Oilfield services investment company, Akastor, has remained in red as the challenging market situation continues in the second quarter.
The Oslo-listed company posted a loss of NOK 298 million ($36.4 million) for the second quarter 2015 and loss for the first half year of NOK 549 million ($67 million). Earnings per share are negative NOK 1.10.
To remind, Akastor was established as a separate listed company on Oslo Stock Exchange in September 2014, following the split of Aker Solutions into two separate companies.
The company has six reporting segments: MHWirth, Frontica Business Solutions, AKOFS Offshore, KOP Surface Products, Fjords Processing and Real Estate & other holdings.
Akastor, as a group, generated 39 percent lower revenue in the second quarter from the same quarter one year earlier, of NOK 3 693 million. Revenue in the first half of 2015 was down 25 percent to NOK 8 239 million. Consequently, a decline in revenues in the first half of the year has resulted in capacity costs impacting the overall EBITDA.
AKOFS Offshore, a provider of vessel based subsea well construction and intervention services to the oil and gas industry, had revenue of NOK 186 million in the second quarter compared to NOK 613 million previous year.
Harsh industry environment has forced Akastor to downsize its workforce by over 1000 compared to the same time last year and it is looking to cut about 585 additional jobs by the end of 2015. As in the previous quarter MHWirth is the company where the market situation is having most impact.
“Cost reduction activities have been initiated in all portfolio companies to adapt its cost base to the current market environment. The implemented reduction in workforce for all Akastor companies in 2015 is approximately 13.5 percent, down to 6 585 at the end of June 2015. Based on the current initiatives, the number of employees will be approximately 6 000 at the end of the year,” said the company in a statement.
Furthermore, Akastor has appointed Kristian Røkke as its new Chief Executive Officer. Røkke will succeed Frank O. Reite, who will take the position of Chief Financial Officer at Aker ASA.