Aker Solutions (Hold, TP: NOK38.00) - 2018e de-risked, 2019e concerns rise
Aker Solutions had another solid quarter, and we have upped our 2018e EBITDA by 8% on the timing of the backlog, suggesting 5% sales growth YOY. Despite the Q4 order intake, of which most was pre-announced, the full-year book-to-bill was still at 1.0x, and we struggle to see the expected consensus earnings growth post 2018. We expect Brazil awards to be announced in H1, but are more muted about H2 2018 contract wins and maintain HOLD and a NOK38 (36) target price.Akastor is a provider of products, systems and services to the oil and gas industry. Co. has three reportable segments: Engineering Solutions, which provides concept and front-end studies to oil companies; Product Solutions, which delivers oilfield products for the entire upstream value chain, from reservoir through processing and also includes Subsea, Drilling, Umbilicals and Process Systems; and Field-Life Solutions, which provides a range of services to increase oil and gas recovery from existing fields and extend the operating life of field assets. This segment also consists of two business areas: Maintenance, Modifications and Operations and Oilfield Services and Marine Assets.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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