||This article appears to contain a large number of buzzwords. (July 2011)|
|Traded as||OSE: AKSO|
|Industry||Oilfield services Subsea (technology) Engineering|
|Predecessor||Aker Mechanical Workshop
(as Aker Solutions)
(as Aker Kvaerner)
(as Kvaerner Brug)
(as Aker Mechanical Workshop)
|Iain (Schofield) Wardrope - Øyvind Eriksen (Executive chairman), Leif Borge (President and CFO)|
|Products||Products and services|
|Revenue||NOK 44.9 billion (2012) |
|Owner||Aker Holding (40.1%)
(as of 2012)
Number of employees
Aker Solutions ASA, a Norwegian oil services company headquartered in Oslo, provides oilfield products, systems and services for customers in the oil and gas industry worldwide. The company, with roots back to 1841, was known as Aker Kværner prior to 2008.
The predecessor company, Aker Kværner (OSE: AKVER) was founded in 2004 as the result of a major restructuring of a complex 'Aker Kværner' business unit, formed originally in 2002 by the merger of Aker Maritime and Kværner Oil & Gas. On 3 April 2008, Aker Kværner was renamed Aker Solutions, partly due to the difficulty that most non-Norwegian people found in pronouncing "Kværner".
The company was majority controlled by Aker ASA until 2007. Through a major ownership restructuring on 22 June 2007, Aker ASA completely exited its holding in Aker solutions, and transferred a 40% stake to Aker Holding - which in turn owned by Aker ASA (60%), the Norwegian Ministry of Trade and Industry (30%), SAAB (7.5%) and Investor AB (2.5%).
Aker Solutions as it exists today is a result of close cooperation and mergers between several Norwegian companies during the 20th century.
Evolution of Aker Kvaerner : 1841 to 2002
The timeline below summarizes the main events leading to the foundation of Aker Kvaerner - from its origins as Aker Mechanical Workshop (1841) - till the merger of Aker Maritime with Kværner Oil & Gas to form Aker Kvaerner (2002).
- 1841 : Aker established its first mechanical workshop along the Aker river in Oslo called Aker Mechanical Workshop
- 1853 : Kvaerner Brug was founded in Oslo.
- 1922 : Kvaerner Brug began cooperation with Myrens Verksted
- 1943 : Kvaerner and Myren jointly acquired the majority shareholding in Thunes Mekaniske Verksted.
- 1960 : Kvaerner Brug's President, Kjell Langballe, was appointed President of all companies within the 'Kvaerner Group'
- 1967 : Joint holding company Kvaerner Industries AS was established in December that year, and listed on the Oslo Stock Exchange. The Kvaerner Group comprised 10 Norwegian companies with 3,200 employees and operating revenues of NOK 385 million. It entered the offshore oil and gas market from its base in Oslo through Kvaerner Engineering, which was established as an engineering and contracting company in the late 1960s.
- 1978 : Offshore construction work started at Kvaerner Egersund and during this period the shipyard in Stavanger was converted into an offshore fabrication facility.
- 1996 : Kvaerner sought to strengthen its engineering base internationally through the acquisition of the UK-based conglomerate, Trafalgar House and became an international player in shipbuilding, oil and gas, pulp and paper and engineering and construction. It moved its international headquarters to London.
- 1998 : Kvaerner's pulp and paper became a core business area in its own right
- 1999 : The company initiated a major sell-off, focusing on realising capital through divestments. These efforts did not solve the mounting financial and operational challenges, which eventually brought the company into an acute liquidity crisis in August 2001.
- 2000 : In July of that year, Aker Maritime ASA, a Norway-based offshore products, technology and services provider, bought a 26 per cent of the shares in Kvaerner ASA.
- 2001 : In November of that year, an agreement was reached between Aker Maritime ASA and Kvaerner ASA. Aker Maritime injected NOK 2.8 bn in net assets, raised another NOK 3.5 bn through two direct issues and renegotiated NOK 8.6 bn of Kvaerner's debt.
- 2002 : The Group decided to adopt the Aker Kvaerner brand for the entire Group.
Aker Kværner, and transition to Aker Solutions : 2002 - 2008
Aker Kværner was the result of a merger of Aker Maritime and Kværner Oil & Gas in 2002, and a major restructuring of the Aker Kværner business unit in 2004.
Earlier in 2003, the group structure of Aker Kværner was split into six business areas; Field Development Europe, MMO Europe, Subsea & Oilfield Products, Oil, Gas & Process International, E&C Europe and E&C Americas. A need arose in 2004 to simplify a rather complex group structure which led to the formation of two focused industrial groups - Aker Kvaerner, specialists within Oil, Gas, Energy and Process; and Aker Yards, specialist shipbuilders. In addition, Aker Kværner became a minor shareholder in the Finnish engineering company Aker Arctic in 2004. The new Aker Kvaerner started trading on Oslo Stock Exchange under ticker symbol 'AKVER' on 2 April 2004.
In 2006, the company's paper/pulp and power businesses were sold to Finnish-based Metso in a deal worth €335 million. On 7 June 2007, an agreement was announced where a 40.1% stake of the company would be sold from Aker ASA to Aker Holding. The new company would be owned by Aker ASA (60%), the Norwegian Ministry of Trade and Industry (30%), SAAB (7.5%) and Investor (2.5%).
On 3 April 2008 Aker Kværner officially changed its name to Aker Solutions. This was in part due to the difficulty that most non-Norwegian people found in pronouncing "Kværner".
Aker Solutions : 2008 - to date
During the AGM held on 3 April 2008, Aker Kvaerner announced that it was launching a new visual identity, together with the new name - Aker Solutions, which identified the connection with Aker, honoured its heritage and people. Aker solutions started trading under the new symbol 'AKSO' on the Oslo stock exchange.
Kværner re-emerged on 6 May 2011, when the EPC (engineering, procurement and construction) part of Aker Solutions took the Kværner name. The new Kværner company was spun off and listed on Oslo Stock Exchange in 3rd quarter of 2011. The holding company which held Aker Solutions - Aker Holdings AS was renamed to Aker Kværner Holding AS, to reflect that Kværner ASA was spun off from Aker Solutions and listed as a separate company. Aker Kværner Holding also owns about 40% in Kværner ASA. In 2011, Aker ASA took over the 10% stake owned by SAAB and Investor AB, raising its holding in Aker Kværner Holding AS to 70%.
In 2014 Aker Solutions has been divided to two companies, Aker Solutions and Akastor.
On 18 February 2015 Aker Solutions said it will cut about 300 jobs in Norway as demand for drilling services drops amid low oil prices.
- "Ownership of Aker Solutions". Retrieved 26 July 2012.
- "Strategic ownership of Aker Kvaerner to be established". Retrieved 26 July 2012.
- "Aker Kvaerner successfully listed". Retrieved 26 July 2012.
- Dagens Næringsliv (2006-12-27). "20 minutter unna konkurs".
- Kati Renvall (2006-08-02). "Metso to acquire Aker Kvaerner’s Pulping and Power business". Metso.
- Norwegian Ministry of Trade and Industry (2007-06-22). "The Norwegian Government contributes to long-term strategic ownership of Aker Kværner".
- "Aker Solutions cuts 300 Norway jobs". Petro Global News. Retrieved 19 February 2015.