Annual report 2008 - Aker Solutions

Our business
Energy Development &Services
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
Order intake NOK mill 16 681 19 792 24 717
Order backlog 31.12 NOK mill 18 315 24 317 29 764
Number of employees 31.12 Man years 8542 8163 8493
Aker Solutions annual report 2008 19