Aker Solutions ASA: Company Profile and SWOT Analysis - PDF by WMIntelligence

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									Aker Solutions ASA

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Aker Solutions ASA                                                          Financial Snapshot

                                                                            Operating Performance
Fast Facts
                                                                            The company reported revenue of US$5,514.88
Headquarters Address                 Snaroyveien 36, Lysaker, 1325,Norway
                                                                            million during the fiscal year 2010 (2010). The
                                                                            company's revenue declined at a compounded rate of
Telephone                            + 47 67 513000
                                                                            -8.57% during 2006–2010, with an annual decline of -
                                                                            30.31% over 2009. In 2010, the company recorded an
Fax                                  + 47 67 513010                         operating margin of 7.47%, as against 6.41% in 2009.

Website                              www.akersolutions.com
                                                                            Revenue and Margins
Ticker Symbol, Stock Exchange        AKSO, Oslo Stock Exchange

Number of Employees                  19,444

Fiscal Year End                      December

Revenue (in US$ million)             5,514.88

Revenue (in NOK million)             33,365.00




SWOT Analysis                                                               Return on Equity

Strengths                            Weaknesses                             The company recorded a return on equity (ROE) of
                                                                            19.25% for 2010, as compared to its peers, AF
Comprehensive and diverse service                                           Gruppen ASA (Ticker: AFG), Halliburton Company
                                     Limited liquidity position
portfolio                                                                   (Ticker: HAL) and Technip (Ticker: TEC), which
                                                                            recorded ROEs of 28.59%, 17.69% and 13.13%
Diverse geographic presence          Underperformance of the P&T division   respectively. The company reported a net profit
                                                                            margin of 7.47% in 2010.
Strong return on equity              Underutilization of resources
                                                                            Return on Equity
Opportunities                        Threats

Developments in the Middle East      Slow global economic outlook

Growth in emerging markets           Stringent regulation

Rising demand for renewable energy   Volatility in input costs




                                                                            Liquidity Position

                                                                            The company reported a current ratio of 1.14 in 2010,
                                                                            as compared to its peers, AF Gruppen ASA,
                                                                            Halliburton Company and Technip, which recorded
                                                                            current ratios of 1.21, 3.22 and 1.01 respectively. As
                                                                            of December 2010, the company recorded cash and
                                                                            short-term investments of worth US$528.60 million,
                                                                            against US$118.35 million current debt. The company
                                                                            reported a debt to equity ratio of 0.81 in 2010 as
                                                                            compared to its peers, AF Gruppen ASA, Halliburton
                                                                            Company and Technip, which recorded debt to equity
                                                                            ratios of 0.07, 0.37 and 0.56 respectively.




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Aker Solutions ASA - SWOT Profile                                                                                   Page 1
Aker Solutions ASA

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partnerships Strategy ...........................................................................................................................22
4     Recent Developments ........................................................................................................................... 27
5     SWOT Analysis ...................................................................................................................................... 29
    5.1       SWOT Analysis - Overview ..................................................................................................................................29
    5.2       Strengths ..............................................................................................................................................................29
    5.3       Weaknesses .........................................
								
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