Aker Solutions ASA: Subsea Brazil update: further losses expected in Q3 2011

11.10.2011  |  Globenewswire Europe

11 October 2011 - Aker Solutions is currently finalising revised execution plans
for delivery of subsea production systems in Brazil. Delivery schedules for all
major subsea production systems currently on order from Petrobras has been
substantially further delayed and additional costs will accrue, mainly due to
the prolonged execution time and various measures initiated to improve quality
and delivery times.

Aker Solutions has presented the revised plans to Petrobras. Based on the
company's dialogue with the customer, the Board of Directors of Aker Solutions
has today resolved that full liquidated damages for delays will be accounted for
on all major subsea projects with Petrobras, including the Guara Lula NE project
that was not assumed to incur liquidated damages when the second quarter
accounts were announced.

The additional costs and potential future liquidated damages to Petrobras will
be included in the financial results of the Subsea business area in the third
quarter. As of now, it is expected that this amount will be in the range of NOK
400 - 500 million. Further detailed reviews are being carried out during October
to verify the cost estimates and to ensure that all of the risks and
opportunities for improvement have been fully quantified. An update will be
provided on 3 November, when Aker Solutions presents its third quarter results.

"We have a close dialogue with our customer Petrobras and we appreciate their
constructive response to our difficult situation. Together we are exploring ways
to minimise the consequences of our delays," says Øyvind Eriksen, Executive
Chairman of Aker Solutions ASA.

"Our performance is hampered by high activity in Brazil. Suppliers to the oil
industry in the region are facing lack of resources. But parts of the reason for
our delays are also very specific to Aker Solutions and our manufacturing site
in Curitiba," Eriksen explains.

The revised plans are being prepared by the new management of the Subsea
business area and the local team in Brazil, with support from a
multidisciplinary task force from other parts of Aker Solutions.

A wide range of improvement initiatives have already been identified and
implementation is underway. Top qualified project management and project control
resources are being brought in to Curitiba to tighten control of projects. A
recruitment campaign has been initiated to further strengthen the company's
engineering capacity in Brazil, and training and improvement of skills within
the Brazilian organisation will be a central activity.

Several initiatives are being taken to increase capacity in assembly and
testing, and new suppliers of critical components are qualified and taken into
use, after consultation with Petrobras.

"We are deeply frustrated that we again disappoint our customer and investors,
but our entire team in Curitiba, the new Subsea management and the task force
mobilised from other parts of Aker Solutions deserve recognition. They have
undertaken a thorough review of the situation. They have provided us with
credible facts in a spirit of openness and transparency. We now have a deeper
understanding of what we need to do to deliver. A lot of hard work remains,"
Eriksen says.

Meanwhile Aker Solutions is continuing its expansion into other parts of the
Brazilian offshore industry. In addition to the continuing investments into the
Curitiba production facilities, further investments are being considered at its
Rio das Ostras service base for drilling and subsea systems. This is also the
manufacturing and assembly site for deepwater clip-joint drilling risers. Aker
Solutions will also be expanding its engineering and process systems businesses
in Rio de Janeiro.

ENDS

For further information, please contact:

Investor relations:
Lasse Torkildsen, SVP Investor Relations, Aker Solutions. Tel: +
47 67 51 30 39, Mob. +47 911 37 194

Astrid Thommesen Sæbø, VP Investor Relations, Aker Solutions. Tel:
+47 22 94 63 37, Mob: +47 481 70 035

Media:
Geir Arne Drangeid, EVP Corporate Communications, Aker Solutions. Mob:
+47 913 10 458

Suppliers:
For further information about sourcing and potential subcontracts for this
project, please visitwww.akersolutions.com/suppliers

Career opportunities:
Visithttp://www.akersolutions.com/careers
Aker Solutions ASA, through its subsidiaries and affiliates ("Aker Solutions"),
is a leading global oil services company that provides engineering services,
technologies, product solutions and field-life solutions for the oil and gas
industry. The Aker Solutions group is organised in a number of separate legal
entities. Aker Solutions is used as the common brand/trademark for most of these
entities.
Aker Solutions' parent company is Aker Solutions ASA.  Aker Solutions has
aggregated annual revenues of approximately NOK 35 billion and employs
approximately 17 000 people in about 30 countries.
This press release may include forward-looking information or statements and is
subject to our disclaimer, seewww.akersolutions.com.
This information is subject of the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act."
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.






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Source: Aker Solutions ASA via Thomson Reuters ONE

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Unternehmen: Aker Solutions ASA - ISIN: NO0010215684