 750 million 4776 0.50% 25.10.2012 IBOR +Margin 2 

Revolving credit facility 4 NOK 2000 million - 19.12.2011 IBOR +Margin 3 

Other loans 358 

Total borrowings 6716 

Classified as current borrowings 553 

Classified as non-current borrowings 6163 


Other non-current liabilities 5 1194 




31 December 2007: 


Nominal 

currency value 

Book 

value 

Interest 

rate 

Fixed 

interest 

margin 

Interest 

coupon 

Maturity 

date 

Interest terms 





ISIN NO 0010342587 NOK 150 million 147 6.00% 6.00% 01.12.2013 Fixed 

Total bonds 1 1571 

Bank debt 

Revolving credit facility EUR 750 million - 0.50% 25.10.2012 IBOR +Margin 2 

Other loans 44 


Classified as current borrowings 24 

Classified as non-current borrowings 1591 


Other non-current liabilities 5 914 

1) The book value is calculated by reducing the nominal value of NOK 1600 million by total issue costs related to the new financing of NOK 28 million (NOK 38 million in 2007). It also comprises 

accrued interest and issue costs related to the bonds. 

2) The margin applicable to the facility is decided by aprice grid based on the gearing ratio. Commitment fee is 40 percent of the margin. 

3) The margin applicable to the facility is decided by aprice grid based on the gearing ratio. Commitment fee is 50 percent of the margin. 

4) The facility is increased from NOK 1500 million to NOK 2000 million in February 2009. 

5) Other non-current liabilities mainly consist of estimated deferred payment related to the acquisition of Qserv Ltd NOK 531 million, deferred payment TH Global NOK 234 million (NOK 407 

in 2007) and insurance liabilities of NOK 173 million (NOK 315 million in 2007). The deferred liabilities are non-interest bearing, but have been discounted in the financial statements. 


Aker Solutions has issued four bonds with maturities of three, five and seven years (two loans), starting 1December 2006. The bonds are denominated in 

Norwegian kroner and are issued in the Norwegian bond market. Three of the bonds are issued based on afloating interest rate plus apredefined margin. 

One of the bonds, NOK 150 million with seven years maturity, has afixed interest rate of 6percent. 

The bonds are issued with Norsk Tillitsmann as trustee and the loan agreements are based on Norsk Tillitsmann’s standard loan agreement for such 

bonds. The bonds are unsecured on anegative pledge basis and include no dividend restrictions. 

The bonds are listed on the Oslo Stock Exchange. 

Bank debt 

The bank debt consists of two revolving credit facilities of EUR 750 million with initial maturity in October 2012 and NOK 2000 million maturing in December 

2011. The facilities are provided by abank syndicate consisting of Nordic and international high quality banks. The EUR 750 million facility was drawn 

with NOK 4100 million and USD 100 million at year end 2008 and the NOK 2000 million facility was undrawn. The terms and conditions include restrictions 

which are customary for this kind of facility, including inter alia negative pledge provisions and restrictions on acquisitions, disposals and mergers. 

Furthermore, there are certain changes of control provisions included. The facility includes no dividend restrictions and is unsecured. 

The financial covenants are based on two sets of key financial ratios; agearing ratio based on gross debt /EBITDA and an interest coverage ratio based 

on EBITDA /net finance costs. The financial covenants aretested on aquarterly basis. The margin applicable to the facility is based on aprice grid determined 

by the gearing ratio. 

The facility is hedged to fixed rate through an interest rate swap for NOK 2000 million through 2009. 

Repayments of non-current borrowings 

Amounts in NOK million Bonds 1 Other Total 

2009 -500 -149 -649 

2010 - - - 

2011 -650 - -650 

2012 - - 4750 -4750 

2013 -450 -261 -711 

Total repayments -1600 -5160 -6760 

1) All figures are stated at nominal value. 

112 




Mortgages and guarantee liabilities 

The group has NOK 1million in mortgage liabilities, which is secured by pledges on property, plant and equipment with book values of NOK 1million. 

The group has no guarantee liabilities as at 31 December 2008, except for guarantees related to contracts. 

■ 

Note 26: Subsequent events 

Dividend 

The Board ofDirectors of Aker Solutions will propose an ordinary dividend of NOK 1.60 per share. 

Wirth Maschinen- und Bohrgeräte- Fabrik GmbH 

In August 2007, Aker Solutions acquired the first 50 percent of the shares in the German company Wirth, with an option to buy the remaining stocks. 

In January 2009, Aker Solutions signed an agreement to buy the remaining 50 percent share inWirth. Wirth’s technology complements Aker Solutions’ 

portfolio of drilling equipment products and technology. This acquisition is pending antitrust clearance. 

Employee share purchase programme 

Aker Solutions has decided to offer approximately 14 100 of its employees the opportunity to buy Aker Solutions ASA shares with amarket value of approximately 

NOK 15 000 per employee including adiscount of NOK 1500. The duration of the programme will be 12 months, from March 2009 through to March 2010. 

Employees who keep their shares until 1September 2011 and are still employed by the company will be entitled to abonus share award ofone bonus 

share for every two Aker Solutions ASA shares held under the programme. The programme will be introduced in 2009 in Norway, the United Kingdom, the 

Netherlands, Canada and Chile and in addition the US, pending approval from local authorities. 

■ 

Note 27: Discontinued operations 

Aker Solutions’ Pulping &Power businesses were sold in the fourth quarter of 2006. 

■ Note 28: Group companies as at 31 December 2008 

Company Location Ownership (percent) 1 

Aker Solutions ASA Fornebu, Norway 100 

Aker Advantage Pty Ltd Melbourne, Australia 100 

Aker Marine Contractors Pty Ltd Perth, Australia 100 

Aker Process Systems Pty Ltd Welshpool, Australia 100 

Aker Solutions Australia Pty Ltd Melbourne, Australia 100 

Aker Subsea Pty Ltd Melbourne, Australia 100 

Aker Solutions Belgium NV/SA Antwerp, Belgium 100 

Aker Solutions do Brasil Ltda Curitiba, Brazil 100 

MC Engenharia Ltda São Paulo, Brazil 100 

Aker Chemetics Offshore Services Inc Vancouver, Canada 100 

Aker Construction Canada Ltd Ontario, Canada 100 

Aker Solutions Canada Inc Vancouver, Canada 100 

Aker Solutions Oilfield Services Canada Inc St. Johns Newfoundland, Canada 100 

Aker Solutions Chile S.A Santiago, Chile 100 

Aker Cool Sorption (Beijing) Technology Ltd Beijing, China 100 

Aker E&C (Shanghai) Co Ltd Shanghai, China 100 

Aker Projects (Shanghai) Co Ltd Shanghai, China 100 

Aker Cool Sorption AS Glostrup, Denmark 100 

Aker Cool Sorption International AS Glostrup, Denmark 100 

Aker Operations APS Glostrup, Denmark 100 

Aker Offshore OY Pori, Finland 100 

Aker Process Systems SAS Vincennes Cedex, France 100 

Aker Process GmbH Lagenfeld, Germany 100 

Aker MH (India) Pvt Mumbai, India 51 

Aker Powergas Pvt Ltd Mumbai, India 64 

PT Aker Kvaerner Indonesia Snd Bhd Jakarta, Indonesia 100 

PT Aker Solutions Subsea Indonesia Jakarta, Indonesia 100 

Kvaerner (Ireland) Ltd Dublin, Ireland 100 

Aker Engineering Malaysia Snd Bhd Kuala Lumpur, Malaysia 90 

Aker Process Systems Asia Pacific Sdn Bhd Shah Akam, Malaysia 100 

Aker Process Systems Snd Bhd Kuala Lumpur, Malaysia 100 

Aker Solutions Malaysia Snd Bhd Kuala Lumpur, Malaysia 100 

Phoenix Polymers Malaysia Ltd Kuala Lumpur, Malaysia 50 

Aker Solutions Asia Pacific Snd Bhd Kuala Lumpur, Malaysia 100 





Aker Solutions (Mauritius) Ltd Port Louis, Mauritius 100 

Aker Solutions SA de CV Lomas de Chaputtepec, Mexico 100 

Aker Advantage BV Gravenhage, Netherlands 100 

Aker Process BV Zoetermeer, Netherlands 100 

Aker Process Engineering Services BV Maastrichts, Netherlands 100 

Aker Solutions BV Zoetermeer, Netherlands 100 

Caspian Sea Solutions BV Zoetermeer, Netherlands 100 

Aker Kvaerner Nigeria Ltd Lagos State, Nigeria 100 

Aker Academy AS Fornebu, Norway 100 

Aker Advantage AS Bergen, Norway 100 

Aker Business Services AS Fornebu, Norway 100 

Aker Carbon AS Lysaker, Norway 100 

Aker Contracting Russia AS Fornebu, Norway 100 

Aker Egersund AS Egersund, Norway 100 

Aker Elektro AS Stord, Norway 100 

Aker Engineering &Technology AS Fornebu, Norway 100 

Aker Geo AS Stavanger, Norway 100 

Aker Installation FP AS Fornebu, Norway 100 

Aker Insurance AS Fornebu, Norway 100 

Aker Insurance Services AS Fornebu, Norway 100 

Aker Jacket Technology AS Verdal, Norway 100 

Aker Kværner Contracting International (Spain) AS Fornebu, Norway 100 

Aker Kværner Contracting Italy AS Fornebu, Norway 100 

Aker Kværner Process Systems International AS Fornebu, Norway 100 

Aker Marine Contractors AS Fornebu, Norway 100 

Aker MH AS Kristiansand S, Norway 100 

Aker O&G Group AS Fornebu, Norway 100 

Aker Offshore Partner AS Stavanger, Norway 100 

Aker Operations AS Stavanger, Norway 100 

Aker P&C Americas AS Fornebu, Norway 100 

Aker P&C Europe AS Fornebu, Norway 100 

Aker P&C Group AS Fornebu, Norway 100 

Aker Piping Tecnology AS Verdal, Norway 100 

Aker Porsgrunn AS Porsgrunn, Norway 100 

Aker Process System International AS Fornebu, Norway 100 

Aker Process Systems AS Fornebu, Norway 100 

Aker Pusnes AS Arendal, Norway 100 

Aker Sakkyndig Virksomhet AS Verdal, Norway 100 

Aker Solutions AS Fornebu, Norway 100 

Aker Solutions Contracting AS Lysaker, Norway 100 

Aker Stord AS Stord, Norway 100 

Aker Subsea AS Fornebu, Norway 100 

Aker Valves AS Stord, Norway 100 

Aker Verdal AS Verdal, Norway 100 

Aker Well Service AS Stavanger, Norway 100 

Drilltech AS Kristiansand S, Norway 100 

First Interactive AS Stavanger, Norway 60 

KB eDesign AS Oslo, Norway 100 

Kogas AS Fornebu, Norway 100 

Kværner Engineering AS Fornebu, Norway 100 

Kværner Eureka AS Tranby, Norway 100 

Maritime Promeco AS Kristiansand S, Norway 100 

Norwegian Contractors AS Fornebu, Norway 100 

Step Offshore AS Hvalstad, Norway 51 

Stord Montasje AS Stord, Norway 100 

Stord Verft AS Stord, Norway 100 

Aker Solutions Peru SA San Isidro, Peru 100 

Aker Kvaerner Caribe LLP San Juan, Puerto Rico 98 

Kvaerner Davy GOT Moscow, Russia 51 

Aker Process Gulf Ltd Al Khobar, Saudi Arabia 100 

Aker MH (Singapore) Pte Ltd Singapore, Singapore 100 

Aker Solutions (Services) Pte Ltd Singapore, Singapore 100 

Aker Solutions Singapore Pte Ltd Singapore, Singapore 100 

Aker Pusnes Korea Co Ltd Pusan, South Korea 80 

Kvaerner Pulping SL Barcelona, Spain 100 

Kvaerner Water AB Ørnskjøldsvik, Sweden 100 

Kvaerner Holdings Switzerland AG Zug, Switzerland 100 

114 





Aker Cool Sorption Siam Ltd Rayong, Thailand 100 

Aker Cool Sorption Thailand Ltd Rayong, Thailand 100 

Aker Kvaerner (Thailand) Ltd Bangkok, Thailand 100 

Aker Kvaerner E&C (Thailand) Ltd Bangkok, Thailand 100 

Aker Kvaerner E&C Holdings (Thailand) Ltd Bangkok, Thailand 100 

Aker Advantage Ltd London, UK 100 

Aker Business Services Ltd London, UK 100 

Aker Construction (Stevanage) Ltd London, UK 100 

Aker Kvaerner Kazakhstan Ltd London, UK 100 

Aker MH UK Ltd Aberdeen, UK 100 

Aker Offshore Partner Ltd London, UK 100 

Aker Process Ltd London, UK 100 

Aker Process Systems Ltd Aberdeen, UK 100 

Aker Qserv Ltd Aberdeen, UK 100 

Aker Solutions Angola Ltd Maidenhead, UK 100 

Aker Solutions DC Trustees Ltd London, UK 100 

Aker Solutions E&C Ltd Stockton on Tees, UK 100 

Aker Subsea Ltd Maidenhead, UK 100 

Aker Well Services Ltd Aberdeen, UK 100 

Phoenix Polymers International Ltd Aberdeen, UK 50 

Qserv Pipeline &Process Ltd London, UK 100 

Woodfield Systems Co Ltd Kent, UK 100 

Aker Kvaerner Well Service LLC Muscat, United Arab Emirates 70 

Aker MH FZE Dubai, United Arab Emirates 100 

Aker Advantage Inc Houston, USA 100 

Aker Business Services Inc Houston, USA 100 

Aker Construction Inc Houston, USA 100 

Aker Enercon Inc Houston, USA 100 

Aker Field Development Inc Houston, USA 100 

Aker Industrial Constructions Inc Houston, USA 100 

Aker Kvaerner Pharmaceuticals LLC Houston, USA 100 

Aker Kvaerner Power Inc Charlotte, USA 100 

Aker Kvaerner Process Systems US Inc Houston, USA 100 

Aker Kvaerner US LLP Houston, USA 100 

Aker Kvaerner Willfab Inc Williamsport, USA 100 

Aker Marine Contractors US Inc Houston, USA 100 

Aker Maritime US Inc Houston, USA 100 

Aker Metals Inc Houston, USA 100 

Aker MH Inc Katy, USA 100 

Aker Michigan Inc Houston, USA 100 

Aker Oil &Gas US LLC Houston, USA 100 

Aker P&C Inc Houston, USA 100 

Aker P&C US Inc Houston, USA 100 

Aker Plant Services Group Inc Houston, USA 100 

Aker Solutions Chile Corporation Houston, USA 100 

Aker Solutions US Inc Houston, USA 100 

Aker Solutions USA Corporation Houston, USA 100 

Aker Strategic Operations Inc Washington, USA 100 

Aker Subsea Inc Houston, USA 100 

Aker US Holdings Inc Houston, USA 100 

Aker Well Services Inc Houston, USA 100 

DSI Constructors Houston, USA 100 

Kvaerner Process Services Inc Houston, USA 100 

RIG Specialities Inc Houston, USA 100 

1) The share oflegal ownership equals the share ofvoting shares. 




Aker Solutions ASA: 

Income statement 1.1 –31.12 


Operating revenues 22 17 

Operating expenses 2 -212 -171 

Operating loss -190 -154 

Income from investments in subsidiaries - 2157 

Net financial items 3 472 436 

Profit before tax 282 2439 

Tax 4 -77 -149 

Net profit 205 2290 

Net profit for the year is distributed as follows: 

Proposed dividends 430 809 

Other equity -225 1481 

Total distributed 205 2290 

116 





Balance sheet as at 31.12 


ASSETS 

Deferred tax asset 4 - 40 

Investments in group companies 5 6744 6856 

Investments in associates 5 270 72 

Interest-bearing non-current receivables 8 90 8 

Total non-current assets 7104 6976 

Interest-bearing current receivables from group companies 8 14 996 9726 

Non interest-bearing receivables from group companies 6 2764 2843 

Other current receivables 6 1168 1494 

Cash and cash equivalents 8 1404 1855 

Total current assets 20 332 15 918 

Total assets 27 436 22 894 

LIABILITIES AND SHAREHOLDERS’ EQUITY 

Issued capital 7 548 548 

Own shares 7 -10 -9 

Share premium reserve 7 4279 4279 

Other equity 7 3105 3447 

Total equity 7922 8265 

Interest-bearing debt 8, 9 6373 1571 

Deferred tax liability 4 14 - 

Total non-current borrowings 6387 1571 

Interest-bearing current debt to group companies 8 9006 9999 

Provision for dividend 6 430 809 

Non interest-bearing dept to group companies 6 1284 1259 

Other current liabilities 6 2407 991 

Total current liabilities 13 127 13 058 

Total liabilities and shareholders’ equity 27 436 22 894 


Board ofDirectors of Aker Solutions ASA 


Chairman 


Vice Chairman 


Vibeke Hammer 

Madsen 


Siri Fürst 







Statement of cash flow 1.1 –31.12 


Profit before tax 282 2439 

Unrealised exchange gain - -26 

Accrued interest long-term debt 18 2 

Depreciation and amortisation (+) - 28 

Changes in other net operating assets 1724 3684 

Net cash flows operating activities 2024 6127 

Acquisition of businesses -167 -394 

Disposal of businesses 112 31 

Net cash flow from investing activities - 55 -363 

Proceeds from non-current debt 4802 - 

Changes in net borrowings from group companies -6345 -4240 

Buy-back of own shares -70 -781 

Dividends paid -807 -2182 

Net cash from financing activities -2420 -7203 

Net decrease (-) /increase (+) in cash and bank deposits -451 -1439 

Cash and cash equivalent at 1January 1855 3294 

Cash and cash equivalent at the end of the period 1404 1855 

118 






■ Note 1: Accounting principles 

Aker Solutions ASA is acompany domiciled in Norway. The accounts are presented in conformity with Norwegian legislations and Norwegian generally 

accepted accounting principles. 

Investment in subsidiaries and associates 

Investments in subsidiaries and associates are accounted for using the cost method in the parent company accounts. The investments are valued at cost 

less impairment losses. Write-down to fair value are according to good accounting practice recognised when the impairment is considered not to be 

temporary and reversed if the basis for the write-down is no longer present. 

Dividends and other payouts are recognised as income the same year as it is appropriated in the subsidiary. Ifthe dividend exceeds accumulated profits 

in the subsidiary after the day of acquisition the payment is treated as areduction of the carrying value of the investment. 

Classification and valuation of balance-sheet items 

Current assets and current liabilities includes items due within one year or items that are part of the operating cycle. The rest is classified as fixed 

assets /non-current debt. 

Current assets are valued at the lowest of cost and fair value. Current debt is valued at nominal value at the time of recognition. 

Fixed assets are valued at cost less accumulated depreciation, but are written down to fair value if impairment is not expected to be temporary. Noncurrent 

debts are initially valued at transaction value less attributable transaction cost. Subsequent to initial recognition, interest-bearing long-term debt is 

stated at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the borrowing 

on an effective interest basis. 

Trade receivables and other receivables are recognised at nominal value less provision for expected losses. Provision for expected losses is considered 

on an individual basis. 

Other receivables are valued at nominal value less provisions for expected loss. Provisions for losses are based on individual judgement of each receivable. 

Cash and cash equivalents is the parent company’s cash as well as net deposits from subsidiaries in the group cash pooling systems owned by the parent 

company. Correspondingly the parent company’s current debt to group companies will include the same net deposits in the group’s cash pooling system. 

Foreign currency and interest swaps 

Cash, receivables and foreign currency debt are valued at the exchange rate at the end of the fiscal year. Subsidiaries have entered into agreements with 

the parent company to hedge their foreign exchange exposure. In the parent company this risk is hedged in the external financial markets. All agreements 

are booked at fair value with any gains or losses booked against the income statement. In order to reduce the financial market exposure, interest swap 

agreements are entered. The value of these are recognised directly against equity and released to income statement in proportion to the relevant interest 

expense. 

Tax 

Taxexpense in the profit &loss account comprises current tax and changes in deferred tax. Deferred tax is calculated as 28 percent of temporary differences 

between accounting and tax values as well as any tax losses carry forward atthe year end. Anet deferred tax asset is recognised only to the extent it 

is probable that future taxable profits will be available against which the asset can be utilised. 

■ 

Note 2: Operating expenses 

There are no employees in Aker Solutions ASA and hence no salary or pension related costs and also no loans or guarantees related to the executive 

management team. Group management and corporate staff are employed by other Aker Solutions companies and costs for their services as well as other 

parent company costs are charged to Aker Solutions ASA. Remuneration to and shareholding of directors and senior management, Simen Lieungh and 

Leif Hejø Borge, are described in note 18 Salaries, wages and social security costs to the consolidated accounts. 

Fees to KPMG for statutory audit of the parent company including group consolidation amounted to NOK 4million, fees for other assurance services 

amonted to NOK 0.2 million and fees for other advisory services amounted to NOK 0.2 million. 




■ Note 3: Net financial items 


Income from investment in other companies 31 - 

Interest income 1050 945 

Interest expense -677 -664 

Net interest 373 281 

Net foreign exchange gain 68 155 

Net other financial items 68 155 

Net financial items 472 436 

■ 

Note 4: Tax 


Basis for taxable income 

Net profit (+) /loss (-) before tax 282 2439 

Group contribution without taxes impact - -1935 

Changes in non-current assets -31 28 

Permanent differances 11 - 

Change in timing differences -484 100 

Transferred to (utilisation of) tax loss carried forward 222 -632 

Taxable income - - 

Positive/(negative) timing differences 

Current assets 339 -75 

Taxloss carry forward -289 -67 

Total positive /negative timing differences 50 -142 

Deferred tax (28 percent of timing differences) -14 40 

Taxexpense 

Orgination and reversal of temporary differences -135 28 

Benefit of tax losses recognised 62 -177 

Withholding tax -4 - 

Total income tax expense in income statement -77 -149 

The tax loss carry forward isassumed to be fully deductible against future taxable income in the Norwegian group companies. 

120 




■ Note 5: Investments in subsidiaries and other companies 

Investments in subsidiaries 


Registered 

office 

Share 

capital 

Number of 

shares held 

Book value 

Owner- / 

voting share 

Aker P&C Group AS Fornebu, Norway 500 500 000 1189 100% 

Aker O&G Group AS Fornebu, Norway 1110 1110 000 5555 100% 

Total investments in group companies 6744 

Investments in subsidiaries are changed with 112 million from the sale of shares in Aker Business Services Ltd. 

Investments in subsidiaries and other companies are held at the lower of cost and estimated fair value. 

Investments in other companies 


Registered 

office 

Share 

capital 

Number of 

shares held 

Book value 

Owner- / 

voting share 

Aker Oilfield Services AS Oslo, Norway 321 10 379 470 270 32.29% 

Total investments in other companies 270 

■ 

Note 6: Non interest-bearing items 


Non interest-bearing receivables from group companies 1 2764 2843 

Other receivables 2 1168 1494 

Current assets 3932 4337 

Non interest bearing liabilities to group companies 3 -1284 -1259 

Other current liabilities 2 -2407 - 991 

Current liabilities excl. tax and dividend -3691 -2250 

Net current assets excl. tax and dividend 241 2087 

Dividend -430 - 809 

Deferred tax assets /liabilities - 14 40 

Net operating assets incl. tax and dividend -203 1318 

1) Hereof NOK 2755 million in unrealised gains on group companies foreign exchange hedging with the parent company and NOK 9million in other receivables from group companies. 

2) Unrealised gains and losses in relation to foreign exchange hedging of the company’s borrowing and lending portefolio 

3) Hereof NOK 1211 million are unrealised losses on group companies foreign exchange hedging with the parent company and NOK 73 million in other liabilities to group companies. 

All current assets and liablities are due within one year. 




■ Note 7: Shareholders’ equity 


Number 

of shares Share capital Own shares Share premium Other equity Total 

Equity as at 1January 2007 55 029 234 550 4279 2713 7542 

Dividend from shares held 

by Aker Solutions ASA 19 19 

Change in 2006 dividend -1 -1 

Increase caused by share split (1:5) 220 116 936 - - 

Cancellations of shares -1146 170 - 2 2 - - 

Share buy back 2 -11 - 770 - 781 


Proposed dividend -809 - 809 

Cash flow hedge 1 5 5 

Equity as at 31 December 2007 274 000 000 548 -9 4279 3447 8265 

Dividend from shares held 

by Aker Solutions ASA 2 2 

Share buy back 2 -1 -69 -70 


Proposed dividend -430 -430 

Cash flow hedge 1 -50 -50 

Equity as at 31 December 2008 274 000 000 548 -10 4 279 3105 7922 

1) The value of interest swap agreements changing interest from floating to fixed interest is recognised directly in equity and will be released to income together with the corresponding interest 

expense. 

2) Afurther 595 000 shares were bought in January 2008. After the acquisition, Aker Solutions ASA holds in total 4966 830 shares. 

3) Proposed dividend is excl. dividend on own shares as at 31 December 2008. 

The share capital of Aker Solutions ASA is divided into 274 000 000 shares with anominal value of NOK 2. The shares can be freely traded. An overview 

of the company’s largest shareholders is to be found in page 129 Share and shareholder information. 

Own shares have been acquired for the purpose of being used in prospective share programs for employees, as settlement in future corporate acquisitions 

or for other purposes as decided by the Board ofDirectors. 

■ 

Note 8: Interest-bearing items 


Cash and cash equivalents 1404 1855 

Interest-bearing current receivables from group companies 14 996 9726 

Other interest-bearing non-current receivables 1 90 8 

Interest-bearing current borrowings from group companies -9006 -9999 

Interest-bearing non-current borrowings -6373 -1571 

Net interest-bearing assets (+) /liabilities (-) 1111 19 

Interest income 1050 945 

Interest expense -677 -664 

Net interest 373 281 

1) Loan to Aker Bravo AS NOK 8million, loan to Aker Clean Carbon AS NOK 15 million, loan to Aker Oilfield Services AS NOK 65 million and deposit in Stiftelsen Aker Solutions 

Kompensasjonsordning NOK 2million. 

For information on the group cash pooling system see note 25.1 Cash and cash equivalents to the consolidated accounts. 

122 




■ Note 9: Non-current borrowings 


Revolving credit facility 4802 - 

Norwegian bonds 1600 1600 

Refinancing costs to be amortised -55 -37 

Accrued interest 26 8 

Non-current borrowings at 31 December 6373 1571 

Repayments of non-current loans 1 

2009 -500 -500 

2011 -650 -650 

2012 -4802 - 

2013 -450 -450 

Total repayments -6402 -1600 

1) Norwegian bonds and revolving credit facility as described in note 25.6 Borrowings and other non-current liabilities to the consolidated accounts relates entirely to Aker Solutions ASA, see 

this note for information regarding interest rates, covenants and pledges. 

■ 

Note 10: Guarantees 


Parent company guarantees to group companies 1 44 594 34 725 

Counter guarantees for bank /surety bonds 2 7855 5548 

Total guarantee liabilities 52 449 40 273 

1) Parent company guarantees to support subsidiaries in contractual obligations towards customers. Aker Solutions ASA has also issued counter indemnities in relation to office rental on behalf 

of subsidiaries. 

2) Bank guarantees and surety bonds are issued on behalf of Aker Solutions subsidiaries, and counter indemnified by Aker Solutions ASA. 

■ 

Note 11: Financial instruments 

The corporate treasury function is located within Aker Solutions ASA and as part of this the company do investment and hedging deals with group 

companies. After internal netting the remaining net exposure ishedged in the external market. Corporate Treasury is allowed to hold positions within an 

approved trading mandate. Investments in group companies are normally not hedged and will be subject to currency fluctuations. Group policy is to 

maintain approximately 30 –50percent of its borrowings in fixed rate instruments using interest rate swaps to achieve this when necessary. For more 

information please see note 23 Financial risk management to the consolidated accounts. 

■ 

Note 12: Contingent events and related parties 

Aker Solutions ASA’s investment in Aker Oilfield Services AS and contract with Intellectual Property Holding AS are described in note 5Related parties to 

the consolidated accounts. 



Auditor’s report 

124 





Share and shareholder information 

Open and direct dialogue 

Aker Solutions is committed to maintaining an open and direct dialogue 

with its investors, analysts, and the financial community in general. 

Accurate, timely publication of information 

relevant to the market is important in 

ensuring that Aker Solutions’ share price 

reflects the company’s underlying value. 

Aker Solutions’ objective is that the 

company’s shareholders will receive competitive 

returns on their investments over 

time through acombination of dividends, 

share buybacks, and share price growth. 

Dividend policy 

The Board ofDirectors considers that longterm 

average dividend payments to shareholders 

should amount to 30 to 50 percent 

of the Aker Solutions group’s net profit, 

through cash dividends and/or share buybacks. 

Considerations affecting dividend 

disbursements are alternative uses for 

such funds and applying them to further 

strengthen the company’s financial structure. 

The Boardwill propose to Aker Solutions’ 

Annual General Meeting that atotal pershare 

dividend of NOK 1.60 be paid for 


The following table shows Aker Solutions’ 

dividend payments for the period 

2005–2008: 

Year 

Dividend 

2005 NOK 1 

2006 NOK 2 

2006 –extraordinary NOK 6 

2007 NOK 3 

2008 –proposed NOK 1.60 

Shares and share capital 

Aker Solutions ASA has 274 000 000 ordinary 

shares. Each share has apar value of 

NOK 2(see page 75ofthe consolidated 

accounts). As of 31 December 2008, the 

companyhad 5231 shareholders, of whom 

562 (10.7 percent) were non-Norwegian. 

Aker Solutions has asingle class of shares. 

Each share isentitled to one vote. As of 

31 December 2008, the company held 

4966 830 or 1.8 percent of its own (treasury) 

shares. No shareissues werecarried out in 


Stock exchange listing 

Aker Solutions shares are listed on the 

OSEBX, the main list of the Oslo Stock 

Exchange (ticker: AKSO). Aker Solutions 

shares are registered in the Norwegian 

Central Securities Depository; DnB NOR is 

the company’s registrar. The shares have 

the securities registration number ISIN 

NO0010215684. Aker Solutions ASA was 

listed on the Oslo Stock Exchange on 

2April 2004. 

Largest shareholder 

Aker Holding 

Aker Solutions 

Aker ASA 

Aker ASA: 60% 

The Norwegian Government: 30% 

SAAB AB: 7.5% 

Investor AB: 2.5% 

Aker Holding: 40.27% 

Aker Solutions’ largest shareholder is Aker 

Holding AS, which owns 40.27 percent of 

the company’s shares as of 31 December 

2008. Aker ASA holds a controlling 60 

percent stake in Aker Holding. The 

Norwegian government owns 30 percent 

of Aker Holding’s shares and the Swedish 

companies SAAB AB and Investor AB own 

7.5 percent and 2.5 percent, respectively. 

The co-owners of Aker Holding have 

agreed that Aker Solutions will continue to 

be developed as an internationally competitive, 

major supplier of technology, 

products, systems, and services, with 

operations concentrated in the energy, oil, 

and gas sectors. 

Aker Holding’s owners will continue the 

established, close industrial cooperation 

between Aker Solutions and other Aker 

companies. While these companies are 

legally and financially independent units, 

they share many unifying features and 

complementary capabilities. Aker companies 

are linked by their Aker ASA ownership. 

When agreements are entered into 

between two or moreAker companies, the 

boards of directors and other parties 

involved are critically aware ofthe need to 

act in the best interests of the involved 

companies and in accordance with good 

corporate governance. If needed, external, 

independent opinions are sought. 

Current Board authorisations 

The 3April 2008 Annual General Meeting 

of Aker Solutions authorised the Board of 

Directors to acquirecompany shares up to 

atotal par value of NOK 54 800 000. The 

authorisation also allows for using company 

shares as security. The lowest pershare 

price to be paid under this authorisation 

is NOK 1; the highest is NOK 300. The 

authorisation is valid until the 2009 Annual 

General Meeting or until 30 June 2009, 

whichever occurs first. 

Acquisition ofown shares 

The company’ssharebuy-back programme 

was continued under the Board authorisation 

granted by the 2008 Annual General 

Change in share capital 

Date Change in share capital Share capital in NOK Number of shares Par value in NOK 

1January 2006 550 292 340 55 029 234 10.00 

31 December 2006 550 292 340 55 029 234 

Change in 2007 -2292 340 218 970 766 

31 December 2007 548 000 000 274 000 000 2.00 

31 December 2008 548 000 000 274 000 000 2.00 

126 




Meeting. The Board has authorised the 

company’s administration to repurchase 

treasury shares up to 5 percent of the 

company’s outstanding shares. The share 

buy-back programme runs until the 2April 

2009 Annual General Meeting. As of 28 

February 2009, none of the company’s 

shares had been acquired pursuant to the 

Boardauthorisation. 

The Board will propose an extension of 

the mandate from the date of the AGM’s 

decision until the next AGM. 

Share price development in NOK 

■ AKSO indexed ■ OSEBX indexed 

800 

700 

600 

500 

400 

300 

200 

100 

0 

Stock option programme 

Aker Solutions ASA has as of 31 December 

2008 no stock option programme. 

Jun 

2004 

Dec 

2004 

Jun 

2005 

Dec 

2005 

Jun 

2006 

Dec 

2006 

Jun 

2007 

Dec 

2007 

Jun 


Dec 


Feb 

2009 

Share purchase programme for 

employees 

In January, Aker Solutions announced 

that it is offering approximately 14 100 of 

its employees in Norway, the Netherlands, 

United Kingdom, Chile and Canada the 

opportunity to buy Aker Solutions ASA 

shares at adiscount. The discount is NOK 

1500 per employee and the total buying 

amount per employee is NOK 15 000 for 

the 12 months (from March 2009 to March 

2010) the programme is running. The pershare 

purchase price will be equal to the 

average (volume-weighted) share price of 

Aker Solutions ASA’s shares on the Oslo 

Stock Exchange on the last trading day 

before the shares are distributed. 

Employees who keep their shares until 

1September 2011 and who are continuously 

employed by Aker Solutions throughout 

the period for which they hold their 

shares will be entitled to abonus share 

award, free of charge, of one bonus share 

for every two Aker Solutions ASA shares 

held under the programme. 

Investor relations 

Aker Solutions seeks to maintain an open 

and direct dialogue with shareholders, 

financial analysts, and the financial 

community in general. In addition to 

meetings with analysts and investors, the 

company schedules regular presentations 

at major financial centers in Europe and 

the US. 

2008 share data 

Geographic distribution of ownership 

As of 13 february 2009 


Highest closing share price NOK 157.00 190.75 

Lowest closing share price NOK 26.15 131.75 

Average closing share price NOK 101.80 152.15 

Closing price as of 31 December NOK 45.00 144.50 

Own (treasury) shares as of 31 December No. of shares 4966 830 4371 830 

Shares issued and outstanding as of 31 Dec. No. of shares 274 000 000 274 000 000 

Market capitalisation as of 31 December NOK million 12 330 39 593 

Daily turnover No. of shares 2173 788 2171 000 

Turnover ratio Percent 200.9 197.5 

Earnings per share NOK 5.34 8.84 

Nationality Number of shares Ownership 

Non-Norwegian shareholders 134 796 609 49.20% 

Norwegian shareholders 139 203 391 50.80% 

Total 274 000 000 100% 

Ownership structure bynumbers of shares held 

As of 13 february 2009 

Shares held Number of shareholders Share capital 

1–100 1262 0.03% 

101 –1000 2912 0.51% 

1001 –10000 1191 1.39% 

10 001 –100 000 266 3.58% 

100 001 –500 000 115 8.65% 

More than 500 000 50 85.85% 

Total 5796 100% 




Visitors to Aker Solutions’ website can 

subscribe to email delivery of company 

news. All Aker Solutions press releases and 

investor relations (IR) publications, including 

archived material, are available at the company’swebsite 

www.akersolutions.com. 

This online resource provides the 

company’s quarterly and annual reports, 

prospectuses, corporate presentations, 

articles of association, financial calendar, 

Investor Relations and Corporate Governance 

policies, and other information. At 

Aker Solutions’ annual capital markets day 

presentation, open to all stakeholders, key 

executives provide detailed, up-to-date 

information about the company’s business 

activities and market conditions. 

Shareholders can contact the company’s 

investor relations staff at: ir@akersolutions. 

com. The Oslo Stock Exchange displays 

special symbols alongside company listings 

to indicate satisfactory distribution of 

information (i) and information in English 

(E). Both the i and the E symbols have 

been awarded to Aker Solutions. Details 

on these designations are available at 

www.oslobors.no. 

Analysts 

The following security brokers provide analytic coverage of Aker Solutions (as of 13 February 2009) 

Company Name Phone 

ABG Sundal Collier Ole Martin Westgaard + 47 22 01 61 60 

ABN AMRO Thomas Deitz +44207 67 881 07 

Arctic Securities Kjetil Garstad +4721013224 

Barclays Mick Pickup +44203 13 466 95 

Citigroup Fiona Maclean +44207 98 641 44 

Carnegie Frederik H. Lunde +4722009379 

Credit Agricole Cheuvreux Geoffroy Stern + 33 141897379 

Danske Bank Endre Storløkken +4724008442 

Deutsche Bank Christyan FMalek +44207 54 582 49 

DnB NOR Lars-Daniel Westby +4722948983 

Fearnley Fonds Truls Olsen +4722936393 

First Securities Pål Dahl +4723238198 

Fondsfinans Gøran Andreassen +4723113033 

Goldman Sachs Henry Tarr +44207 55 259 81 

Handelsbanken Håkon Amundsen +4722940995 

HSBC David Phillips +44207 99 153 88 

JP Morgan Amy Wong +44207 32 594 60 

Merrill Lynch Alejandro Demichelis +44207 99 615 68 

Nordea Anne Ulriksen +4722486867 

Nomura Iqbal Nasim +44207 10 239 77 

Orion Securities Aleksandr Solovjov +37052461968 

Pareto Rune Juliussen +4722878732 

RS Platou Markets Terje Mauer +4722016324 

SEB Enskilda Terje Fatnes +4721008538 

UBS Alex Brooks +44207 56 758 04 

Electronic interim and annual 

reports 

Aker Solutions encourages its shareholders 

to subscribe to the company’s annual 

reports via the electronic delivery system 

of the Norwegian Central Securities 

Depository (VPS). Please note that VPS 

services (VPS Investortjenester) are 

designed primarily for Norwegian shareholders. 

Subscribers to this service receive 

annual reports in PDF format via email. 

VPS distribution takes place at the same 

time as distribution of the printed version 

of Aker Solutions’ annual report to shareholders 

who have requested it. 

Quarterly reports, which are generally 

only distributed electronically, are available 

from the company’s website and other 

sources. Shareholders who are unable to 

receive the electronic version of quarterly 

reports may subscribe to the printed version 

by contacting Aker Solutions’ investor 

relations staff. 

Nomination committee 

Aker Solutions has anomination committee 

consisting of no fewer than three members, 

as set forth in the company’s articles 

of association. The composition of the 

nomination committee must reflect the 

interests of shareholders and the committee’s 

members must be independent. 

The nomination committee has the 

following members: 

Kjell Inge Røkke (Chairman), 

2008–2010 

Gerhard Heiberg, 2008–2010 

Kjeld Rimberg, 2007–2009 

Annual General Meeting 

Annual General Meetings are normally held 

in late March or early April. Written notification 

is sent to all shareholders or their 

nominees individually.All information relevant 

to the Annual General Meeting is also available 

on the company’s website. To vote at 

shareholders’ meetings, shareholders (or 

their duly authorised representatives) must 

either be physically present, or vote by 

proxy; registration and proxy instructions 

are published on the company’s website. 

2008 share data 

The company’s total market capitalisation 

as of 31 December 2008 was NOK 12 330 

million. During 2008,atotal of 550 522 000 

Aker Solutions shares were traded, 

corresponding to 3.4 times the company’s 

freely tradeable stock. Of the company’s 

outstanding shares, 59.73 percent were 

freely tradeable in 2008; the remaining 

40.27 percent was owned by Aker Holding 

AS. Shares traded on all of the 252 possible 

trading days. The average daily trading 

volume was 2184 611 shares. 

Registrar 

Shareholders may contact Aker Solutions’ 

registrar with questions pertaining to their 

shareholding: 

DnB NOR ASA 

Verdipapirservice 

Stranden 21 

NO-0021 Oslo, Norway 

Telephone: +4722482770 

Telefax: +4722481171 

www.dnbnor.com 

128 




20 largest shareholders 

As of 13 February 2009 

Name Nominee No. of shares held Ownership 

Aker Holding AS 110 333 615 40.27% 

JPMorgan Chase Bank x 16236 318 5.93% 

State Street Bank and Trust CO. x 14765 932 5.39% 

State Street Bank &Trust CO. x 9 566 744 3.49% 

Clearstream Banking S.A. x 5 783 983 2.11% 

Aker Solutions ASA 4966 830 1.81% 

Bank of New York Mellon x 4 740 961 1.73% 

Citibank N.A. New York Branch x 4 600 000 1.68% 

JPMorgan Chase Bank x 4 170 163 1.52% 

Bank of New York, Brussels Branch 3767 650 1.38% 

Citibank N.A. New York Branch x 3 541 890 1.29% 

The Northern Trust C.O. x 3 313 890 1.21% 


Deutsche Bank AG Frankfurt x 2 736 889 1.00% 


Bank of New York Mellon x 2 473 158 0.90% 

RBC Dexia Investor Services Trust x 2 373 573 0.87% 

Folketrygdfondet 2118 400 0.77% 

State Street Bank and Trust CO. x 2 078 473 0.76% 

Investors Bank &Trust Company x 2 016 178 0.74% 

Total, 20 largest shareholders 204 982 172 74.81% 

Other shareholders 69 017 828 25.19% 

Total 274 000 000 100% 



Analytical information 

Analytical information Aker Solutions 


Order backlog 31.12 58 016 58 261 59 695 

Order intake 55 590 57 942 62 271 

Revenue 58 252 57 957 50 592 

EBITDA 3382 3913 2872 

EBITDA margin 5.8% 6.8% 5.7% 


Rate of taxation 28.1% 30.4% 30.8% 

Net profit from continuing operations 1513 2464 1294 

Basic earnings per share continuing operations 5.34 8.84 4.53 

Cash flow from operating activities -868 2675 2636 

Cash flow from investing activities -3732 -1576 985 

Cash flow from financing activities 4105 -3013 -4688 

Cash flow per share 1.11 -7.82 -3.93 

Total capital 42 724 28 516 31 396 

Borrowings 6716 1615 1568 

Equity ratio 20.14% 25.48% 25.84% 

Liquidity ratio 117.49% 116.04% 120.04% 

Gearing ratio 73.56% 64.59% 59.90% 

Return ontotal capital 6.97% 12.51% 10.23% 

Return onequity 17.58% 33.91% 46.70% 

Return oncapital employed 8.50% 16.97% 12.52% 

Revenue 

Amounts in NOK million 1Q07 2Q07 3Q07 4Q07 2007 1Q08 2Q08 3Q08 4Q08 2008 

ED&S 6998 6864 5691 5368 24 921 5879 6690 5577 4538 22 684 

Subsea 2136 2429 2571 2715 9851 3038 2550 2205 3413 11 206 

P&T 2513 2690 3287 3863 12 353 3251 3326 3388 4251 14 216 

P&C 2842 2929 2992 2834 11 597 2205 2649 2595 3253 10 702 

Other -342 -215 -304 96 -765 -156 -142 -258 - -556 

Total 14 147 14 697 14 237 14 876 57 957 14 217 15 073 13 507 15 455 58 252 

Revenue 


EBITDA margin 

Return oncapital employed 

60 000 

50 000 

40 000 

30 000 

20 000 

10 000 

0 

8% 

7% 

6% 

5% 

4% 

3% 

2% 

1% 

0% 

18% 

16% 

14% 

12% 

10% 

8% 

6% 

4% 

2% 

0% 

2006 

2007 


2006 

2007 


2006 

2007 


130 



Analytical information 

EBIT 


ED&S 320 361 316 267 1264 307 261 186 -1322 -568 

Subsea 150 198 250 250 848 265 236 234 327 1062 

P&T 188 202 227 270 887 254 283 297 429 1263 

P&C 160 216 195 181 752 169 225 229 256 879 

Other -46 - 72 -83 - 68 -269 -98 -9 48 190 131 

Total 772 905 905 900 3482 897 996 994 -120 2767 

EBITDA 


ED&S 336 378 332 345 1391 325 281 221 -1302 -475 

Subsea 171 222 282 285 960 295 288 269 376 1228 

P&T 202 218 245 294 959 278 313 352 505 1448 

P&C 168 221 201 186 776 175 230 235 264 904 

Other -21 - 46 -63 - 43 -173 -71 14 74 260 277 

Total 856 993 997 1067 3913 1002 1126 1151 103 3382 

Order intake 


ED&S 7556 1730 6542 3964 19 792 3431 3503 5388 4359 16 681 

Subsea 2266 4200 1905 4006 12 377 2972 3045 1714 3735 11 466 

P&T 1889 3476 1872 3496 10 733 2760 4089 6611 2661 16 121 

P&C 6414 3281 3462 1839 14 996 4265 3657 1655 1714 11 291 

Other -821 629 252 -16 44 - 145 -298 427 47 31 

Total 17 304 13 316 14 033 13 289 57 942 13 283 13 996 15 795 12 516 55 590 

Order backlog 


ED&S 30 299 25 083 25 871 24 317 24 317 21 750 18 545 18 479 18 315 18 315 

Subsea 8838 10 618 9706 10 951 10 951 10 677 11 357 11 039 11 876 11 876 

P&T 12 092 12 861 11 371 11 520 11 520 10 930 11 692 16 045 14 705 14 705 

P&C 14 265 14 343 13 824 12 519 12 519 12 170 12 980 13 032 13 300 13 300 

Other -2736 -1973 -1443 -1046 -1046 -1045 -1185 -392 -180 -180 

Total 62 758 60 932 59 329 58 261 58 261 54 482 53 389 58 203 58 016 58 016 

Earnings per share 

Amounts in NOK 

Order intake 


Order backlog 


10 

60 000 

60 000 

8 

6 

4 

2 

50 000 

40 000 

30 000 

20 000 

10 000 

50 000 

40 000 

30 000 

20 000 

10 000 

0 

0 

0 

2006 

2007 


2007 


2007 


■ ED&S ■ Subsea ■ P&T ■ P&C 

■ ED&S ■ Subsea ■ P&T ■ P&C 




Safeguarding shareholder interests 

Aker Solutions’ goal is to ensure the greatest possible value creation over 

time, based on good corporate governance. Aker Solutions’ corporate 

governance principles establish an appropriate division of roles and 

responsibilities among the company’s owners, its Board ofDirectors, 

and its executive management. 

The following presents Aker Solutions’ 

practices regarding each of the recommendations 

contained in the most recent 

version of the Norwegian Code of Practice 

for Corporate Governance. Deviations 

from these recommendations are explained 

under the appropriate Code heading. 

Purpose 

Aker Solutions’ corporate governance principles 

are intended to ensure anappropriate 

division of roles and responsibilities 

among the company’s owners, its Board of 

Directors, and its executive management. 

An appropriate division of roles is intended 

to ensure that goals and strategies are established, 

that adopted strategies are 

implemented, and that performance is 

subject to measurement and follow-up. 

Aker Solutions’ corporate governance 

principles also help ensurethat the group’s 

activities are subject to satisfactory control. 

An appropriate division of roles and satisfactory 

control contribute to the greatest 

possible value creation over time, to the 

benefit of owners and other stakeholders. 

The corporate governance policy has 

been prepared by the BoardofDirectors of 

Aker Solutions ASA. The principles are 

based on the Norwegian Code of Practice 

for Corporate Governance, dated 4 December 

2007. The following presents Aker 

Solutions’ practices regarding each of the 

recommendations contained in the Code 

of Practice. 

Corporate values and ethical 

guidelines 

The Boardhas approved andadopted Aker 

Solutions’ corporate values, which are presented 

on page 10 of this annual report. 

Our ethical guidelines and other policy 

documents have been prepared in accordance 

with these values. 

Our business 

Aker Solutions’ business purpose clause 

reads as follows: “The company’spurpose 

is owning and operating industrial businesses 

and other, related activities, capital 

management and other group functions, 

and participation in or acquisition of other 

business activities.” 

The business purpose clause ensures 

that shareholders have control of the 

scope of the business activities and their 

risk profile, without limiting the Board or 

management’sability to carry out strategic 

and financially viable decisions within the 

defined purpose. The group’s financial 

goals and main strategies are presented in 

this annual report. 

Equity and dividends 

The group’s equity as of 31 December 

2008 amounted to NOK 8 605 million, 

which corresponds to an equity ratio of 

20.1 percent. Aker Solutions ASA regards 

the current equity structure asappropriate 

and adapted to the group’s objectives, 

strategy, and risk profile. 

Aker Solutions ASA’s dividend policy is 

discussed in the section Share and shareholder 

information, see page 126 of this 

annual report. The group’s dividend policy 

is among the factors considered in preparing 

the Board’s proposal for allocation of 

profit for 2008. 

Board authorisations 

The Board’s proposals for future Board 

authorisations are tobelimited to defined 

issues and are toremain in force until the 

next annual shareholders’ meeting. 

The current Board authorisation to 

acquire company (treasury) shares is also 

presented in the section Share and shareholder 

information on page 126 of this 

annual report. 

Equal treatment of shareholders and 

transactions with related parties 

Aker Solutionshas asingleclass of shares; 

all shares carry the same rights in the company. 

Equal treatment of all shareholders 

is crucial. If existing shareholders’ preemptive 

rights are waived upon an increase in 

share capital, the Board must justify the 

waiver.Transactions in own (treasury) shares 

are executed on the Oslo Stock Exchange 

or by other means at the listed price. 

Aker Solutions ASA has prepared guidelines 

designed to ensure that members of 

the Board ofDirectors and executive management 

notify the Board ofany material 

direct or indirect interest they may have in 

agreements entered into by the group. 

Aker ASA owns 60 percent of the shares 

in Aker Holding AS; as of 31 December 

2008, Aker Holding owned 40.27 percent 

of Aker Kværner ASA (now Aker Solutions 

ASA) stock. The Norwegian parliamentary 

bill St.prp. no. 88 (2006–2007) provides 

further details on the establishment of Aker 

Holding AS and the agreement between 

Aker ASA and the other Aker Holding AS 

shareholders. 

Based on its shared industrial history 

and ownership ties, Aker Solutions aims to 

maintain its close cooperation with the 

Aker group and various other companies 

associated with Aker ASA. For example, 

there is major potential in joint projects 

between Aker Solutions and other Aker 

companies that serve the oil and gas 

industry. 

Aker Solutions ASA is not regarded as a 

related party, under the Norwegian Public 

Limited Liability Companies Act, with 

regard toAker ASA or companies in which 

Aker ASA has ownership interests. Nevertheless, 

the Board and management of 

Aker Solutions are keenly aware that Aker 

Solutions must conduct relations with Aker 

companies at arm’s length. 

Further, transactions of acertain size 

between Aker Solutions ASA and Aker group 

companies are subject to the procedures 

set forth in section 3-8 of the Norwegian 

Public Limited Liability Companies Act. 

For further information, see note 5Related 

parties to the consolidated accounts. 

Freely negotiable shares 

Aker Solutionssharesare freely negotiable. 

No restrictions on transferability are found 

in the company’s articles of association. 

Annual General Meetings 

Aker Solutions encourages shareholders 

to participate in its Annual General Meetings. 

Holding Annual General Meetings as 

132 




soon as possible after year-end is apriority. 

Our goal is to publish notices of shareholders’ 

meetings and comprehensive 

supporting information — including the 

recommendations of the nomination committee 

— on the company’s website no 

later than 21 days before the Annual 

General Meeting, and to distribute these 

documents to shareholders with known 

addresses within the deadlines set forth in 

the Norwegian Public Limited Liability 

Companies Act. The deadline for shareholders 

to register to attend is set as close 

to the date of the meeting as possible. 

Shareholders who areunable to attend the 

meeting in person may vote by proxy. Further 

information on procedures for registration 

and proxy voting is provided with 

the meeting notice and registration and 

proxy forms. 

Pursuant to Aker Solutions’ articles of 

association, the BoardChairman or another 

person appointed by the Board Chairman 

chairs Annual General Meetings. To the 

extent possible, Board members, the 

nomination committee chairman, and the 

company’s auditor attend Annual General 

Meetings. 

The nomination committee focuses on 

composing aBoard that works as ateam 

and on selecting Board members whose 

experience and qualifications complement 

each other. Thus, typically, the Annual 

General Meeting is invited to vote for the 

Board asawhole. 

Minutes of Annual General Meetings 

are published as soon as practical via the 

Oslo Stock Exchange messaging service 

www.newsweb.no (ticker: AKSO) and on the 

company’s website www.akersolutions. 

com under the heading Investor Relations. 

Nomination committee 

The company has anomination committee, 

as set forth in its articles of association. 

The nomination committee comprises no 

fewer than three members, who normally 

serve for two years. The composition of 

the nomination committee must reflect the 

interests of shareholders, as well as maintain 

the committee members’ independence 

from Aker Solutions’ Board and executive 

management. The members and 

chair of the nomination committee are 

elected by the company’s Annual General 

Meeting, which also determines their 

remuneration. 

Pursuant to the articles of association, 

the nomination committee recommends 

candidates for election to the Board 

of Directors. The nomination committee 

also makes recommendations as to the 

remuneration of Board members. The 

composition of the nomination committee 

is presented under the section Share and 

shareholder information in this annual 

report. The nomination committee is to 

provide written justifications of its recommendations. 

Board composition and 

independence 

Under anagreement with employee representatives 

the company does not have a 

corporate assembly, which is provided for 

under Norwegian law. Employees’ rights 

to representation and participation in decision 

making have been secured through 

extended employee representation on the 

BoardofDirectors, among other measures. 

Pursuant to the company’s articles of 

association, the Board comprises from six 

to ten members, one-third ofwhom are to 

be elected by and among Aker Solutions 

employees. Further, up to three shareholder-elected 

deputy Board members 

may be elected. The nomination committee’s 

recommendations generally propose 

an appointment for Board Chairman; the 

Board Chairman is elected by shareholders 

at the Annual General Meeting. The 

Board elects its Deputy Chairman. Board 

members are elected for a two-year 

period. 

The majority of shareholder-elected 

Board members are independent of Aker 

Solutions’ executive management and key 

business associates. Further, no fewer 

than four of the shareholder-elected Board 

members are independent of the company’s 

largest shareholder. 

The current composition of the Board 

and the Board members’ expertise, capabilities, 

and independence are presented 

on page 136 of the annual report. Board 

members’ shareholdings are presented in 

note 18 Salaries, wages, and social security 

costs to the consolidated accounts. The 

company encourages Board members to 

own Aker Solutions stock. The shareholder-elected 

Board members have a 

broad range of expertise, capabilities, and 

experience from finance, industry, and 

non-governmental organisations. 

Three of the shareholder-elected Board 

positions are upfor election in 2009. The 

nomination committee’srecommendations 

and accompanying justification will be 

“The principles are 

based on the 

Norwegian Code of 

Practice for Corporate 

Governance, dated 

4December 2007” 

published on the company’s website and 

via the Oslo Stock Exchange’s message 

service, www.newsweb.no, as soon as it is 

available. 

The work ofthe Board ofDirectors 

The Board annually adopts aplan for its 

work, emphasising goals, strategy, and execution. 

Further, the Board has adopted 

Board instructions that regulate areas of 

responsibility, tasks, and division of roles 

of the Board, Board Chairman, and President 

&CEO. The Board instructions also 

featurerules as to Boardschedules, notice 

and chairing of Board meetings, decision 

making, the President &CEO’s duty and 

right to disclose information to the Board, 

professional secrecy, impartiality, and 

other matters. 

Pursuant to the Board instructions, the 

Board evaluates its own performance and 

expertise once a year. The Board has 

appointed acompensation committee. 

Risk management and internal 

control 

Aker Solutions has established acomprehensive 

set of internal control procedures 

and systems to ensure unified and reliable 

financial reporting. Each of the group’s 

business units must annually evaluate its 

internal control systems and financial 

reporting procedures. The group also regularly 

conducts internal audits of individual 

units’ adherence to systems and procedures. 

The Board receives reports on the 

company’s financial performance and 

status reports on the group’s most important 

individual projects on amonthly basis. 

Page 58 of the annual report presents a 

more detailed description of the management 

of operational and financial risks 

associated with the group’s business 

activities. 

Board remuneration 

Remuneration paid to Aker Solutions’ 




Board ofDirectors reflects the Board’s responsibilities, 

expertise, time spent, and 

the complexity of the business. Remuneration 

is not profit-dependent. 

Additional information on remuneration 

paid to Board members for 2008 is 

presented in note 18 to the consolidated 

accounts. 

Remuneration of executive 

management 

The Board has adopted guidelines for 

remuneration of Aker Solutions’ executive 

management in accordance with the rules 

and regulations of section 6-16a of the 

Norwegian Public Limited Liability Companies 

Act. 

Aker Solutions ASA does not have stock 

option plans or other share award programmes 

for employees for 2008, but a 

share purchase programme has been initiated 

for 2009. Further details are available 

on the company’s website. Note 18 to the 

consolidated accounts provides further 

details as to remuneration paid in 2008 

to individual members of Aker Solutions’ 

executive management. The company’s 

guidelines for remuneration of executive 

management are discussed in note 18 to 

the consolidated accounts, and are 

presented to the Annual General Meeting. 

Information and communication 

The company has prepared an Investor 

Relations (IR) policy, which isavailable at 

Aker Solutions’ website. Aker Solutions’ 

reporting of financial and other information 

is to be based on openness and on equal 

treatment of market participants. 

The long-term purpose of Aker Solutions’ 

systematic IR work is to ensure the 

company’s access to capital at competitive 

terms and correct pricing of shares for 

shareholders. These goals are to be 

accomplished through accurate and timely 

distribution of information that can affect 

the company’s share price; the company 

also complies with current rules and market 

practices, including the requirement of 

equal treatment. 

All stock exchange notices and press 

releases are made available on the company’s 

website, www.akersolutions.com; 

stock exchange notifications are also 

available from www.newsweb.no. All information 

that is distributed to shareholders is 

simultaneously published on Aker Solutions’ 

website. The company endeavors to hold 

public presentations of its financial reporting; 

such presentations are often broadcast 

simultaneously via the Internet. 

Aker Solutions’ financial calendar is 

published on the company’s website. 

Takeovers 

In light ofAker Solutions’ ownership structure, 

the Board has thus far not deemed it 

appropriate to prepareseparate guidelines 

for takeover situations. 

Auditor 

The auditor makes an annual presentation 

of its plan for auditing work to the Board. 

Further,the auditor has provided the Board 

with awritten confirmation that the requirement 

of independence is met. 

The auditor participates in the Board 

meeting that deals with the annual 

accounts, and the auditor has reviewed 

the company’s internal controls with the 

Board. The Board ofDirectors has been 

given the opportunity to meet with the 

auditor without the company’s executive 

management present; however, no such 

meeting has been requested. 

The Boardhas not deemed it necessary 

to introduce guidelines for executive management’s 

use of auditors for services 

other than auditing. However, the Board 

receives an annual overview of services 

other than auditing that have been supplied 

to the company. 

Remuneration to auditors for auditing 

and other services is presented in note 7 

Other operating expenses to the consolidated 

accounts. Such data and the 

selection of the auditor for the 2009 

accounting year are also presented to the 

Annual General Meeting. 

134 






Board ofDirectors 



Chairman of the Board 

Martinus Brandal (born 1960) rejoined Aker in 2008. He was President &CEO of Aker Solutions ASA 

from July 2006 to March 2008. From July 2004 to July 2006 Brandal was EVP in charge of operations, 

strategy and business development for Aker ASA. From 1985 to 2004, Brandal held various management 

positions in the ABB Group at its headquarters in Zurich, including Group SVP and Head of 

Business Area Process Automation. He is also Chairman of the Boards of Aker Drilling and Aker Floating 

Production, and aBoard member of Aker Oilfield Services and of Odim. He holds aBSc in Electrical 

Engineering from Oslo University College. As of 31 December 2008, Brandal holds, through aprivately 

owned company, 7500 shares in the company and has no stock options. Brandal is aNorwegian 

citizen. He has been elected for the period 2008–2010. 


Deputy Chairman 

BjørnFlatgård(born1949) runs his own business, the principal activities of which areparticipation on 

Boards of directors and investing. Flatgårdwas President and CEO of Elopak AS from 1996 to 2007. 

He previously served as President and CEO of Nycomed Pharma and EVP of Hafslund Nycomed and 

Nycomed AS. Flatgårdholds multiple Boardpositions in major Norwegian companies. Flatgårdhas an 

MSc in Chemical Engineering from the Norwegian University of Science and Technology and adegree 

from the Norwegian School of Management. As of 31 December 2008, Flatgårdholds 5535 shares in the 

company,and has no stock options. FlatgårdisaNorwegian citizen. He has been elected for the period 

2008–2010. 


Director 

Heidi M. Petersen (born 1958) is an independent businesswoman. From 2000 to July 2007, she was 

Managing Director of Future Engineering AS and of Rambøll Oil &Gas AS. Petersen was employed in 

Kvaerner Oil &Gas from 1988, becoming head of Kvaerner Oil &Gas Sandefjord in1997. Petersen 

has varied Board experience of industrial, oil and gas-based operations as well as of energy supply 

and financial enterprises. She currently chairs the BoardofSandefjordAirport and is amember of the 

Boards of Norsk HydroASA, Nordea AB, Songa Floating Production ASA and Noreco ASA among others. 

She holds an MSc from the Norwegian University of Science and Technology. Asof31December 

2008, Petersen holds no shares in the company, and has no stock options. Petersen is aNorwegian 

citizen. She has been elected for the period 2007–2009. 

Vibeke Hammer Madsen 

Director 

Vibeke Hammer Madsen (born 1955) has been CEO of the Federation of Norwegian Commercial and 

Service Enterprises since 2002. Prior to this she was Partner in PA Consulting Group. From 1993 to 

1999 Hammer Madsen was Vice President and held various positions in StatoilHydro. Hammer Madsen 

holds arange of Board positions. She is agraduate of the Norwegian School of Radiography. Asof 

31 December 2008, Hammer Madsen holds no shares in the company, and has no stock options. 

Hammer Madsen is aNorwegian citizen. She has been elected for the period 2007–2009. 

Leif-Arne Langøy 

Director 

Leif-Arne Langøy (born1956) was President &CEO of Aker ASA, formerly Aker RGI, from 2003 to 2008. 

From 2006 to 2008 he was also Chairman of the Board. Langøy has previously served as President & 

CEO of the Aker Yards Group, and for 13 years as Managing Director of Aker Brattvaag. He is Chairman 

of the Boards of Aker Holding, Aker Seafoods and Aker BioMarine, aBoardmember of Aker Exploration, 

and Deputy Chairman of TRG Holding. Langøy has an MBA from the Norwegian School of Economics 

and Business Administration. As of 31 December 2008, Langøy holds, through aprivately owned 

company, 175 000 shares in the company and has no stock options. Langøy is aNorwegian citizen. 

He has been elected for the period 2008–2010. 

136 




Siri Fürst 

Director 

Siri Fürst (born 1958) has been Partner and Business Consultant in Considium Consulting Group since 

January 2005. From 1984 to 1999 she held various management positions in Hafslund, Hafslund 

Nycomed and Nycomed Pharma. From 1999 to 2003 she was Managing Director of DiaGenic ASA. 

Fürst is agraduate of the Norwegian School of Economics and Business Administration. As of 31 

December 2008, Fürst holds no shares in the company, and has no stock options. Fürst is aNorwegian 

citizen. She has been elected for the period 2007–2009. 

Atle Teigland 

Director 

Atle Teigland (born 1957) was elected by the employees of Aker Solutions to the Board ofDirectors in 

October 2004. He has previously served for several years on the Boards of Aker RGI and Aker Maritime. 

Teigland is aGroup Union Representative for Aker Solutions on afull time basis and has been employed 

by Aker Elektro ASsince 1978. Teigland is acertified electrician. As of 31 December 2008, Teigland 

holds no shares in the company, and has no stock options. Teigland is aNorwegian citizen. He has 

been elected for the period 2007–2009. 

Åsmund Knutsen 

Director 

Åsmund Knutsen (born1959) was elected by the employees of Aker Solutions to the Board ofDirectors 

in October 2004. He has held various positions in Aker Engineering &Technology AS since 1991 and 

is now aGroup Union Representative for white collar employees on afull time basis. Knutsen holds a 

MSc in Hydrodynamics. As of 31 December 2008, Knutsen holds 1505 shares in the company, and 

has no stock options. Knutsen is aNorwegian citizen. He has been elected for the period 2007–2009. 

Ingebreth Forus 

Director 

Ingebreth Forus (born 1950) was elected by the employees of Aker Solutions as adeputy Board 

member in 2007. He took over as afull Board member in May 2007. Forus was employed by Kvaerner 

between 1975 and 1980, and joined Aker Well Service as awireline supervisor in 1995. He became a 

Union Representative on afull time basis in 2004 and is also amember of the Board ofIndustri Energi 

(formerly NOPEF). Forus holds adegree in civil engineering from Stavanger Technical School and a 

further degree from the University of Bergen. As of 31 December 2008, Forus holds no shares in the 

company, and has no stock options. Forus is aNorwegian citizen. He has been elected for the period 

2007–2009. 

Arve Toft 

Director 

Arve Toft (born 1966) was elected by the employees of Aker Solutions to the Board ofDirectors in 

March 2007. Toft has been employed by Aker Solutions since 1983 and is aGroup Union Representative 

for Aker Solutions on afull time basis. He has been afull time local union representative at Aker Stord 

AS for 5years. Toft is acertified mechanic and scaffolder. Asof31December 2008 Toft holds no 

shares in the company, and has no stock options. Toft is aNorwegian citizen. He has been elected for 

the period 2007–2009. 





Simen Lieungh 


Simen Lieungh (born 1960) first joined Aker Solutions in 1988 and has been President &CEO since 

March 2008. He has more than 20 years’ experience with large field development projects, covering 

all phases from conceptual studies to completion and delivery of complete installations. Prior to this, 

Lieungh was aresearch scientist with the Norwegian Defence Research Establishment and from 

October 2007 to February 2008 he was Managing Director of Arne Blystad AS. Lieungh is agraduate of 

the Norwegian University of Science and Technology. Asof15February 2009, Lieungh holds 15 014 

shares in the company and has no stock options. Lieungh is aNorwegian citizen. 

Leif Borge 

Chief Financial Officer &EVP 

Leif Borge (born 1963) joined Aker Solutions in 2008. From 2002 to 2008 he was CFO of Aker Yards 

ASA, after serving as CFO of Zenitel NV, Stento ASA and Vitana, asubsidiary of Rieber &Søn ASA in 

the Czech Republic. Borge is agraduate of the Pacific Lutheran University in Washington State. As of 

15 February 2009, he holds 20 000 shares in the company, and has no stock options. Borge is a 

Norwegian citizen. 


Chief ofStaff &EVP 

Niels Didrich Buch (born 1963) joined Aker Solutions in 1999 and was appointed Chief of Staff &EVP 

in 2008. From 2005 he was head of corporate business development in Aker Solutions and previously 

he held various other positions in the company, incorporate legal. Before this he worked ten years 

with the Norwegian Foreign Service, including six of them abroad in Asia and Europe. Buch holds a 

law degree from the University of Oslo. As of 15 February 2009, he holds no shares in the company 

and has no stock options. Buch is aNorwegian citizen. 

Mads Andersen 1 

EVP Subsea 

Mads Andersen (born 1965) joined Aker Solutions in 2000 and has been an EVP since 2003. He has 

20 years’ experience in the upstream oil and gas industry. Andersen has held arange of technical and 

managerial positions in oilfield service and oil companies including Schlumberger and Saga Petroleum 

(now StatoilHydro). Andersen is agraduate of Glasgow University and the Norwegian School of 

Management. As of 15 February 2009, he holds 12 395 shares in the company and has no stock 

options. Andersen is aNorwegian citizen. 

Per Harald Kongelf 2 

EVP Products &Technologies 

Per Harald Kongelf (born 1959) was appointed EVP of the reorganised business area Products & 

Technologies in October 2008. He has 20 years’ experience within the oil and gas industry. For the 

past five years he was president of Aker Solutions’ process systems business unit. Before that he 

worked as an investment manager in the Statkraft Group and in Aker Solutions. He holds an MSc 

from the Norwegian University of Science and Technology. Asof15February 2009, he holds no 

shares in the company and has no stock options. Kongelf is aNorwegian citizen. 

138 




Jarle Tautra 3 

EVP Energy Development &Services 

Jarle Tautra (born 1953) has been an EVP with Aker Solutions since 2002. He has 27 years’ experience 

in offshore-related activities. From 1997 to 2002 Tautra served as President of Aker Oil &Gas and as 

EVP of EPC Norway in Aker Maritime ASA. Prior to this, he held various positions in Norsk Hydro 

ASA. Tautra is agraduate of the Norwegian University of Science and Technology. Asof15February, 

he holds no shares in the company and has no stock options. Tautra is aNorwegian citizen. 

Gary Mandel 4 

EVP Process &Construction 

Gary Mandel (born 1960) first joined Aker Solutions in 1995. He has over 25 years of experience in the 

oil and gas industry, both upstream and downstream. Prior to Aker Solutions Mandel held the position 

of Chairman &CEO at Aker American Shipping ASA and Vice Chairman of Aker Philadelphia Shipyard 

ASA. Previously, heserved as EVP for Aker Solutions between 2002 and 2007. Mandel is an engineering 

graduate from the University of Nuevo Leon, Mexico. As of 15 February 2009, he holds 1350 shares 

in the company and has no stock options. Mandel is aUScitizen. 

1) Mads Andersen replaced Raymond Carlsen as EVP Subsea in October 2008. Carlsen was EVP Subsea from 2002 to 2008. 

2) Per Harald Kongelf replaced Mads Andersen in October 2008. Andersen was EVP in Products &Technologies from 2003 to 2008 and is now EVP Subsea. 

3) Jarle Tautra replaced Nils Arne Hatleskog as EVP Energy Development &Services in February 2009. 

4) Gary Mandel replaced Jarle Tautra in February 2009. Tautra is now heading the Energy Development &Services business area. 



Company information 


Snarøyveien 36 

1364 Fornebu 

Postal address: 

P.O. Box 169 

NO-1325 Lysaker 

Telephone: +47 67 51 30 00 

Telefax: +47 67 51 30 10 

E-mail: ir@akersolutions.com 

Web: www.akersolutions.com 

The following corporate publications are also 

available from www.akersolutions.com 

Face value 

Corporate responsibility report 2008/2009 

The art of engineering 

Powered to perform 2008/09 

COPYRIGHT AND LEGAL NOTICE Copyright in all published material including photographs, drawings and images in this publication remains vested 

in Aker Solutions and third party contributors to this publication as appropriate. Accordingly, neither the whole nor any part of this publication can be 

reproduced in any form without express prior permission. Articles and opinions appearing in this publication do not necessarily represent the views of 

Aker Solutions. While all steps have been taken to ensure the accuracy of the published contents, Aker Solutions does not accept any responsibility for 

any errors or resulting loss or damage whatsoever caused and readers have the responsibility to thoroughly check these aspects for themselves. 

Enquiries about reproduction of content from this publication should be directed to Aker Solutions ASA. 

140 


Notes 


Notes 

142 


Notes 

142 


Notes 

142

Annual report 2008 - Aker Solutions

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