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| Aker Solutions announces agreement with Total Norwegian offshore engineering group Aker Solutions has entered into an agreement with Total for the additional work on the Frigg decommissioning project. The agreement removes uncertainties regarding Aker Solutions' future results. The agreement will have a positive cash effect of approximately NOK 1 billion, but will result in an accounting loss for the fourth quarter 2008. For the same quarter, Aker Solutions also recognises losses on the H-6e drilling rig project. Consequently, Aker Solutions estimates the EBITDA result for 2008 to be approximately NOK 3.1 billion. The results for 2009 will not be affected by the agreement. The removal of installations from the Frigg field in the North Sea is, as previously underlined, complicated and demanding work, both with regards to the environment and saftey issues. The scope of work has increased beyond the fixed price contract signed in 2004. As previously communicated, the construction of the two H-6e drilling rigs, Aker Spitsbergen and Aker Barents, is 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 with good results. However, some damage to the drilling equipment's heave compensators has been discovered. This damage has resulted in some components needing to be replaced. The repairs will lead to some additional costs for Aker Solutions. The final settlement on the Frigg project and the cost overruns on the H-6e drilling rig project negatively affect Aker Solutions' financial results for fourth quarter 2008. Aker Solutions expects its EBITDA results for 2008 to be approximately NOK 3.1 billion. The outlook for 2009 will not be affected by the losses. write your comments about the article :: © 2009 Construction News :: home page |