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Aker Solutions, the famed oil services company of Norway, said on Friday that there are risks of the added delay in major oil projects of global firms trying to save on their capital.
What Aker Solutions mentioned on its statement is that the delay in major projects will lead to lesser activities in the North Sea over the course of the next couple of years. Also, the firm said that radically lower prices of oil could force many companies to cut back more on their expenses and stated that the markets that would emerge as the best ones next year will likely be sub-Saharan Africa and Brazil.
Still taken from the statement made by Aker Solutions last Friday, it said that the major western oil firms are already expected to keep on exercising strong cost and capital control and this trend will likely be toughened by the lower oil prices over the past few months.
Since June, oil prices have fallen around 30% and experts forecast that Brent crude will remain below $90 for a longer period of time pushing many energy and oil firms to reassess expensive offshore improvements which is a major source of income for Aker Solutions.
The earnings of Aker Solutions before taxes, interest, amortization and depreciation is 617 million crowns which is equivalent to an increase of 8.8% for the third quarter compared to the 607 billion that analysts expected.
The order backlog of the oil services company went down from 53.9 billion crowns to 4 billion three months ago.