KU Leuven Bibliotheken · 2012. 12. 18. · and experience as suppliers of complete solutions to...

Historical facts

The companies brought together tocreate Aker Solutions were estab-lished in the first half of the 19thcentury, during the IndustrialRevolution. Cutting-edge technologyand engineering providers from thevery beginning, they deliveredproducts including steam enginesfor rail and marine use and a rangeof industrial ironworks.

Over the next 100 years, thebusinesses grew significantly. In themid-1900s, both Aker and Kvaernerwere international corporations withactivities in ship building, hydropower, wood processing and otherprocess operations, mechanicalworkshops and other industries.

Through the 1970s, 80s and 90s,they developed their capabilitiesand experience as suppliers ofcomplete solutions to offshore andonshore oil and gas and processingprojects. They each grew – organi-cally and through internationalacquisitions – to be leaders in theirmarkets.

On 11 March 2002, the formerKvaerner group and the AkerMaritime group (comprising the oiland gas activities of the wider Akergroup) were merged, and started tooperate as one company under thename Kvaerner.

On 29 March 2004, followinga restructuring of both Aker andKvaerner, Aker Kvaerner wasestablished.

On 3 April 2008 Aker Kvaernerchanged its name to Aker Solutions.

Who we are and what we doAker Solutions delivers engineering, construction,manufacturing, technology products, maintenanceand other specialised services, often as total solutionsfor complete projects.

Global scaleAker Solutions has annual revenues totallingNOK 58.3 billion and more than 23 000employees. We have offices in around 30countries worldwide.

Markets and customersAker Solutions delivers products, servicesand solutions to customers worldwide inthe oil and gas, refining, chemicals, metalsand other process industries, includingmining, nuclear and power generation.

Our deliveries enable our customers tobuild, efficiently operate and effectivelymaintain their facilities. Examples includecomplete offshore platforms for oil and gasprojects and onshore petrochemicalplants.

OwnershipAker Solutions is part of Aker (www.myaker.net) and was listed on the Oslo StockExchange in 2004 under the name AkerKværner ASA. Aker Solutions’ largestshareholder is Aker Holding AS, with a40.27 percent stake in the company.Aker Holding AS is owned by Aker ASA(60 percent), the Norwegian Government(30 percent), SAAB AB (7.5 percent) andInvestor AB (2.5 percent).

About us

Aker Solutions annual report 2008 3

Aker Solutions covers the full value chainfor developing new projects, from concep-tual and feasibility studies, front end designand detailed engineering through procure-ment, project management, fabrication, andhook-up to installation, commissioning, andlifecycle and decommissioning services.

To our customers and other businesspartners, the benefit of our wide portfolio isour ability to assist in the selection of theconcept best suited to their particularneeds. This approach adds value to ourcustomers’ businesses, and is an importantpart of Aker Solutions’ competitive edge.

Few contractors can match our wide portfolio of solutions forthe oil, gas, energy and process industries. We have a decades-long track record of developing and delivering completeprojects, and we are the world’s leading supplier with respectto market share for most of the individual solutions we offer.

An impressive portfolio of proven solutions

About us

Aker Solutions annual report 20084

Value chain

1 Concrete structure ConGas, supporting LNGstorage and an LNG regasification plant

2 Onshore liquefied natural gas (LNG) receivingterminals

3 Power generation4 Mining and metals processing facilities5 Petrochemical/chemical processing plants6 Decommissioning, waste management and

clean-up services for nuclear power facilities7 Water and wastewater treatment facilities8 Onshore gas receiving, processing and

export plant9 Marine deck machinery and steering gear

10 Jacket structure for shallow waters, withdrilling and production facilities

11 Tension leg platform for production and drilling12 Marine operations and subsea installation

services13 Semisubmersible production platform for

extreme water depths, may include drillingfacilities

14 Harsh environment CONDEEP™ MonoFloater,with production facilities and storage capacity

15 Mooring, offshore bow loading and offloadingsystems

16 Process systems offshore17 Aker H-6e, advanced semisubmersible drilling

unit with RamRig™18 Well intervention vessel19 Shallow water subsea production system20 Steel tube umbilicals21 Marine drilling risers22 Subsea processing and boosting23 Deepwater subsea production system24 Well services

About us


Value chain

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Contents

■ About us

7 Key figures 2008

9 Goals and strategy

10 Vision and values

12 President & CEO interview

14 Clarity, innovation and drive

■ Our business

17 Business areas

18 Energy Development & Services

24 Subsea

30 Products & Technologies

36 Process & Construction

42 Anticipating change

44 Health, safety and environment

48 People and development

52 Corporate responsibility

■ Our performance

56 Board of Directors’ report

72 Annual accounts

116 Annual accounts – parent company

124 Auditor’s report

126 Share and shareholder information

130 Analytical information

■ Our organisation and governance

132 Corporate governance

136 Board of Directors

138 Executive management team

140 Company information

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08Achievements

Subsea full field delivery to RelianceAdriatic LNG terminal delivered to ExxonMobilFive metals EPCM projects awarded inSouth AmericaFour production facilities for the Kashagan fieldSeven drilling equipment packages to variouscustomers

AcquisitionsAker Marine Contractors AS, an internationalprovider of marine operations and installationservices to the oil and gas industryQserv Ltd, a leading provider of well, process andpipeline services in the North Sea and internationalmarkets

From Aker Kvaerner to Aker SolutionsAker Kvaerner re-branded to Aker Solutions in AprilThe new name represents a simplification andstrengthening of our corporate identity and outlinesour offering of comprehensive industrial solutionsIt identifies our connection with Aker, andcommunicates Aker’s long term committedownership of our company

Major contract awardsModification contracts for StatoilHydro(NOK 3.2 billion)FEED for greater Ekofisk area contract forConocoPhillips (NOK 120 million)Refinery EPCM frame contract with Shell, Germany(EUR 100 million)LNG terminal contract for US Gulf LNG Energy JV(USD 680 million)Esperanza & Toromocho copper and goldcontracts in Chile and Peru (USD 50 million)Twelve drilling equipment contracts (USD 1.4 billion)Eight drilling risers system contracts(USD 335 million)45 subsea trees contract for Petrobas, Brazil(USD 220 million)

Financial calendar 2009

24 February 4th quarter results 2008/preliminary annual results 2008

2 April Annual General Meeting30 April 1st quarter results 200913 August 2nd quarter results 200922 October 3rd quarter results 200926 November Capital Markets Day

About us


Orders and results 2008 2007 2006

Order backlog 31.12 NOK mill 58 016 58 261 59 695

Order intake NOK mill 55 590 57 942 62 271

Operating revenues NOK mill 58 252 57 957 50 592

EBITDA NOK mill 3 382 3 913 2 872

EBITDA margin Percent 5.8 6.8 5.7Net profit NOK mill 1 513 2 464 1 294

Cash flow 2008 2007 2006

Cash flow from operating activities NOK mill - 868 2 675 2 636

Balance sheet 2008 2007 2006

Interest-bearing debt NOK mill 6 716 1 615 1 568

Equity ratio Percent 20.1 25.5 25.8

Return on equity Percent 17.6 33.9 46.7

Return on captial employed Percent 8.8 17.0 12.5

Share 2008 2007 2006

Share price 31.12 NOK 45.00 144.50 155.60

Dividend per share NOK 1.60 3.00 8.00

Earnings per share NOK 5.34 8.84 4.53

Employees 2008 2007 2006

Employees 31.12 Full time equivalents 23 360 21 298 19 230

HSE 2008 2007 2006

Lost time incident frequency Per mill worked hours 0.93 0.68 1.00

Sick leave rate Percent of work hours 2.27 2.41 2.28

Incl. subordinated loan1)

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EBITDAAmounts in NOK million

ED&S - 475

Subsea 1 228

P&T 1 448

P&C 904

Operating revenuesAmounts in NOK million

ED&S 22 684

Subsea 11 206

P&T 14 216

P&C 10 702

Order intakeAmounts in NOK million

ED&S 16 681

Subsea 11 466

P&T 16 121

P&C 11 291

Order backlogAmounts in NOK million

ED&S 18 315

Subsea 11 876

P&T 14 705

P&C 13 300

About us


About us

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The preferredpartner

Aker Solutions’ goalsand strategy

Aker Solutions’ vision is to be the preferred partnerfor solutions in the energy and process industriesthrough:

Targeting selected areas and markets where wecan apply our unique skill sets in field development,operations and maintenance services

Cold climatesHarsh environmentsDeeper waters

Creating the preferred subsea lifecycle partnerBe closer to the customer core, move towards the well stream and reservoirCombine offerings and technology leadership throughout the subseavalue chainAchieve profitable growth

Developing further unique technologies andknow-how

Advanced drilling and subsea productsTechnologies for floating productionGrow Process & Construction in Asia and South America

Continuing to grow our service businessProduct- and technology-based servicesWell intervention and processing servicesLifecycle offering in partnership with the customer

Increasing the efficiency and flexibility of ourcost base

Risk management and project executionImprovement programmes and cost consciousnessSound financial management

Continuing to enhance health, safety andenvironmental (HSE) performance

Further develop our Just Care™ HSE cultureContinue to improve our responsibilities as a corporate citizenBe a preferred employer in our markets

About us


Goals and strategy

HSE mindset Customer drive Delivering results

We take personal responsibility forHSE because we careAll incidents can be prevented. We strivecontinuously for zero accidents to personnel,material and non-material assets. We focuson employee health and on continuouslyimproving the work environment.

We conduct our operations throughefficient use of materials and energy, withminimum waste and damage to the envi-ronment.

We design products and services tohave no undue environmental impact, tobe safe and to be efficient in consumingenergy and natural resources. We seek toensure that our products can be recycledor disposed of safely.

“We take personal responsibility forHSE because we care about people, theenvironment and our company.”Just Care™

Building customer trust is key toour businessAfter all, without customer trust and satis-faction, the rest doesn’t matter. Goodcustomer references build our reputation –and the only way to achieve this is byconsistent and predictable performance.Our customers will recognise us for ourglobal execution excellence. We find newways, always linked to real customer needsand business priorities.

We deliver consistently and strive tobeat our goalsWhen doing a job, we understand both therisks and the opportunities involved andknow how to manage them. We take pridein delivering as we promise.

Making money creates new opportuni-ties and the resources for going forward,both for us and for our customers and part-ners. Commercial edge benefits us all.

We reward performance – what youachieve; and alignment with our values –how you behave.

Vision and valuesIn any organisation, values areessential for building trust – ineach other, in our partners, inour customers and with society.

All the Aker companies sharea common set of values –the compass that guides ourpolicies, our operations and,ultimately, our behaviour.

About us


Vision and values

Hands-on management Open and direct dialogue People and teams

Our vision is to be the preferredpartner for solutions in theenergy and process industriesthrough living our values.

We know our business and getthings doneOnce decisions are made we combine allour efforts and focus all our energies onexecution.

We are accountable and solutions-oriented, focusing on the right details atthe right time. We follow through andensure accountability.

We believe in empowering people closeto the action to take responsibility. Hands-on does not mean hands-in.

We stimulate entrepreneurship andchallenge bureaucracy, complicated hier-archies and ‘silo’ mentalities. We are asingle company.

We encourage early and honestcommunicationWe listen hard and talk straight: no sugarcoating, no filters.

We value early, accurate and reliablecommunication – after all, the first problemwe encounter is usually the easiest one tocope with.

We challenge each other. The bestdecisions are made when different opinionsand different cultures meet in open anddirect dialogue.

We expect the highest standards ofethical behaviour and integrity – from all ofus, everywhere.

All our major achievements areteam effortsIn the end, it comes down to the talent andmotivation of you and me. Delivering strongresults is impossible without a highlycapable workforce. We learn on the job,through challenging tasks, coaching andtraining.

Development of people and teams inour company has one purpose – to createa foundation for long-term sustainable valuecreation through efficient project executionand a sound business operation.

We respect and encourage diversityand build strong, energised and effectiveteams – and we have fun together, makingus even better.

Our goal is to be the preferred employerin our industry.

About us


Vision and values

About us


President & CEO interview

How would you describe the company’sperformance in 2008?

“2008 has been a good year for us. I amvery satisfied with the way we continue toimprove our HSE performance. Incidentrates and sick leave remain low, and ourserious injuries are down comparedto 2007. That proves our Just Care™programme works, and is helping usimprove our business. In terms of majorachievements I would also like to highlightour full subsea field delivery to Reliance;the Adriatic LNG project delivered toExxonMobil; the award of five metalsEPCM projects in South America; thedelivery of four production facilities for theKashagan project; and the delivery ofseven drilling equipment packages. Withregards to our financial performance, weregrettably ended the year disappointingour investors. We failed to meet our ambi-tious targets because of issues related totwo key projects in our portfolio. That said,we should not lose sight of the fact that theEBITDA result for 2008 is the second bestin our company’s history. We entered 2009with a solid balance sheet, good liquidityand no additional financing requirements.We also remain confident that we willachieve the financial targets set for 2009.”

An important development in 2008 hasbeen the internal reorganisation of AkerSolutions’ business areas. Why did youdecide to merge the Field Developmentand Maintenance, Modifications andOperations (MMO) business areas intothe new Energy Development & Services(ED&S)?

“Our customers are increasingly looking atthe development and maintenance of theirfields as one large, integrated operation.At the same time, offshore oil and gasdevelopments are moving towards deeperwaters and harsher environments. Webelieve that these new perspectives willgradually change our customers’ buyingpatterns. By merging our Field Develop-ment and MMO businesses into one, we

Customer driven

believe that we have created a uniquecombination of technologies, services andsolutions that will meet the developmentsin our customers’ demands better thanever before.”

The second step involved a repositioningof Aker Solutions’ Subsea and Products& Technologies (P&T) business areas.What was the rationale behind that?

“We decided to do this to reinforce ouroffering throughout the value chain ofsubsea technologies, products and services.Against the backdrop of a record orderbacklog and further opportunities in thedrilling market, we also resolved to alignour offering of drilling solutions, topsidetechnology products and services in arestructured P&T. As a consequence ourmarine operations, well service and geo-logical consultancy business units wereintegrated into our Subsea business area,while the drilling risers business wasreorganised into P&T.”

2008 seems to have been a year ofsignificant change in Aker Solutions.How would you describe the process?

“I am very satisfied with how effectivelywe’ve managed to reorganise our busi-ness. It is inspiring to see how adaptive weare as an organisation, and it’s also astrength that we manage these changeswithout losing focus on what we deliverevery day. The best companies in ourindustries are the ones that are capable ofconstantly adapting to change, both intheir markets and the wider economy.”

Considering the ongoing downturn inthe world economy, how do you look atthe future?

“It is too early to say how the financial crisiswill impact our business and our markets,and it is still unclear how long it will last.But we have been through crises before,and the key changes we initiated in 2008have given us a head start in facing the

global downturn. Early in the year we madefurther improvements to the flexibility ofour cost base as part of our effort tostrengthen our competitiveness and adaptto market developments. As a result, whenthe crisis hit, we were already implementingmeasures that would soon prove necessaryright across our industries – and identifyingfurther opportunities to reduce costs willcontinue to be an integral part of ouragenda in 2009. We also won a number ofsignificant contracts in 2008, securing asolid foundation for the medium term. I amconfident that, while short-term activitylevels might slow down, the fundamentaldrivers of demand in our markets will leadto long-term growth in our business.”

In January 2008, Simen Lieungh was appointed President & CEO ofAker Solutions. The former Aker Kvaerner executive vice president and20-year company veteran has spent his first year restructuring thecompany’s operations, positioning Aker Solutions to anticipate keymarket trends. We sat down with Lieungh to ask him about his thoughtslooking back at 2008, and the way forward.

About us


President & CEO interview

Aker Solutions entered 2009 with arestructured organisation, prepared fornew trends in its markets and in itscustomers’ behaviours, and set to respondeffectively to the increased uncertainties inthe global economy. The OMC providedthe opportunity for its new executivemanagement team – restructured like thecompany and with a similar track record oflong-term excellence – to set the directionfor all the leaders who, together, sharethe responsibility of delivering on thecompany’s vision: to be the preferredpartner. Focusing on what it takes to realisethat vision, the theme of this year’sconference was clarity, innovation anddrive.

Our leaders’ ability to identify the needsof each of Aker Solutions’ individualcustomers – and the commercial edge tounderstand the opportunities those needscreate – is all about clarity. The capacityfor innovation is key to the continuousimprovement of our competitive position –to developing and commercialising noveltechnologies and new solutions to ourcustomers’ needs while ensuring that ourcompany performs better, day after day.Developing Aker Solutions and deliveringon our strategy requires drive – thecommitment that secures predictable,excellent performance meeting the expec-tations of all our investors, customers,employees and other stakeholders.

Clarity, innovation and drive are the“brand values” of Aker Solutions, encapsu-lated in our new identity and endorsed byPresident & CEO Simen Lieungh and hisexecutive management team.

In January 2009 Aker Solutions held its annual OperatingManagers’ Conference (OMC), bringing its executivemanagement team together with some 200 other leaders fromits international operations. At the OMC these leaders worktogether to share best practice, discuss opportunities andchallenges and get aligned for the year ahead.

Clarity, innovation and drive

The executive management team atAker Solutions’ Operating Managers’Conference 2009.

About us



For more information about theexecutive management team’sbackground, refer to page 138.

Executive management teamAker Solutions ASA

Simen LieunghPresident & CEO

Energy Development& Services

Jarle TautraEVP

Subsea

Mads AndersenEVP

Products & Technologies

Per Harald KongelfEVP

Process & Construction

Gary MandelEVP

Leif BorgeCFO & EVP

Niels Didrich BuchChief of Staff & EVP

About us




Our business

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Our business

busi

ness

area

s Energy Development & Services

ED&S develops new oil and gas production facili-ties offshore and on land, as well as lifecycleservices for the operational phase of suchinstallations. The business area delivers the full valuechain from studies, front-end design and detailedengineering, through procurement, project man-agement, fabrication and hook-up, to installation,maintenance and modifications.

Page 18

Subsea

A global provider across the value chain of subseaand sub-surface technologies, solutions and services.Our offerings cover all phases of the life of fields, fromconcept screening and design through manufacturingand commissioning to operational support and main-tenance services. Our ability as a provider of subseaproduction systems is backed by an extensive port-folio of additional capabilities such as well services,marine operations including installation, and geologicalservices.

Page 24


A leading global provider of specialised products andservices to the upstream oil and gas industry, based onproprietary technology and know-how. Key deliverablesinclude advanced drilling equipment, systems andrisers, upstream processing technology and mooringsystems, as well as loading and offloading technology.

Page 30


A global provider of management, design andconstruction of major projects across refining, petro-chemical processing and biorefinery, mining and metals,liquefied natural gas (LNG), gas- and coal-fired powergeneration, acid plants, nuclear cleanup services andwater treatment.

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Our business

Business areas


Our business

Energy Development & Services

Energy Development& Services

Key figures ED&S 2008 2007 2006

Operating revenue NOK mill 22 684 24 921 24 594

EBITDA NOK mill - 475 1 391 1 244

EBITDA margin Percent - 2.1 5.6 5.1



Number of employees 31.12 Man years 8 542 8 163 8 493

Proven track recordWith experience from more than 20 percentof the oil and gas related floater designs inthe world, few if any contractors can matchour wide portfolio of solutions and servicesacross segments including floaters,concrete and arctic technologies. We have50 percent of our home market on theNorwegian Continental Shelf in both newbuild developments and maintenance andmodifications services. Within the mainte-nance and modifications arena, AkerSolutions is the only major contractor thathas a presence in both the Norwegian andthe UK markets.

Over the years we have achieved astrong position in the northern Caspianregion, most recently through our work onphase one of the giant Kashagan field off-shore Kazakhstan.

We are well positioned for upcomingfield developments in the Arctic region,including projects like the concrete gravitybase structure for Sakhalin I on the eastcoast of Russia; the large gas field develop-ment, Shtokman, in the Barents Sea; andfor developments in the deepwater regionof the Gulf of Mexico.

Close to our customersThe business area maintains a strong basein Norway. Three main engineering andmanagement centres are located in Oslo,Stavanger and Bergen, while smalleroffices are kept close to our key custom-ers’ operational centres. Three fully-ownedconstruction yards on the coast of Norway,in Egersund, Stord and Verdal, are strate-gically located on the doorstep of theNorth Sea market.

Internationally, we have a full fledgedservice base in Aberdeen in the UK andhave established local offices in Attyrauand Aktau in Kazhakstan. Remaining closeto our customers we also have engineer-ing offices in Houston in the US, Perth inAustralia, St. Johns in Canada, KualaLumpur in Malaysia and Pori in Finland.

The power to deliverED&S had an annual revenue of NOK22 684 million and 8 542 employees atyear end 2008. This powerful resourceincludes 4 000 engineers as well as a vastpool of 3 600 skilled operators. In 2008 wealso engaged an average of approximately4 000 contract staff.

Our three construction yards operateindividually as centres of excellence fordifferent construction tasks and, whencombined with our engineering andmanagement resources, are a strong EPCturnkey supplier for small and largeprojects.

Changing with our customersIn March 2008, Aker Solutions decidedto combine the strengths and streamlinethe operations of the previous businessareas Maintenance, Modifications andOperations (MMO) and Field Development(FD). The new business area, ED&S,became operational on 1 September 2008.

Our large international organisationof skilled engineers, proven projectmanagers and experienced operatorsis recognised for its ability to seeopportunities, for adding value to cus-tomer businesses and for its predictabledeliveries. The new organisation is tailored

The Energy Development & Services (ED&S) business areadevelops new oil and gas production facilities, both offshore andonshore, and delivers operational services for the entire lifecycle ofsuch facilities.

Positioned for the future

Highlights 2008

Successful delivery of theworld’s first offshore receivingand regasification terminal forliquefied natural gas - theAdriatic LNG projectConstruction of the world’smost advanced semi-submersible drilling rigs, theAker Spitsbergen and AkerBarents of Aker H-6e designLong-term repeat business formaintenance and modificationswork in the North SeaFront-end engineering anddesign (FEED) contract forsubstantial work on the GreaterEkofisk Area, one of the majorupcoming redevelopments onthe Norwegian Continental ShelfContract award in joint venturewith partners WorleyParsonsand Chicago Bridge & Iron(CB&I) for full field developmentFEED for the KashagandevelopmentMerger of two business areas tocreate Energy Development &Services, a powerful, focusedengineering and technology,fabrication and installation forcewith a flexible cost base

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Development EBITDANOK million


Our business


Entering the European windmillmarket. In 2008 Aker Solutionsdelivered six substructures for the firstGerman offshore test field “AlphaVentus”. The 700 tonne, 45 metresubstructures will be installed at awater depth of approximately 30metres.

Long term contract.Our contract withStatoilHydro for theTampen area lasts untilMarch 2011, with optionsto extend to March2013. This long terminvolvement creates thebasis for developing aclose alignmentbetween customer andcontractor.

for increased international operationsand will leverage new build activities towin maintenance and modifications workon a wider scale.

Competitive advantagesDeepwater challenges, arctic conditionsand harsh environments are typical of ourhome market, making us a preferred part-ner for international developments withsimilar characteristics. Floating productiontechnologies, marine concrete structures,the gas value chain and particularlycomplex multidiscipline developments areall key areas of our expertise.

This unique expertise is part of the basisforourdeliveryof theGjøasemisubmersibleproduction platform to StatoilHydro in2010.

Ready for harsher environmentsOil companies are concentrating theirexploration activities and new develop-

High oil prices over the last fewyears have driven the develop-ment of the maintenance andmodifications market in the NorthSea. Where once the debate wasdominated by tail end production,cost saving programmes anddecommissioning, the focustoday is on developing existinginfrastructure through annualinvestments of up to NOK 100billion. Low pressure production,tie-ins, safety upgrades andextended lifetime upgrades areall examples of projects within themaintenance and modificationportfolio aimed at extendingfields’ production lifetimes by upto 30 years.

With a 50 percent share of this marketin the North Sea, Aker Solutionsplays a significant role. In 2008 wesucceeded in releasing options forrepeat work on two significantcontracts: Tampen and StatfjordLate Life.

Long term repeat business in maintenance and modifications

Ensuring high productivityon nine platforms in theTampen areaIn the Tampen area, outside midNorway, our scope of maintenanceand modification work now includesnine platforms in the Gullfaks, Snorre,Statfjord and Vigdis fields. We deliverapproximately 1.8 million manhourseach year and ensure high productiv-ity and safe operations for these giantplatforms – all but one constructedby Aker Solutions over the last 30years. In July, options were releasedby StatoilHydro to Aker Solutionsextending the work to 2011. Thecontract for the whole area wasestablished in 2002 and, if all optionsare declared, will run to March 2013.

Rebuilding Statfjord fromoil to gas productionThe Statfjord field, discovered in1974, has been one of the key oilproducers in the North Sea. Througha separate contract from April 2005,Statfjord Late Life, Aker Solutionshas taken on the challenge ofrebuilding the Statfjord B and Cplatforms from oil production to the

production of gas. In December2008, options were released byStatoilHydro for phase three of thecontract, extending the work to 2011.

By exercising their options on thesetwo contracts, our customer,StatoilHydro, shows their satisfactionwith the services we provided in thefirst phases of the strategicallyimportant Statfjord Late Life andTampen projects.


Our business


Gjøa – an FPS with environmentalfocus. Our unique floating platformexpertise is part of the basis for ourdelivery of the Gjøa platform toStatoilHydro in 2010. Gjøa will be thesecond field off Norway to bepowered by hydroelectric powertransmitted via cable from land. Thiswill reduce carbon emissions.

Developing the Kashagan field.We are playing a significant part indeveloping one of the world’s largestoil fields, the Kashagan field in theCaspian Sea. In this demanding fielddevelopment we demonstrate ourcompetitive strength in offshore tech-nology in environmentally sensitiveareas and for harsh climaticconditions.

“We are well positioned for themajor developments in our targetmarkets”

ments in ever deeper waters and harsherenvironments. US Geological Survey anti-cipates that up to 25 percent of the world’sunproven reserves are to be found in theArctic and surrounding regions. For us thisrepresents a great opportunity, since fielddevelopments for arctic conditions,environmentally sensitive areas and deepwaters are our core competence.

New achievements and repeatbusinessOur construction of the world’s mostadvanced semisubmersible drilling rigs,the Aker Spitsbergen and Aker Barents,and the construction and installation of theworld’s first offshore terminal for thereceiving and regasification of liquefiednatural gas, stand out in 2008. Bothprojects rank as international milestones.

In September, ConocoPhillips awardedus a front-end engineering and design(FEED) contract covering the first threephases of a significant part of the GreaterEkofisk Area, including FEED work for twoplatform topsides, three jackets, bridgesand substructures.

In the Caspian region we hold a strongposition in the ongoing phase one develop-ment of the giant Kashagan field offshoreKazakhstan. During 2008 we delivered fourtopsides and utility modules from our ownyards. We also mobilised for a larger role inthe hook-up phase of the field modules,employing more than 1 400 people on theproject by the end of 2008.

In joint venture with CB&I and Worley-Parsons, we received a letter of intent fromAgip KCO in October, followed by acontract award in December for FEEDservices for phase two of the full-fielddevelopment of the Kashagan field. Thescope of work includes both onshore andoffshore facilities and pipelines. It alsoincludes options for further involvement infollowing phases as well as neighbouringfield developments.

The maintenance and modificationsmarket has a long term, steady level ofinvestment in order to maintain safe andefficient operations, increase recoveryrates and ensure compliance with localregulations. Activity within this market hasbeen high in 2008 with significant repeat,long term business. Our maintenance and

modifications contract at Tampen coversnine platforms and employs 500 engineers.StatoilHydro released two options underthis contract to Aker Solutions in July 2008.In December 2008, an option under theStatfjord Late Life project was exercised,extending work on the Statfjord B and Ctopsides to 2011.

Goals and objectives for 2009Our main emphasis is on growing the busi-ness by maintaining our North Sea marketshare, expanding in the internationalmarket and strengthening our technologybase. We will secure our share of the:

growing gas marketfield life extensions for North Seafacilitiesemerging floating LNG marketgrowing deepwater marketemerging opportunities in arctic areasstable North Sea development marketexpanding northern Caspian Seaactivitiessustainable shallow water businessin South East Asia

Strong fundamentalsDue to the global financial crisis evolvingin 2008, we expect to see some delays inawarding new build projects in 2009. How-ever, the long term outlook for strategicnew build activities is still promising andwe are well positioned for the majordevelopments in all our target markets. Weexpect continued high demand for main-tenance and modifications services in 2009.


Our business


Aker Solutions designed andmanaged the development of theAdriatic liquefied natural gas(LNG) facility, the world’s firstoffshore LNG receiving andregasification terminal, forExxonMobil. Our scope coveredthe entire terminal project inclu-ding engineering, procurement,construction management,assembly and hook-up, marineoperations and offshore comple-tion. The terminal consists of aconcrete gravity base structure(GBS), two LNG tanks, topsidesfacilities and two concretemooring dolphins. Ten percent ofItaly’s gas consumption will besupplied from this man-madeisland.

The Adriatic LNG terminal is thefirst of its kind and represents aninternational milestone. All previousLNG terminals have been installedonshore. This pioneer project hasbeen made possible by combiningAker Solutions’ leading marine con-crete technology and regasificationexpertise with our broad offshoreexperience.

The terminal was constructedand assembled in a dry dock in

A pioneer project in LNGAlgeciras, Spain. Then we relocatedthe entire structure, towing it to thefinal destination in the Adriatic Sea,17 km off the coast of Venice inItaly. The location was chosen withthe particular aim of ensuring theterminal is not visible from shore.

Moving the completed terminalfrom Spain to Italy was a majormarine operation, carried out byAker Solutions. The 1 700 nauticalmile trip to the Adriatic took threeweeks and used four large, ocean-going tugs.

The project focus followinginstallation has been on the hook-up and completion works for thetopsides. Initial operation of theterminal – LNG cool-down – isplanned for the first quarter of2009.

The terminal will be owned andoperated by Adriatic LNG, a jointventure comprising 45 percent QatarPetroleum, 45 percent ExxonMobiland ten percent Edison.

State-of-the-art drilling rigs. The Aker H-6e semisubmersible rigs are theworld’s most advanced drilling units, tailored to operate safely in harshenvironments and ultra deep waters.

Aker Solutions’ assembly yard atStord in Norway dedicated mostof 2008 to completing the twoAker H-6e “extreme” drilling rigs,Aker Spitsbergen and Aker Barentsfor customer Aker Drilling. Theyare the biggest, most advancedsemisubmersible drilling rigs inthe world and can operate fordecades to come in the world’smost challenging waters.

The Aker H-6e design is intendedboth for worldwide deepwater ope-rations and for harsh environments.It is configured for dynamic positio-ning in water depths of up to 3 000metres. The designers’ environ-mental goals have been that therewill be no harmful discharges fromthe rigs to the sea and very lowemissions to the atmosphere. Therigs are designed to use so-called“green” chemicals, substanceswithout harmful effects on the

Drilling into the futureenvironment, and are equippedwith state-of-the-art wastemanagement systems.

The rigs are also fully winterised:their equipment and systems canoperate down to -20°C. Fully heatedand air-conditioned living quarters,with single bed cabins as well asdining and recreational facilities,make the working environmentonboard the rigs unique.

With our new generation of drillingrigs, Aker Solutions enables the off-shore drilling industry to operate in asafe and environmentally friendly wayin the most challenging surroundings.

At the project’s peak, around4 500 people from 40 nations wereinvolved in the assembly. With sucha large, multinational work force,communication was a real challenge.To meet the challenge, the projectembraced four “official” languages:Norwegian, English, Polish andRussian.

Pioneer project delivered in 2008. The world’s first offshore receiving and re-gasification terminal for LNG has been made possible by combining our worldleading marine concrete technology with our regasification expertise and broadoffshore experience.


Our business


1

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Our business


1 Tension leg platform for production and drilling2 Onshore gas receiving, processing and export

plant3 CO2 capture plant of flue gas from el-power

production4 Jacket structure for shallow waters, with drilling

and production facilities5 Harsh environment CONDEEP™ MonoFloater,

with production facilities and storage capacity6 Concrete structure ConGas, supporting LNG

storage and an LNG regasification plant7 Wind turbine foundations for shallow water locations8 Aker H-6e, the world’s largest and most advanced

drilling semisubmersible9 Semisubmersible production platform extreme

water depths – may include drilling facilities


Our business

Subsea

Subsea

Key figures Subsea1 2008 2007 2006


EBITDA NOK mill 1 228 960 479

EBITDA margin Percent 11.0 9.7 6.9




All numbers are based on old Subsea structure.1)

Our offerings cover all phases of the life offield, from concept screening and designthrough manufacturing, fabrication, instal-lation and commissioning to operationalsupport, maintenance and services. Ourcapabilities are available either as individualproducts and services or as completeengineering, procurement, constructionand installation (EPCI) deliveries. Our port-folio of products and services includes:

reservoir evaluation servicessubsea field developmentsubsea production systemssubsea treessubsea control systemssubsea manifolds and templatessteel tube umbilicals and subseapower cablessubsea processing and boostingtechnologiestie-in and connection systemssurface and subsea wellheadsmarine operations and subseainstallation services (SURF)subsea lifecycle service supportwell intervention technologies andservices

The restructured business area employsapproximately 6 250 skilled and dedicatedpeople, including 1 000 contract staff, basedin 26 locations around the world.

Our headquarters are located in Oslo,Norway. We have regional sales and engi-neering offices, as well as manufacturingand service facilities, near all the key oil andgas hubs and deepwater regions in theworld, including the Gulf of Mexico, theNorth Sea, West Africa, Brazil and the Asia

Pacific region – including India, Malaysiaand Australia.

In 2008, we had operating revenues ofNOK 11 206 million, an increase of 13.8percent compared to 2007, and an EBITDAof NOK 1 228 million, an increase of 27.9percent from 2007.

Lifecycle partnerOur ability as a full lifecycle provider forsubsea field developments is unrivalled inthe marketplace.

An internal restructuring, announced inSeptember 2008, combined all of AkerSolutions’ subsea production system tech-nologies, marine installation capabilitiesand sub-surface know-how, technologiesand services, including well intervention,into one business area.

One objective of this restructuring was tofacilitate the development of a more tech-nology-driven service business, fuelled byour customers’ drive for increased oil recov-ery. With declining oil production ratesaround the globe, the drive for increased oilrecovery is more important than ever.

We have over the years developed astrong market position in subsea processingand boosting technologies. This has beenfurther highlighted this year through thecompletion of the subsea raw seawaterinjection pumps that will be installed atStatoilHydro’s Tyrihans field in theNorwegian Sea in 2009. Once installed, thepumps are expected to increase the field’soil production by ten percent.

Well intervention is another way toincrease oil recovery from existing fields.We have addressed this market actively formany years, but the acquisition of Qserv Ltd

Aker Solutions is one of the world’s top four providers of subseasystems and related services. We aim to be a preferred partnerthroughout the value chain of subsea and sub-surfacetechnologies, solutions and services for the oil and gas industry.

Subsea lifecycle partner

Highlights 2008

Record high activity andfinancial performance followingstrong market developmentSuccessful expansion andrestructuring of Subseabusiness area to reinforce ourposition throughout the valuechain of subsea and sub-surface technologies, solutionsand servicesFirst oil produced at RelianceIndustries’ MA-D6 field offshoreIndiaStrengthened market position inBrazil through frame agreementwith Petrobras for 45 subseatrees plus first pre-salt layercontract for the Tupi fieldLong term subsea equipmentframe agreements signed withShell (Malaysia and UK), MurphyExploration & ProductionCompany (Gulf of Mexico) andBP (Angola and UK)Well Intervention Academyopened in Stavanger, NorwayKey investment made throughacquisition of Qserv Ltd, a leadingwell service company operatingon the UK continental shelfAchieved 100 percentownership in Aker MarineContractors AS, and seconddeepwater construction vesselput into operation

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Our business

Subsea

Work on a subsea tree at our manu-facturing facility in Curitiba, Brazil,which will see its manufacturingcapacity doubled by 2010 – ahead ofthe future wave of subsea develop-ments in the Brazilian pre-salt layer.

– a provider of well, process and pipelineservices – further expanded our offeringboth in terms of products, services andgeographical footprint.

Our ability to install our own subseaequipment is another competitive advan-tage. That is why we acquired the remainingshares in Aker Marine Contractors AS in2008. This acquisition reflects our longterm strategy to expand our foothold andfurther strengthen our position across thevalue chain of marine operations andsubsea oilfield services.

Long-term growth expectedThe subsea market continued to grow in2008. Over the next 20 years, the Internat-ional Energy Agency (IEA) predicts that pro-duction of oil and gas from deepwater fieldswill increase by seven percent per annum.

Market analysts predict that invest-ments in subsea equipment will continueto grow at an annual rate of approximatelyten percent in the coming three years,reaching a capex of USD 10 billion.

The subsea umbilical market also remainsstrong. According to Quest Offshore, wewere in 2008 once again the leading globalmanufacturer of steel tube umbilicals, witha market share of 40 percent.

High activity2008 was a good year, with record highrevenue and results.

Among key contracts awarded in 2008were the USD 223 million frame agreementwith Petrobras for the delivery of 45 subseatrees, and the USD 235 million deal withReliance Industries for the installation andcommissioning of phase two of thecompany’s MA-D6 field development.

The contracts to deliver a subsea pro-duction system to Eni’s Oyo developmentoffshore Nigeria, and nine subsea treesand controls to Petrobras’ Tupi field off-shore Brazil were also important milestones.

Several other frame agreements weresigned in 2008: a five-year deal with ShellUK to supply subsea control systems to itsNorth Sea developments; a frame contractwith BP for delivery of subsea umbilicals toits PSVM ultra-deepwater field develop-ment offshore Angola; a five-year supplyagreement with Shell Malaysia for supply ofsubsea production systems; and an agree-

When India’s largest private sectoroil company, Reliance Industries,produced first oil from its MA-D6field located in the Bay of Bengaloffshore India on 17 September2008, it marked a proud milestonefor Aker Solutions and the rest ofthe Aker family.

The entire field development –from discovery to production of firstoil – happened within the space ofless than two and a half years.Never has a supplier delivered sucha complex deepwater project soquickly, and never has a field

Record-breaking first oilbeen developed in such a shorttime.

The Aker family of companieswas responsible for the entireMA-D6 field development. Deliveringthis unique development has been atestament to the fast-track approachtaken with Reliance Industries andthe combination of strengths andknow-how brought by Aker.

Aker Solutions manufacturedand delivered a complete subseaproduction system, including steeltube umbilicals, and managed theinstallation of the subsea equipment.Aker Floating Production convertedand delivered the floating production,storage and offloading vessel (FPSO)Dhirubhai 1, while Aker Solutionsalso delivered process equipmentand a mooring and offloadingsystem to the FPSO. Both thesubsea system and FPSO weredelivered in less than 16 months –a truly remarkable achievement.

The subsea trees, manifold,control systems and steel tubeumbilicals for this project weremanufactured at our facilitiesacross the globe including inNorway, Malaysia and the UK.


Our business

Subsea

After meeting the 2008 sales targetsfor our RapidSolution™ well set pro-gramme as early as April, a decisionwas made to double the size of theprogramme which offers fast-trackdeliveries of subsea well sets.

ment with Murphy Exploration & ProductionCompany to provide subsea trees, controlsystems and umbilicals to the company’sGulf of Mexico programme.

Long-term frame agreements with keycustomers underpin our ambition to be thepreferred subsea lifecycle partner. Suchagreements also offer a certain level of pre-dictability with regards to both order intakeand project execution, and play an importantpart in our growth strategy going forward.

2008 has also seen key investments intoour facilities around the world. At the end ofMay, we opened the Well InterventionAcademy, a facility in Stavanger, Norway,which aims to give new generations ofoffshore operators and engineers first-handexperience in critical well intervention activi-ties. A new operations base was opened inPerth, Australia, in June. In September thedecision was made to invest in our manufac-turing plant for subsea trees in Curitiba, Brazil,to double its production capacity by 2010.

2009 goalsOur ability to be our customers’ partnerthroughout the life of a field is unrivalled inthe market. We will ensure we are organisedto capitalise on the opportunities this offersthrough an efficient restructuring of ourresources.

Increasing our service revenue – throughboth growth in installed base and a morecomplete offering of technology-driven serv-ices such as well intervention – will be a keyfocus. Further investments into our servicefacilities worldwide and our rental tool busi-ness will be additional drivers to achieve this.

We also have an objective of increasingour market share in subsea trees, whilecontinuing to be selective about theprojects we undertake.

Exciting timesAn increasing number of subsea develop-ments will move into deeper waters. Thistrend will continue to drive demand fornew technology and more subsea supportinfrastructure. Our technology portfolio andthe skill set of our people are well suited tocapitalise on this opportunity.

Despite some short term uncertainties,the medium- and long-term market out-look is very positive, and tendering activityremains high as a result.

Increasing oil recovery andproduction rates from their reser-voirs is an appealing prospect forany oil operating company. That iswhy StatoilHydro will be utilisingAker Solutions’ SeaBooster™pump system technology for itsTyrihans development in theNorwegian Sea.

In June 2006, Aker Solutions signeda letter of intent with StatoilHydroto provide a subsea raw seawaterinjection (SRSWI) pump system tothe Tyrihans field. The task was todevelop technology that wouldincrease oil production from thefield by ten percent.

At the end of 2008, the manu-facture of the three pumps wascompleted and they were trans-ported from Aker Solutions’ facilityat Tranby, Norway, to Horten,Norway, where they underwentinstallation testing.

Boosting production from TyrihansAt the heart of the SeaBooster™

system for Tyrihans will be twoLiquidBooster™ centrifugal pumps,a design evolved from Aker Solu-tions’ long-established proprietarypump technology for exportingcrude oil and pumping producedwater. The pump system will beinstalled in 270 metres water depthapproximately 31 kilometres fromthe Kristin platform. Both the testedpump duty of 2.7 megawatt and the31 kilometre step-out representnew records for subsea pumps.

The pumps will draw in 14 000cubic metres of untreated seawatereach day, injecting it into the sea bedbetween the oil reservoirs TyrihansNorth and South. When this is com-bined with gas injection, optimalpressure support is obtained in thereservoir and a higher degree of oilrecovery and production is achieved.It is expected that the pumps alonewill help increase production by 19million barrels of oil during the field’slifetime.

Production from the Tyrihansfield is due to start in 2009.

In 2007, the SeaBooster™ systemwas acknowledged with a prestigious“Spotlight on New TechnologyAward” at the Offshore TechnologyConference (OTC) in Houston.

One of the TyrihansLiquidBooster™ pumpsduring installation testingin Horten, Norway.


Our business

Subsea

Aker Solutionsstrengthened its subseainstallation capabilitiesthrough acquiring 100percent ownership of AkerMarine Contractors AS in2008. Two state-of-the-artdeepwater constructionvessels – BOA Deep C andBOA Sub C – are charteredby Aker Solutions.

Aker Solutions successfully exe-cuted their first major marineoperations contract in the Gulf ofMexico, the Blind Faith projectfor the Chevron group, in 2008.

The Blind Faith deepwaterdevelopment is a semisubmersibleplatform located in MississippiCanyon block 650, approximately162 miles south east of New Orleans,in 6 500 feet (2 000 metres) waterdepth. The offshore facility, whichis Chevron’s deepest, achieved firstoil on 11 November 2008 and isdesigned to produce 65 000

An increasing percentage of futuresubsea production is expected tooccur in ultra-deep waters. Sup-pliers to the world’s oil and gascompanies continue to push thedevelopment of technologies tomake production more economicwith less risk. Aker Solutions hasbeen in a leading position in thisevolving market for many years.

One of the milestones in this areaof excellence for Aker Solutions isPetrobras’ Cascade & Chinookproject in the Gulf of Mexico. We aredelivering 65 kilometre of power andcontrol umbilicals for this subseadevelopment in water depths of2 700 metres. The medium-voltagepower umbilicals will be tied backto an FPSO at 2 500 metres waterdepth, making these the deepestever dynamic power umbilicals.

Traditional power umbilical designhas relied on steel reinforcement.At greater depths, steel becomescounter-productive as increasingweight causes unacceptable strainin the umbilical. At water depths ofmore than 2 000 metres, new ideaswere required. Our talented engineers

Marine operations – into the deep

Down in the ultra-deep

barrels of crude oil and 55 millioncubic feet of gas per day.

This complex delivery demon-strates our leadership on this newdeepwater frontier. The projectintroduced the BOA Sub C offshoreconstruction vessel to the Gulf ofMexico in October 2007, andtogether with BOA Deep C, the twostate-of-the-art multi-purposeoffshore construction vesselsworked in tandem to meet therequirements of this demandingproject.

The scope of the project wasdivided into several phases,including five separate majormobilisations to gather vessels,equipment and personnel in portfor the different transport andinstallation marine operations. Thecomplete scope of work includedengineering, procurement and con-struction (EPC), delivery of the off-hullmooring components, transportationof the hull from Norway to Texas,and transportation of the topsidefacilities from Louisiana to Texas.

The offshore installation includedsuction piles and mooring compo-nents and a subsea system,

including subsea trees, manifold,umbilical jumpers, and flying leads.The semisubmersible platform wastowed from Ingleside, Texas, out tothe Gulf of Mexico for final mooringand hook-up, prior to the steelcatenary risers and umbilicals beinginstalled and tied in to the platformproduction system. Numerouscross-functional groups withinAker Solutions collaborated tosuccessfully deliver the project.

came up with the innovative idea ofusing carbon fibre reinforcementrods instead of steel. This met thechallenge of strengthening theumbilical with minimum addedweight, a crucial combination forultra-deep water umbilical design.

Another challenge presented bythe Cascade & Chinook powerumbilicals is the connection to theFPSO, the first ever deployed in theGulf of Mexico. The power umbili-cals are designed to connect to abuoy mounted at the bottom of theFPSO. In the event of a tropicalstorm, the buoy will detach fromthe FPSO and drop, along with theumbilicals, to a predeterminedwater depth, allowing the hostvessel to retreat to safety. Hereagain the role of the carbon fibrerods is important, as they make theumbilicals more capable ofhandling the load without beingdamaged.

This innovative design has beenpatented by Aker Solutions. Thepower umbilicals are scheduled fordelivery to Petrobras in late 2009.


Our business

Subsea

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25

6

3

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1 Well intervention vessel2 Marine operations and subsea installation

services3 Deepwater subsea production system4 Subsea processing and boosting5 Shallow water subsea production system6 Steel tube umbilicals7 Well services


Our business

Subsea


Our business


Products &Technologies


Our business


Key figures P&T1 2008 2007 2006


EBITDA NOK mill 1 448 959 531





All numbers are based on old P&T structure.1)

Key deliverables for the business areainclude:

advanced drilling equipment, solutionsand risersupstream processing technologymooring systemsloading and offloading technology

Our customer base includes the world’slargest oil companies, contractors andshipyards. Our products and technologieswere initially developed for and used in theNorth Sea market, but are now being usedextensively around the world as exportsmake up the bulk of our deliveries.

After the restructure we have 2 860employees and 900 contract staff contrib-uting to our international business in morethan 27 locations worldwide. Our head-quarters are in Norway and we have offices,service bases and production facilities inkey oil and gas producing regions all overthe world. Our increasing installed baseprovides significant lifecycle opportunities.In 2008, we had operating revenues ofNOK 14 216 million, an increase of 15.1percent compared to 2007.

Deepwater and harsh environmentdrillingAker Solutions is a world class provider ofdrilling solutions, equipment and risers.With our own engineering, procurement,fabrication and operational support teamsdelivering drilling and mud equipment,modules, RamRig™ and conventionalsolutions for the high-efficiency drillingmarket, we are well positioned for future

demand. Aker Solutions is a complete drill-ing risers supplier including buoyancy, withproject support, execution and serviceteams being built up in Norway, the US,Malaysia and Brazil.

FPSOs, upstream process andmarine equipmentThe upstream oil and gas market’s trendtowards new frontiers, deeper waters andincreased natural gas production willboost the demand for advanced floatingproduction and upstream processingsystems. Aker Solutions meets thisdemand by offering leading edge processequipment for the treatment of oil, gas,produced water and solids for theupstream oil and gas industry, offshoreand onshore. We are a world leader in thedesign and supply of all types of deckmachinery and mooring systems formarine and offshore applications, as wellas oil and gas loading and offloadingsolutions.

Aker Solutions has delivered strongresults and we have strategically positionedourselves as a global provider of special-ised products and services to the upstreamoil and gas industry. We realise our fullpotential within the drilling and topsidetechnology sector and strive to continu-ously develop our international base.

Capacity, competence and well-proven technologyThe markets for our products and services,in particular the drilling equipment segmentfor deepwater rigs, experienced signifi-cant growth during 2008. We have demon-

Aker Solutions’ business area Products & Technologies (P&T)delivers specialised products and services to the upstream oil andgas industry. Our business is driven by two main segments:deepwater and harsh environment drilling, and floating production.

Technology & lifecycle offering

Highlights 2008

Strong growth in all businesssegments with record highEBITDA12 drilling equipment contractsawarded worth approximatelyUSD 1.4 billionMaintained market share greaterthan 40 percent on drillingsolutions for deepwater drillingrigs.Seven drilling equipmentpackages delivered successfullySix drilling riser contractssigned worth approximatelyUSD 260 millionRecord high order backlog forthe marine segmentStrong demand for upstreamprocess systems for FPSOconversions and new buildsSteadily growing installed baseis driving a strong lifecyclemarketAcquisition of First InteractiveAS (60% ownership)Strengthened market position inBrazil through the opening ofnew drilling risers facility andreinforcement of local supportoffice

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The Maersk Resolute, a highefficiency jack-up rig, was deliveredin 2008.

A state-of-the-art deep-water marine drilling risersystem, including buoyancy.

Market conditionsDuring 2008 the market has remainedstrong in all segments and high activitylevels have been maintained throughoutthe year. Contracts for twelve drillingequipment systems have been awarded,three seawater treatment/sulphate removalsystems were ordered and a number ofoffloading system contracts were alsosecured. Strong growth in new builds ofdeepwater drilling units has resulted in ahigh order intake for our facilities in Braziland Malaysia. The order backlog goinginto 2009 is at a record high, and moreimportantly is of high quality.

The global financial crisis is predicted toresult in a market slowdown in the shortterm, but will be partly offset by moreupgrades and service contracts. Our viewon the long term fundamentals for the P&Tbusiness area remains positive.

strated our strong market position bywinning twelve complete drilling equip-ment packages and six drilling risercontracts in 2008. We have proven ourability to execute advanced drilling equip-ment projects. A total of seven mobiledrilling rigs with Aker Solutions’ drillingpackages have been completed during2008. We also hold a major position inseveral upstream technology segmentsincluding advanced drilling equipmentsolutions, process systems and mooringand offloading systems. Our growinginstalled base in all our target segmentsyields a steadily growing lifecycle businessserviced by our established worldwidepresence.

3D visualisation of drillingoperationsAker Solutions’ operator training simulatoris a major breakthrough in operator trainingfor complete drilling crews. The simulatoris developed by First Interactive (60percent owned by Aker Solutions) and thesafety training is organised and facilitatedby Aker Solutions’ drilling equipment unit.

Worldwide there is a requirement for8 000–10 000 trained crew members. AkerSolutions’ new generation drilling simulatorincludes realistic 3D visualisation and real-time scenario building. The simulator willprimarily be used for training rig operators,but also enables significant reductions incommissioning costs for drilling rigscurrently under construction. The 3Dtechnology and competence can also beapplied to other parts of Aker Solutions’business including marine installation,subsea and well services.

New facilities for riser productionand assembly in Malaysia and BrazilIn 2008, Aker Solutions opened Brazil’ssole manufacturing centre for deepwaterdrilling risers. Located in Rio das Ostras,the unit is ideally positioned to serve thefast-growing Brazilian oil industry, with theability to deliver to other regions of theworld and to capitalise on the growth inthe global rig market. This further strength-ens our service base, complementing ourfacility opened in Port Klang, Malaysia,in 2007.


Our business


“Our combined capacity, competence and wellproven technology ensures continued growth andvalue creation for our stakeholders”

Developments in 2008Throughout 2008, our positions in thedrilling and topside equipment-relatedindustries have been strengthened and oursignificant order backlog now stretches farinto 2012.

2008 proved to be a very successfulyear with records established for bothrevenues (NOK 14 216 million) and EBITDA(NOK 1 448 million, up from NOK 959million last year). Key developments in 2008included an excellent order intake with theaward of two new drilling equipmentcontracts from the Jurong shipyard inSingapore with a total value of USD 419million. In addition, a contract was signedwith Daewoo in Korea for the delivery ofdrilling equipment for two rigs for the enduser Odebrecht.

At the beginning of 2008, Aker Solutionsacquired a majority shareholding in theNorwegian company First Interactive AS.Using Aker Solutions’ First Interactivetechnology, we are now developing aservice-based drilling optimisation solutionwith full real-time 3D coverage for theentire drilling operation.

In 2007, Aker Solutions acquired 50percent of the shares in German companyWirth GmbH. During 2008, there has beenan ongoing harmonisation processbetween Wirth and Aker Solutions’ drillingequipment unit. This process will continue,further optimising the excellent fit ofcomplementary technologies between theunits. In January 2009, Aker Solutionsentered into an agreement to acquire theremaining 50 percent share of Wirth.

Goals for 2009We will continue to focus on two targetmarkets for the development of our busi-ness: deepwater drilling including topsidedrilling equipment and solutions, drillingrisers and mooring systems; and floatingproduction units (mooring and offloadingequipment and upstream processing tech-nologies). In addition we will increase ourfocus on upgrades of drilling packages inthe North Sea as well as global sales ofdrilling equipment with attractive lifecyclepotential. We will continue to develop ourdeepwater drilling and floating productionoffering organically and through carefullyevaluated acquisitions. With a growing

installed base of equipment and tech-nologies, our aim is to increase serviceand lifecycle revenues. Our businessportfolio will also be strengthened by ourcustomers’ increased demand for simulator-based and conventional training andcondition-based monitoring.

Moving forwardOur business has grown rapidly over thelast few years. Although the short-termmarket outlook is uncertain, we believe thefundamentals remain strong for medium-and long term growth. Due to the strongorder situation our expected activity levelin 2009 will be comparable to previousyears within most of our segments. Life-cycle and service volumes are steadilyincreasing as the installed base grows,which we expect to continue. Moreover,the demand for upgrades and overhauls islikely to increase, both in the North Seaand elsewhere. At year end our order back-log amounted to NOK 14 705 million, withdeliveries through 2012 – forming a solidfoundation for our future.

Strengthening products and topsidetechnologies offeringTo be in the forefront of key developmenttrends in our markets, Aker Solutionsdecided in 2008 to change the structure ofits Subsea and P&T business areas. Thesechanges would meet the developing needsof our customers, provide for strengthenedgrowth and take full advantage of the syn-ergies in our deep water drilling business.Bringing our drilling risers business into theP&T business area further enhanced ourdrilling solutions and topside technologiesoffering.

Through the restructuring of the P&Tbusiness area we gain a stronger globaldrilling and topside portfolio to betterposition ourselves for future growth andvalue creation. From this reorganisation wehave increased access to competence andtechnologies and we have strengthenedAker Solutions’ ability to mature projectsand pursue business opportunities.

Arctic opportunities

During 2008, the offloading ofcrude oil from terminal to shuttletanker was successfully perfor-med at the Varandey field in theBarents Sea. The offloading, fromthe Fixed Offshore Ice-ResistantOff-Loading Terminal (FOIROT)with the purpose-built, iceclassed shuttle tanker, VasilyDinkov, was the first of its kind.The FOIROT is owned by theRussian oil company Lukoil,which holds the operator licensefor the Varandey field, while theVasily Dinkov is owned bySovcomflot.

Aker Solutions designed and deli-vered the Pusnes offshore loadingsystem installed on the VarandeyFOIROT. The system allows for thesafe and efficient offshore transferof crude oil onto highly sophistica-ted ice-classed shuttle tankers.These specialised loading systemsare developed for arctic conditionsand the protection of the arcticenvironment, which has the highestenvironmental standards.

The Vasily Dinkov is equippedwith the Pusnes bow loadingsystem, as are all shuttle tankersoperating on the field. AkerSolutions has received orders forthe bow loading systems, whichinclude additional safety featuresfor the protection of the arcticenvironment, for a total of 12 arcticshuttle tankers.

The Varandey field has approxi-mately 245 days each year withtemperatures as low as -48 ºC,and an ice thickness of 1.25–1.8metres. The equipment developedfor the FOIROT by Aker Solutions isunique to this type of operation.It includes an advanced controlsystem for regulating the physicalinterface between the terminal andtanker during loading.


Our business


Clearer outlookwith vapourrecovery

Reduced emissions of volatileorganic compounds (VOCs)during oil loading operationsoffshore and onshore has increa-singly been a requirement of theNorwegian Pollution ControlAuthority (SFT) and internationalenvironmental agreements. AkerSolutions delivered StatoilHydro’snew oil vapour recovery plant atMongstad, which meets therequirements set by the SFT.

In June 2006, Aker Solutions signeda contract for the design and deliveryof a VOC unit to the Mongstadterminal. These systems reduce thedischarge of environmentally hazar-dous substances and significantlyreduce the loss of valuable energyresources through the vaporisationof oil. In addition, they reduce thesafety risks of distributing andhandling oil vapour.

Delivery was achieved in June2008. The new VOC plant capturescrude oil vapours, which are thenpurified and piped back into theship’s hold as oil components inliquid form. The plant has recentlyencountered some regularity issuesin relation to the stability of itsoperations which are now beingovercome.

The plant’s peak capacity is36 000 cubic metres of vapour perhour. It recovers at least 90 percentof the non-methane VOC emissionsthat were previously released toatmosphere, which reflectspositively on the environment. Theplant actively recovers vapoursfrom two jetties simultaneously.

The RamWinch™, an on-vessel mooring system, was developed in 1997 and is designed as an alternativeto conventional rotating winches. Several systems have been delivered for various floater applications.

West Taurus, a deepwater semi-submersible, was delivered toour customer Seadrill a weekahead of schedule in earlyNovember 2008. The rig was builtat the Jurong Shipyard inSingapore and is now in Brazilwhere it is expected to commencedrilling operations for Petrobas inFebruary 2009.

The first rig to commence drillingoperations in Brazil with the newgeneration Aker Solutions drillingpackage, West Taurus is contractedto Petrobas under a six year agree-ment. West Taurus represents amajor construction milestone for theJurong Shipyard, Aker Solutionsand the owner.

The scope of work for AkerSolutions included a completedrilling equipment packageincluding drilling equipment, state-of-the-art control systems, blow outpreventer/marine riser system,management, engineering andcommissioning.

In 2008 we successfully deliveredseven drilling equipment packagesincluding three jack-ups, three

Well positioned drilling equipmentconventional semisubmersibles andone RamRig™. Our strong orderbacklog for drilling equipmentpackages includes 11 for delivery in2009, five for 2010 and a furthernine for 2011.

West Taurus, an ultradeepwater semi-submersible drillingplatform was the first rigto commence drillingoperations in Brazil.


Our business


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Our business



Our business


Process &Construction


Our business


Key figures P&C 2008 2007 2006


EBITDA NOK mill 904 776 641





With an ever-growing emphasis on creatingstrong sustainable solutions, we providethe full lifecycle of services – from initialconcept through technology development,process technology application, design,procurement, construction and commis-sioning to maintenance, decommissioningand lifecycle services.

Strong position in niche segmentsWith 5 417 employees and 4 080 contractstaff globally we have considerable work-force flexibility when positioning our busi-ness to manage the cyclical workload ofour markets.

Mining and metalsWithin mining and metals, we provide serv-ices for processing plants in fast-growingsegments like copper, silver, nickel, goldand iron ore. We are currently number onein South America and number two globallyin terms of market share. We are thenumber one contractor to the copperindustry worldwide, with experience accu-mulated over more than 50 projects.

Chemicals, polymers, syngas and refiningIn petrochemicals, we have strong know-how and expertise and have establishedsolid, long-term relationships over manyyears with licensors of select niche tech-nologies. We also serve the refining andbiofuels markets.

LNG regasificationOur LNG regasification position is particu-larly strong in North America, where weare ranked number one in terms of numberof contracts and value.

NuclearWe are also one of few companies with thenecessary expertise to create and deliversafe, sustainable and environmentally-sound solutions to the challenges ofnuclear clean-up and waste management.Our current activities are focused on theUK nuclear industry.

Power generationOur power plant activities are largely directedat the North American market, where we pro-vide gas- and coal-fired power plant newbuilds and environmental upgrade projects.

ConstructionWe provide construction and global con-struction management for all the marketsegments we serve. Our major constructionoperation in North America ensures we arewell placed to build on our success in thisimportant market.

Additional environmental expertiseOur environmental and technologycapability also spans water treatment,bleaching, chlor-alkali and acid plants,primarily in the UK and the Americas.Our acid recovery and concentrationtechnologies are helping customers in thenon-ferrous metallurgical, fertiliser andchemical industries treat sulphurous feedsand comply with emission regulations.

Robust performance in 2008Over the last few years, P&C has priori-tised margin expansion ahead of top linegrowth. We have been selective in terms ofthe types of projects we bid for.

Aker Solutions’ Process & Construction business area (P&C) is a globalprovider of project management, design and construction of majorprojects on all continents. We supply niche process expertise with hightechnology know-how for projects across chemicals, polymers, syngasand refining; mining and metals; liquefied natural gas (LNG); powergeneration; acid plants; nuclear clean-up services; and water treatment.

A niche process power house

Highlights 2008

Delivering on strategy withexpansion in niches with growthand high margin potentialRevenue development reflectingselective bidding and increasedreimbursable businessOrder backlog maintaineddespite impact on order intakefrom economic slowdown17 percent EBITDA growth –EBITDA margin from 6.7 percentin 2007 to 8.4 percent in 2008Strong cash flow from operatingactivitiesFive EPCM metals projectsawarded in South AmericaInvestment in new fabricationfacility in CanadaNew offices in Republic ofSouth Africa and PeruEstablished flexible cost baseand healthy project portfolio

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The Boddington gold mine inAustralia – one of the world’s largestundeveloped gold projects. Uponcompletion, the plant will produceapproximately 850 000 ounces of goldand 200 000 tonnes of copperconcentrate per annum.

With office expansions in 2008 and apool of some 1 700 engineers, our Indianoperations continue as a high valueengineering centre both domestically andfor Aker Solutions worldwide. They deliverimportant input to many projects and weplan to continue to grow, and to increaseour utilisation of, this skilled resource basein Mumbai.

We have a good position in our nichepower market, particularly in the US. TheLongview power plant project in WestVirginia is progressing well and, whencompleted, is expected to be one of thecleanest and most efficient coal-firedplants in the US.

Goals for 2009Our strategy is confirmed: we have plannedexpansion in niches that provide sustaina-ble growth and high margin potential. Wecontinue to be a strong technology andknow-how player that is the preferredpartner for customers in our selected niches.

We have worked to build a robust andsustainable revenue base, with a businessmix balanced between mature and grow-ing markets, based on strong customerrelationships and long-term contracts. Ourstrategy has been, and continues to be, toprioritise low risk and high margin potentialahead of top line growth.

We continue to focus on deliveringenvironmentally-sound, value-adding solu-tions that support a sustainable future.

Market outlookStrong mining and metals positionOur emphasis in mining and metals will re-main on Australia and the Americas, wherethe major global ore deposits are located.Our strategy has been to grow withincopper, where many new projects arebeing planned over the next five to tenyears. As the largest copper regions in theworld, Chile and Peru together account foralmost half of the reserves. In terms ofproduction capability, we are the marketleader in this sector and are well positi-oned to benefit from the huge investmentsplanned over the coming years. We also

In 2008, we delivered robust growthwith an EBITDA increase of 17 percent andan order backlog at year end 2008 of NOK13.3 billion, increased six percent over theprevious year. We achieved a total of NOK10.7 billion in operating revenues in 2008,compared to 11.6 billion in 2007. Ourcontinued focus on improving profitabilityversus revenue growth over the last fouryears yielded an EBITDA margin of 8.4 per-cent in 2008, up from 6.7 percent in 2007.

Key developments underpinninggrowthIn metals we have a strong order backlogand excellent market position. In SouthAmerica we further strengthened ournumber one position, winning five largeEPCM projects including Esperanza, theworld’s largest copper project. To deliverthese projects most effectively we havedoubled our resource base in Chile andestablished an office in Lima, Peru.

Supporting our strategy to expand inAfrica, we opened a new office in SouthAfrica. This operation will provide the localcapability to service our global metals cus-

tomers operating in the region.In petrochemicals, we have gradually

converted our project focus from EPClump sum to reimbursable EPCM services,resulting in a lower top line, but highermargins and a lower risk profile. In the UK,with our partner Praj Industries, we aredelivering the largest bioethanol plant inEurope in an EPCM project for BP, DuPontand British Sugar. Elsewhere in Europe, wehave signed long-term engineeringservices agreements with BP and Shell. InSaudi Arabia we are providing extensivefront-end work for the Ras TanuraPetrochemical complex, a joint venturebetween The Dow Chemical Companyand Saudi Aramco.

In China, our technology partnershipshave been instrumental in a number ofprojects, including the Fushun and Sichuanpolyolefins projects for PetroChina.

Through a sourcing hub in our Shanghaioffice, we have been able to further lowerour own and our customers procurementcosts. We plan to substantially grow thishub to further leverage our global sourcingcapability.


Our business


Strong customer relationships. Undera five year framework contract withDeutsche BP AG, Aker Solutions isproviding engineering and constructionmanagement services at theErdöl-Raffinerie Emsland (BP - Lingen)production facility in Germany.

“We have planned expansion in niches thatprovide sustainable growth and highmargin potential and we continue to be astrong technology and know-how player”

have strong positions within other metalslike gold, nickel, silver and iron ore.

Long term growth opportunitiesDespite some short-term market uncertain-ties, India has high ambitions for itschemicals sector and targets to more thandouble it from 2008 to 2015. We hold anexceptionally good position to serve thisgrowing market.

We also see that the fundamentals arein place for future long-term growth inChina. We have a good order backlog for2009 and are well positioned to capitalisewhen the market regains momentum. Ournext step will be to further broaden ouroffering within specialty and consumerchemicals in China, giving us access to aneven larger market.

Continued focus on nichesThough investment decisions are beingdeferred in the Middle East, we are strength-ening our offering from our operations inSaudi Arabia. At the same time, in Europewe are looking to selectively expand ourfootprint into Russia and Kazakhstan.

In mature regions like North Americaand Europe we will continue to serve theneeds of our key accounts, and focus onniches with growth potential. These includeservice and modification work, biofuels,power generation, nuclear decommission-

ing and construction. Whilst constructionin the US is not expected to grow in thedownstream sector, we are well positionedwithin the power sector with strong projectexecution experience.

Over more than 45 years in nuclearservices in the UK we have accumulatedvaluable experience in waste managementand decommissioning. With our globalpresence we see opportunities in thelonger term to take this specialised exper-tise to countries such as the US, SouthAfrica, China and India.

Doe Run Peru,La Oroya Peru:A project for thepeople of La Oroya

Aker Solutions is providing thedetailed engineering and propri-etary equipment supply for DoeRun Peru’s copper line acid plantproject located in the Andean cityof La Oroya, 150 km east of Lima,Peru at an elevation of 3 800metres. The project is part of aUSD 400 million investment byDoe Run Peru at La Oroya tomodernise its smelting operation.A major portion of this investmentis dedicated to HSE componentswhich, when complete in October2009, will bring the operations atLa Oroya into full compliancewith new environmental emissionstandards mandated by thePeruvian Government.

Doe Run Peru’s operation at LaOroya is a custom smelterproducing commodity and preciousmetals (copper, lead, zinc, silverand gold). The city of La Oroya hasgrown up around this 70 year oldfacility. Doe Run has been steadilyinvesting in improving conditions atand around the site and in the localcommunity since it acquired thefacility ten years ago. The culmina-tion of these efforts is the presentmodernisation project.

The HSE components includeimprovements to the existing zincline acid plant and effluent treatmentfacilities; a brand new acid plant forits lead smelter and a brand newacid plant for its copper smelter.

The copper line acid plant is thelargest of the three La Oroya acidplants at 1 000 tonnes per day ofsulphuric acid production fromsmelter stack gases. It will comeonline in the third quarter of 2009.With all three acid plants in operationDoe Run will be in full compliancewith government-mandatedrequirements; capturing more than80% of all sulphuric acid gas emis-sions resulting from its operations.

The copper line acid plant detaildesign was executed by AkerSolutions from our Vancouveroffice. It is a state-of-the-art doublecontact, double absorption acidplant incorporating our industry-leading technology and proprietaryequipment, manufactured at ourequipment division in Toronto,Ontario, Canada.

In addition to detailed designand proprietary equipment,Aker Solutions is also providingon-site advisory services for plantconstruction, check-out andcommissioning through our officein Lima.

Reducing emissions. Aker Solutionshas more than 30 years’ experiencedelivering proven sulphuric acid technologyand proprietary acid plant equipment tobase metals producers worldwide.


Our business


Currently the world’s largest copper project. Usingsustainable design technology in this project means thefacility will use only sea water in its production process,instead of valuable “desert water” from the limitedresources in the area.

In 2008, Aker Solutions wasawarded the engineering,procurement, and constructionmanagement (EPCM) contract todevelop the Esperanza copper-gold project in northern Chile.Owned by Minera Esperanza, apartnership between AntofagastaMinerals plc. (70%) and MarubeniCorporation of Japan (30%), theproject is located northeast ofthe city of Antofagasta at anelevation of 2 100 metres abovesea level. Esperanza is a sulphidedeposit which will producecopper concentrate containinggold and silver by-productcredits through a conventionalmilling and flotation process.

Having conducted the feasibilitystudy and early works studies, AkerSolutions’ EPCM scope includesthe design of the facilities for theproduction of copper concentrates,construction management of theglobal works from the ore extractedfrom the deposit, mine infrastructureand port facilities. Also in scope area sea water pipeline to feed theprocess plant, a long distance orepipeline for copper concentratesand the processing plant toproduce 200 000 tonnes per year ofcopper concentrates.

Aker Solutions has been involvedin one of the UK’s major nucleardecommissioning projects since2006, having been selected byMagnox North as a frameworkpartner to undertake works inNorth Wales at the Trawsfynydd

Esperanza: sustainable solutions for the world’s largest copper project

Nuclear decommissioning at Trawsfynydd – a model for excellence

Sustainable designpracticesFrom the outset of the project,Esperanza has sought to be amodel mining project for the 21stcentury, considering all HSE aspects,from design to commissioning.

Helping our customers reducethe environmental footprint of theiroperations is of increasing impor-tance to Aker Solutions. Usingsustainable design technology in thisproject means the facility will useonly sea water in its productionprocess, instead of valuable “desertwater” from the limited resources inthe area.

On this project Aker Solutions isalso pioneering a new, environmen-tally-friendly, state-of-the-arttechnology for concentratedtailings. This technology avoidsheavy metals infiltration to under-ground desert waters, dramaticallyreduces desert water consumptionand cuts dust emissions into theatmosphere. It is also expected tobring higher durability throughlifecycle structures and decommis-sioning.

Decommissioning Site. The pro-ject, the Trawsfynydd StrategicIntegrated Framework (TSIF), wasestablished under a procurementmodel designed to promoteinnovation and performanceimprovements in what is arelatively traditional industry.The three year contract that wasinitially awarded has now beenextended by two years, with apossibility for further extensionsif excellent performance ismaintained.

Aker Solutions’ work involves theclean up of the nuclear wastes thatresulted from 30 years of nuclearpower generation at the site. Thisrequires us to design, construct,commission, and operate facilitiesthat retrieve and safely package the

nuclear waste and finally to decon-taminate the associated facilities.This work is being delivered as, atany one time, six or more inter-related projects. At peak, a total of12 decommissioning projects werebeing executed at site.

Aker Solutions is partnering withthree other major contractors toundertake the works and, throughthis partnership arrangement, isdemonstrating the benefits ofcollaborative working in the nuclearindustry. In recognition of thesuccess of the TSIF approach, theproject was recently accepted as aDemonstration Project byConstructing Excellence Wales, across-industry body for improvingconstruction. This is the first time anuclear industry project has enteredthe Demonstration Project

programme, which is designed to:stimulate excellence in constructionproject delivery though the applica-tion of best practice and innovationthrough collaborative working.

The importance of the collabora-tive approach has been fundamentalto the success of the project. Thissuccess has the potential tostrongly influence the design offuture procurement models acrossthe whole of the nuclear industry.


Our business


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clean-up services for nuclear power facilities3 Mining and metals processing facilities4 Water and wastewater treatment facilities5 Petrochemical/chemical processing plants6 Onshore liquefied natural gas (LNG) receiving

terminals


Our business


Anticipating change

In the short term, there is no doubt that theoil and gas industry could experiencesome difficult times because of the finan-cial crisis and a lower oil price, relative tothe extreme highs of 2007 and early 2008.A change in the economic climate couldlead to project delays. At the same time,there are still good reasons to be optimis-tic about the industry’s outlook.

“While market imbalances could tempo-rarily cause prices to fall back, it is becomingincreasingly apparent that the era of cheapoil is over,” the International Energy Agency(IEA) writes in its annual energy outlook1.

Prices will be supported by a risingglobal demand for energy, driven bycontinuing economic growth in Asian

Financial turbulence and a falling oil price dominated theheadlines in 2008, and have triggered some uncertainty about theshort-term outlook for both the process and energy industries.The fundamental drivers, however, remain positive and in thelonger term Aker Solutions is positioned to benefit from them.

countries. According to the IEA’s referencescenario, world energy demand will surgeby 45 percent in the period to 2030. This isequivalent to an average growth rate of 1.6percent per year, with countries fromoutside the OECD accounting for nearly 90percent of the increase. The IEA expectsIndia and China to be behind more thanhalf the increase in energy demand.

While rapidly developing renewableenergy technologies will boost the supplyof alternative energy sources, the rise willnot be enough to cover surging demand.In the IEA’s reference scenario, fossil fuelswill account for 80 percent of the world’senergy demand in 2030. Even if newpolicies are introduced to reduce global

carbon emissions, the world of 2030 willstill largely depend on fossil fuels for itsenergy supply.

Meeting tomorrow’s demands todayTechnology improvements and increasedexploration activity have led to an increasein the average volume of oil discoveredeach year since 2000 being higher than inthe 1990s, according to the IEA. Yet thefields that are currently in production ordevelopment are not enough to meet theexpected demand in the next 20 or 30years. This means the oil companies haveto make even more new discoveries. Theindustry has already found the oil that iseasily available, onshore or in shallowwaters off the coast. The “easy finds” havemore or less been developed – and thatmeans the oil companies are looking innew areas. These include deeper watersand harsher environments, where AkerSolutions is positioned to be the preferredpartner in the industry.

This is not the future – it is happeningtoday. It is happening in Kashagan; in themany new discoveries off the coast ofBrazil; it is happening in new develop-ments such as the Shtokman project; it ishappening in the Gulf of Mexico, the AsiaPacific region and offshore West Africa.Overall capital investment in offshoredevelopments is set to rise by 20 percentbetween now and 20122.

In Brazil, where some of the biggestdiscoveries since the turn of the centuryhave been made, Aker Solutions hasdelivered several deepwater subsea treesand is contracted to deliver more. We haveopened Brazil’s only manufacturing centrefor deepwater drilling risers. Our invest-ment in the Brazilian market continues,as the region becomes increasinglyimportant.

Aker Solutions people at the OrmenLange gas facility, which was deliv-ered to StatoilHydro in 2007. OrmenLange came on stream on 1 October2007, and will be able to cover asmuch as 20 percent of Britain’s gasneeds, for up to 40 years 3.


Our business

Anticipating change

In India, Aker Solutions and sister com-pany Aker Floating Production celebratedfirst oil from the country’s first offshorefield. Aker Solutions delivered the subsea,process control and mooring systems,delivering to both the field and the FPSODhirubhai 1, which is owned by Aker FloatingProduction. Oil demand in India is forecastto be the fastest growing in the world overthe coming two decades, and the countryis putting a lot of effort into boosting itsown energy production, making it a veryinteresting opportunity for Aker Solutions.

Harsh environments: more presence,less impactAker Solutions is an international companywith a global reach. We are taking the leadin a range of significant developments withone common denominator: harsh environ-ments in cold climates.

From Russia to Canada, northern areasare becoming increasingly important. InAker Solutions, with our vast experiencefrom the Norwegian Continental Shelf, weare used to thinking about tough weatherconditions when we plan projects and

create new structures. A good example isthe pair of H-6e (or H-6 extreme) rigs thatAker Solutions is delivering to Aker Drillingin 2009. They are the largest, mostadvanced drilling rigs in the world,designed and built especially to work inthe challenging conditions of the oceans’deep water and arctic regions.

The design of the H-6e also highlightsanother very important trend: it is a zeroemissions unit. As we move into these newterritories, it is vital that we strive to furtherminimise the impact of new developmentson their surroundings. We benefit from thisincreasing environmental focus becausewe are a technology company - and theoperators of these fields want the verybest environmental technology.

In addition to fuelling high explorationactivity, the need for more oil has alsodriven demand for increased oil recovery(IOR) technologies, to produce more fromexisting fields. We see no signs of thistrend diminishing.

Meeting the changing needs of ourcustomersIn 2008 we further enhanced our portfolioof technology services and products boththrough restructuring and through com-pleting a series of strategically importantacquisitions. The integration of our marineoperations, well intervention and geologi-cal consulting offerings into our Subseabusiness area, in combination with ourownership and cooperation with AkerOilfield Services, means we can offer amore focused portfolio of lifecycle andIOR products and services, including ourextensive well intervention offering – aunique one-stop-shop for subsea fields.

In our Products & Technologies businessarea, we have consolidated our drillingrisers and equipment activities with top-

side technology products and services.Together with an enhanced IOR offering,this will better service customers world-wide with the equipment and services theyrequire, onshore and above the waterline.

Our customers increasingly focus onthe development and maintenance of theirfields as one large, integrated operation.Therefore, in 2008 we brought togetherour existing Field Development andMaintenance, Modifications and Opera-tions business areas to create EnergyDevelopment & Services, increasing ourcapacity to serve our customers through alarger and more flexible pool of engineers.

We have also refocused our Process &Construction business area, bringingtogether Aker Solutions’ energy, processand related construction activities toachieve greater synergies and betterresource utilisation. We see continuedmarket potential in South America, Indiaand China with key global customers. Chinais expected to continue as the main driverfor petrochemical process investments andthe emphasis in metals and mining willremain on Australia and South America.

Aker Solutions has made these organi-sational changes to reflect the changingdemands we see coming in the energy andprocess industries. We believe adapting tothese trends secures our medium- andlong-term outlook, in a time of short-termuncertainty.

Our goal remains to be our customers’preferred partner by delivering the prod-ucts and services they need through theirentire lifecycle – from feasibility study tooperations and beyond.

IEA 2008 World Energy Outlook1)Douglas-Westwood: the world offshore oil and gas2)production and spend forecast 2008-2012www.statoilhydro.com3)

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“Our goal remains tobe our customers’preferred partner bydelivering theproducts andservices they needthrough their entirelifecycle”

Dhirubhai 1. Aker Floating Production’sFPSO over the MA-D6 field.


Our business

Anticipating change

Taking care of health, safety and the envi-ronment (HSE) is a core value among allAker companies. It commits each andevery employee to promoting better HSEperformance in their daily life.

In Aker Solutions our core HSE value isexpressed in our HSE Mindset:

All incidents can be prevented. Westrive continuously for zero harm topersonnel, material and non-materialassetsWe focus on employee health and oncontinuously improving the work envi-ronment

One dangerous incident is one too many. Aker Solutions’guiding principle is that all incidents are preventable.

Taking personal responsibility for HSE

We conduct our operations throughefficient use of materials and energy,with minimum waste and damage tothe environmentWe design products and services tohave no undue environmental impact,to be safe and to be efficient in con-suming energy and natural resources.We seek to ensure that our productscan be recycled or disposed of safely

Leading indicatorsSome of the key activities that contributeto improved HSE performance and pre-vention of incidents are measured and en-couraged through a set of leadingindicators.

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Our business

Health, safety and environment

Through extensive communication, a rangeof training programmes and, most impor-tantly, the examples set by people frommanagement to the shop floor, our HSEmessage reaches every corner of theorganisation.

By considering health, safety and envi-ronmental issues in all our activities – inoffices, on construction sites or at home –we reinforce the right attitudes and achievebetter HSE and business results.

Increased environmental focusThe role of companies like ours in relationto the environment is of increasing impor-tance. We are motivated to be part of thesolution. We aim to continually improve ourproducts and services, play a role in newenergy sectors, and minimise the footprintof our own operations. We strive to designeach new product and service to be notjust technologically better, but to be saferand to have less harmful impact on theenvironment than the one before. Someexamples include our solutions for recov-ering volatile vapours, reducing sulphurand ammonia emissions and drilling rigswith minimised impact on arctic environ-ments. We also contribute, with project

Our Just Care™ programme has helped engage our employeesaround the world through a simple message: we take personalresponsibility for HSE, based on caring for people, theenvironment, and the company.

Driven by care

execution and technology, to new energysectors such as CO2 capture, next genera-tion biofuels and wind power.

During 2008 we have raised the bar onthe environmental footprint of our ownoperations. We have initiated a number ofactivities to further increase our focus inthis area. The definition and reporting ofenvironmental parameters has beenimproved, and from 2008 energy con-sumption, greenhouse gas emissions andwaste disposal are being reported withgreater accuracy and in ways that betterenable our individual businesses to guidetheir improvements. To increase competenceand awareness across the organisation wehave introduced a dedicated environmentaleLearning module intended for all emp-loyees. By year end, 9 000 employees hadcompleted this module. Five additionalbusiness units were certified according tothe ISO 14001 environmental standard in2008, bringing the total to 19. Video con-ferencing facilities are being improved andwe aim to utilise these to further reducetravel. These are just some of the activitieswe expect will contribute to minimising ourenvironmental footprint.

1) Lost Time Incident Frequency2) Total Recordable Incident Frequency

Energy 2008

Energy consumption MWH 623 049Energy intensity MWH per mill. worked hours 6 560

Emissions 2008

CO2 emissions Tonnes 146 654CO2 emissions intensity Tonnes per mill. worked hours 1 544

Waste 2008

Recycled waste Tonnes 22 021Total waste Tonnes 35 756Recycling factor Percent 61.6Hazardous waste Tonnes 2 200

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Our business


Leaders in the driver’s seatMore than 2 200 leaders had graduatedfrom our HSE leadership programme bythe end of 2008. This programme has beenkey in further developing our HSE culture,enabling our leaders to be more effectiverole models and to drive HSE improve-ments efficiently.

Reaching outTo help deliver the important HSE messageseffectively across the organisation, wehave developed a suite of HSE eLearningprogrammes. To date, more than 57 000individual training sessions have beencompleted with the different HSE eLearningmodules. Additional training and awareness-raising activities take place on every work-site, and HSE considerations are alwayspart of the planning and execution oftasks.

Through developing competence, learning from experience and settinghigh standards, we increase the likelihood of preventing the next incident.

Competence and compliance

High expectationsWe maintain a common HSE operatingsystem to set expectations, assess gapsand implement improvements. Each oper-ating unit performs an annual assessmentagainst the expectations of the HSEoperating system. In addition a number ofstrategic, in-depth HSE reviews areperformed for selected units across theorganisation. These reviews increase thetransparency of HSE performance through-out our operations, and help to ensure thatpotential risks are avoided.

Just RulesBased on an analysis of previous incidentsand industry best practice, a set of clear,simple safety rules for specific workactivities has been developed and rolledout across the organisation. Over 32 000employees, contract staff and subcontractor

employees had been through dedicated JustRules training sessions by year end 2008.

There has been a significant decrease inthe number of serious injuries from 2007 to2008.

“From experience,we know thatcertain activitiesaccount for themajority of seriousincidents in ourwork. For theseactivities we havemade specific rulesto prevent injury orharm. These are ourJust Rules, part ofour Just Care™programme.”- Simen Lieungh,President & CEO

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Just Rules training includeseducational videos.


Our business


To recognise outstanding achievements within HSE and to reinforce thebehaviours that led to them, every year our President & CEO presentsfour Just Care™ awards: the President’s HSE award for the best overallHSE achievement, and one award each for achievements in health, safetyand the environment.

Just Care™ awards

President’s HSE awardThe Kashagan epF project received the President’s HSE award for their fabrication andassembly of seven process and utility modules, spanning over 12 million worked hourswith 35 nationalities at locations in Norway, Poland, Romania and Russia. Throughextensive efforts in training, communication and management visibility, coupled with theright performance incentives, the project successfully exported Aker Solutions’ HSEmindset and standards to sites that historically had a less mature HSE culture, achievingzero serious injuries over the project’s five years and leaving a positive legacy at allsubcontractor sites.

Safety awardOur drilling equipment business receivedthe Safety award for their drilling equip-ment simulator. The simulator has beendeveloped by First Interactive AS (60 per-cent owned by Aker Solutions) and thesafety training is organised and facilitatedby our drilling equipment unit. The trainingenables safe and cost efficient trainingof drilling crews, improved safety foroperators on the historically dangerousdrill floor and, ultimately, improved andsafer drilling operations. The drilling equip-ment simulator has introduced a stepchange, bringing to the drilling industrywhat the flight simulator has brought to theaviation industry.

Environmental awardThe Ekofisk tank cell cleaning projectreceived theEnvironmentalaward.Throughthe use of a specially developed, remoteoperated cleaning tool, 99% of the oil andwax layer was removed from nine tankcells and re-injected into the Ekofisk reser-voir. The project was executed within theagreed time frame, exceeding the custom-er’s requirement for oil and wax removal,and with an excellent HSE culture resultingin zero spills to the environment and zeroinjuries.

Health awardAker Solutions in Verdal, Norway receivedthe Health award for their ’Multivago’welding automation. Developed by weldersin Verdal, the Multivago system enablesthe automated welding of long and largetubular weld seams, avoiding staticand unfavourable welding positions whileachieving increased efficiency and reducedhealth risks. Multivago was initiated for theproduction of a series of tripod windturbine foundations, and has now beenshared and is in use on other projects.


Our business


Teamwork, know-how and skills are thedriving forces for enhanced performanceand continual business development. Ourvalues guide the development of our peopleand the company.

Our commitmentAll Aker companies share a commitment totheir people: to establish a workingenvironment that is safe, tolerant, and fair.

Continuous personal and professionaldevelopment is vital to the competitivenessof Aker Solutions. The power of thecompany’s collective know-how reinforcescustomer confidence and enhances ourability to win new contracts and executethem profitably. We seek to give our peoplechallenging assignments and ampleopportunities for development and growth.

Aker Solutions’ achievements and profitability are generated by ourpeople – people who take on challenges and deliver solutions.

Driving performance

Performance management andrewardWe want our organisation and eachemployee to focus attention on achievingresults in both the short and long term.Processes for determining targets andmeasuring performance, and for rewardingemployees in relation to the resultsachieved, are important tools in thiscontext. Performance targets for managersand employees are determined on thebasis of strategies and budgets in eachunit. Targets are set on an annual basis,but are monitored and further developedas necessary throughout the year. Theannual target-setting processes embraceboth financial goals and the developmentand improvement of products, projectmanagement, customer service and the like.

In addition, targets are established forhealth, safety and the environment and forthe personal development of the individualmanager and employee.

To ensure the development and optimumutilisation of our management resources,an annual evaluation of managers is con-ducted as input for determining plans formanagement development programmes,management mobility and the develop-ment of leadership talents.

We want to reward managers andemployees in relation to the resultsachieved. This is achieved by differentiationof individual base pay and establishingprogrammes for variable annual paymentsto managers and employees.

Our annual variable pay programmesreward employees on the basis of thecommercial results achieved in theindividual company or project. Managersearn variable pay on the basis ofcommercial results in the units in whichthey exercise influence and the extent towhich the manager lives our values. Seniormanagement have their variable payspread over several years to encouragelong-term performance and lasting commit-ment. Details of the remuneration of oursenior management are provided in note18 to the consolidated accounts on payand social costs.

“Aker Solutions focusattention on achievingresults in both theshort and long term”

Unique skills createunique solutions.


Our business

People and development

In 2008 we started to see the effect of ourstreamlined, recruitment process, with over40 000 candidate applications from morethan 35 countries. The global recruitmentprocess, featuring hands-on recruitmentprinciples and supported by a recruitmentmanagement system, ensures transpar-ency across our business. Together with acommon interview guide based on ourvalues, candidates were exposed to a highquality recruitment experience supportingour vision of being the preferred employer.

It has been a challenging market, with ashortage of suitably skilled people enteringthe engineering industry generally, and theenergy sector in particular. Despite increas-ing competition for qualified resources, wesuccessfully managed to hire a total of4 108 new employees in 2008. Throughfocusing on retention activities we haveincreased the stability of our workforce,reducing turnover to below nine percent.

It is our people that enable Aker Solutions to offer our customers aservice superior to our competitors. Our reputation in the employmentmarket is key to attracting the most talented people.

Preferred employer in a challenging market

Attracting new employeesFollowing a successful national recruit-ment campaign in Norway in late 2007,similar campaigns were conducted in otherregions in 2008. Aker’s new recruitmentprogramme for the US market waslaunched in May in connection with theOffshore Technology Conference 2008 inHouston, Texas. The programme coversall the Aker companies with activities in theUS and is based on the employees‘ ownattitude and commitment. It also features aregional web site and even a new word

– Akertude (see www.akertude.com).Our efforts in attracting employees are

also validated by our People Survey, wherethe top development area since the lastsurvey was “We attract talented people”. Itshowed that a vast majority of our peoplewould strongly recommend Aker Solutionsas an employer in our industry.

In Aker Solutions there is a longtradition of including employeesand their representatives indecision-making processes. Thisensures a broad basis for makinggood decisions, balancing theinterests of the many stakeholdergroups that any companyengages with – especially thoseinterests related to welfare andworking conditions. Thesetraditions are well established inNorway, though this is not yet thecase everywhere the companyoperates.

Aker Solutions operates in acontext characterised by increasingglobalisation and fierce competi-tion. This means we must makesignificant efforts to maintain ourcompetitiveness in all our markets.Employee representatives andmanagement must work together onan ongoing basis to seek solutionsthat promote socio-economicprogress in the regions in which weoperate, while ensuring the long-term performance of our company.

In October 2008, Aker Solutions’major shareholder, Aker ASA, signedan international framework agree-ment with the Norwegian UnitedFederation of Trades Unions and

Co-operation in focusthe International MetalworkersFederation on behalf of all thecompanies that are part of Aker. Theagreement commits all the partiesto work towards the developmentof good working relations.

Recruitment of employeesRegional distribution

Norway 32.5%

Americas 23.8%

Africa & MiddleEast 0.6%

Asia Pacific 18.2%

Europe (ex. Norway) 24.2%

Aker, the Norwegian United Federation of Trades Unions andthe International Metalworkers Federation enter a joint agreement.

Total workforceRegional distribution

Norway 49.7%

Americas 20.4%


Asia Pacific13.7%


EmployeesRegional distribution

Norway 49.7%

Americas 17.2%


Asia Pacific14.6%


Contract staffRegional distribution

Norway 49.6%

Americas 27.4%


Asia Pacific11.7%



Our business


The Aker Academy creates opportunities for people and teamsthroughout Aker Solutions. It delivers aligned, professional trainingand development activities founded on our values and corecompetence and strives to expand the competence of individualsand teams to improve our business performance.

In 2008, eight different leadership pro-grammes, totalling more than 60 sessions,were completed by over 1 300 participants.

Our leadership programmes have beenimplemented internationally.

One major focus of the Academy in2008 was to encourage cooperationacross business areas and to further alignour development activities. In an increas-ingly global environment, cross-culturalawareness has moved up the agenda as akey factor in minimising risks in all ouractivities. Each one of our leadershipprogrammes includes modules designedto improve “cultural intelligence” withinAker Solutions. These efforts will be intensi-fied in 2009.

Developing an even higher qualitylearning environment will be our mainfocus in 2009. This means that still-closercooperation and active sharing betweenthe business areas will be promoted.

In addition to cross-cultural awareness,the further development of our leadershipprogrammes; aligned concepts for coach-ing and mentoring across the businessareas; and a clear focus on commercialawareness have all been identified asfocus points for 2009.

Well intervention academyOn 29 May 2008, Aker Solutions openedits new well intervention academy inStavanger, Norway. This facility will givenew generations of offshore operators andengineers first hand experience in criticalwell intervention activities. The centreconsists of an intervention tower, two testwells and state-of-the-art interventionequipment combined with high-tech 3Dsimulators to facilitate realistic andpractical training in an environment asclose to actual offshore conditions aspossible.

A learning arena

Leadership programmesParticipants, Aker Academy 2008

Becoming a leader 572

Develop your leadership 152

HSE leader-ship 492

Senior projectmanagement 26

Businessleadership 38

Commercialawareness 54

“Developing an evenhigher quality learningenvironment remainsour main focus in 2009”

Participants from all over the worldare brought together in our learningand development activities.


Our business


In September 2008, the first team oftrainees graduated from the programmeand joined our pool of future leaders. Eachof the eight graduating trainees acceptedpermanent positions within Aker Solutionsin the US, Brazil, China, Malaysia andNorway, working in different businessareas and involved in business develop-ment, procurement, finance and businessmanagement.

“During my two years as a trainee withinthe company, I have been exposed todifferent disciplines including qualifica-tions and clarifications for tenders, costestimates for projects, our Project ExecutionModel™, and branch management issues.

2008 was the third year of the Aker international trainee programme.With the participation of Aker Solutions, Aker Floating Production,Aker Drilling and other Aker companies the programme hasprovided 66 assignments. Trainees have a chance to work in ourkey markets including Norway, the US, UK and Malaysia.

With more than 80 000 courses completed so far, eLearninghas become an effective way of enhancing expertise for ouremployees.

Aker international trainee programme

I have worked in the general organisationand also had a fantastic opportunity to beon a big international project – Adriatic LNG.My experience on the project formed myfirm desire to be a part of a project teamagain. That is why I am now assigned tothe Sakhalin I Arkutun-Dagi project, workingin procurement,” said Yulia Semenchenko,a Russian trainee who graduated in 2008.

In September 2008, a third team oftrainees joined the programme. The teamconsists of ten recent graduates who wererecruited in the autumn of 2007 from India,Malaysia, Norway and Russia. The world-wide recruitment campaign receivedan impressive 1 500 applications for the

ten positions. To address our businessneeds we recruited trainees with a mixedbackground in both engineering and inbusiness.

We offer a large number of courses throughour eLearning portal, which is used activelyby all the business. More than 40 000programmes were completed in 2008 alone.A number of the courses are obligatory,and the local business units can docu-ment the progress of their employees forthemselves. Such documentation is impor-tant, not least for ISO certification of thebusinesses. Employees can take coursesvia their own home PCs, whenever theywant and regardless of their geographicallocation. Compared with classroom-basedteaching, eLearning substantially reducesthe cost of travel and use of resources.

New programmesA number of new, specially-developedcourses were launched on the portal during2008. As a supplier to fossil fuel producers,it is important that we address climatechallenges and the need to reduce green-

eLearning

house gas emissions. Our new course on“the environment – our common responsi-bility” raises these issues and the way ouremployees can take personal responsi-bility for the environment.

A number of courses have beenlaunched on key issues such as health,safety and the environment (HSE), corpo-rate responsibility (CR) and Aker Solutions’Project Execution Model™ (PEM™).

More than eLearningIn 2008, our first classroom-based courseswere registered with the Academy. Thisrepresents an important step towards real-ising the vision of a common educationportal for the whole of Aker Solutions, nomatter the medium used, and will reducethe cost of maintaining several differentsystems.

Classroom teaching is also used incombination with eLearning.

eLearningCompleted courses by end of 2008

Stress management 14 207

Caring for the environment 8 820

Other HSE 18 637

PEM™ 11 137

Protect 2 894

Other and BA/BUspecific 11 207

CR 1 227

Just Care™ 18 893

Team III visiting Egersund Yard inSeptember 2008.


Our business


The way in which we achieve growth andprofitability is as important as the achieve-ments themselves.

Finding environmentally and sociallyresponsible ways to meet the world’senergy needs has world scale impact –politically, ethically and environmentally.Our contribution to that impact dependson each and every one of us, every day,everywhere, taking personal responsibilityand caring for people, for the environment,for integrity and for our communities.

Our history, our values and internationalnorms such as the UN Global Compact,the Global Reporting Initiative (GRI) andthe OECD guidelines are the basis of ourcorporate responsibility principles. We arecommitted to continually improving ourperformance against them.

Our corporate responsibilityprinciples

Caring about people: a competent andmotivated workforce, driving toward thesame goals, is vital to our success. Withthousands of employees around theworld representing many cultures, religi-ons and ethnic groups, our focus is tohelp each individual employee realisehis or her potential and look after his orher own health and safety. All our effortsare guided by a commitment to protect-ing the human rights of our employeesand the stakeholders we influence.

Caring about environment: theenvironment depends on companieslike ours to contribute to its positivedevelopment. We therefore work tominimise negative impact on the envi-ronment by continuously developingtechnologies, practices and businessopportunities compatible with sustain-able development.

Caring about integrity: we depend ona reliable, predictable businessenvironment. We therefore strive tomaintain high ethical standards. Webuild a culture that values honesty,integrity and transparency, and weencourage the same behaviour amongour partners.

Caring about community: as a largecompany we are a significant part ofthe societies in which we operate, bothlocally and globally. We believe in play-ing our part in the community throughinvesting in the building of a healthy,safe and stable society.

Local contentWe are committed to building on localcapabilities in, and sharing our technologywith, the markets we enter. We draw onlocal resources to create jobs, customiseproduct strategies, and work with localgovernments. For example:

Currently we employ approximately4 000 people in the Asia Pacific region,including around 600 located in Malaysia.Of those 600, most work at the high-techmanufacturing centre we established in2007. Nearly 100 of the engineers andtechnicians employed in the centre at PortKlang were trained at our Norwegian andBritish subsea facilities. The centre hasalso created opportunities for local vendorssupplying components and services.

Our subsea operations in Brazil haveapproximately 500 people in an almostexclusively Brazilian workforce. 150 of thosewere hired in the 12 months to mid-2008and our plans for growth in the region areextensive. We expect to fill an additional130 vacancies by the end of 2009.

In Angola we have developed West Afri-ca’s most advanced subsea base. Topromote the effective sharing of our know-how in the region, an active trainingprogramme has brought employees from

the region to be trained at other AkerSolutions facilities. We are making similarefforts with local employees in severalother countries.

CO2 captureAker ASA and Aker Solutions have estab-lished the company Aker Clean Carbon toaccelerate the commercialisation of CO2

capture technology. Aker Solutions willprovide the technology, engineering andproject management expertise for develop-ments supported by Aker’s industrial andfinancial strength. Aker Clean Carbon’s coreCO2 capture technology was originallydeveloped by Aker Solutions.

Aker Solutions and Aker Clean Carbonare also part of the consortium, led byScottish Power, which recently qualified asan entrant to the UK government’s compe-tition to develop the UK’s first commercialscale carbon capture and storage (CCS)project.

Global partnership with theNorwegian Red CrossAker Solutions signed a strategic threeyear partnership agreement with theNorwegian Red Cross on 19 December2007. The partnership encompassesfinancial support, exchanges of expertisebetween the organisations and volunteeractivities.

Aker Solutions’ overriding concern is to provide products and servicesin an environmentally sound, ethical and socially responsible manner.

Demonstrating corporate responsibility

An international company with globalreach. Aker Solutions employees out-side our facility in Malaysia.


Our business

Corporate responsibility


Our business

Corporate responsibility

Members of a medical team from the Hunan ProvincialRed Cross Society, treating a patient at a temporarymedical centre set up for earthquake survivors in Shifang,Sichuan in 2008. Thousands of people whose homeswere flattened were living in tents by the side of the road.Aker Solutions people in China were also proactive insupporting the relief efforts.


Our performance

Our performance

56 Board of Directors’ report

Annual accounts Aker Solutions group72 Consolidated income statement73 Consolidated balance sheet74 Consolidated statement of cash flow75 Consolidated statement of changes to equity76 Notes to consolidated accounts

Annual accounts Aker Solutions ASA116 Parent company income statement117 Parent company balance sheet118 Parent company statement of cash flow119 Notes to parent company accounts

124 Auditor’s report

126 Share and shareholder information

130 Analytical information

132 Corporate governance

136 Board of Directors

138 Executive management team

140 Company information

Contents


Our performance

Although the high revenues recorded in2007 were boosted by a number of majorprojects completed in that year, AkerSolutions succeeded in maintaining thesame high level of income in 2008. Growthin the Products & Technologies (P&T) andSubsea business areas contributed tothis performance. Activity in the EnergyDevelopment&Services (ED&S)andProcess& Construction (P&C) business areas waslower than in 2007.

A number of important projects in thegroup’s portfolio were completed in 2008.A complete subsea production systemwas delivered to Reliance Industries Ltdfor the MA-D6 field off India, and theworld’s first offshore liquefied natural gas(LNG) terminal was delivered to ExxonMobilin the Adriatic. Four production facilities forthe Kashagan project in the Caspian Seawere completed during the year, and sevencomplete drilling equipment packagessupplied in 2008 are in operation on rigsfor various customers. The subsea waterinjection system for the Tyrihans field inthe Norwegian Sea was also ready fordelivery in late 2008. This is a ground-breaking project which strengthens thegroup’s position as a supplier of solutionsfor increased oil recovery (IOR) from existingfields. During the year, Aker Solutions wasalso awarded five engineering, procurementand construction management (EPCM) con-tracts for metal projects in South America.

The Subsea, P&C and P&T businessareas substantially improved their profita-bility, and delivered record margins andresults in 2008. Creating the ED&S busi-ness area has strengthened the group’sposition as a leading supplier of completedevelopment solutions for demanding oiland gas projects. Operational challengesfaced on individual projects by ED&S dur-ing 2008 meant that its profitability did notstrengthen to the same extent as in theother three business areas.

To reduce vulnerability to fluctuations inthe levels of activity in the various markets,efforts were made – particularly by Subseaand P&T – to build up bases and organisa-tions for delivering services and productsto the group’s installed base of solutions.This forms part of the group’s long-termstrategy to strengthen its position in thelifecycle services market. This strategy isexpected to contribute to higher margins.

An extensive cost-cutting programmewas launched in the second half of 2007and continued throughout 2008. The insta-bility of the world economy means thathigh priority will continue to be given to thework of enhancing efficiency and flexibilityin the cost base.

Aker Solutions has a solid order back-log with a portfolio dominated by reputablenational and international companies. Thetotal order intake in 2008 came to NOK55 590 million, and the group’s order back-log at 31 December was NOK 58 016million. This backlog is of high quality, andoffers the potential to realise marginimprovements. The group has so far hadno significant cancellations of existingcontracts, but certain anticipated newawards have been postponed.

In the short term, some uncertaintyprevails about the level of activity in AkerSolutions’ main markets. However, inde-pendent market analyses show that the oilcompanies must maintain a high level ofactivity within exploration for and develop-ment of oil and gas resources to replacedeclining production from existing fieldswhile also meeting the anticipated growthin world energy consumption. The long-term market foundation is accordinglyregarded as sound and interesting.

The group has set ambitious targets forwork on health, safety and the environment(HSE). The various programmes in thisarea continued in 2008 to help the groupmeet its ambition of zero harm to people,

Aker Solutions had operating revenues of NOK 58 252 million in 2008,on a par with the previous year. Cost overruns on the Frigg and AkerH-6e projects contributed to reduced earnings before interest, tax,depreciation and amortisation (EBITDA), down by 13.6 percent from2007 to NOK 3 382 million, while the EBITDA margin declined from 6.8to 5.8 percent. The group has a solid, high quality order backlog. Effortsto reduce costs are likely to have a significant effect in 2009, whenEBITDA is expected to exceed NOK 4 500 million although some declinein the level of income is anticipated. An ordinary dividend of NOK 1.60per share is proposed by the Board for the fiscal year 2008,corresponding to NOK 430 million.

Well prepared in an unpredictable market

material and non-material assets and theenvironment. These efforts are yieldinggood results, with a decline in both sickleave and the total injury frequencies in2008 compared with the year before.

The businessPrincipal operationsAker Solutions is a leading internationalsupplier of engineering services, fabrica-tion, technology products, maintenance,specialised services and total solutions forthe energy and process industries. Its mainoperations embrace deliveries to oil, gasand petrochemical facilities. The group alsopursues substantial activities related todeliveries to projects for gas- and coal-firedpower stations, metal processing plantsand other selected industries.

To achieve an organisation of the busi-ness which better reflects customerrequirements, the group’s business areaswere restructured during 2008.

The Field Development (FD) and Main-tenance, Modifications and Operations(MMO) business areas were merged tocreate ED&S with operational effect from1 September 2008 and accounting effectfrom 1 January 2008.

Structural changes were also imple-mented in Subsea and P&T in order tostreamline the technology, solutions andservices offered by the group to itscustomers and market segments.

The business is thereafter organised inthe following four business areas andreporting segments:

Energy Development & Services (ED&S)SubseaProducts & Technologies (P&T)Process & Construction (P&C)

The group had 23 360 employees at31 December 2008, including 11 464 inNorway, plus 10 601 contract staff. Aker


Our performance

Board of Directors’ report

Solutions has operations in about 30 coun-tries. Its head office is in Norway, atSnarøya outside Oslo.

The parent company Aker SolutionsASA is listed on the Oslo Stock Exchangewith ticker code AKSO. The largest share-holder is Aker Holding AS, with 40.27percent of the shares.

Strategic target areasAker Solutions’ vision is to be the preferredpartner for projects, products and servicesin the energy and process industries.

Its employees represent leading-edgeexpertise in a number of areas, and thegroup enjoys a reputation as an attractivebusiness partner and employer.

Aker Solutions occupies a strong mar-ket position, which will be consolidatedand further developed. That calls forsignificant commitment and substantialresources. Expectations from investors,customers and employees, and from thecommunity and the market in general, willbe met by delivering responsibly, profitablyand consistently.

The group’s long-term strategy remainsunchanged, and defines the following tar-get areas for 2009 to help realise its vision.

Commitment to solutions for harshenvironments and deeper watersAker Solutions is one of the world’s leadingsuppliers of solutions for energy andprocessing facilities in harsh environmentregions, both offshore and on land. Thegroup has an extensive list of project refer-ences in concrete technology, floatingdeepwater platforms, subsea technologyand land-based plants suited for harshweather conditions in arctic areas anddeep water. A large proportion of theremaining unexploited oil and gasresources are expected to lie in suchregions. The position of Aker Solutions asone of the few suppliers to combineadvanced technology with the ability todeliver complete solutions makes thegroup an attractive partner for customerswith demanding projects in deep watersand harsh environments.

Solutions for well stream and reservoirsA large proportion of new oil and gas fieldshave high development costs. Making bet-ter use of existing oil and gas fields offerssignificant potential for many operators.Aker Solutions has specialised businesseswith expertise in reservoir analysis and

optimisation of well streams. That makes itpossible for oil and gas operators to im-prove the recovery factor for existing fieldswhere they have already invested in instal-lations and other infrastructure.

Other, smaller reservoirs are to be foundin the vicinity of many large fields.Advanced drilling and well technologiesfrom Aker Solutions make it possible todrill new wells horizontally from existinginstallations to reach satellite reservoirs,permitting better utilisation of the installa-tions’ capacity. For fields where reservoirpressure has declined after a number ofyears on stream, Aker Solutions deliverstechnology to increase pressure throughwater or gas injection. The group also hasadvanced solutions for maintaining andimproving oil and gas flows from existingfields. This IOR segment is expected tomake favourable progress.

Grow service businessAker Solutions is a major supplier of com-plete production facilities for the energyand process sectors. It also offers prod-ucts and systems such as subsea installa-tions and drilling solutions. The detailedknowledge of the plant or its products,gained when a project is delivered, opensup opportunities to provide efficientmodels for later maintenance, upgradesand other services throughout the lifecycleof the product or installation. These modelsoften call for specialised expertise, whichgives suppliers with a large installed basean interesting and long-term market.During recent years, Aker Solutions hassubstantially increased deliveries of itssystems and plants, and the market forservices throughout the lifecycle of itssolutions establishes a basis for attractivemargins.

While a new development project,product or system delivery usually lasts oneto five years, an installation must be main-tained over several decades. The servicemarket is accordingly very long-term andrather less cyclical than the market for newprojects.

Further development of strong position inthe growing MMO market in the NorthSea basinAker Solutions has delivered a largeproportion of the offshore installations inthe North Sea basin, particularly on theNorwegian Continental Shelf. The mainte-nance market embraces ongoing services,

major upgrades and efficiency improve-ments. The last of these segmentsdemands an in-depth understanding ofdoing work on installations in production,combined with expertise in executingmajor changes and delivering new compo-nents and modules to those installations.

A number of the installations in theNorth Sea basin have been in operation formany years, and need extensive upgrades.Aker Solutions has an experienced andhighly competent organisation of engi-neers and operators which, combined withits fabrication capacity, will be utilised incompeting for major maintenance andupgrade assignments.

Shifting P&C’s centre of gravity towardsChina, India and South AmericaEfforts to expand the activities of the proc-ess and metals businesses in Asia andSouth America will continue. Much of theirnew capacity will be concentrated in theseregions. In addition, more emphasis will begiven to facilitating the transfer of technol-ogy and expertise from Europe to this busi-ness area’s operations in other parts of theworld, particularly in growth markets suchas India and China.

Increasing the efficiency and flexibility ofour cost baseAn extensive cost-cutting programme wasinitiated in the second half of 2007 and hascontinued through 2008. Going forward,the key initiatives and programmes in thisarea will address risk management, projectexecution, cost consciousness and yardcapacity adjustments, in addition to theutilisation of low cost hubs in India, Braziland Malaysia.

Continuing to enhance Health, Safetyand Environmental (HSE) performanceAker Solutions will continue to enhanceHSE and further develop the Just Care™culture designed to strengthen the focus

“Aker Solutions hasa solid order backlogwith a portfoliodominated byreputable nationaland internationalcompanies”


Our performance


on HSE in every project and product deliv-ered. The strong commitment to HSEeducation will continue throughout 2009and the group will continue to develop itsresponsibilities as a corporate citizen.

MarketsAker Solutions’ principal markets havelong been characterised by good progressand high demand. With reserves in existingfields contracting and their production indecline, a fundamental need for many newdevelopments continues to exist in thelonger term. Following the internationalfinancial crisis, however, there is greatuncertainty about market prospects forthe next few years.

It is still too early to judge how the tur-bulence in the world economy will affectmarkets, and it remains uncertain howlong the crisis will persist.

In the short term, levels of activity inAker Solutions’ main markets are likely todecline. Demand is expected to recover inthe longer term, based on growing short-ages of oil, gas and important metals. As aresult, the fundamental basis for furthermarket growth probably exists in a ratherlonger perspective.

Oil prices affect activity in a number ofAker Solutions’ main markets. Their levelalso influences oil company priorities for,and choices between, new developments,upgrading existing facilities and commit-ting to improved recovery from producingfields. The group’s share of new deliveriescompared with service assignments mayaccordingly vary over time in line with oilprice trends.

More difficult access to capital andproject finance reduces opportunities for anumber of customers to launch newprojects. The level of activity at many oilcompanies is closely related to develop-ments in their cash flow, which means thatsome operators will postpone large newdevelopments. In a number of cases, thesewill be replaced by an increased focus onupgrading existing installations which canhelp to reduce costs per unit produced.

Oil company interest in upgrading exist-ing facilities or investing in improved recov-ery from producing oil and gas fields isusually closely related to marginal costsper unit produced. In recent years, newtechnology has already yielded more auto-mated operations and lower costs for anumber of installations, and the recoveryfactor on a number of fields has exceeded

the levels previously considered feasible.Nevertheless, operators of a great manyproducing fields around the world considerit interesting to invest in substantialupgrading and improved recovery. AkerSolutions has solid experience andproprietary technologies which give it astrong position in this part of the market.

The bulk of the world’s oil and gas pro-duction comes from facilities on land andin shallower waters offshore. These fieldswere developed early because theirreserves could be accessed with relativeease. Most of the installations on thesefields are now old and offer limited oppor-tunities for further production increases.Both recoverable reserves and output aredeclining on many of them. As a result, anumber of discoveries have been devel-oped in deeper water over the past 15years, and a significant proportion of unde-veloped reserves are thought to lie in deepwaters and harsh environments. A numberof oil companies have substantial interestsin and fairly specific plans for suchdevelopments, but costs lie in many casesat a level which requires a relatively high oilprice to make their realisation commer-cially interesting. Current doubts about theworld economy and its possible effect onshort-term oil price trends mean that thetiming of development decisions is uncer-tain for a number of projects.

It usually takes many years before amajor new project results in production.Despite the general market downturn,some customers with strong liquidityreport that they plan to maintain theirinvestment programmes. Their intention isto benefit from having new productioncapacity available when demand starts torise again.

Most international industrial sectorshave experienced sharp price increasesfor materials and labour in recent years,while production capacity has also beenexploited to the full in many cases. Thecurrent economic downturn has eased thepressure on the whole supplier chain, withthe result that customers increasinglyexpect lower prices. Pressure on pricesmust be expected to rise as competitionstiffens when spare capacity becomesavailable at a growing number of suppliers.Aker Solutions will make active use of itsattractive technology, solid order backlogand strong financial position to competefor new assignments. The group intends tomaintain its strategy of selecting, winning

and executing the projects in which itwould be appropriate to become involved,and thereby seek to avoid contracts whichfail to provide a basis for satisfactoryresults.

Risk managementAker Solutions’ commercial operations willnormally involve risk. The group workssystematically with risk managementthrough extensive systems and proce-dures in all its business areas. The aim is toensure a thorough assessment of bothnew and existing deliveries. Risk manage-ment and risk awareness also representkey elements in educational activities andthe corporate culture. The goal is not toavoid all risk, but to understand, manageand be paid for accepting it. Thorough riskassessment is a core competence whichcan provide the group with competitiveadvantages.

The group has a corporate treasuryfunction which comprises the operationalactivities and corporate functions involvedin managing financial risk. Risk also repre-sents a key element and area of expertisefor other corporate staff departments,such as legal affairs and accounting. Inaddition, certain special departments haverisk as their particular focus area.

Enterprise risk has been established tocoordinate group risk management notincluded in the traditional project andfinance areas.Internal audit inspect that policies,instructions and experience of best prac-tice are implemented and followed up.Project and operational support assiststhe operational businesses andexecutive management with projectassessments.

An extensive system of common principles,procedures and instructions has beenestablished to define how different types ofrisk are to be identified, reported and treated.This ensures that all the businesses in thegroup have well-entrenched guidelines tofollow for most relevant risk conditions.

Advisory committees have been esta-blished at corporate level to undertakequality assurance on a wide range ofmatters before a final decision is taken byexecutive management or the Board ofDirectors. The decision-making systemhas been developed as an authorisationstructure that defines which decisions can


Our performance


be taken at different levels in the group.The following committees have been esta-blished at corporate level to evaluatematters before a decision by the executivemanagement or main Board of Directors:

the corporate risk committee considersproject-specific riskthe investment committee considersrisk associated with the acquisitionand sale of businesses as well as otherinvestment decisionsthe finance committee considersfinancial market risk.

Operational project risk: responsibilityfor ongoing risk assessment rests with thevarious operational business areas. Typicalexamples of such risks are the ability todeliver existing contracts at the agreedtime, quality, functionality and price. Resultsalso depend on costs – both Aker Solutions’own and those charged by suppliers; interestexpenses; exchange rates; and the riskrelated to the customer’s ability to pay.

Delivering projects and equipment inaccordance with the contract terms andwithin the anticipated cost framework rep-resents a substantial risk element, whichwill be among the most significant factorsaffecting the group’s results.

Aker Solutions has a common model forthe execution and follow-up of every phaseof a delivery including evaluation, tender-ing, decision making, execution and com-pletion. This Project Execution Model™(PEM™) is common to all the businessareas for project execution and deliveries.The PEM™ allows for each business area’sdiffering types of projects and deliveries,while securing a unified approach andproviding opportunities for cross-organi-sational deliveries. The group has estab-lished decision-making and evaluationbodies at various levels to deal with projectand equipment deliveries. At the pinnacleof this system sits the corporate risk com-mittee, which assesses and recommendscontracts to the appropriate decision-making authority (the President & CEO or theBoard). This committee, which typicallyassesses the largest and most extensivetenders, reviewed about 40 projects in 2008.

Acquisition/sale of businesses and otherinvestment decisions: major businessacquisitions or sales and substantialspending on fixed assets (property,machinery and equipment) are submitted

to the investment committee for a recom-mendation before final approval by theexecutive management or the Board. Thecommittee becomes involved at an earlystage in such processes, and evaluationsfrom the relevant specialist staff functionsform an important part of the assessmentprocess. Such work provides proactivequality assurance that all necessary con-siderations have been properly assessed,including the question of whether theinvestment satisfies the group’s requiredrate of return. The committee often pro-vides guidance for further work by thebusiness areas on acquisitions and invest-ments, and ensures that capital spendingis followed up with requirements forcalculations of the results achieved.

Financial market risk: Aker Solutions hasestablished guidelines and systems tomanage its exposure in financial markets.These cover currency, interest rate, counter-party and liquidity risk. Significant bankguarantees have also been issued tocustomers in connection with the group’sactivities.

Currency risk: operational units covertheir foreign currency positions via thecorporate treasury department whencontracts are awarded. In turn, thetreasury department covers these posi-tions directly against external banks.Operational units are required to covertheir currency positions against theirfunctional currency. All major contractsare hedged and documented in such away that they qualify for hedgeaccounting. Qualified hedges accountfor about 80 percent of the group’stotal currency exposure. The remaining20 percent is secured through net posi-tions which do not qualify for hedgeaccounting under the relevant account-ing standards. The corporate treasurydepartment is also mandated to take alimited open position. This activityyielded earnings of NOK 37 million in2008. Total currency turnover for thecompany against external banks in2008 was almost NOK 107 billion.Interest rate risk: the corporate goal isto have 30–50 percent of gross debton fixed interest rates for three to fiveyears. At 31 December, about 40 per-cent of the outstanding debt had fixedinterest rates.Counterparty risk: specific and continu-ous assessments are made of major

contractual counterparties, and effortsare made to cover risk through parentcompany guarantees, structuring ofpayment terms or bank guarantees.Where bank risk and the placementrisk for surplus liquidity are concerned,specific maximum levels have been setfor the group’s exposure to each finan-cial institution.Liquidity risk: in addition to seeking toensure that all projects have a positiveor neutral cash flow, the group’s policyis to maintain satisfactory liquidity atcorporate level. This liquidity buffer isexpressed as the sum of undrawn bankcredit facilities and available cash andbank deposits. Experience indicatesthat the buffer should correspond toabout three to four weeks of turnover orsix to eight percent of annual revenues.The working capital will vary over time,depending on the composition of reve-nues in the various segments. Effortswill be made to ensure that debt has anaverage remaining term of three to fiveyears. A new bank credit facility of NOK2.0 billion with a three-year term wassecured in December 2008 to strengthenthe group’s liquidity buffer, whichamounted at 31 December to NOK8 157 million or roughly 14 percent of2008 revenues. The average weightedduration of existing outstanding debtand committed credit facilities is 3.21years. Aker Solutions is in compliancewith all the financial covenants in its loanagreements (see note 25.6 Borrowingsand other non-current liabilities to theconsolidated accounts).Guarantee portfolio: a significantproportion of business area contractsare supported by bank or insuranceguarantees. On-demand guaranteesaccount for a large share of these,particularly in ED&S, Subsea and P&T.This means that they can fall due for

“The group intends tomaintain its strategyof selecting, winningand executing theprojects in which itwould be appropriateto become involved”


Our performance


payment at short notice. Carefulassessments are made before provid-ing such on-demand guarantees, withinsurance policies taken out if neces-sary to protect against unfriendlyclaims under the guarantees. Thegroup’s guarantee portfolio at 31December totalled NOK 7 855 million.The increase from NOK 5 500 million in2007 reflects mainly exchange ratefluctuations. NOK 2 624 million in newguarantees were provided during 2008.Further details about uncertainties andcontingent events are presented innote 13 Contingent events to theconsolidated accounts.

The year 2008New nameThe Board’s proposal to change the com-pany name from Aker Kværner ASA toAker Solutions ASA was approved by theAnnual General Meeting (AGM) on 3 April2008. This change was a consequence ofthe clarifications obtained in 2007 con-cerning the company’s ownership structure.The new Aker Solutions name representsthe culmination of an integration processbetween two historical competitors, AkerMaritime and Kvaerner, and describes anenterprise which develops completeindustrial solutions for its customers. Thenew name will symbolise clarity, innova-tion and progress while emphasising itsfamily affiliation and the commercial oppor-tunities created through collaboration withother Aker companies. In connection withthe name change, a new logo and visualidentity were introduced for Aker Solutions.

Restructuring of the business areasIn order to streamline the organisation ofthe business even further, an internal proc-ess pursued in the course of 2008 led tothe merger of the FD and MMO businessareas, forming ED&S with operationaleffect from 1 September 2008. The goal ofthis new business area is to make betteruse of its specialist resources and leading-edge expertise. That creates opportunitiesfor cost savings and for exploiting synergiesbetween the development and servicing ofoil and gas installations. One aim for themerger is to contribute to a sharpening ofthe group’s commercial and technologicalimage, and to expansion in existing andselected new markets.

Structural changes were also made inSubsea and P&T with the goal of stream-

lining the group’s offers of technology,solutions and services to customers ofthese two business areas. The changesmean that Aker Marine Contractors, AkerWell Service and Aker Geo business units,previously part of the P&T business area,are now integrated in the Subsea businessarea, while the drilling risers have beenmoved from Subsea to P&T. An operationaladjustment began on 1 October 2008, andthe full effect in organisational and account-ing terms applied from 1 January 2009.The driving force behind the restructuringhas been to concentrate all the group’ssubsea and sub-surface activities in thesame business areas in order to improveopportunities to create and exploit com-mercial synergies. The changes moreovermean that Subsea and P&T have furthertailored the solutions, technological prod-ucts and services they offer to marketrequirements.

InvestmentsAs part of the strategy of complementingthe portfolio of products and solutions,some NOK 1.8 billion in total was devotedin 2008 to the acquisition of businesses.Other investments totalled about NOK 1.6billion. Conducted in line with the group’sstrategy, the investments were largelycarried out by Subsea and P&T to meetcustomer requirements. A commitmenthas been made, for instance, to buildingup a global service organisation to meetthe local needs of customers.

British company Qserv Ltd, which spe-cialises in well intervention, was acquiredin July 2008. Demand for products andservices able to enhance the efficiency ofexisting wells is growing sharply, and theacquisition strengthens Aker Solutions’position in the well intervention market.Qserv has almost 400 employees, includ-ing 250 offshore, and had annual revenuesof NOK 711 million in 2008.

During the second half of 2008, AkerSolutions acquired a further 40 percent ofthe shares in Aker Marine Contractors ASand thereby converted this company into awholly-owned subsidiary. The acquisitionformed part of the long-term strategy ofstrengthening the group’s position alongthe value chain for marine operations andoil and gas services. Both Qserv and AkerMarine Contractors will form part of theSubsea business area.

The Well Intervention Academy, a testand training centre for well services,

opened in Stavanger during May. Its objec-tive is to provide new generations of offshoreoperators and engineers with first-handexperience of activities in the well servicessegment. Investment was also made innew office buildings and a new servicebase for Subsea at Perth in Australia, andit was resolved in September 2008 toexpand the Brazilian production facility atCuritiba in order to double capacity formanufacturing subsea trees by 2010.

Acquiring a majority shareholding in FirstInteractive AS is highly significant for P&T.This company pursues three-dimensionalvisualisation and simulation of drillingoperations, in part for training customerdrilling personnel. The acquisition will helpto strengthen the group’s market positioneven further in this field. Aker Solutions alsohas an option to acquire the remainingshares in the company.

In Canada, an investment was made inexpanding production facilities for AkerChemetics in Toronto. Construction of thisfacility increases manufacturing and liftingcapacity and permits further developmentof expertise in specialised welding, as wellas in working with stainless and high-alloysteels.

Presentation of the accountsAker Solutions presents its accounts in ac-cordance with the International FinancialReporting Standards (IFRS).

Income statementConsolidated operating revenues for 2008were NOK 58 252 million, and the groupthereby met the goal of at least NOK 58billion communicated in the Board ofDirectors’ report for 2007 and on otheroccasions. This represented a 0.5 percentincrease from NOK 57 957 million in 2007.Considerable activity related to the com-pletion of Ormen Lange and Snøhvitcontributed to the high level of revenues in2007. In these circumstances, the Board issatisfied that the goal of maintaining thelevel of revenues was met.

Earnings before interest, tax, deprecia-tion and amortisation (EBITDA) amountedto NOK 3 382 million, a decline of 13.6 per-cent from NOK 3 913 million in 2007. TheEBITDA margin was 5.8 percent as against6.8 percent in 2007. The EBITDA decline isprimarily attributable to cost overruns inthe Frigg and Aker H-6e projects.

Depreciation, impairment charges andamortisation totalled NOK 615 million,


Our performance


compared with NOK 431 million in 2007.Consolidated earnings before interest andtaxes (EBIT) were NOK 2 767 million asagainst NOK 3 482 million in 2007.

Net financial expenses amounted toNOK 225 million, compared with NOK 106million in 2007.

The group hedges currency risk for allproject exposures in accordance with well-established practice. Although this pro-vides a full currency hedge, parts of thehedging (about 20 percent) fail to meet therequirements for hedge accounting specifiedin the IAS 39 international accountingstandard. Fluctuations in the value of theassociated hedging instruments are recog-nised as a financial item in the accounts.The accounting effect appears as anexpense of NOK 439 million in a separateline under financial items for 2008. The 2007figure was an income of NOK 162 million.

The loss from associated companieswas NOK 21 million, compared with a lossof NOK 2 million in 2007. Tax expense wasNOK 590 million as against NOK 1 074 mil-lion the year before. This corresponds toan effective tax rate of 28 percent, com-pared with 30 percent in 2007.

Consolidated net profit for 2008 wasNOK 1 513 million, compared with NOK2 464 million the year before. This repre-sented earnings per share of NOK 5.34,down from NOK 8.84 in 2007.

Cash flowNet cash flow from operations wasnegative NOK 868 million, comparedwith positive NOK 2 675 million in 2007.Consolidated cash flow from operatingactivities depends on a number of factorsincluding progress with and delivery ofprojects and pre-payments from custom-ers which lead to a significant increase inworking capital during the period.

Net cash flow from investment activitiesin 2008 was negative NOK 3 732 million,primarily as a result of investment in theSubsea and P&T business areas. The figurefor 2007 was negative NOK 1 576 million.

Net cash flow from financing activitieswas NOK 4 105 million, compared withnegative NOK 3 013 million in 2007. The2008 figure includes NOK 807 million individend paid in 2008 and NOK 70 millionin buying back the company’s own shares.

Balance sheet and liquidityConsolidated interest-bearing debt amoun-ted to NOK 6.7 billion at 31 December, up

from NOK 1.6 billion at the same date theyear before. Long-term debt comprisedfour bond loans in the Norwegian market.These loans were for NOK 500 million ma-turing in 2009, NOK 650 million maturing in2011, and NOK 150 million and NOK 300million respectively, maturing in 2013. Theyhave floating interest rates with the excep-tion of the loan for NOK 150 million matur-ing in 2013, which has a fixed rate. Parts ofthe loans with floating rates have been con-verted to fixed rates through interest swapagreements. Fifty percent of the total bondloans accordingly have fixed rates. Theaverage term to maturity for these loans isabout three years.

A syndicated bank facility of EUR 750million (corresponding to NOK 7 410 750million at 31 December 2008) was esta-blished on 25 October 2006, and has fouryears remaining to maturity. The bank facilityhad been drawn at 31 December 2008.

A new credit facility of NOK 2 000 millionwas established by the company in Decem-ber 2008 with a term of 18 months tomaturity and an option to extend this termby a further 18 months to a total of threeyears. This facility had not been drawn at31 December 2008.

As an alternative to drawing on the bankfacility in 2008, use was made of theNorwegian certificate market.

Net interest-bearing debt amounted toNOK 2 311 million at 31 December 2008,compared with assets of NOK 2 463 milliona year earlier. This reduction reflects acqui-sitions, investments, increased workingcapital and the payment of dividend.

Current liabilities of NOK 25 172 millionat 31 December 2008 consisted primarily oftrade and other payables. The correspond-ing figure in 2007 was NOK 17 127 million.

Aker Solutions’ current assets totalledNOK 25 217 million at 31 December 2008,compared with NOK 19 866 million a yearearlier.

Consolidated non-current assets totalledNOK 13 150 million at 31 December, com-pared with NOK 8 650 million a year earlier.The largest item was goodwill, whichamounted to NOK 6 959 million as againstNOK 4 938 million. This goodwill relatesprimarily to the acquisition of TrafalgarHouse in 1996, the merger with Aker Mari-time in 2001 and the acquisition of QservLtd and Aker Marine Contactors AS in 2008.

Book equity including minority intereststotalled NOK 8 606 million at 31 December,compared with NOK 7 267 million a year

earlier. Minority interests amounted to NOK156 million. The group’s equity ratio was20.1 percent of the total balance sheet at31 December, compared with 25.5 percenta year earlier. Financial adequacy andliquidity are good, and help to place thegroup in a good position to meet the chal-lenges and opportunities presented overthe next few years.

The business areasEnergy Development & Services resultsfrom a merger between the former FD andMMO business areas. With some 8 500employees, ED&S ranks as a substantialbusiness in its own right. An efficient mergerprocess was implemented in the summerof 2008 through good planning and positivecollaboration with the workforce.

The business area maintained a high levelof revenues in 2008. The year before wascharacterised by record revenues relatedin part to great activity on projects such asOrmen Lange and Snøhvit. Operatingrevenues came to NOK 22 684 million, com-pared with NOK 24 921 million in 2007.

Major projects pursued during 2008included construction and delivery of theworld’s first offshore regasification terminalfor ExxonMobil’s Adriatic LNG project. Inthe course of 2009, this facility will deliver10 percent of Italian gas consumption. Oneof Italy’s most extensive projects, thisdevelopment is regarded as an interna-tional milestone. Another project whichcharacterised activities in 2008 was theconstruction of the world’s most advanceddrilling rigs, the Aker H-6e units AkerSpitsbergen and Aker Barents, for AkerDrilling. They are expected to be com-pleted and delivered during the first half of2009.

EBITDA for 2008 was negative atNOK 475 million, compared with a positive

“Conducted in linewith the group’sstrategy, theinvestments werelargely carried out bySubsea and P&T tomeet customerrequirements”


Our performance


NOK 1 391 million in 2007. The EBITDAmargin was negative at 2.1 percent asagainst a positive 5.6 percent in 2007.Efforts to strengthen profitability in 2008,in line with the group’s overall strategy,have been impacted both by the removalof the Frigg field’s platforms, which provedmore demanding and thereby more expen-sive than expected, and by cost overrunsdriven by operational challenges related tothe Aker H-6e rig project

New contracts were secured in a numberof areas during 2008. Long-term, ongoingframe agreements for operation and main-tenance work in the North Sea basin wereconcluded, while an extensive front-endengineering and design (FEED) contract wasobtained for renewal work on the Ekofiskfield. Together with WorleyParsons andChicago Bridge & Iron (CB&I), Aker Solutionsalso won the FEED contract for the nextdevelopment phase on the Kashagan field inthe Caspian Sea. The order backlog at 1 Jan-uary 2009 was NOK 18 315 million, com-pared with NOK 24 317 million a year earlier.

The financial crisis is expected to con-tribute to some postponement of new buildactivity in 2009, but the long-term marketoutlook for new builds is regarded as posi-tive. Activity in the MMO market shouldremain at a high level in 2009, since theplanned work makes a significant contribu-tion to maintaining and reinforcing efficientrunning of installations by their operators. Inthe operations and maintenance segment,ED&S holds a number of long-term frameagreements with the biggest operators.

The new business area’s combinedexpertise and capacity allows it to under-take even more and larger projects thanbefore in regions outside the North Seabasin. One ED&S goal is to maintain itsshare of the traditional MMO and new buildmarkets on the Norwegian and UK conti-nental shelves. A commitment will simulta-neously be made to strengthening itsmarket position in such areas as Russia,the Barents Sea, the Caspian Sea, thedeepwater Gulf of Mexico and regionswhere the business has competitive advan-tages in technological terms.

Subsea underwent a successful expan-sion and restructuring in the autumn of2008 with the aim of strengthening therange of subsea technologies, solutionsand services offered throughout the valuechain. As a result, Aker Marine Contrac-tors, Aker Well Service and Aker Geo busi-

ness units were integrated in the businessarea, while the drilling riser business wastransferred to P&T. As part of its strategy,Aker Solutions also acquired Qserv in July2008, a leading well service company thatoperates on the UK Continental Shelf.

Through these moves, Aker Solutionshas established its Subsea business areaas the industry’s most complete supplierfor advanced subsea solutions, with theability to serve as a partner throughout thefull lifecycle of a subsea field.

The business area had a high level ofactivity in 2008, making good operationaland financial progress, and the aftermarketsegment continued to grow throughout theyear. Total operating revenues rose by 13.8percent from 2007 to NOK 11 206 million.

EBITDA was NOK 1 228 million, com-pared with NOK 960 million in 2007. Profit-ability strengthened substantially in 2008.The EBITDA margin improved from 9.7percent the year before to 11 percent as aresult of good progress for lifecycleservices and excellent project execution.

In the North Sea basin, Subsea pro-gressed well with the execution of the Mor-vin and Ormen Lange projects for Statoil-Hydro. First oil was produced by RelianceIndustries from its MA-D6 field on theIndian Continental Shelf in September,only 16 months after awarding Aker Solu-tions the contract to deliver a completesubsea production system. The group alsowon a substantial contract in 2008 to installthe field’s second phase.

Aker Solutions secured several othersubstantial assignments during the year. Aframe agreement was awarded in Brazilwith Petrobras for delivering 45 subseatrees. Long-term frame agreements forsubsea equipment were also signed withShell (Malaysia and the UK), MurphyExploration & Production Company (Gulfof Mexico) and BP (Angola and the UK).

Markets are expected to be uncertain inthe immediate future, but positive in thelonger term. The order backlog at 1 January2009 was NOK 11 876 million, comparedwith NOK 10 951 million a year earlier.

Subsea has continued the strategy ofinvesting in production and lifecycle capacityto achieve closeness to regional marketsand deepwater regions. The business areahas a very modern and well-developedproduction and lifecycle network, and iswell positioned for further growth. Acommitment will also be maintained totechnology development in selected areas,

in part to improve recovery factors forproducing fields. This is a market whereAker Solutions already holds a leadingposition for both technological and mainte-nance services.

Products & Technologies experienced ahigh level of activity in its market segmentsduring 2008. Operating revenues rose by15.1 percent from the year before to reachNOK 14 216 million.

A total of seven drilling equipment pack-ages were completed during the year andare operating on rigs for various customers.P&T also contributed important deliveriesto the Dhirubhai 1 floating production,storage and offloading (FPSO) unit forReliance Industries.

EBITDA for 2008 came to NOK 1 448million as against NOK 959 million the yearbefore. The EBITDA margin was signifi-cantly strengthened, from 7.8 percent in2007 to 10.2 percent. This improvement inprofitability reflects good project execu-tion as well as the contribution from anexpanding service business.

The market for drilling equipment con-tinued to grow. The strong market positionheld by Aker Solutions was confirmed bythe award of contracts to deliver 12 com-plete drilling equipment packages and sixdrilling riser contracts. Order intake wasgood in 2008, and the backlog at 31 Dec-ember had risen from NOK 11 520 million in2007 to NOK 14 705 million.

Through its successful acquisition ofimportant technology companies, AkerSolutions is well positioned to grow in themarket for drilling equipment. P&T has, formany years, received important compo-nents for its drilling systems from WirthGmbH, a Germany-based drilling techno-logy specialist. Acquiring this company isan example of complementing the mosthigh-tech sections of the value chain, whilealso expanding the customer base. WithWirth as a wholly-owned subsidiary, AkerSolutions expects to be able to strengthendeliveries of complete drilling equipmentpackages. An investment has also beenmade in a manufacturing plant for deepwaterdrilling risers. Opened in 2008, this facility isstrategically located in Rio das Ostras, Brazil,in order to serve both the fast-growing Bra-zilian oil industry and the global rig market.

As a reflection of the high level of activ-ity in the oil and gas industry, over the lastthree years, drilling contractors haveordered a large number of units for both


Our performance


deep and shallow water. Following theaward of many new contracts, P&T hasexpanded its market share and ranks asone of the market leaders for advanceddeepwater drilling systems. Demand fornew rigs is expected to decline in the shortterm. This will be partly offset by anexpanding market for upgrades andincreased service activity. In the longerterm, market drivers are expected toensure a continued high level of activityand demand for advanced drilling rigs andequipment deliveries to FPSOs. A steadilylarger share of offshore operations isexpected to lie in deep water and harshweather areas, where only the mostadvanced rigs can work. More complexwells, challenging areas of operation andenvironmental requirements are likely tostrengthen demand for such units.

Short-term market conditions areexpected to be challenging, and couldlead to a decline in activity. However, alarge, high quality order backlog will helpto maintain the level of activity in 2009 and,to some extent, in 2010 and 2011.

Process & Construction reduced itsoperating revenues in 2008 through a con-tinued concentration of the business. Theycame to NOK 10 702 million as againstNOK 11 597 million in 2007.

In line with the goal of strengtheningprofitability, high priority was given tomargin growth. EBITDA was NOK 904million, up 16.5 percent from 2007. TheEBITDA margin increased from 6.7 percentto 8.4 percent. The order backlog wasNOK 13 300 million at 1 January 2009 com-pared to NOK 12 519 million a year earlier.

The metals business has a solid orderbacklog and a good market position. InSouth America, the group’s leading posi-tion was further strengthened during 2008through the award of five new EPCM metalprocessing projects including Esperanza,the world’s largest copper development.New offices were opened in South Africaand Namibia to serve Aker Solutions’global metals customers.

In the petrochemicals sector, AkerSolutions’ projects have been graduallyconverted from lump sum EPC contractsto reimbursable EPCM deals. This deliber-ate conversion yields rather lower reve-nues but better margins and less risk. AkerSolutions has a good petrochemicalsposition in China and India. Uncertaintyprevails about these markets for the imme-

diate future, but the market outlook ispositive in the longer term. The groupoccupies a strong position in niches of themarket for power plant construction, par-ticularly in the US.

Engineering capacity in India wasexpanded during 2008, and the staff is nowroughly 1 700 engineers. The Indian businesshas become established as a centre forengineering services and is involved inmany projects both locally and for AkerSolutions worldwide.

The work of prioritising profitabilityrather than top-line growth will continueduring 2009. A commitment will be madeto further strengthen P&C’s position in themetals market, especially within copperand in South America where many newprojects are planned in the coming years.The business area will continue to concen-trate on being a niche supplier to theprocess industry, and China and India willremain important growth markets.

Research and developmentNew technologies and new products areimportant requirements for safeguardingAker Solutions’ future competitiveness.The group’s large and highly competentengineering teams work closely with part-ners and customers worldwide, and havefirst-hand knowledge of the latter’s technol-ogy challenges and requirements. This closecollaboration initiates ideas and conceptswhich develop into innovative technology.That in turn generates high value creationfor customers. It also ensures that researchand development work is market drivenand cost efficient.

A typical focus area is technologies forincreased production and reservoir utilisa-tion and for improved drilling processes.Important priorities in this context are solu-tions for subsea pumps which permitpipeline transport of oil and gas over longerdistances, or gas compression to increasepressure. Aker Solutions has a pilot instal-lation of subsea pumps on the UK Conti-nental Shelf, which has been operatingwith good results since 2005. The firstcommercial installation was put in place inthe Gulf of Mexico during 2008. This is thedeepest subsea pump solution everinstalled. At the same time, the pumpingstation stands further from the platform towhich it is tied than any similar facility.

New and groundbreaking solutions areto be installed on StatoilHydro’s Tyrihansfield in 2009. These involve pumps to inject

seawater into the reservoir in order toimprove production and recovery. Thepumps will be the first of their kind deliv-ered by Aker Solutions, and the largestever installed on the seabed.

Work is also continuing on seabed gascompression systems in close coopera-tion with StatoilHydro and its partners onOrmen Lange. The first objective of thisproject is a 12.5 MW gas compressionpilot, currently under construction and dueto be delivered for testing in 2010.

Aker Solutions invested NOK 188 millionduring 2008 in research and developmentthrough selected projects, compared withNOK 166 million the year before. The groupalso received NOK 21 million in funds fortechnology development from customersand government, as against NOK 77 millionin 2007.

Events after the balance sheet dateWith partners CB&I and WorleyParsons,Aker Solutions was awarded a FEEDcontract in mid-January related to phase IIof the Kashagan field development in theCaspian Sea. This order is worth GBP 90million (USD 135 million).

A share purchase programme foremployees was announced in January 2009,with Aker Solutions offering some 14 100employees in Norway, the Netherlands, theUK, Chile and Canada the opportunity tobuy shares in the company at a discount.The latter is set at NOK 1 500 per employeeup to a maximum purchase of NOK 15 000over the 12 months of the programme.This begins in March 2009.

At the end of January, Aker Solutionsexercised its option to acquire the remaining

“The group’s large andhighly competentengineering teamswork closely withpartners andcustomers worldwide,and have first-handknowledge of thelatter’s technologychallenges andrequirements”


Our performance


50 percent of the shares in Wirth GmbH,which accordingly is considered as a whollyowned subsidiary. Wirth and Aker Solutionshave a good and long-standing relationship,and the acquisition will strengthen thegroup’s total offering to the market for drillingequipment solutions while also providingsynergy opportunities between the twocompanies.

The composition of the group’s execu-tive management team was changed inFebruary 2009. Jarle Tautra took over asexecutive vice president (EVP) of ED&S insuccession to Nils Arne Hatleskog, whileGary Mandel became EVP for P&C in suc-cession to Jarle Tautra.

Share and share capitalDuring the year, Aker Solutions had boughtback 595 000 of its own shares, corre-sponding to 0.2 percent of the issued total.The company owns a total of 4 966 830shares (1.8 percent). The buy-back pro-gramme for the company’s own sharescontinued under a mandate awarded to theBoard by the AGM on 3 April 2008. Thismandate gives the company theopportunity to buy back shares with a totalnominal value of NOK 54 800 000, corre-sponding to ten percent of the outstandingshares. The Board has mandated the admi-nistration to buy back up to five percent.Repurchases above that percentage butwithin the AGM’s mandate must beconsidered by the Board. The mandateruns until the 2009 AGM, which will beheld on 2 April 2009. At 28 February 2009,no shares had been acquired under themandate. The Board will propose anextension of the mandate from the date ofthe AGM’s decision until the next AGM.New terms will then be set for the buy-back programme. The Board was not man-dated in 2008 to increase the share capital.

Going concernBased on the group’s financial results andposition, the Board affirms that the annualaccounts for 2008 have been prepared onthe assumption that the company is agoing concern.

Dividend policyAker Solutions’ dividend policy specifiesan intention to pay shareholders an annualdividend of 30–50 percent of net profit.Dividend will be paid in cash and/orthrough share buy-backs. The Board willpropose a total dividend of NOK 1.60 per

share to the AGM for 2008. Shareholderswill then have received 33 percent of netprofit in the form of share buy-backs anddividend for the fiscal year.

Parent company accounts andallocation of net profitParent company Aker Solutions ASA had anet profit of NOK 205 million for 2008.

Pursuant to the company’s dividendpolicy, the Board proposes that an ordinarydividend of NOK 1.60 per share be paid.This amounts to NOK 430 million.

The Board thereby proposes thefollowing allocation of net profit:

Dividend¹ NOK 430 million

Other equity NOK - 225 million

Total allocated NOK 205 million

Excluding dividend on own shares.1)

Unrestricted equity after the proposeddividend payment amounts to NOK 3 105million.

Health, safety and the environmentConcern for health, safety and the environ-ment (HSE) is one of Aker Solutions’ corevalues. The fundamental vision and atti-tude is that all incidents can be prevented.On that basis, Aker Solutions works con-tinuously to prevent incidents which couldcause harm to personnel, material or non-material assets.

Driven by careThe Just Care™ concept has been estab-lished as a symbol for the group’s HSEculture and work. A key element is thateach person accepts personal responsibilityfor HSE based on care for people and theenvironment. Through Just Care™, the HSEmessage reaches the individual employeemore effectively. Managers as role modelsand a strong commitment to communicationand training create attitudes which integrateHSE in everyday work. That contributes togood projects and better HSE results.

A common HSE cultureEducation occupies a central place in AkerSolutions’ HSE programme. Since it wasintroduced in 2005, a tailored HSE leader-ship programme, developed in-house, hasbeen completed by more than 2 200 leaders.This programme equips managers with thecompetence required to become betterrole models and to drive HSE improvements.

To reach out to all employees in an efficientway, the group has also developed its owneLearning programmes for important areas.These include the Just Care™ culture andHSE as a core value, as well as more specifictopics on mastering stress and protectingthe natural environment. More than 57 000eLearning sessions have been completedsince the programmes were introduced.

Clear expectationsA common HSE management system forthe whole company sets standards for themost important elements in HSE manage-ment and leadership. Regular audits un-cover possible gaps in relation to expecta-tions, and the necessary countermeasuresare identified and initiated. This systemalso functions as a framework for cross-organisational sharing and learning.

Learning from accidentsOn the basis of an analysis of incidents inrecent years and exchange of experiencein the industry, Aker Solutions has devel-oped and adopted a new component in itsHSE programme. Entitled Just Rules, thisis a set of simple but specific safety regu-lations for particular work operations whichare judged, on the basis of experience, topose higher risks. The categories withinJust Rules are: lifting operations, work atheight, energy isolation, confined spaceentry, excavation and mobile equipment.These rules were implemented throughoutAker Solutions during 2008. More than32 000 employees, contract staff and sub-contractor personnel participated duringthe year in presentations of Just Rules aspart of their extensive roll-out. By makingthe most important preventative measuresobligatory, clear and simple, Just Ruleswill be an important contribution to pre-venting serious incidents.

The number of accidents causing seriouspersonal injury declined from 30 in 2007 to17 in 2008. The total recordable injury freq-uency (TRIF) per million working hours fellfrom 3.7 to 3.6 in 2008. The lost time incidentfrequency (LTIF) per million working hoursrose from 0.68 in 2007 to 0.93 in 2008.These figures also include Aker Solutions’subcontractors. All significant accidentsand near-misses are investigated and thetreatment of each case is systematicallystored in Aker Solutions’ database. Thelessons learned from these accident andnear-misses are implemented with the aimof preventing similar incidents in the future.


Our performance


Sick leaveSick leave amounted to 2.3 percent of totalworking hours in 2008, compared with 2.4percent the year before. The trend is forsick leave in the group to remain stable ata low level after acleardecline in2003-2006.However, it should be noted that differ-ences in local regulations complicate adirect comparison of sick leave betweendifferent countries.

Natural environmentThe Board takes the view that AkerSolutions’ activities pose only a limiteddirect burden on the natural environment.No unintentional discharges or emissionsto the surrounding environment wererecorded in 2008. Total energy consump-tion by the business in 2008, based onrecorded use of oil, gas and electricity,amounted to 623 049 megawatt hours.Carbon emissions related to this usage arecalculated at 146 654 tonnes. The amountof waste recorded in connection with thebusiness totalled 35 756 tonnes, of which62 percent was recycled. Reporting proc-esses for environmental parameters havebeen improved, and the figures above arebeing reported from 2008 with greateraccuracy than before.

The group’s target for 2009 is to increaseemployees’ environmental knowledge andawareness. Initiatives will be rolled outthrough a common, global environmentalcampaign including: further implementa-tion of eLearning courses for all employ-ees, additional focus on environmentalreporting, workshops for top managers,encouraging more business units to becertified to the ISO 14001 standard, andan environmental portal on the intranet. Allthese activities will be carried out inconjunction with an increased focus onenvironmental conditions internally, withcustomers, subcontractors, authorities andsociety in general. The most importantresult is that the employees develop theirpersonal relationship with the environment.

19 of the group’s business units are nowcertified to the ISO 14001 environmentalstandard. Five of these were certified in2008. An eLearning programme with a par-ticular focus on the natural environmentwas introduced during the year, and 9 000employees have so far completed it. Thealready mentioned HSE initiatives on lead-ership development, eLearning and themanagement system also incorporateclear components which focus attention

on the environment. Collectively, thesecontribute to continuous improvements inenvironmental awareness and attitudesamong managers and other employees.That inspires the organisation to achievefurther gains in environmental performancein Aker Solutions’ own activities, and toassist customers in making environmentalimprovements through the products devel-oped by the group. Examples can be foundin such areas as carbon capture, drillingrigs with a strong environmental perform-ance in arctic conditions, treatment ofvolatile organic compounds, treatment ofsulphur and ammonia discharges, and thenext generation of biofuels.

People and organisationDeveloping human resourcesAker Solutions is strongly committed toleadership and expertise development asa competitive advantage. The Aker Acad-emy offers programmes in importantprofessional subject areas such as generalleadership, project execution, commercialmanagement and HSE. Implemented todate primarily in Europe, the US and Asia,these programmes had a total of 1 334participants in 2008.

Emphasis has also been given to imple-menting eLearning programmes, with24 000 active users in over 30 countries.Over 80 000 eLearning courses have beencompleted since 2005. The group’s globaleLearning portal offers more than 30tailored programmes which support bothglobal and corporate initiatives. The portfolioof eLearning programmes covers areasincluding PEM™, HSE and Just Care™,environmental considerations, socialresponsibility and more group-specifictopics. A new eLearning programme onmastering stress was launched in connec-tion with improvement measures identifiedthrough the employee survey carried out inAker Solutions during 2007. The commit-ment to eLearning has helped to provideall employees with a unifying, cost-effectiveand accessible range of courses. In addi-tion to the professional expertise theyprovide in key areas, these courses makea strong contribution to building a com-mon corporate culture through a uniformapproach and consistent message, as wellas opportunities for mandatory certifica-tion in special areas. Corporate pro-grammes offered across the group aresupplemented by a number of trainingcourses organised by local units.

Aker Solutions’ international traineeprogramme is now in its third year. Traineeshave rotated globally between differentpositions in the group, completing a totalof 66 assignments, of which more than halfwere outside Norway. The first batch oftrainees completed their programmeduring September, and all eight havesecured full time positions with AkerSolutions in the US, Brazil, China, Malaysiaand Norway. These positions lie withinsuch areas as business development, pro-curement and finance. The third batch oftrainees was recruited in the autumn of2008 for a two year programme with AkerSolutions. They come from India, Malaysia,Norway and Russia. Aker Solutionsreceived more than 1 500 applications forthese ten traineeships.

A global talent programme waslaunched in connection with the creationof the new ED&S business area. Its mainfocus is on developing the business area’smanagement capacity to meet the leader-ship challenges presented by a largerproportion of international projects, teamswith a more global composition and opera-tions in unfamiliar regions.

Aker Solutions also opened its WellIntervention Academy in Stavanger duringthe spring of 2008. This test facility will pro-vide the next generation of offshore operatorsand engineers with first-hand knowledge of,and experience with, critical well interventionactivities. The academy can offer realisticand practical training in virtually the sameenvironment as that found offshore.

OrganisationThe Aker Solutions workforce totalled33 961 people at 31 December, including23 360 employees and 10 601 contractstaff. Of the group’s employees, 49.7 percentworked in Norway, 17.2 percent in theAmericas, 14.6 percent in Asia and Australia,17.5 percent in Europe outside Norway and1.1 percent in Africa and the Middle East.

“A key element is thateach person acceptspersonal responsibilityfor HSE based oncare for people andthe environment”


Our performance


for Aker Solutions, heading the former busi-ness area Oil, Gas, Process and Energy(OGPE) until 2007. Per Harald Kongelf tookover as EVP for P&T, succeeding MadsAndersen who in September 2008 wasappointed EVP of Subsea. RaymondCarlsen, the former head of that businessarea, moved in October 2008 to a position asPartner in Aker ASA.

Equal opportunities and diversityAker Solutions wants to be an attractiveemployer for people from different back-grounds, regardless of their ethnicity, gender,religion or age. With operations in around30 countries and on every continent, diver-sity is a desirable and positive part of thecorporate culture and strengthens thegroup’s ability to operate in varying condi-tions and frameworks. Aker Solutions isincluded in a three parties framework agree-ment between Aker ASA, the NorwegianUnited Federation of Trades Unions and theInternational Metalworkers Federation,committing the involved parties to workingtowards the development of good workingrelations. The agreement consists of elevenmain points including discrimination, work-ing hours and general working conditions.The agreement will be reviewed annually toensure that the parties comply with their ob-ligations.

The group will pay the equivalent salaryfor the equivalent work and will rewardgood performance. Key factors in deter-mining pay are the area of responsibilityconcerned, what a job involves, theemployee’s level of expertise and commit-ment, results actually achieved, and localpay levels. Average pay in the company issomewhat higher for men than for women.On average, male employees have greaterpay seniority than women. Aker Solutionshas two main categories of employees:skilled workers/operators (29 percent) andwhite collar personnel (71 percent).

The group benefits from diversity in therecruitment and development of its lead-ers. The Aker Academy’s leadership pro-grammes were composed of 23 percentfemales on mid-level manager coursesand 11 percent females on its top levelcourses. Aker Solutions prioritises theattraction and retention of youthfultalents. To date the Aker internationaltrainee programme has had 69 percentfemales. The corporate executive man-agement team had no female members at31 December. Three of Aker Solutions’ six

Workforce turnover in 2008 averagednine percent, a reduction of 1.4 percentagepoints from the year before. Aker Solutionsfaced a challenging labour market in 2008,and purposeful efforts were made tosecure qualified resources through recruit-ment. The focus has been on implement-ing a common global recruitment model inthe group with a common interview guiderooted in the group’s values, standardinformation materials and training of in-house resources, which has contributed inpart to a more transparent in-house labourmarket. The aim has been to ensure thatas many potential candidates as possibleexperience a professional recruitmentprocess in a market and an industry wherecompetition over competent labour is evertougher. Common recruitment campaignswere also pursued in Norway and the USwith great success. More than 30 000applicants from over 30 countries wereregistered in the group’s recruitment sys-tem in 2008. A total of 4 108 new employ-ees were recruited from this base duringthe year, of these were 25 percent femaleand 75 percent male.

Board and management changesSimen Lieungh took over as President &CEO of Aker Solutions ASA with effectfrom 1 March 2008. He replaced MartinusBrandal, who moved to a new position asSenior Partner & President in Aker ASAwith responsibility for Energy Technologies.Leif Borge was appointed to replace BjørnErik Næss as chief financial officer (CFO)from April 2008.

The AGM held on 3 April elected MartinusBrandal as the new Chairman of the Board,while Leif-Arne Langøy and Bjørn Flatgårdwere elected as Directors for a two yearterm.

Several changes were made to theexecutive management team during theyear in connection with the restructuring ofthe business areas. Jarle Tautra wasappointed EVP of the new ED&S businessarea from February 2009 in succession toNils Arne Hatleskog, who led the processof merging FD and MMO. Pål Helsing,previously EVP for FD, was appointedsenior vice president (SVP) for strategyand technology in April 2008, reportingdirectly to President & CEO Simen Lieungh.

Gary Mandel was appointed EVP for theP&C business area in succession to JarleTautra. He had been CEO of Aker AmericanShipping since 2007 and previously worked

shareholder-elected Directors are women,which corresponds to 50 percent. All of theemployee-elected Directors are men.All-male employee-elected Directors ispermitted in instances where the numberof female employees is less than 20percent of the total workforce.

Wherever possible Aker Solutionssupports and promotes arrangementsthat bring a positive work/life balance,including flexible working, remote workingand part-time working.

Performance culture and managementby resultsAker Solutions wants its organisation andeach employee to concentrate on achiev-ing results in the short and long terms.Processes for setting targets and measur-ing their attainment, and for rewarding em-ployees in relation to the results achieved,represent important instruments in thiscontext. Targets for managers and otheremployees are determined on the basis ofstrategies and budgets in each unit. Theyare set on an annual basis, but followed upand further developed where necessaryduring the year. The annual performancemeasurement processes embrace financialtargets, development and improvement ofproducts, project management, serviceand the like. Targets are also set for HSEand personal development by eachmanager and other employee.

To ensure development and optimumutilisation of the group’s managementresources, an annual assessment ofmanagers is conducted as the basisfor determining plans for managementdevelopment, manager mobility and thedevelopment of talented managers.

Aker Solutions wants to reward manag-ers and other employees in accordancewith the results achieved. This is achievedthrough the determination of individual basicpay for groups of employees and remunera-tion systems which pay an annual variableamount to managers and other employees.

Annual variable pay is paid to employ-ees on the basis of the commercial resultsachieved by the relevant company orproject. Managers earn variable pay on thebasis of commercial results for the unitsthey influence and the extent to which theycomply with the group’s values. Variablepay for senior executives is spread overseveral years to encourage long-termachievement of results and a lastingemployee relationship. Further details of


Our performance


the remuneration of senior executives areotherwise provided in note 18 Salaries,wages and social security costs to theconsolidated accounts.

Corporate governanceAker Solutions complies on the whole withthe principles enshrined in the applicableNorwegian code of practice for corporategovernance, which also largely harmo-nises with applicable international recom-mendations. The annual statement on theway Aker Solutions observes the code ofpractice issued by the Norwegian CorporateGovernance Board (NUES) can be foundon page 132 of this annual report.

Corporate responsibilityAs a Norwegian company with a stronginternational presence, Aker Solutions hasan impact economically, environmentallyand in the lives of people globally. With thiscomes responsibility: the responsibility toset high standards; to be a business that isdriven by its values; and to be a goodcorporate citizen.

Aker Solutions’ history and values, aswell as international norms such as theUN Global Compact, the Global ReportingInitiative and the OECD Guidelines are thebasis of its corporate responsibility principles.The company is committed to continuallyimproving its performance against them.

As a global supplier to the energy andprocess industries, the company hassingled out two areas of corporate respon-sibility (CR) on which to focus:

managing the challenges associatedwith entry into new and emergingmarketsdeveloping and supporting effective,environmentally sound solutions

In 2008, the company became a memberof UN Global Compact. Membership opensup global and local opportunities todialogue and collaborate with other busi-nesses, non-governmental organisations,labour organisations and governments oncritical issues.

In addition, Aker Solutions’ major share-holder, Aker ASA, signed a frameworkagreement with the Norwegian Confedera-tion of Trades Unions and the InternationalMetalworkers Federation on behalf ofcompanies that are a part of Aker. Theagreement commits Aker Solutions and allAker companies to working towards the

development of good working relations,and to respect human and trade unionrights in the community.

As part of Aker Solutions’ efforts tobuild internal awareness and under-standing for corporate responsibility, thecompany rolled out its CR eLearningprogramme globally mid-year. The courseis mandatory for all employees.

In 2008, the company successfullyimplemented the first phase of its strategicthree year partnership agreement with theNorwegian Red Cross. The partnershipencompassesfinancialsupport,exchangesof expertise between the organisationsand volunteer activities. In phase one, AkerSolutions offices in Norway were intro-duced to the Red Cross volunteer activitieslocal to them. Several Aker Solutions’offices are now actively engaged in volun-teer activities. The second phase of thepartnership is already underway, with theaim of expanding the collaboration to AkerSolutions’ offices around the world.

In December, the company publishedits CR report for 2008/2009, Face value.The report communicates the CR challen-ges the company faces, the results it hasachieved and its ambitions going forward.The report is available from Aker Solutions’website.

Customer relationsMany of Aker Solutions’ customers areleading players in their sectors on theworld stage. They implement extensiveprojects which are usually of such a char-acter that failure to meet agreed progress,budget, quality and efficiency milestonescan have major consequences. Aker Solu-tions gives great weight to its ability to de-liver, and also has a reputation for offeringsolutions which create added value forcustomers.

Those customers have shown great confi-dence in the group over many years byawarding it important projects. Thisconfidence represents a major asset, whichit is important to preserve and continuedeveloping.

The group gives great weight to findingthe best and most effective solutions foreach customer. That is done by combiningan understanding of their specific chal-lenges with Aker Solutions’ expertise,experience, technology and products – notleast with the aid of its recognised andwell-proven model for project execution,the Aker Solutions PEM™. The group also

implemented important organisationalchanges in 2009 in order to even bettertailor its offer to customer requirements.

Contact with customers is pursued atvarious levels – between senior executives,through the business area concerned,through project management and throughclose collaboration with relevant teams ofexperts.

Both executive management and man-agers at other levels have defined roles forensuring the best possible follow-up ofeach customer. Contact at several levelsensures a good overview and under-standing of the customer’s requirements,both in the short term and over a longerperspective.

In addition to direct customer contact,Aker Solutions utilises external marketanalyses and surveys of customer satis-faction as tools to ensure that it is meetingcustomer expectations and needs.

The group serves industries where thenumber of customers in each niche isrelatively small. However, most of theserepresent a broad and long-term potentialfor collaboration. The goal is to establishgood, long-term relations with customers,based on the group’s performance and oncompetitive tendering.

Mutual confidence, built up throughbusiness relationships extending overmany years, often helps to create newopportunities. These could involve newcontracts with even better reward models,for instance, or the development of innova-tive solutions and technology in closecollaboration with the customer. Confidenceis also valuable when assessing projects innew regions. It will often be easier tomanage risk, for instance, when the cus-tomer has an established relationship withAker Solutions from earlier collaboration.

OutlookThe Board would like to point out that thisreport includes and is based in part on for-

“With operations inaround 30 countriesand on every continent,diversity is a desirableand positive part of thecorporate culture”


Our performance


ward-looking information and statementswhich are subject to risks and uncertaintiesthat could cause actual results to differ.

At its Capital Markets Day on 30 Nov-ember 2007, the group communicated itsobjectives for growth and profitability inthe periode 2008–2010. These performancetargets were determined on the basis ofthe group’s solid order backlog and thegood market outlook for the energy andprocess industries.

The financial crisis and economic down-turn during 2008 has created greateruncertainty about the market outlook, andthe general conditions for attaining theseobjectives have changed considerably. Asa result, new performance targets for 2009were presented at the Capital Markets Dayon 9 December 2008. Nominal EBITDA isexpected to increase for 2009 and toexceed NOK 4 500 million, while revenueswill be somewhat lower than in 2008. Theseforecasts are based on a solid order back-log of high quality and the group’s expecta-tions of securing additional contracts.

Many important organisational adjust-ments and changes were made during2008, and these have given Aker Solutionsa good starting point in meeting the globaleconomic downturn. However, it remainstoo early to say with any certainty how thisdownturn will affect the group’s operationsand markets. No reliable analyses areavailable for when market activity willrecover. Market conditions in 2009 will bechallenging, and further pressure on pricesis expected. In these circumstances, it willbe even more important to continue workon optimising costs and capacity.

The extensive cost-cutting programmeinitiated in 2007 continued as expected in2008, and will have an effect on results asplanned in 2009. Thanks to its flexibility,Aker Solutions is relatively well equipped

to handle the challenges expected in theimmediate future.

Spare capacity is likely to become avail-able in the group during 2009. Existingcapacity must be utilised where possible,and an important measure will be to movecapacity in-house across both businessareas and geographical regions. A carefuleye is being kept on possible requirementsfor capacity adjustments so that these canbe made quickly should the need arise.

Even if the level of activity in AkerSolutions’ principal markets were to declinein the short term, the fundamental basis forfurther market growth is likely to be presentin the longer term. In its annual report on theoutlook for energy markets, the Interna-tional Energy Agency (IEA) concluded thatworld energy demand is growing, withdevelopments in the Asian economies asan important driver. The IEA believes thatglobal demand for primary energy couldrise by 45 percent over the next 20 years. Itsreport concludes that new standards will beintroduced to reduce carbon emissions butthat, even if these were to influence demandfor fossil fuels in the long term, they willprimarily mean the implementation of newtreatment technologies over the next fewdecades and that world oil and gas demandwill remain high for many decades to come.Development and construction of carboncapture technology is also an area whereAker Solutions holds an advanced position.

Existing oil and gas fields will be unableto meet all of the demand in the longer term.The amount of oil and gas produced eachyear already exceeds the new resourceswhich the industry succeeds in discoveringand developing. Should the pace of newfield development be low for a time, theresult is likely to be an accumulated energydeficit which could boost the level of activitywhen demand recovers. A substantial

proportion of future developments areexpected to be located in deep water and inareas with a tough climate – precisely theconditions where Aker Solutions has astrong competitive advantage.

The level of activity in land-based proc-ess plants for refined oil products and artifi-cial substances, and for metal processing,is also expected to decline gradually as aresult of the international economicdownturn. China has been a substantialconsumer of such materials in the recentpast. Chinese industrial growth is expectedto be lower for a time than has been thecase in recent years, but this slowdowncould be smaller than in most other parts ofthe world. Aker Solutions’ involvement withsuch projects is concentrated on nicheswhere the group has a strong position, suchas copper, gold and other selected metals.The fundamental conditions are accord-ingly also in place for fresh expansion inthese segments of the group’s businessonce the world economy starts to recover.

The energy sector is characterised by alimited number of global operators, manynational oil companies, a small set of largeand international suppliers such as AkerSolutions, and a substantial number ofsmall and medium-sized operators andsubcontractors. Most players in the industrystrengthened their financial results duringthe boom of the past few years, but not allhave the financial strength and liquidity towithstand a lengthy and deep economicdownturn without making substantialchanges.

The Board extends its thanks to themanagement and workforce for the goodcommitment displayed in 2008. In its view,the quality and expertise built up in AkerSolutions helps to give the group clearcompetitive advantages which also applyin more demanding market conditions.

Fornebu, 3 March 2009The Board of Directors of Aker Solutions ASA

Martinus BrandalChairman

Bjørn FlatgårdVice Chairman

Heidi M. Petersen Vibeke HammerMadsen

Leif-Arne langøy Siri Fürst

Åsmund Knutsen Ingebreth Forus Arve Toft Atle Teigland Simen LieunghPresident & CEO


Our performance


Fornebu, 3 March 2009The Board and the President & CEO of Aker Solutions ASA






The Board and the President & CEO have today considered and approved the Aker Solutions ASA annual report and financial statementsfor the Aker Solutions group and its parent company for the 2008 calendar year end as of 31 December 2008.

The consolidated financial statements have been prepared and presented in accordance with the requirements of IFRS as adopted bythe EU and associated interpretations, and with additional Norwegian disclosure requirements that were in force as of 31 December2008. The parent company financial statements for the year have been prepared in accordance with the Norwegian Accounting Act andgenerally accepted accounting principles in Norway as of 31 December 2008. The annual report for the group and parent companymeets the requirements of the Norwegian Accounting Act and Norwegian Accounting Standard 16 in force as of 31 December 2008.

To the best of our knowledge:

the 2008 financial statements for the group and parent company have been prepared in accordance with applicable accountingstandardsthe information provided in the financial statements gives a true and fair portrayal of the group and parent company’s assets,liabilities, financial position, and profit as a whole as of 31 December 2008The annual report provides a true and fair overview of:

– developments, profit, and the financial position of the group and parent company– the most significant risks and uncertainties facing the group and the parent company

Declaration by the Board of Directors andthe President & CEO


Our performance



Our performance

Annual accounts

Aker Solutions group72 Consolidated income statement73 Consolidated balance sheet74 Consolidated statement of cash flow75 Consolidated statement of changes in equity

Notes to consolidated accounts76 Note 1 General information76 Note 2 Accounting principles81 Note 3 Accounting estimates and judgements82 Note 4 Acquisitions of subsidiaries and minority interests84 Note 5 Related parties85 Note 6 Segment information87 Note 7 Other operating expenses87 Note 8 Net operating assets88 Note 9 Current operating assets88 Note 10 Current operating liabilities88 Note 11 Contracts90 Note 12 Provisions90 Note 13 Contingent events91 Note 14 Property, plant and equipment92 Note 15 Operating leases92 Note 16 Intangible assets93 Note 17 Tax95 Note 18 Salaries, wages and social security cost98 Note 19 Number of employees99 Note 20 Employee benefits - pension101 Note 21 Equity accounted investees102 Note 22 Investment in joint ventures103 Note 23 Financial risk management107 Note 24 Financial income and expense108 Note 25 Financial instruments108 Note 25.1 Cash and cash equivalents109 Note 25.2 Investments in other companies109 Note 25.3 Derivative financial instruments110 Note 25.4 Non-current interest-bearing receivables111 Note 25.5 Trade and other receivables111 Note 25.6 Borrowings and other non-current liabilities113 Note 26 Subsequent events113 Note 27 Discontinued operations113 Note 28 Group companies as at 31 December 2008

Aker Solutions ASA116 Parent company income statement117 Parent company balance sheet118 Parent company statement of cash flow

Notes to parent company accounts119 Note 1 Accounting principles119 Note 2 Operating expenses120 Note 3 Net financial items120 Note 4 Tax121 Note 5 Investment in subsidiaries and other companies121 Note 6 Non interest-bearing items122 Note 7 Shareholders’ equity122 Note 8 Interest-bearing items123 Note 9 Non-current borrowings123 Note 10 Guarantees123 Note 11 Financial instruments123 Note 12 Contingent events and related parties

Contents: Accounts and notes


Our performance

Annual accounts

Aker Solutions group:

Consolidated income statement 1.1 – 31.12

Amounts in NOK million Note 2008 2007 2006

Revenue 6 58 252 57 957 50 592

Materials, goods and services - 34 891 - 36 405 - 31 299Salaries, wages and social security costs 18, 19, 20 - 13 122 - 12 197 - 10 441Other operating expenses 7 - 6 857 - 5 442 - 5 980

Total operating expenses - 54 870 - 54 044 - 47 720

Operating profit before depreciation, amortisation and impairment 6 3 382 3 913 2 872

Depreciation, amortisation and impairment 6, 14, 16 - 615 - 431 - 339

Operating profit 2 767 3 482 2 533

Financial income 24 175 105 194Financial expenses 24 - 379 - 209 - 1 081Share of profit (+) / loss (-) of associates 6, 21 - 21 - 2 - 18Profit (+) / loss (-) on foreign currency forward contracts1 24 - 439 162 241

Profit before tax 2 103 3 538 1 869

Income tax expense 17 - 590 - 1 074 - 575

Net profit from continuing operations 1 513 2 464 1 294

Profit for the period from discontinued operations net of tax 27 - - 2 495

Profit for the period 1 513 2 464 3 789

Attributable toEquity holders of the parent company 1 438 2 401 3 738Minority interests 75 63 51

Net profit 1 513 2 464 3 789

Average number of shares 269 056 995 271 741 367 275 146 170Basic and diluted earnings per share continuing operations (NOK)2 5.34 8.84 4.53Basic and diluted earnings per share from discontinued business (NOK) 0.00 0.00 9.06Basic and diluted earnings per share (NOK)2 5.34 8.84 13.59

Profit / loss on foreign currency hedging instruments that do not qualify for hedge accounting.1)Equity holders of the parent company’s share of net profit (+) / loss (-) / average number of shares. There were no potentially dilutive securities outstanding.2)


Our performance

Annual accounts


Consolidated balance sheet as at 31.12

Amounts in NOK million Note 2008 2007

ASSETSNon-current assetsProperty, plant and equipment 14 4 610 2 815Deferred tax assets 17 519 548Intangible assets 16 7 119 4 995Employee benefit assets 20 234 15Interest-bearing non-current receivables 25.4 97 14Other non-current operating assets 8 4 9Investments in associates 6, 21 444 121Investments in other companies 25.2 123 133

Total non-current assets 13 150 8 650

Current assetsCurrent tax assets 17 49 89Inventories 9 1 321 884Trade and other receivables 9, 25.5 20 796 13 361Derivative financial instruments 25.3 3 100 1 468Interest-bearing current receivables 25 480 540Cash and cash equivalents 25.1 3 828 3 524

Total current assets 29 574 19 866

Total assets 42 724 28 516

LIABILITIES AND SHAREHOLDERS’ EQUITYEquityIssued capital 548 548Own shares - 10 - 9Other capital paid in 1 534 1 534Other equity 6 378 5 026

Total equity attributable to the equity holders of the parent company 8 450 7 099

Minority interest 156 168

Total equity 8 606 7 267

LiabilitiesNon-current borrowings 25.6 6 163 1 591Employee benefits obligations 20 758 937Deferred tax liabilities 17 831 680Other non-current liabilities 25.6 1 194 914

Total non-current liabilities 8 946 4 122

Current borrowings 25.6 553 24Current tax liabilities 17 252 329Provisions 10, 12 912 655Trade and other payables 10 21 052 15 165Derivative financial instruments 25.3 2 403 954

Total current liabilities 25 172 17 127

Total liabilities 34 118 21 249

Total liabilities and shareholders’ equity 42 724 28 516

Fornebu, 3 March 2009Board of Directors of Aker Solutions ASA







Our performance

Annual accounts


Consolidated statement of cash flow 1.1 – 31.12


Cash flow from operating activitiesProfit for the period 1 513 2 464Income tax expense 17 590 1 074Net interest cost 225 104Profit (-) / loss (+) on foreign currency forward contracts 439 - 162Depreciation, amortisation and impairment 14, 16 615 431Profit (-) / loss (+) on disposals / non-cash effects1 - 23 - 64Share of profit (-) / loss (+) of associates 21 21 2Interest paid - 295 - 172Interest received 132 43Income taxes paid - 472 - 480Changes in other net operating assets - 3 613 - 565

Net cash from operating activities - 868 2 675

Cash flow from investing activitiesAcquisition of subsidiaries and minorities (net of cash acquired) 4 - 1 817 - 87Acquisition of property, plant and equipment 6,14 - 1 572 - 1 596Proceeds from sale of property, plant and equipment 34 96Acquisition of shares in associates and other investments - 377 11

Net cash from investing activities - 3 732 - 1 576

Cash flow from financing activitiesProceeds from borrowings 4 956 -Repayment of borrowings - 24 - 19Proceeds from issue of share capital from minority interests 72 -Dividends paid to minority interests - 22 - 31Buy-back of own shares2 - 70 - 781Dividends to shareholders2 - 807 - 2 182

Net cash from financing activities 4 105 - 3 013Effect of exchange rate changes on cash and bank deposits 799 - 228

Net increase (+) / decrease (-) in cash and bank deposits 304 - 2 142

Cash and cash equivalents at the beginning of the period 3 524 5 666

Cash and cash equivalents at the end of the period3 3 828 3 524

Of which is restricted cash4 976 661

Gain / loss on disposal of property, plant and equipment.1)See consolidated statement of changes to equity.2)Additional undrawn committed non-current bank revolving credit facilities amounted to NOK 4.4 billion, and is together with cash and cash equivalents giving a total liquidity buffer3)of NOK 8.2 billion. NOK 500 million of the undrawn committed credit facilities was agreed in February 2009.Restricted cash includes inter alia cash in joint ventures where the partners must agree before use and cash in business units which is not owned 100 percent by Aker Solutions.4)


Our performance

Annual accounts


Consolidated statement of changes in equity 1.1 – 31.12

Amounts in NOK millionNumber of

sharesShare

capital

Ownsha-

res

Othercapitalpaid in

Retainedearnings

and otherreserves

Hedgingreserve

Currencytrans-lation

reserve

Total at-tributable toparent com-pany equity

holdersMinorityinterests

Totalequity

Equity as at 1 January 2007 55 029 234 550 - 1 534 5 857 203 - 161 7 983 131 8 114Cash flow hedges

Effective portion of changes in value - - - - 788 - 788 - 788Reclassified to income statement - - - - - 633 - - 633 - - 633Deferred tax - - - - - 43 - - 43 - - 43

Currency translation differences - - - - - - 434 - 434 - - 434

Net income recognised directly in equity 550 - 1 534 5 857 315 - 595 7 661 131 7 792Profit for the period - - - 2 401 - - 2 401 63 2 464

Total recognised income and expense 550 - 1 534 8 258 315 - 595 10 062 194 10 256Increase caused by share split (1:5) 220 116 936Cancellation of shares -1 146 170 - 2 2 - - - - - - -Change in minority interests - 11 - 11Dividend - - - - 2 182 - - - 2 182 - 15 - 2 197Share buy-back - - 11 - - 770 - - - 781 - - 781

Equity as at 31 December 2007 274 000 000 548 - 9 1 534 5 306 315 - 595 7 099 168 7 267Cash flow hedges

Effective portion of changes in value - - - - - 241 - - 241 - - 241Reclassified to income statement - - - - 373 - 373 - 373Deferred tax - - - - - 37 - - 37 - - 37

Currency translation differences - - - - - 695 695 7 702

Net income recognised directly in equity 548 - 9 1 534 5 306 410 100 7 889 175 8 064Profit for the period - - - 1 438 - - 1 438 75 1 513

Total recognised income and expense 548 - 9 1 534 6 744 410 100 9 327 250 9 577Change in minority interests - 72 - 72Dividend - - - - 807 - - - 807 - 22 - 829Share buy-back - - 1 - - 69 - - - 70 - - 70

Equity as at 31 December 2008 274 000 000 548 - 10 1 534 5 868 410 100 8 450 156 8 606

Share capitalAker Solutions ASA has one class of shares, ordinary shares, with equal rights for all shares. The holders of ordinary shares are entitled to receive dividends and areentitled to one vote per share at General Meetings. At the end of 2006 Aker Solutions ASA had 55 029 234 ordinary shares at a par value of NOK 10 per share. At theAnnual General Meeting in March 2007 the shareholders agreed to split one share at a par value of NOK 10 into five shares at par value of NOK 2. The new number ofshares after the share split was 275 146 170. At the Annual General Meeting the shareholders also agreed to reduce the share capital in Aker Solutions ASA by NOK2 292 340 to NOK 548 000 000 through the cancellation of 1 146 170 treasury shares. Total outstanding shares are now 274 000 000. All issued shares are fully paid.

Share buy-backAt the 2007 Annual General Meeting an authorisation was given to repurchase up to 27.4 million shares, representing 10 percent of the share capital of AkerSolutions ASA. Aker Solutions ASA purchased 595 000 own shares in 2008 and as at 31 December 2008 Aker Solutions ASA holds 4 966 830 own sharesrepresenting 1.8 percent of total outstanding shares.

Hedging reserveThe hedging reserve relates to cash flow hedges of future revenues and expenses against exchange rate fluctuations. The income statement effects of such instrumentsare recognised in accordance with the progress of the underlying construction contract as part of revenues or expenses as appropriate. The hedging reserve representsthe value of such hedging instruments that are not yet recognised in the income statement. Users of the financial statement should be aware of the underlying nature ofa hedge; e.g. that a positive value on a hedging instrument exists to cover a negative value on the hedged position, see note 24 Financial income and expenses.

Currency translation reserveThe currency translation reserve includes exchange differences arising from the translation of the net investment in foreign operations, and foreign exchange gain /loss on loans defined as hedges/net investments, see note 24 Financial income and expenses.

Minority interestsAt 31 December 2008 NOK 99 million (NOK 75 million in 2007) of the minority interests relates to Aker Solutions Powergas Pvt Ltd in which Aker Solutions owns 64percent and NOK 44 million (NOK 17 million in 2007) to Step Offshore AS in which Aker Solutions owns 51 percent of the shares. The change in minority interests in2008 is primarily due to the acquisition of 40 percent in Aker Marine Contractors AS which gives Aker Solutions full control of the company.

Dividends1 2008 2007

Dividend per share in NOK – paid 3.00 8.00Total dividend paid (NOK million) 807 2 182Ordinary dividend per share in NOK – proposed by the Board of Directors 1.60 3.00

Dividend is adjusted on the basis of the share split.1)


Our performance

Annual accounts

Note 1:■ General Information

Aker Solutions ASA (the company) is a limited liability company incorporated and domiciled at Fornebu in Bærum, Norway. In April 2008 the company changedits name from Aker Kværner ASA to Aker Solutions ASA. The consolidated financial statements of Aker Solutions ASA incorporate the financial statements ofthe company and its subsidiaries (together referred to as the “group” and separately as group companies) and the group’s interest in associates and jointlycontrolled entities and jointly controlled assets. Aker Solutions is a leading global supplier of engineering services, fabrication, technology products,maintenance, specialised services, and total solutions for the energy and process industries.

The company is listed on the Oslo Stock Exchange under the ticker AKSO.

All amounts in the financial statements are presented in million Norwegian kroner (NOK), unless otherwise stated.

Note 2:■ Accounting principles


Notes to the accounts

Summary of significant accounting policiesThe principal accounting policies applied in thepreparation of these consolidated financial state-ments are set out below. These policies havebeen consistently applied to all the years presen-ted, unless otherwise stated.

The consolidated financial statements wereauthorised for issue by the Board of Directors on3 March 2009. The consolidated statements willbe authorised during the Annual General Meetingon 2 April 2009. Until this date the Board ofDirectors have the authority to amend thefinancial statements.

Statement of complianceThe consolidated financial statements have beenprepared in accordance with International Finan-cial Reporting Standards (IFRS) approved by theEuropean Union and its interpretations adoptedby the International Accounting Standards Board(IASB).

New standards and interpretations not yet adoptedThe following IFRS/IAS standards have beenapproved but mandatory from 2009, with earlierapplication permitted. The group has not imple-mented these standards with effect for the finan-cial statements for 2008:

IFRS 8 – Operating Segments (mandatoryfrom 2009)Revised IAS 1 – Presentation of FinancialStatements (mandatory from 2009)Revised IAS 23 – Borrowing Costs(mandatory from 2009)IAS 32 – Financial Instruments – Presentation(mandatory from 2009)Revised IFRS 3 – Business Combinations(mandatory from 2010)IFRIC 14 – The Limit on a Defined BenefitAsset Minimum Funding Requirements andtheir Interaction (mandatory from 2009)Amended IAS 27 Consolidated and SeparateFinancial Statements (mandatory from 2010)

Except for IAS 23 Borrowing Costs and RevisedIFRS 3 Business Combinations, it is assumed that

the new standards will have only insignificant effectson reported results or balance sheet items. Themain effects will relate to presentation formats forfinancial statements and for the note disclosures.

IAS 23 Borrowing Costs requires that borro-wing costs be included as part of costs on fixedassets and on construction contracts. Today, thisis the case only when the effects are verysignificant and there are separate financingarrangements in place. It is assumed that theeffect on the consolidated statements will besmall, but there may be an impact on individualprojects and business areas.

Revised IFRS 3 – Business Combinationsincorporates the following changes that are likelyto be relevant to the group’s operations:

The definition of a business has beenbroadened, which is likely to result in moreacquisitions being treated as businesscombinations.Contingent consideration will be measuredat fair value, with subsequent changestherein recognised in profit or loss.Transaction costs, other than share and debtissue costs, will be expensed as incurred.Any pre-existing interest in the acquiree willbe measured at fair value with the gain orloss recognised in profit or loss.Any non-controlling (minority) interest willbe measured at either fair value, or at itsproportionate interest in the identifiableassets and liabilities of the acquiree, ontransaction-by-transaction basis.

Revised IFRS 3 will be applied prospectively andtherefore there will be no impact on prior periods inthe group’s consolidated financial statements. Thestandard is not yet endorsed by EU.

Basis of preparationThe consolidated financial statements have beenprepared under the historical cost convention, asmodified by the revaluation of available-for-salefinancial assets and financial assets and financialliabilities (including derivative instruments) at fairvalue through profit and loss.

Non-current assets and disposal groups heldfor sale are stated at the lower of carryingamount or fair value less costs to sell.

The preparation of financial statements inconformity with IFRS requires management tomake judgements, estimates and assumptionsthat affect the application of policies and repor-ted amounts of assets and liabilities, incomeand expenses. The estimates and associatedassumptions are based on historical experienceand various other factors that are believed to bereasonable under the circumstances, the resultsof which form the basis of making the judge-ments about carrying values of assets andliabilities that are not readily apparent from othersources. The areas involving a higher degreeof judgement or complexity, or areas whereassumptions and estimates are significant to theconsolidated financial statements are disclosedin note 1. Actual results may differ from theseestimates.

The estimates and underlying assumptionsare reviewed on an ongoing basis. Revisionsto accounting estimates are recognised in theperiod in which the estimate is revised if therevision affects only that period or in the periodof the revision and future periods if the revisionaffects both current and future periods.

ConsolidationSubsidiariesSubsidiaries are entities controlled by the com-pany. Control exists when the company has thepower, directly or indirectly, to govern the finan-cial and operating policies of an entity so as toobtain benefits from its activities. In assessingcontrol, potential voting rights that presently areexercisable or convertible are taken into acco-unt. The financial statements of subsidiaries areincluded in the consolidated financial statementsfrom the date that control commences until thedate that control ceases.

Intragroup balances and any unrealised gainsand losses or income and expenses arising fromintragroup transactions, are eliminated in prepa-ring the consolidated financial statements.Unrealised gains arising from transactions withassociates and jointly controlled entities are


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eliminated to the extent of the group’s interest inthe entity. Unrealised losses are eliminated in thesame way as unrealised gains, but only to theextent that there is no evidence of impairment.

In preparing their individual financial state-ments, the accounting policies of some subsi-diaries, associates and joint ventures do notconform to the accounting policies of the group.Where appropriate, adjustments are made inorder to present the consolidated financial state-ments on a consistent basis.

AssociatesAssociates are those entities in which the grouphas significant influence, but not control, overthe financial and operating policies. Generallythis is applicable to a shareholding of between20 percent and 50 percent of the voting rights.

The consolidated financial statements includethe group’s share of the total recognised gainsand losses of associates on an equity accountedbasis, from the date that significant influencecommences until the date that significant influ-ence ceases. When the group’s share of lossesexceeds its interest in an associate, the group’scarrying amount is reduced to nil and recognitionof further losses is discontinued except to theextent that the group has incurred legal orconstructive obligations or made paymentson behalf of an associate.

Joint venturesJoint ventures are those entities over whose acti-vities the group has joint control, established bycontractual agreement. The consolidated financialstatements include the group’s proportionateshare of the entities’ assets, liabilities, revenuesand expenses with items of a similar nature on aline by line basis, from the date that joint controlcommences until the date that joint control cea-ses.

Non-current assets held for sale anddiscontinued operationsA discontinued operation is a component ofthe group’s business that represents a separatemajor line of business or geographical area ofoperations that has been disposed of or is heldfor sale or is a subsidiary acquired exclusivelywith a view to resale.

Classification as a discontinued operationoccurs upon disposal or when the operationmeets the criteria to be classified as held forsale, if earlier. A disposal group that is to beabandoned may also qualify.

Upon classification of a business as a discon-tinued operation, the historical income state-ments are restated and the applicable individualincome statement balances are reclassified intoone separate line under Net profit/loss in theincome statement for all reporting periods. In thebalance sheet no reclassifications are made foryears prior to the year a business is first classi-fied as a discontinued operation.

Segment reportingA segment is a distinguishable component of thegroup that is engaged either in providing pro-ducts or services (business segment), or in pro-viding products or services within a particulareconomic environment (geographical segment),which is subject to risks and rewards that aredifferent from those of other segments.

The operating segments are also consistentwith the group’s organisation into business seg-ments.

Revenue recognitionConstruction contractsEngineering and construction contract revenuesare recognised using the percentage of completionmethod, based primarily on contract costs incurredto date compared to estimated total contractcosts. When the final outcome of a contract can-not be reliably estimated, contract revenue isrecognised only to the extent of costs incurredthat are expected to be recoverable. Losses oncontracts are fully recognised when identified.

Contract revenues include variation ordersand incentive bonuses when it is probable thatthey will result in revenue and the amount can bemeasured reliably. Disputed amounts are recog-nised when their realisation is reasonably certainand can be measured reliably. Contract costsinclude costs that relate directly to the specificcontract and costs that are attributable to con-tract activity in general and can be allocated tothe contract. Costs that cannot be attributed tocontract activity are expensed. Bidding costs arecapitalised when it is probable that the companywill be the preferred bidder. All other biddingcosts are expensed as incurred.

Goods sold and services renderedRevenue from the sale of goods is recognised inthe income statement when the significant risksand rewards of ownership have been transferredto the buyer. Revenue from services rendered isrecognised in the income statement in proportionto the stage of completion of the transaction atthe balance sheet date. The stage of completionis normally assessed as the proportion that costsincurred for work performed to date bear to theestimated contract costs. No revenue is recognisedif there are significant uncertainties regardingrecovery of the consideration due, the associatedcosts and the possible return of goods cannotbe measured reliably, or there is continuingmanagement involvement with the goods.

ExpensesOperating lease paymentsPayments made under operating leases arerecognised in the income statement on astraight-line basis over the term of the leasewhen there are variations in the contractual leasepayments due under the contract terms. Leaseincentives received are recognised in the incomestatement as an integral part of the total leaseexpense.

Finance lease paymentsMinimum lease payments are apportionedbetween the finance charge and the reductionof the outstanding liability. The finance charge isallocated to each period during the lease term soas to produce a constant periodic rate of intereston the remaining balance of the liability.

Financial income and expenseFinancial income and expense comprise interestpayable on borrowings calculated using theeffective interest rate method, interest receivableon funds invested, dividend income, foreignexchange gains and losses, and gains andlosses on hedging instruments that are recogni-sed in the income statement (see Hedging activi-ties). Interest income is recognised in the incomestatement as it accrues, using the effective inte-rest method. The interest expense componentof finance lease payments is recognised in theincome statement using the effective interestrate method.

Gains or losses arising from changes in thefair value of the financial assets at fair valuethrough profit or loss category are presented inthe income statement within net financial items,in the period in which they arise.

Dividend income from financial assets at fairvalue through profit or loss is recognised in theincome statement as part of net financial itemswhen the group’s right to receive payments isestablished.

Changes in the fair value of monetary securitiesdenominated in a foreign currency and classifiedas available for sale are analysed between trans-lation differences resulting from changes inamortised cost of the security and other changesin the carrying amount of the security. The trans-lation differences on monetary securities arerecognised in profit and loss; translation differencesin non-monetary securities are recognised inequity. Changes in the fair value of non-monetarysecurities classified as available for sale arerecognised in equity.

When securities classified as available for saleare sold or impaired, the accumulated fair valueadjustments recognised in equity are included inthe income statement as gains and losses frominvestment securities.

Interest on available-for-sale securitiescalculated using the effective interest methodis recognised in the income statement as partof net financial items when the group’s rightto receive payments is established.

Trade and other receivablesTrade and other receivables are carried at theoriginal invoice amount, less an allowance madefor doubtful receivables. Provision is made whenthere is objective evidence that the group will beunable to recover balances in full. Balances arewritten off when the probability of recovery isassessed as being remote.

Construction work in progressConstruction work in progress represents the valueof construction work performed less payments bycustomers. The value of construction work perfor-med is measured at revenue recognised to date.Payments by customers are deducted from thevalue of the same contract or, to the extent theyexceed this value, disclosed as advances fromcustomers (see revenue recognition).

InventoriesInventories are stated at the lower of cost andnet realisable value. Net realisable value is theestimated selling price in the ordinary course ofbusiness, less the estimated costs of completionand selling expenses.

The cost of inventories is based on the first-infirst-out principle and includes expendituresincurred in acquiring the inventories and bringingthem to their existing location and condition. Inthe case of manufactured inventories and workin progress, cost includes an appropriate shareof overheads based on normal operating capacity.

Property, plant and equipmentOwned assetsProperty, plant and equipment are stated at costless accumulated depreciation (see below) andimpairment losses (see Impairment). The costof self-constructed assets includes the cost ofmaterials, direct labour, and, where relevant, theestimated costs of dismantling and removing theitems and restoring the site on which they arelocated, and an appropriate proportion ofproduction overheads.


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Where components of property, plant andequipment have different useful lives, they areaccounted for as separate components.

Leased assetsLeases where the group assumes substantiallyall the risks and rewards of ownership areclassified as finance leases. Assets acquired byway of finance leases are stated at an amountequal to the lower of its fair value or the presentvalue of the minimum lease payments at inceptionof the lease, less accumulated depreciation (seebelow) and impairment losses (see Impairment).

Subsequent costsThe group capitalises the cost of a replacementpart or a component of property, plant andequipment when that cost is incurred if it is pro-bable that the future economic benefits embo-died with the item will flow to the group and thecost of the item can be measured reliably. Allother costs are expensed as incurred.

DepreciationDepreciation is normally recognised on astraight-line basis over the estimated useful livesof property, plant and equipment. The productionunit method is used for depreciation in limitedcircumstances when appropriate.

Intangible assetsGoodwillAll business combinations are accounted forusing the acquisition method. Goodwill repre-sents the excess of the cost of an acquisitionover the fair value of the group’s share of thenet identifiable assets of acquired businessesor interest in associates or joint ventures that arebusinesses at the date of acquisition. Goodwillon acquisitions of subsidiaries is included inintangible assets. Goodwill on acquisitions ofassociates and joint ventures is included in theinvestment balance and is tested for impairmentas part of the overall balance. Goodwill is carriedat cost less accumulated impairment losses (seeImpairment). Gains and losses on the disposalof an entity or an interest in an entity include thecarrying amount of goodwill relating to theownership interest sold. Negative goodwillarising on an acquisition is recognised directlyin the income statement.

Goodwill is assumed to have an indefiniteuseful life because there is no foreseeable limitto the period over which the asset is expected togenerate net cash inflows for the entity. Theacquisition of a company is based upon itsstrategic fit and anticipated profitability of thatcompany over a long time period.

Goodwill is allocated to cash-generating unitsfor the purpose of impairment testing. The allo-cation is made to those cash-generating units orgroups of cash-generating units that are expec-ted to benefit from the business combination inwhich goodwill arose.

Research and developmentResearch and development work in Aker Solutionsrelated to customer contracts are included ascontract costs.

Expenditures on research activities, undertakenwith the prospect of obtaining new scientific ortechnical knowledge and understanding, is recog-nised in the income statement as an expense asincurred.

Expenditures on development activities,whereby research findings are applied to a plan ordesign for the production of new or substantially

improved products and processes, is capitalised ifthe product or process is technically and commer-cially feasible as well as being a separable asset.Capitalised costs include the cost of materials,external contractors and direct labour. Otherdevelopment expenditures are recognised in theincome statement as an expense as incurred.Capitalised development expenditures are statedat cost less accumulated amortisation (see below)and impairment losses (see Impairment).

Other intangible assetsOther intangible assets that are acquired by thegroup are stated at cost less accumulated amor-tisation (see below) and impairment losses (seeImpairment).

Subsequent expendituresSubsequent expenditures on capitalised intan-gible assets are capitalised only when they in-crease the future economic benefits embodied inthe specific asset to which they relate. All otherexpenditures are expensed as incurred.

AmortisationAmortisation is charged to the income statementon a straight-line basis over the estimated usefullives of intangible assets unless such lives areindefinite. Intangible assets are amortised fromthe date they are available for use.

ImpairmentThe carrying amounts of the group’s assets,other than inventories (see Inventories) anddeferred tax assets (see Income tax), are annu-ally reviewed to determine whether there is anyindication of impairment. If any such indicationexists, the asset’s recoverable amount is estima-ted (see Calculation of recoverable amount).

For goodwill, assets that have an indefiniteuseful life and intangible assets that are not yetavailable for use, the recoverable amount is esti-mated annually.

An impairment loss is recognised wheneverthe carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.Impairment losses are recognised in the incomestatement.

Impairment losses recognised in respectof cash-generating units are allocated first toreduce the carrying amount of any goodwillallocated to cash-generating units (group ofunits) and then, to reduce the carrying amountof the other assets in the unit (group of units) ona pro rata basis.

When a decline in the fair value of an availa-ble-for-sale financial asset has been recogniseddirectly in equity and there is objective evidencethat the asset is impaired, the cumulative lossthat had been recognised directly in equityis recognised in profit or loss even though thefinancial asset has not been derecognised. Theamount of the cumulative loss that is recognisedin profit or loss is the difference between theacquisition cost and current fair value, less anyimpairment loss on that financial asset previouslyrecognised in profit or loss.

Calculation of recoverable amountThe recoverable amount of the group’s invest-ments in held-to-maturity securities and receiva-bles carried at amortised cost is calculated asthe present value of estimated future cash flows,discounted at the original effective interest rate(i.e., the effective interest rate computed at initialrecognition of these financial assets). Receiva-bles with a short duration are not discounted.

The recoverable amount of other assets is thegreater of their net selling price and value in use.In assessing value in use, the estimated futurecash flows are discounted to their present valueusing a pre-tax discount rate that reflects currentmarket assessments of the time value of moneyand the risks specific to the asset. For an assetthat does not generate largely independent cashinflows, the recoverable amount is determinedfor the cash-generating unit to which the assetbelongs.

Reversals of impairmentAn impairment loss in respect of a held-to-matu-rity security or receivable carried at amortisedcost is reversed if the subsequent increase inrecoverable amount can be related objectively toan event occurring after the impairment loss wasrecognised.

An impairment loss in respect of goodwill isnot reversed.

In respect of other assets, an impairment lossis reversed if there has been a change in theestimates used to determine the recoverableamount.

An impairment loss is reversed only to theextent that the asset’s carrying amount does notexceed the carrying amount that would have beendetermined, net of depreciation or amortisation,if no impairment loss had been recognised.

ProvisionsA provision is recognised in the balance sheetwhen the group has a present obligation as aresult of a past event that is probable that thegroup will be required to settle. If the effect ismaterial, provisions are determined by discountingthe expected future cash flows at a market basedpre-tax rate that reflects current market assess-ments of the time value of money and, whereappropriate, the risks specific to the liability.

WarrantiesA provision for warranties is recognised whenthe underlying products or services are sold.The provision is based on historical warrantydata and a weighting of all possible outcomesagainst their associated probabilities.

RestructuringA provision for restructuring is recognised whenthe group has approved a detailed and formalrestructuring plan, and the restructuring eitherhas commenced or has been announced publi-cly. Future operating costs are not provided for.

Site restorationIn accordance with the group’s applicable legalrequirements, a provision for site restoration inrespect of contaminated land is recognisedwhen the land is contaminated.

Onerous contractsA provision for onerous contracts is recognisedwhen the expected benefits to be derived by thegroup from a contract are lower than the unavoi-dable cost of meeting the obligations under thecontract.

Employee benefitsDefined contribution plansObligations for contributions to defined contribu-tion pension plans are recognised as an expensein the income statement as incurred.

Defined benefit plansThe group’s net obligation in respect of defined


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benefit pension plans is calculated separatelyfor each plan by estimating the amount of futurebenefit that employees have earned in return fortheir service in the current and prior periods; thatbenefit is discounted to determine its presentvalue, and the fair value of any plan assets isdeducted. The discount rate is the yield at thebalance sheet date on government bonds/highquality corporate bonds with maturities consis-tent with the terms of the obligations. The calcu-lation is performed by a qualified actuary usingthe projected unit credit method.

When the benefits of a plan to employees areincreased, the portion of the increased benefitrelating to past service by employees is recogni-sed as an expense in the income statement ona straight-line basis over the average period untilthe benefits become vested. To the extent thatthe benefits vest immediately, on expense isrecognised immediately in the income statement.

To the extent that any subsequent cumulativeunrecognised actuarial gain or loss exceeds 10percent of the greater of the present value of thedefined benefit obligation and the fair value ofplan assets, that portion is recognised in theincome statement over the expected averageremaining working lives of the employees partici-pating in the plan. Otherwise, the actuarial gainor loss is not recognised.

When the actual calculation results in a benefitto the group, the recognised asset is limited tothe net total of any unrecognised actuarial lossesand past service costs and the present value ofany future refunds from the plan or reductions infuture contributions to the plan.

Long-term service benefitsThe group’s net obligation in respect of long-term service benefits, other than pension plans,is the amount of future benefit that employeeshave earned in return for their service in the cur-rent and prior periods. The obligation is calcula-ted using the projected unit credit method and isdiscounted to its present value and the fair valueof any related assets is deducted. The discountrate is the yield at the balance sheet date ongovernment bonds/high quality corporate bondswith maturities consistent with the terms of theobligations.

Share-based payment transactionsFor cash-settled share-based payments, a liabi-lity equal to the portion of the goods or servicesreceived is recognised at the current fair valuedetermined at each balance sheet date.

Cash and cash equivalentsCash and cash equivalents include cash onhand, demand deposits held at banks and othershort-term highly liquid investments with originalmaturity of three months or less. Restricted cashis mainly cash tied up in projects through jointventures with external parties. The amountsfluctuate with the projects’ life cycle and areusually released when the project is delivered orclose to delivery.

Derivative financial instrumentsThe group uses derivative financial instrumentsto hedge its exposure to foreign exchange andinterest rate risks arising from operational,financial and investment activities. Derivativesthat do not qualify for hedge accounting areaccounted for as trading instruments.

Derivatives are initially recognised at fair valueon the date a derivative contract is entered intoand are subsequently measured at their fair

value. The gain or loss on measurement to fairvalue is recognised immediately in profit andloss. Where derivatives qualify for hedge acco-unting, recognition of any resultant gain or lossdepends on the nature of the item being hedged(see Hedging activities).

The fair value of interest rate swaps is the esti-mated amount that the group would receive orpay to terminate or eliminate the swap at thebalance sheet date, taking into account currentinterest rates and the current creditworthiness ofthe swap counterparties. The fair value of for-ward exchange contracts is their quoted marketprice at the balance sheet date, being the pre-sent value of the quoted forward price.

The fair values of various derivative instru-ments used for hedging purposes are disclosedin note 25.3 Derivative financial instruments.Movements on the hedging reserve in sharehol-ders’ equity are shown in Statement of changesin equity (other reserves). The full fair value of ahedging derivative is classified as a non-currentasset or liability when the remaining hedged itemis classified as non-current asset or liability. Withthe exception of items related to trade receiva-bles and work in progress, this is when the re-maining maturity is more than 12 months; it isclassified as a current asset or liability when theremaining maturity of the hedged item is lessthan 12 months or when it is related to tradereceivables and work in progress. Tradingderivatives are classified as current asset orliability.

Interest-bearing borrowingsInterest-bearing borrowings are recognised initi-ally at fair value less attributable transactioncosts. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised costwith any difference between cost and redemptionvalue being recognised in the income statementover the period of the borrowings on an effectiveinterest basis.

Income taxIncome tax on the profit or loss for the year

comprises current and deferred tax. Income taxis recognised in the income statement except tothe extent that it relates to items recognised di-rectly in equity, in which case it is recognised inequity.

Deferred tax is provided using the balancesheet liability method, providing for temporarydifferences between the carrying amounts ofassets and liabilities for financial reporting pur-poses and the amounts used for taxation pur-poses. The following temporary differences arenot provided for: goodwill not deductible for taxpurposes, the initial recognition of assets or liabili-ties that affect neither accounting nor taxableprofit, nor differences relating to investments insubsidiaries to the extent that they will not reversein the foreseeable future. The amount of deferredtax provided is based on the expected mannerof realisation or settlement of the carrying amountof assets and liabilities, using tax rates enacted orsubstantively enacted at the balance sheet date.

A deferred tax asset is recognised only to theextent that it is probable that future taxable profitswill be available against which the asset can beutilised. Deferred tax assets are reduced to theextent that it is no longer probable that the relatedtax benefit will be realised.

Additional income taxes that arise from thedistribution of dividends are recognised at thesame time as the liability to pay the relateddividend.

Share capitalOrdinary sharesOrdinary shares are classified as equity. Incre-mental costs directly attributable to the issueof new share or options are shown in equity asa deduction, net of tax, from the proceeds.Repurchase of share capitalWhen share capital recognised as equity isrepurchased, the amount of the considerationpaid, including directly attributable costs, isrecognised as a change in equity. Repurchaseof share capital is recognised as a reduction inequity and is classified as treasury shares.

Financial instrumentsFinancial instruments in the Aker Solutions groupconsists of cash and cash equivalents, invest-ments in other companies, derivative financialinstruments, non-current interest-bearingreceivables, Trade and other receivables andnon-current borrowings.

The group classifies its financial assets in thefollowing categories: at fair value through profitor loss, loans and receivables, and available forsale. The classification depends on the purposefor which the financial assets were acquired.Management determines the classification of itsfinancial assets at initial recognition.

Financial assets at fair value through profit orlossFinancial assets at fair value through profit andloss are financial assets held for trading. A finan-cial asset is classified in this category if acquiredprincipally for the purpose of selling in the shortterm. Derivatives are classified as held fortrading unless they are designated as hedges.Assets in this category are classified asderivative financial instruments.

Loans and receivablesLoans and receivables are non-derivative finan-cial assets with fixed or determinable paymentsthat are not quoted in an active market. Theyare included in current assets as trade and otherreceivables and interest-bearing receivables,except for maturities greater than 12 monthsafter the balance sheet date. These are includedin non-current assets as loans and receivablesand interest-bearing receivables in the balancesheet.

Available-for-sale financial assetsAvailable-for-sale financial assets are non-deri-vatives that are either designated in this categoryor not classified in any other categories. Theyare included in non-current assets as invest-ments in other companies, unless managementintends to dispose of the investment within 12months of the balance sheet date. They will thenbe included in current assets as other invest-ments.

Regular purchases and sales of financialassets are recognised on the trade-date – thedate on which the group commits to purchaseor sell the asset. Investments are initially recog-nised at fair value plus transaction costs for allfinancial assets not carried at fair value throughprofit and loss. Financial assets carried at fairvalue through profit and loss are initially recog-nised at fair value, and transaction costs areexpensed in the income statement. Available-for-sale financial assets and financial assets at fairvalue through profit and loss are subsequentlycarried at fair value. Loans and receivables arecarried at amortised cost using the effectiveinterest method.


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Financial assets are derecognised when therights to receive cash flows from the investmentshave expired or have been transferred and thegroup has transferred substantially all risks andrewards of ownership. The fair values of quotedinvestments are based on current bid prices. Ifthe market for a financial asset is not active (andfor unlisted securities), the group establishes fairvalue by using valuation techniques. Theseinclude the use of recent arm’s length trans-actions, reference to other instruments that aresubstantially the same, discounted cash flowanalysis and option pricing models, makingmaximum use of market inputs and relying aslittle as possible on entity-specific inputs. Impair-ment of financial instruments is described underthe impairment section above.

Foreign currencyFunctional and presentation currencyThe consolidated financial statements arepresented in Norwegian kroner (NOK), which isAker Solutions ASA’s functional currency and thepresentation currency for the group.

Foreign currency transactions and balancesTransactions in foreign currencies are translatedat the foreign exchange rate ruling at the dateof the transaction. Monetary assets and liabilitiesdenominated in foreign currencies at the balancesheet date are translated to the functional cur-rency at the foreign exchange rate at that date.Foreign exchange differences arising on trans-lation are recognised in the income statement.Non-monetary assets and liabilities that aremeasured in terms of historical cost in a foreigncurrency are translated using the exchange rateat the date of the transaction. Non-monetaryassets and liabilities denominated in foreign cur-rencies that are stated at fair value are translatedto the functional currency at foreign exchangerates at the dates the fair value was determined.

Net investment in foreign operationsItems included in the financial statements ofeach of the group’s entities are measured usingthe currency of the primary economic environ-

ment in which the entity operates. The resultsand financial position of all the group entities(none of which has the currency of a hyperinfla-tionary economy) that have a functional currencydifferent from the group’s presentation currencyare translated into the presentation currency asfollows:

assets and liabilities, including goodwill andfair value adjustments, for each balancesheet presented are translated at the closingrate at the date of that balance sheet;income and expenses for each incomestatement are translated at averageexchange rates for the year, calculated on thebasis of 12 monthly rates.

Exchange differences arising from the translationof the net investment in foreign operations, andof related hedges, are included as a componentof equity (Translation reserve). These translationdifferences are reclassified to the income state-ment upon disposal of the related operations.

In respect of all foreign operations, any cur-rency revaluation differences that have arisensince 1 April 2004, the date of transition to IFRS,are presented as a separate component of equity.

Hedging activitiesThe group designates certain derivatives aseither:

hedges of the fair value of assets or liabilitiesa.(fair value hedge);hedges of a particular risk associated withb.a recognised liability or a highly probableforecasted transaction (cash flow hedge); orhedges of a net investment in a foreignc.operation (net investment hedge).

Fair value hedgesThe change in fair value of the hedging instru-ment is recognised in the consolidated incomestatement. The change in fair value of thehedged item attributable to the risk hedged isrecorded as part of the carrying value of the hed-ged item. When an unrecognised firm commit-ment is designated as hedged item, the sub-

sequent cumulative change in fair value of thefirm commitment attributable to the hedged riskis recognised as an asset or liability withcorresponding gain or loss recognised in theconsolidated income statement.

Cash flow hedgesThe effective portion of changes in the fair valueof derivatives that are designated and qualify ascash flow hedges are recognised in equity. Thegain or loss relating to the ineffective portionof derivative hedging instruments is recognisedimmediately in the income statement within netfinancial items.

Amounts accumulated in equity are reclassi-fied to the income statement in the periods whenthe hedged item is recognised in profit or loss.However, when the forecast transaction that ishedged results in the recognition of a non-finan-cial asset or a non-financial liability, the gainsand losses previously deferred in equity aretransferred from equity and included in the initialmeasurement of the cost of the asset or liability.

Hedge accounting is discontinued when thegroup revokes the hedging relationship, the hed-ging instrument expires or is sold, terminated, orexercised, or no longer qualifies for hedge acco-unting. Any cumulative gain or loss deferredin equity at that time remains in equity and isrecognised when the forecast transaction isultimately recognised in the income statement.When a forecast transaction is no longer expectedto occur, the cumulative gain or loss that wasdeferred in equity is recognised immediately inthe income statement.

Net investment hedgeHedges of net investments in foreign operationsare accounted for similarly to cash flow hedges.Any gain or loss on the hedging instrumentrelating to the effective portion of the hedge isrecognised in equity. The ineffective portion isrecognised immediately in the income statementwithin net financial items.

Gains and losses accumulated in equity areincluded in the income statement when theforeign operation is partially disposed of or sold.


Our performance


Note 3:■ Accounting estimates and judgements

Estimates and judgements are continually reviewed and are based on historical experiences and other expectations of future events.

The group makes estimates and assumptions concerning future events. The resulting accounting estimates will, by definition, seldom accurately equalthe related actual results, but are based on the best estimate at the time. The estimates and assumptions that have a significant risk of causing materialadjustments to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Revenue recognitionAs described in the accounting principles the percentage-of-completion method is used to account for construction contracts. Use of this method requiresestimates of the final outcome (revenue and costs) of the contract as well as measurement of progress achieved to date as a proportion of the total workto be performed.

The main uncertainty of contract revenue is related to recoverable amounts from variation orders, claims and incentive payments which are recognisedto the extent that it is in the group’s judgement that it is probable that they will result in revenue, and they are capable of being reliably measured. In manyprojects there are frequent changes in scope of work resulting in a number of variation orders. Normally the contracts with customers include proceduresfor presentation of and agreement of variation orders. At any point in time, there will be unapproved variation orders and claims included in the projectrevenue. Even though management has extensive experience in assessing the outcome of such negotiations there will always be uncertainties.

Cost to complete depends on productivity factors as well as the cost level for the input factors. Factors that could significantly impact cost estimates,claims and variation orders include weather conditions, the subcontractors and others with an impact on schedules, commodity prices and currency rates.Experience, systematic use of the project execution model and focus on core competencies reduces but does not eliminate this risk.

Progress measurement based on costs has an inherent risk related to the cost estimate as described above. In situations where cost is not seen toproperly reflect actual progress, alternative measures such as hours or plan progress are used to achieve more precise revenue recognition. The estimationuncertainty during the early stages of a contract is mitigated by a policy of normally not recognising revenue in excess of costs on large projects before thecontract reaches 20 percent completion.

WarrantiesAt the end of each contract, a provision is set up to cover any warranty expenditures. The warranty period is normally two years. The provision is oftenset at one percent of the contract value, but can also be a higher or lower amount following a specific evaluation of the actual circumstances for eachcontract. Both the general on percent provision and the evaluation of project specific circumstances are based on experience from earlier projects. Factorsthat could impact the estimated claim information include the group’s quality initiatives and project execution model. Reference is made to note 12 Provi-sions, for further information about provisions.

Property, plant and equipment and intangible assetsAt every balance sheet date, the group considers whether there are indications of impairment on the book values of long term assets. If such indicationsexist, a valuation is performed to assess whether or not and if applicable by which amount the asset should be written down for impairment.

Such valuations will often have to be based on estimates of future results for a number of cash flow generating units.

References are made to note 14 Property, plant and equipment and note 16 Intangible assets.

GoodwillIn accordance with the accounting policy stated, the group tests annually whether goodwill has suffered any impairment. The recoverable amounts ofcash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates and are consistent withthe market valuation of the group. Further details about goodwill and impairment reviews are included in note 16 Intangible assets.

Income taxesThe group is subject to income taxes in numerous jurisdictions. Significant judgement is required to determine the worldwide provision for income taxes.There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Provisionsfor anticipated tax audit issues are based on estimates of eventual additional taxes. Tax assets arise following tax losses that can be brought forward toreduce the income tax on future year’s taxable profits. The recognition of such a tax asset, consequently, depends on there being sufficient evidence of thefuture taxable profit which is necessary to use the brought forward loss. Such judgements are reasonably easy in countries with significant group activities,but may be more difficult in other tax jurisdictions. Where the final tax outcome of these matters is different from the amounts that were initially recorded,such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Reference is made to note 17Tax for further information about income taxes.

Pension benefitsThe present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions.The assumptions used in determining the net cost (income) for pensions include financial factors such as the discount rate, expected salary growth, infla-tion and return on assets as well as demographical factors about mortality, employee turnover, disability and early retirement. Assumptions about all thesefactors are set based on the situation at the time when the assessment is made. However, it is reasonably certain that such factors will change over thevery long time periods for which pension calculations are made. Any changes in these assumptions will impact the calculated pension obligations. The effecton the accounts of such changes are, however, spread over relatively long time periods by the use of the corridor approach, where changes are amortisedover many years. Further information about the pension obligations and the assumptions used are included in note 20 Employee benefits – pension.


Our performance


Note 4:■ Acquisition of subsidiaries and minority interests

Acquisition of minority interests in 2008

Aker Marine Contractors ASAker Solutions acquired in July 2008 an additional 30 percent of the shares in Aker Marine Contractors AS from Taubåtkompaniet AS, and in October 10percent of the shares, and holds after the transaction 100 percent of the shares in the company. The total price for the 40 percent acquired in 2008 wasNOK 744 million (NOK 559 million and 185 million respectively) including NOK 2 million in transaction costs. The transaction resulted in a reduction ofminority interests of NOK 75 million, and an increase in goodwill of NOK 595 million.

Acquisition of subsidiaries in 2008

Qserv LtdAker Solutions acquired 100 percent of the shares in the company in July 2008. Qserv Ltd is a well service provider in Aberdeen, UK. Aker Solutions haspaid compensation for the shares totalling GBP 99 million. In addition, there will be performance-based payments, payable in 2011, which depend onprofit in 2008, 2009 and 2010. Transaction costs amount to NOK 8 million. The estimated value of the remaining compensation payable to the sellers hasbeen discounted and recognised as a liability in the balance sheet. The current analysis and allocation of fair value is provisional.

Acquisitions that are not material for the group:

First Interactive ASIn February 2008, Aker Solutions acquired 60.2 percent of the shares in the Norwegian company First Interactive AS. The agreement includes an optionto buy the remaining shares. First Interactive AS is a software company specialising in 3D visualisation and simulation for the oil & gas sector.

Aker Offshore OyIn January 2008, Aker Solutions acquired 74 percent of the shares in Aker Offshore Oy, formerly RR Offshore Oy, and holds after the transaction 100 percentof the shares in the company. Aker Offshore Oy is located in Finland and is an engineering and project management company. Aker Solutions has hadbusiness relations with the company several years prior to the acquisition.

Aker Solutions has also acquired 100 percent of the shares in Aker Installation Floating Production AS in 2008 (see note 5 Related parties). In addition thegroup acquired 100 percent of the shares in Aker Well Services Partners LLC.

Total acquisition costs amount to NOK 1 629 million including acquisition of minority interests and transaction costs of NOK 10 million. Consolidated netprofit from acquired business in the period from acquisition to year end is NOK 53 million in 2008.

Values at time of acquisition1

Amounts in NOK million

Pre-acquisitioncarrying

amountsFair value

adjustments

Recognisedvalues on

acquisitionOf which

joint venture

Plant and equipment 426 222 648 -Intangible assets 3 92 95 -Non-current investments 7 - 7 -Current operating assets 305 - 305 -Cash and cash equivalents 46 - 46 -Minority interests - 5 - - 5 -Deferred tax liabilities - 35 - 81 - 116 10Other non-current liabilities - 84 - - 84 -Borrowings - 150 - 3 - 153 -Current operating liabilities - 402 - - 402 - 34

Net assets and liabilities 111 230 341 - 24Goodwill on acquisition2 1 288 34Deferred payment - 510 -

Cash 1 119 10

Cash paid - 1 119 - 10Cash and overdraft facilities 46 -

Net cash outflow - 1 073 - 10

Values at time of acquisition relate mainly to the acquisition of Qserv Ltd.1)The goodwill arising from the acquisitions is mainly attributable to the anticipated profitability of the operations and to the anticipated synergies.2)


Our performance


Acquisition of subsidiaries and jointly controlled companies in 2007

Wirth Maschinen- und Bohrgeräte-Fabrik GmbHAker Solutions acquired 50 percent of the shares in the company Wirth Maschinen- und Bohrgeräte-Fabrik GmbH in September 2007 (Wirth). Wirth is aGerman provider of drilling machines and pumps. Aker Solutions MH AS has cooperated with Wirth for more than 20 years. There is a shareholders’agreement with the other shareholders of Wirth with put / call option arrangements for the remaining 50 percent ownership to be transferred to AkerSolutions at a price based on future earnings. The agreement also results in the owners exercising joint control of Wirth in the period until the options becomeexercisable. The option was executed in January 2009 (see note 26 Subsequent events for further description of the transaction). The current analysis andallocation of fair value is provisional.

Acquisitions that are not material for the group:

Phoenix Polymers International LtdIn June 2007, Aker Solutions Subsea Ltd acquired 50 percent and obtained control over Phoenix International Ltd in Aberdeen. The company is animportant sub-supplier of buoyancy elements to Aker Solutions Subseas’ drilling and riser projects.

Aker Insurance ASIn August 2007, Aker Solutions acquired 9.9 percent of the shares and now owns 100 percent of the company.

Total acquisition costs amounted to NOK 217 million. Consolidated net profit from acquired business in the period from acquisition to year endis NOK 31 million in 2007.

Values at time of acquisitions

Amounts in NOK millionPre-acquisition

carrying amountsFair value

adjustments

Recognisedvalues on

acquisitionOf which

joint venture

Plant and equipment 26 - 26 26Intangible assets 1 54 55 54Non-current investments 2 - 2 2Current operating assets 387 31 418 405Cash and cash equivalents 84 - 84 70Minority interests 7 - 1 6 -Deferred tax liabilities 3 - 32 - 29 - 28Other non-current liabilities - 288 - - 288 - 288Current operating liabilities - 186 - - 186 - 164

Net assets and liabilities 36 52 88 77Goodwill on acquisition1 129 78Deferred payment - 46 - 46

Cash 171 109

Cash paid - 171 - 109Cash and overdraft facilities 84 70

Net cash outflow - 87 - 39

The goodwill arising from the acquisitions is attributable to the anticipated profitability of the operations and to the anticipated synergies.1)


Our performance


Note 5:■ Related parties

The group has several related party relationships between parents and subsidiaries (see note 28 Group companies as at 31 December 2008), associates(see note 21 Equity accounted investees), joint ventures (see note 22 Investments in joint ventures) and with its directors and executive officers (see note18 Salaries, wages and social security costs).

The largest shareholder Aker Holding AS is controlled by Aker ASA which is controlled by Kjell Inge Røkke through TRG Holding AS. All entities which KjellInge Røkke controls or has significant influence in are considered related parties to Aker Solutions.

In accordance with recommended accounting practice, information regarding significant related party transactions, benefits and agreements should be disclosedwhere such information may assist users of the financial statements in their understanding of the activities of the group. All transactions have been based onarm’s length terms. The transactions below are considered to be significant related party transactions which are not disclosed in the notes listed above.

Aker Drilling ASAIn 2005, Aker Drilling and Aker Solutions entered into a contract for the turn-key delivery of two sixth-generation deepwater drilling semi-submersibles. Therigs are equipped with Aker Solutions Dual RamRig™ drilling equipment. The contract value was approximately NOK 7.8 billion. The construction of the twoH-6e drilling rigs, Aker Spitsbergen and Aker Barents, is now in the completion phase. By the current schedule, Aker Drilling will take delivery in February andsecond quarter 2009 respectively. The sea trials for Aker Spitsbergen were completed in January 2009 with good results; however some damage to the drillingequipment will lead to some additional costs for Aker Solutions. The project has experienced cost overruns due to delays and technical challenges. In 2008Aker Solutions has recognised NOK 2.1 billion in revenue on the contracts to Aker Drilling (NOK 4.2 billion in 2007 and NOK 2.4 billion in 2006).

Aker Floating Production ASAAker Floating Production signed a contract for delivery and installation of an FPSO with Reliance Industries Ltd, India in 2007. The installation contract wasexecuted through Aker Installation Floating Production, at that time a subsidiary of Aker Floating Production. Aker Solutions managed the marine installationof the floating production storage and offloading (FPSO) vessel to be leased out by Aker Floating Production. There was a separate contract to deliver processtechnology to the FPSO. The total values of Aker Solutions’ contracts were approximately USD 250 million and NOK 671 million. The process systems contractwas completed by year end 2008 and the installation contract is between Aker Solutions and Reliance Industries Ltd following the acquisition of Aker InstallationFloating Production AS. In 2008, Aker Solutions has recognised NOK 32 million in revenue on the contracts to Aker Floating Production ASA.

Aker Installation Floating Production ASAker Installation Floating Production was acquired from Aker Floating Production in fourth quarter 2008 for NOK 2 million. Before the acquisition NOK 167million was recognised in 2008 as revenue on contracts to Aker Installation Floating Production.

Aker Oilfield Services ASAker Solutions has increased its shareholding in Aker Oilfield Services from 19 percent to 32.3 percent through a rights issue of NOK 166 million in firstquarter 2008. Aker Oilfield Services is a specialised subsea light well intervention contractor with a fleet of subsea and well intervention vessels confirmedfor delivery in 2009 and 2010. Aker Oilfield Services and Aker Solutions will use complementary strengths to offer light well intervention service packages.In addition, Aker Solutions has a contract with Aker Oilfield Services to deliver subsea equipment with a value of NOK 242 million. Aker Solutions also hasa reimbursable contract based on service provided to Aker Oilfield Services. Step Offshore (owned 51 percent by Aker Solutions) has an agreement forfluid and pumping systems with Aker Oilfield Services of NOK 51 million.

In 2008, Aker Solutions has recognised NOK 61 million in revenue on the contracts to Aker Oilfield Services. Aker Solutions has accounted for theinvestment in the company according to the equity method (see note 21 Equity accounted investees). A loan has been provided to Aker Oilfield Servicesamounting to NOK 65 million at the end of December 2008 (see note 25.4 Interest-bearing non-current receivables).

Aker Clean Carbon ASAker Solutions transferred its Just Catch™ technology for CO2 capture, valued at NOK 32 million, to the company Aker Clean Carbon, which will developCO2 capture projects. The transaction took place in 2008 and gave Aker Solutions 30 percent of the shares in Aker Clean Carbon, while Aker ASA owns 70percent. The ownership ratio has been determined following valuations and negotiations that have also recognised the value of Aker Solutions’ exclusiverights to participate in building future carbon capture facilities in co-operation with Aker Clean Carbon. Aker Solutions has accounted for the investment inthe company according to the equity method (see note 21 Equity accounted investees). Aker Solutions has provided a loan to Aker Clean Carbon thatamounted to NOK 15 million at the end of December 2008 (see note 25.4 Interest bearing non-current receivables).

Intellectual Property Holding ASAker Solutions has an agreement with Intellectual Property Holding that holds all rights, titles and interests in and to registered trademarks and domain namescontaining ”Aker”. Intellectual Property Holding will act as a joint branding tool where the companies in the Aker group join forces in selected initiatives. Theannual royalty cost for Aker Solutions is approximately NOK 10 million.

Aker Capital ASAker Solutions acquired in October 2008 shares in Aker Marine Contractors equivalent to 10 percent from Aker Capital. The purchase price was NOK 185million (see note 4 Acquisitions of subsidiaries and minority interests for further information).

Aker Asset Management ASAAker Insurance receives investment management services from Aker Asset Management. Annual fee is based on average total capital and amounted toapproximately NOK 1 million.

Aker PensjonskasseAker Pensjonskasse was established by Aker ASA to manage the Aker Solutions retirement plan for employees, retirees and related companies. The totalpaid-in equity was NOK 103 million at the end of 2008. Aker Solutions holds 93.4 percent of the shares in the Aker Pensjonskasse.

Aker ASAAker Subsea Inc and Aker Kvaerner Willfab Inc, which are subsidiaries of Aker Solutions, are sponsoring employers of the US pension plan KvaernerConsolidated Retirement Plan. The principal sponsor for the plan is Kvaerner U.S. Inc, a subsidiary of TH Global Plc. Aker ASA has provided a guaranteeto the plan in the event that Aker Solutions becomes liable for more than one third of the underfunded element of the plan.


Our performance


Note 6:■ Segment information

A segment is a distinguishable component of the group that is engaged either in providing products or services (business segment), or in providingproducts or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from thoseof other segments. See page 18 – 41 of the annual report for a description of the business segments. The transactions between the segments have beenbased on arm’s length terms.

Operating revenue in geographical segments are based on the geographical location of customers whereas segment assets and capital expenditure arebased on geographical location of the companies.

Due to the 2008 restructuring of Field Development (FD) and Maintenance, Modification and Operations (MMO) into the new business area named EnergyDevelopment and Services (ED&S), historical Aker Solutions numbers were restated according to the new structure. The recently announced restructuringof the Subsea business area and Products & Technologies business area will be effective as at 1 January 2009, hence figures have not been restated in theannual report.

2008 – Business segments

Amounts in NOK million Note

EnergyDevelopment

& Services SubseaProducts &

TechnologiesProcess &

ConstructionUnallo-

cated Total

External revenueConstruction contracts 14 381 8 039 9 640 6 569 295 38 924Services revenue 7 866 2 030 2 684 3 576 943 17 099Products - 1 110 714 144 - 1 968Other - - 17 165 79 261

Total revenue from external customers 22 247 11 179 13 055 10 454 1 317 58 252Inter-segment revenue 437 27 1 161 248 - 1 873 -

Operating revenue 22 684 11 206 14 216 10 702 - 556 58 252

Operating profit / loss before depreciation, amortisationand impairment - 475 1 228 1 448 904 277 3 382Depreciation, amortisation and impairment - 93 - 166 - 185 - 25 - 146 - 615

Operating profit (+) / loss (-) - 568 1 062 1 263 879 131 2 767Share of profit (+) / loss (-) of associates - - 7 - 3 - 25 - 21

Capital expenditures 165 546 388 337 136 1 572

Net current operating assets excl. tax 8 839 837 994 - 1 832 12 850Net non-current operating assets excl. tax 8 2 882 2 080 4 068 1 786 393 11 209

Net operating assets excl. tax 8 3 721 2 917 5 062 - 46 405 12 059Tax-related items 8 - 515Investment in associates 90 - 19 24 311 444Investments in other companies 123Other operating liabilities - 1 194Net interest-bearing items - 2 311

Total equity incl. minority interests 8 606

Order intake (unaudited) 16 681 11 466 16 121 11 291 31 55 590Order backlog (unaudited) 18 315 11 876 14 705 13 300 - 180 58 016

Own employees (unaudited) 8 542 4 108 4 003 5 417 1 290 23 360

Intangible assets 2 323 558 2 791 1 284 163 7 119

Total operating assets excl. tax 9 661 8 585 13 100 5 641 197 37 184Total operating liabilities excl. tax - 5 940 - 5 668 - 8 038 - 5 687 208 - 25 125

Total net operating assets excl. tax 3 721 2 917 5 062 - 46 405 12 059


Our performance



Amounts in NOK million Note

EnergyDevelopment



ConstructionUnallo-

cated Total

External revenueConstruction contracts 18 488 7 239 9 128 7 885 - 103 42 637Services revenue 6 465 1 437 1 725 2 948 1 021 13 596Products - 993 494 87 - 1 574Other 2 - 32 104 12 150

Total revenue from external customers 24 955 9 669 11 379 11 024 930 57 957Inter-segment revenue - 34 182 974 573 - 1 695 -

Operating revenue 24 921 9 851 12 353 11 597 - 765 57 957

Operating profit / loss before depreciation, amortisationand impairment 1 391 960 959 776 - 173 3 913Depreciation, amortisation and impairment - 127 - 112 - 72 - 24 - 96 - 431

Operating profit (+) / loss (-) 1 264 848 887 752 - 269 3 482Share of profit (+) / loss (-) of associates - - 2 - - 4 - 2

Capital expenditures 490 577 298 53 178 1 596

Net current operating assets excl. tax 8 - 776 849 323 - 1 357 - 100 - 1 061Net non-current operating assets excl. tax 8 2 726 1 624 1 217 1 035 295 6 897

Net operating assets excl. tax 8 1 950 2 473 1 540 - 322 195 5 836Tax-related items 8 - 372Investment in associates 53 - 18 21 29 121Investments in other companies 133Other operating liabilities - 914Net interest-bearing items 2 463

Total equity incl. minority interests 7 267

Order intake (unaudited) 19 792 12 377 10 733 14 996 44 57 942Order backlog (unaudited) 24 317 10 951 11 520 12 519 - 1 046 58 261

Own employees (unaudited) 8 163 3 673 2 666 5 516 1 280 21 298

Intangible assets 2 540 646 824 900 85 4 995

Total operating assets excl. tax 7 716 5 027 6 234 3 812 758 23 547Total operating liabilities excl. tax - 5 766 - 2 554 - 4 694 - 4 134 - 563 - 17 711

Total net operating assets excl. tax 1 950 2 473 1 540 - 322 195 5 836



EnergyDevelopment



constructionUnallo-

cated Total

External revenueConstruction contracts 17 644 2 724 3 908 9 074 - 46 33 304Services revenue 6 054 1 274 1 427 3 403 706 12 864Products - 2 589 1 355 - - 3 944Other 331 5 7 135 2 480

Total revenue from external customers 24 029 6 592 6 697 12 612 662 50 592Inter-segment revenue 565 349 875 603 - 2 392 -

Operating revenue 24 594 6 941 7 572 13 215 - 1 730 50 592

Operating profit/loss before depreciation, amortisation and impairment 1 244 479 531 641 - 23 2 872Depreciation, amortisation and impairment - 60 - 100 - 62 - 34 - 83 - 339

Operating profit (+) / loss (-) 1 184 379 469 607 - 106 2 533Share of profit (+) / loss (-) of associates - 1 - 1 3 - 21 - 18

Order intake (unaudited) 24 717 11 747 12 997 14 026 - 1 216 62 271Order backlog (unaudited) 29 764 8 775 12 741 10 855 - 2 440 59 695


Our performance


Geographical segmentsOperating revenues Total operating assets Capital expenditure

by customer location by company location by company location

Amounts in NOK million 2008 2007 2006 2008 2007 2008 2007

Norway 21 180 23 396 20 567 19 046 11 029 584 963Europe 8 704 8 628 9 619 7 873 5 713 470 219North America 8 597 9 243 9 976 5 453 3 802 148 101Asia 13 939 11 336 5 282 1 894 1 353 317 212Other 5 832 5 354 5 148 2 918 1 650 53 101

Total 58 252 57 957 50 592 37 184 23 547 1 572 1 596

Note 7:■ Other operating expenses

Other operating expenses amount to NOK 6.9 billion in 2008 (NOK 5.4 billion in 2007 and NOK 6.0 billion in 2006). The expenses include agency costs,audit fees, operating lease costs, research and development costs and other expenses regarding premises, electricity, maintenance, travelling, IT-equipmentand insurance fees.

Fees to auditorsOther assurance Other

Audit services Tax services services

Amounts in NOK million 2008 2007 2008 2007 2008 2007 2008 2007

Aker Solutions ASA 4 4 - - - - - -Subsidiaries 26 22 2 2 4 4 5 2

Total 30 26 2 2 4 4 5 2

Note 8:■ Net operating assets


Inventories 1 321 884Trade and other receivables 9, 25.5 20 796 13 361Provisions 12 - 912 - 655Trade and other payables 10 - 21 052 - 15 165Derivative financial instruments (net assets and liabilities) 25.3 697 514

Net current operating assets excl. tax 6 850 - 1 061Employee benefit assets 20 234 15Other non-current operating assets 4 9Intangible assets 6, 16 7 119 4 995Property, plant and equipment 14 4 610 2 815Employee benefits obligations 20 - 758 - 937

Net non-current operating assets excl. tax 6 11 209 6 897

Net operating assets excl. tax 6 12 059 5 836Income tax payable 17 - 252 - 329Prepaid income tax 17 49 89Deferred tax assets 17 519 548Deferred tax liabilities 17 - 831 - 680

Total tax related items 6 - 515 - 372

Net operating assets incl. tax 11 544 5 464


Our performance


Note 9:■ Current operating assets


Trade debtors1, 2 25.5 8 923 5 815Other receivables1 4 288 2 338Work in progress to be invoiced 11 6 868 4 774Advances to suppliers 717 434

Trade and other receivables 25.5 20 796 13 361Derivative financial instruments 25.3 3 100 1 468Inventories3 1 321 884

Current operating assets excl. tax 25 217 15 713

Trade debtors include NOK 135 million falling due after one year (NOK 89 million in 2007). Book value of trade and other receivables are approximately equal to fair value.1)Receivables from related parties at the end of 2008 amounts to NOK 35 million (NOK 425 million in 2007).2)Write-downs of inventories are NOK 2 million in 2008 (NOK 9 million in 2007).3)

Note 10:■ Current operating liabilities


Trade creditors1, 2 4 482 3 217Advances from customers 6 860 2 852Accrued operating and financial costs 7 972 8 644Other current liabilities2 1 738 452

Trade and other payables 21 052 15 165Provisions 12 912 655Derivative financial instruments 25.3 2 403 954

Current operating liabilities excl. tax 24 367 16 774

Trade creditors include NOK 33 million falling due after one year (NOK 11 million in 2007). Book value of trade creditors and other current liabilities are approximately equal to fair value.1)Trade creditors and other current liabilities include NOK 43 million to related parties at the end of 2008 (NOK 0 million in 2007).2)

Note 11:■ Contracts


Value all contracts 163 425 126 967Costs from ongoing contracts 93 623 62 013Results from ongoing contracts 11 786 6 693

Order backlog 6 58 016 58 261

Value of work performed 105 409 68 706Invoiced 98 541 63 932

Work in progress to be invoiced 9 6 868 4 774Trade debtors 9 8 923 5 815

Recoverable on contracts 15 791 10 589

Advances from customers 10 6 860 2 852


Our performance


Order intake (unaudited)

Amounts in NOK million 2008 20071

Energy Development & Services 16 681 19 792Subsea 11 466 12 377Products & Technologies 16 121 10 733Process & Construction 11 291 14 996Unallocated 31 44

Total 55 590 57 942

Order backlog (unaudited)


Energy Development & Services 18 315 24 317Subsea 11 876 10 951Products & Technologies 14 705 11 520Process & Construction 13 300 12 519Unallocated - 180 - 1 046

Total 58 016 58 261

Due to the 2008 restructuring of Field Development (FD) and Maintenance, Modification and Operations (MMO) into the new business area named Energy Development & Services (ED&S),1)historical Aker Solutions numbers were restated according to the new structure. The recently announced restructuring of the Subsea business area and Products & Technologies businessarea will be effective as at 1 January 2009, hence figures have not been restated in the annual report.

The group enters into delivery commitments prior to commencement of production. Of the backlog as at 31 December 2008 of NOK 58 billion, NOK 2.3 billion(NOK 5.4 billion in 2007) relate to certain major contracts which are not expected to yield any profit. Expected losses on such contracts have been charged toprofit and loss and based on best estimates. The overall quality of the order backlog has improved during 2008, which is reflected in results from ongoingcontracts.

Largest projects in progress at year end 2008 (unaudited)

ProjectBusinesssegment Customer

Estimateddelivery

Adriatic LNG Terminal ED&S Terminale GNL Adriatico s.r.l 2009Kashagan ePF1 ED&S Agip 2009Skarv ED&S BP 2011Gjøa ED&S StatoilHydro 2010Aker Drilling ED&S Aker Drilling AS 2009Statfjord Latelife ED&S StatoilHydro 2009Frigg Cessation ED&S Total 2010Tampen ED&S StatoilHydro 2011Frigstad P&T Frigstad Discoverer Invest 2009CNOOC P&T CNOOC 2010PetroRig P&T Jurong Shipyard 2009 / 2010Seadrill P&T Jurong Shipyard 2009 / 2010Sevan P&T Sevan Drilling 2012TMT P&T Daewoo Shipbuilding & Marine Engineering 2009 / 2011Odebrecht P&T Daewoo Shipyard 2011Morvin Subsea StatoilHydro 2009Reliance Subsea Reliance 2009Dalia Subsea (Phase 2) Subsea Total E&P Angola 2009Sempra P&C Cameron LNG 2009Yansab P&C Yansab 2009Longview Power Project P&C Longview Power 2011Boddington Gold Mine P&C BGM Management Company 2009Gulf LNG P&C Gulf LNG Energy 2011GTA West P&C TransCanada Energy 2010


Our performance


Note 12:■ Provisions

Amounts in NOK million Warranties Other Total

Balance as at 1 January 2008 437 218 655Reclassified 19 - 19 -Provisions made during the year 234 203 437Provisions used during the year - 105 - 51 - 156Provisions reversed during the year - 62 - 26 - 88Currency translation differences 34 30 64

Balance as at 31 December 2008 557 355 912

Expected timing of paymentNon-current 143 165 308Current 414 190 604

Balance as at 31 December 2008 557 355 912

See note 3 Accounting estimates and judgements and note 13 Contingent events.

WarrantiesThe provision for warranties relates mainly to the possibility that Aker Solutions, based on contractual agreements, needs to perform guarantee workrelated to products and services delivered to customers. The provision is based on estimates of liabilities arising from existing contracts and the costof the guarantee work. The warranty period is normally two years and any cash effects will arise in this period.

OtherOther includes mainly restructuring provisions, provisions for onerous leases and provisions for loss contracts. Provisions for loss contracts are partlyrecorded as reduction of projects under construction in the balance sheet, and partly as short-term provisions in the balance sheet, depending on theamount recorded as project under construction for each project.

Note 13:■ Contingent events

Project risks and uncertaintiesThe group’s projects are to a large extent long-term contracts awarded on a competitive bidding basis. Failure to meet schedule or performance guaran-tees or increases in contract costs may result in non-recoverable costs, which could exceed revenues realised from the applicable project. Where a projectis identified as loss making, provisions for future losses are made (see note 12 Provisions). The accounting treatment is based on the best estimate at thetime. Inevitably, such circumstances and information may be subject to changes in subsequent periods and thus the eventual outcome may be better orworse than estimated.

In the group’s view, the following project is subject to estimation uncertainty, the outcome of which could have a material impact on the consolidatedfinancial statements:

Sempra – LNG regasification facilityCameron LNG LLC (ultimately Sempra LNG – “Sempra”) and Aker Solutions US Inc. / IHI Inc. have entered into an agreement for engineering, procurement,construction and commissioning services of an LNG regasification facility located on the south coast of Louisiana in the United States. The original value of thecontract was USD 470 million. Since the construction of the facility started in 2005, the project has been substantially affected by several force majeure events,including hurricanes, and significant customer requested changes to the initial project scope. These events and scope changes have resulted in significantincreases to the project cost and delayed the original scheduled completion date. Aker Solutions is seeking recovery for such cost increases under the contract.While the final outcome is subject to some uncertainty, the expectation is that the ultimate outcome will not have a material financial impact on Aker Solutions’financial position or results.

Legal proceedingsWith its extensive worldwide operations, companies included in the group are in the course of their activities involved in legal disputes. Provisions havebeen made to cover the expected outcome of the disputes to the extent negative outcomes are likely and reliable estimates can be made. However, thefinal outcome of these cases will always be subject to uncertainties and resulting liabilities may exceed recorded provisions.

Blind FaithAker Solutions has delivered a semi-submersible hull for Chevron Corporations’ Blind Faith platform. The platform has been installed in the Gulf of Mexicoand production started in November 2008. Aker Solutions is in discussions with the customer regarding compensation for acceleration work. Chevron Corporationshas presented a guarantee claim towards Aker Solutions and initiated an arbitral process in Houston. Although there can be no assurance regarding theoutcome, the expectation is that this will not have a material impact on Aker Solutions’ financial position or results.

Hitachi – Council Bluffs power plantIn 2003, Hitachi America Ltd (“Hitachi”) entered into a contract with Aker Construction Inc (“ACI”) for the civil, underground, structural erection, boiler, tur-bine, Air Quality Control System (“AQCS”) and ancillary scopes of work for a 790 megawatt pulverized coal-fired power plant to be delivered toMidAmerican Energy Company in Council Bluffs, Iowa in the United States. The original value of the contract was USD 331 million.

Hitachi and ACI’s subcontractor AZCO Inc (“AZCO”) have filed various claims against ACI. ACI has disputed these claims and filed various counterclaims againstboth Hitachi and AZCO. The disputes between Hitachi and ACI, and ACI and AZCO are cumulated in a joint hearing, and arbitration hearings are ongoing inChicago, Illinois in the United States. A final award on all matters and between all parties is expected in the fourth quarter of 2009. Although there can be noassurance with regards to the final arbitration award, the expectation is that this will not have a material impact on Aker Solutions’ financial position or results.


Our performance


Note 14:■ Property, plant and equipment

Amounts in NOK millionBuildingsand sites

Machinery,equipment and

softwareConstruction

in progress Total

Historical costBalance as at 1 January 2007 1 162 3 107 45 4 314Additions 371 966 259 1 596Additions through business combinations1 - 26 - 26Disposals - 51 - 279 - - 330Currency translation differences - 47 - 114 - 2 - 163

Historical cost as at 31 December 2007 1 435 3 706 302 5 443Additions 397 798 377 1 572Additions through business combinations2 - 648 - 648Disposals - - 87 3 - 84Currency translation differences 119 220 - 11 328

Historical cost as at 31 December 2008 1 951 5 285 671 7 907

Accumulated depreciationsBalance as at 1 January 2007 - 568 - 1 984 - 1 - 2 553Depreciation for the year - 129 - 301 - - 430Impairment loss - - - -Disposals 62 236 - 298Currency translation differences 19 38 - 57

Accumulated depreciation as at 31 December 2007 - 616 - 2 011 - 1 - 2 628Depreciation for the year - 189 - 376 - - 565Impairment loss - - 43 - - 43Disposals 8 48 - 56Currency translation differences - 9 - 109 1 - 117

Accumulated depreciation as at 31 December 2008 - 806 - 2 491 - - 3 297

Book value as at31 December 2007 819 1 695 301 2 81531 December 2008 1 145 2 794 671 4 610

Of which capitalised leases31 December 2007 7 - - 731 December 2008 5 245 - 250

Additions relate mainly to the acquisition of 50 percent in Wirth Maschinen- und Bohrgeräte-Fabrik GmbH which is proportionally consolidated in the accounts.1)Additions relate mainly to acquisition of 100 percent in Qserv Ltd.2)

Assets are depreciated on a straight-line basis over their expected economic lives, as follows:

Machinery and equipment 3 – 15 yearsBuildings 8 – 30 yearsSites No depreciation

The estimated residual values are reviewed annually.

See note 25.6 Borrowings and other non-current liabilities for information about bank borrowings which are secured by property, plant and equipment.


Our performance


Note 15:■ Operating leases

Total non-cancellable operating lease commitments


Contracts due within one year 392 522Contracts running from one to five years 3 420 1 635Contracts running for more than five years 1 634 1 253

Total 5 446 3 410

Lease and sublease payments recognised in the income statement in 2008

Amounts in NOK million BuildingsConstruction

equipmentOther plant and

machinery Other Total

Minimum lease payments 736 34 208 22 1 000Contingent payments 31 - 2 9 42Sublease payments - 8 - - - - 8

Total 759 34 210 31 1 034

Lease and sublease payments recognised in the income statement in 2007

Amounts in NOK million BuildingsConstruction

equipmentOther plant and

machinery Other Total

Minimum lease payments 380 160 188 4 732Contingent payments 2 - 1 - 3Sublease payments 1 - - - 1

Total 383 160 189 4 736

The major part of the operating lease costs and commitments relates to rental on a large number of locations worldwide. Aker Solutions has a twelve yearleasing agreement with Norwegian Property for the headquarters, Aker Hus, at Fornebu, Bærum expiring in 2019.

Other plant and machinery costs primarily include leasing of IT equipment, cars, inventory and lease of the vessel Boa Sub C. Leasing of IT equipment isbased on a three year agreement with Hewlett Packard International Bank PLC. From January 2008, inventory and ICT equipment are leased from SGFinans. There is no intention to purchase the equipment and it cannot be sublet.

None of the leases include significant contingent rent.

Note 16:■ Intangible assets

Amounts in NOK million Note GoodwillOther intangible

assets Total

Book value as at 1 January 2007 5 051 3 5 054Additions - 3 3Additions through business combinations 4 129 55 184Disposals - - 3 - 3Amortisation for the year - - 1 - 1Currency translation differences - 242 - - 242

Book value as at 31 December 2007 6 4 938 57 4 995Additions - 12 12Additions through business combinations 4 1 883 95 1 978Disposals - - 7 - 7Amortisation for the year - - 7 - 7Currency translation differences 138 10 148

Book value as at 31 December 2008 6 6 959 160 7 119

The increase in goodwill is mainly caused by the acquisitions of Qserv Ltd and Aker Marine Contractors AS with respectively NOK 1 206 million andNOK 595 million. The acquisition of Qserv Ltd caused an increase in other intangible assets, mainly related to customer relationship, of NOK 84 million.See note 4 Acquisition of subsidiaries and minority interest for further description.


Our performance


Research and development costsMost of the costs for research and development in Aker Solutions are related to projects and are booked as contract costs. In addition, research anddevelopment costs of NOK 188 million have been expensed during the year because the criteria for capitalisation was not met (NOK 166 million in 2007).In addition, research and development costs paid by customers totalled NOK 21 million in 2008 (NOK 77 million in 2007).

Allocation of goodwill


Energy Development & Services1 2 304 2 306Subsea1 556 562Products & Technologies 2 652 776Process & Construction 1 284 1 127Other 163 167

Total 6 959 4 938

Decrease in goodwill is related to currency translation effects.1)

Cash generating unitsGoodwill originates from a number of acquisitions. Management monitors goodwill impairment at the business segment level which is also considered thecash generating unit (CGU) due to the level of integration within the CGUs.

Determination of recoverable amountsRecoverable amounts are based on value in use calculations. The calculations use cash flow projections based on the future cash flow, budgets andstrategic forecasts for the periods 2009 – 2013 and an annual growth of 2.5 percent for subsequent periods. A discount rate (WACC) of 16.5 percentbefore tax has been used for discounted cash flows.

For all business areas the recoverable amounts are higher then the carrying amounts and consequently the analysis indicates that no impairmentis required. As a sensitivity analysis, recoverable amount has also been calculated using discount rates up to 25 percent, without any effect on theconclusions.

Note 17:■ Tax

Income tax expense

Amounts in NOK million 2008 2007 2006

Current tax expenseCurrent year 484 548 318Adjustments for prior years - 36 9 35

Total current tax expense 448 557 353

Deferred tax expenseOrigination and reversal of temporary differences 189 550 244Benefit of tax losses / timing differences recognised - 47 - 33 - 22

Total deferred tax expense 142 517 222

Total tax expense in income statement 590 1 074 575Tax expense discontinued operations - - 65

Tax expense including tax related to discontinued operations 590 1 074 640


Our performance


Effective tax rateThe table below reconciles the reported income tax expense to the expected income tax expense according to the corporate income tax rateof 28 percent in Norway.


Profit before tax 2 103 3 538 1 869Expected income taxes (28 percent) of profit before tax 589 991 523Tax effect of prior year adjustments - 37 - 12 26Tax effect of items booked against equity 4 - 31Tax effect of permanent differences1 21 23 - 32Tax effect of tax losses / other timing differences not included in the period incurred - 47 - 33 - 22Tax effect of change in tax rates 37 15 -Tax effect of differences in tax rates from 28 percent2 38 90 49Other - 15 - -

Income tax expense 590 1 074 575Effective tax rate 28 % 30 % 31 %Tax effect of differences 1 83 52

In 2006 the main difference was the gain on disposal of Aker Kværner Power & Automation Systems AS.1)The major part of the difference relates to the US where the tax rate is 41 percent.2)

Recognised deferred tax assets and liabilitiesAssets Liabilities (-) Net

Amounts in NOK million 2008 2007 2008 2007 2008 2007

Property, plant and equipment 16 5 - 160 - 27 - 144 - 22Pensions 137 246 - - 137 246Projects - 64 - - 1 722 - 1 340 - 1 786 - 1 340Tax loss carry forward 31 114 - - 31 114Other 399 183 1 0511 6871 1 450 870

Total 519 548 - 831 - 680 - 312 - 132

Includes the tax effect of tax losses carried forward of NOK 3 251 million (NOK 2 849 million in 2007) used to offset positive timing differences.1)

Change in recognised deferred tax assets and liabilities

Amounts in NOK millionProperty, plantand equipment Pensions Projects

Tax losscarry forward Other Total

Net deferred tax assets and liabilities as at 1 January 2007 85 246 - 1 415 91 1 485 492Recognised in profit and loss - 105 - 75 23 - 510 - 517Recognised in equity - - - - - 86 - 86Disposal / acquisition of companies - - - - - 25 - 25Currency translation differences - 2 - - - 6 4

Net deferred tax assets and liabilities as at 31 December 2007 - 22 246 - 1 340 114 870 - 132Recognised in profit and loss - 74 - 109 - 452 - 103 597 - 142Recognised in equity - - - - - 4 - 4Disposal / acquisition of companies - 35 - - - - 81 - 116Currency translation differences - 13 - 6 20 68 82

Net deferred tax assets and liabilities as at 31 December 2008 - 144 137 - 1 786 31 1 450 - 312


Our performance


Tax losses carried forward

Amounts in NOK million Norway EuropeNorth

AmericaSouth

America Asia Other Total

2009 - - - - - - -2010 - - - - - - -2011 - - - - - - -2012 - - - - - - -2013 - 1 - - - - 12014 and later - - 224 - - - 224Indefinite 4 389 173 - 60 35 6 4 663

Total tax losses carried forward 4 389 174 224 60 35 6 4 888Tax losses not recognised as deferred tax asset - - - 2 - 28 - 35 - 4 - 69

Tax losses recognised as deferred tax asset 4 389 174 222 32 - 2 4 819

Deferred tax losses are recognised in the balance sheet to the extent that forecasts and realistic expectations about results show that Aker Solutions willbe able to use the tax losses before they expire.

Geographical split2008

Amounts in NOK millionCurrent tax

expenseDeferred tax

expenseTotal taxchange

Net deferredtax liability

Net payabletax liability

Norway 13 - 20 - 7 - 489 - 18Europe 65 47 112 - 71 - 38North America 93 114 207 212 46South America 41 - 3 38 22 - 48Asia 234 2 236 - 1 - 121Other countries 2 2 4 15 - 24

Total 448 142 590 - 312 - 203Tax asset 519 49Tax liability - 831 - 252

2007

Amounts in NOK millionCurrent tax

expenseDeferred tax

expenseTotal taxchange

Net deferredtax liability

Net payabletax liability

Norway 40 566 606 - 307 - 38Europe 29 50 79 - 83 - 59North America 346 - 93 253 236 - 105South America 21 5 26 16 - 15Asia 74 2 76 5 - 5Other countries 47 - 13 34 1 - 18

Total 557 517 1 074 - 132 - 240Tax asset 548 89Tax liability - 680 - 329

Note 18:■ Salaries, wages and social security costs


Salaries and wages including holiday allowance 11 140 9 741 8 365Social security tax / National insurance contribution 1 328 1 373 1 304Pension costs 20 322 543 337Other employee costs 332 540 435

Salaries, wages and social security costs 13 122 12 197 10 441

Loans to employees are shown in note 25.4 Non-current interest-bearing receivables. No guarantees are granted to any employee.


Our performance


Directors and nomination committee’s annual feesThe board fees for 2008 were NOK 3 150 000, including NOK 600 000 transferred to the labour union covering occupational activities in the group.In addition, fees to the reward committee were NOK 75 000. The amounts are the same as in 2007. The Board of Directors did not receive any otherpayments in 2007 or 2008. The members of the Board of Directors have no agreements that entitle them to any extraordinary remuneration.

Fees paid to the nomination committee in 2008 amounted to NOK 90 000, NOK 30 000 per member (NOK 10 000 per member in 2007).

Board of Directors1

Amounts in NOK in 2008Reward

committee Board fees

Leif-Arne Langøy2, 4 25 000 325 000Martinus Brandal2, 4 300 000Bjørn Flatgård 25 000 350 000Heidi Marie Petersen 300 000Vibeke Hammer Madsen 25 000 300 000Karl Erik Kjelstad2, 4 75 000Siri Fürst 300 000Atle Teigland3 150 000Åsmund Knutsen3 150 000Arve Toft3 150 000Ingebreth Forus3 150 000

Amounts in NOK in 2007Reward

committeeAudit

committee Board fees

Leif-Arne Langøy 25 000 400 000Bjørn Flatgård 25 000 350 000Helge Midttun 25 000 75 000Heidi Marie Petersen 225 000Vibeke Hammer Madsen 25 000 300 000Karl Erik Kjelstad 300 000Siri Fürst 25 000 300 000Atle Teigland 25 000 150 000Åsmund Knutsen 150 000Bernt Harald Kilnes 37 500Arve Toft 112 500Øyvind Hopland 50 000Ingebreth Forus 100 000

Members of the Board of Directors, the reward committee and the audit committee are elected for two years at the general meeting.1)According to policy in the Aker group, fees to board members employed in Aker companies will be paid to the Aker companies, not to the board member in person. The same policy is2)implemented for fees for the reward committee. Therefore, board and compensation committee fees for Leif-Arne Langøy, and board fees for Martinus Brandal and Karl Erik Kjelstad in 2008were paid to Aker ASA. In 2007, board fees to Leif-Arne Langøy and Karl Erik Kjelstad were paid to Aker ASA and Aker Yards ASA.According to agreement with and initiative from the employees, NOK 150 000 is transferred to the labour union covering occupational activities in the group, for each board member elected3)from the employees.As at April 2008, Martinus Brandal replaced Leif-Arne Langøy as chairman of the board. Karl Erik Kjelstad resigned as director of the board on the same date.4)

The nomination committeeThe Aker Solutions ASA nomination committee comprises the following individuals as at 31 December 2008: Kjell Inge Røkke (Chairman), Kjeld Rimbergand Gerhard Heiberg.

The reward committeeThe reward committee has three independent members elected by and among the Board of Directors. As at 31 December 2008 the members of thereward committee are Leif-Arne Langøy, Bjørn Flatgård and Vibeke Hammer Madsen.

The reward committee shall ensure that the company’s reward policy serves the interest of the shareholders and that the company has internallyconsistent and externally competitive remuneration of executives.

Guidelines for remuneration to the President & CEO and the members of the executive management teamThe main purpose of the executive reward programme is to encourage a strong and sustainable performance-based culture, which supports growthin shareholder value. The total remuneration to executives consists of a market based salary, a few standard employee benefits and a variable payprogramme.

The President & CEO and the executive management team participate in the standard pension and insurance schemes applicable to all employees.The company practice standard employment contracts and standard terms and conditions regarding notice period and severance pay for President &CEO and the members of the executive management team. The company does not offer share option programmes to any managers or employees.

The objective of the variable pay programme is to contribute to the company achieving good financial results and management according to thecompany’s values and business ethics.


Our performance


The variable pay programme is based on the achievement of financial and personal performance targets, leadership performance in accordance with thecompany’s values and the development of the company’s share price. The programme represents a potential for an additional variable pay up to the valueof 100 percent of base salary. Earnings are paid over three years. The first half of the variable pay is paid the following year. The remaining amount is paidtwo years later with the addition of a retention element provided the executive is still employed by the company. The annual payments are restricted to oneannual base salary and the restriction will be fully effective from 2009. The actual reward of leaders for 2008 was according to the guidelines of the company.The variable pay in 2008 are amounts earned in 2007 and 2005.

Remuneration to members of the executive management teamMembers of the executive management team as at 31 December 2008 are: Simen Lieungh, Leif Hejø Borge, Niels Didrich Buch, Mads Andersen,Nils Arne Hatleskog, Per Harald Kongelf and Jarle Tautra. Simen Lieungh replaced Martinus Brandal, who returned to Aker ASA, as at 1 March 2008.Leif Hejø Borge replaced Bjørn Erik Næss as at 1 April 2008. Nils Arne Hatleskog replaced Pål Helsing as at 11 April 2008. Mads Andersen replacedRaymond Carlsen, who returned to Aker ASA, as at 1 October 2008. Per Harald Konelf replaced Mads Andersen, who took over Subsea, as at 1 October2008. Niels Didrich Buch entered the executive management team as at 1 March 2008. Thorleif Gram left the executive management team as at 1 March2008. Total taxable remuneration of the executive management team for 2008 was NOK 38 927 917 (NOK 61 341 631 in 2007). In addition, Aker Solutionsalso had NOK 919 395 in 2008 (NOK 1 290 782 in 2007) in pension costs for the executive management team.

The following remunerations have been paid:

Executive management team

Amounts in NOK in 2008 Base salary1

Totalvariable pay2 Other benefits3

Total taxableremuneration

Pension benefitearned / cost to

company

Simen Lieungh March – December 3 456 219 755 051 21 182 4 232 452 106 1864

Martinus Brandal January – February 1 212 235 722 953 - 1 935 188 36 5844

Leif Hejø Borge April – December 1 702 151 2 500 000 20 618 4 222 769 36 328Bjørn Erik Næss January – February 892 684 3 123 251 - 4 015 935 15 988Niels Didrich Buch March – December 1 396 465 316 057 21 969 1 734 491 77 843Pål Helsing January – March 832 488 - 21 969 854 457 71 374Nils Arne Hatleskog April – December 1 265 527 444 807 16 219 1 726 553 60 250Mads Andersen January – December 2 279 657 2 507 561 21 969 4 809 187 54 330Torleif Gram January – April 617 817 1 379 013 113 192 2 110 022 206 2994, 7

Raymond Carlsen January – September 2 256 456 5 178 746 20 788 7 455 990 104 0664

Per Harald Kongelf October – December 499 160 - 12 678 511 838 36 328Jarle Tautra January – December 2 374 805 2 922 261 21 969 5 319 035 113 819

Total 18 785 664 19 849 700 292 553 38 927 917 919 395

Amounts in NOK in 2007

Martinus Brandal January – December 3 906 965 577 499 19 023 4 503 487 76 229Bjørn Erik Næss January – December 2 496 864 2 222 303 22 831 4 741 998 89 513Simen Lieungh January – September 1 984 483 6 292 094 45 660 8 322 237 71 6024, 6

Pål Helsing October – December 512 500 - 21 094 533 594 19 135Mads Andersen January – December 2 303 615 5 152 378 28 382 7 484 375 59 260Torleif Gram January – December 2 239 582 5 443 460 994 381 8 677 423 586 6994

Raymond Carlsen January – December 2 130 755 8 345 521 26 100 10 502 376 206 6494

Gary Mandel January – April 1 287 029 5 701 121 3 398 6 991 548 47 1215

Jarle Tautra January – December 2 606 790 6 956 552 21 251 9 584 593 134 574

Total 19 468 582 40 690 929 1 182 120 61 341 631 1 290 782

Includes holiday allowance.1)The variable pay in 2008 are amounts earned in 2008, 2007 and 2005 in addition to holiday allowance of variable pay paid in 2007.2)Other benefits include insurance agreements, which is membership in the standard employee scheme and an additional executive group life and disability insurance with a cover of maximum3)NOK 4 402 320.Includes management pension rights where contributions stopped in 2002 . The schemes were wound up following the merger between Kvaerner and Aker Maritime.4)Gary Mandel has a defined contribution plan only.5)Simen Lieungh was included in the pension benefit program until 31 December 2007.6)Other benefits include NOK 103 455 for car / housing.7)

There are no loans granted to members of the executive management team.


Our performance


Period of notice, severance pay and pension benefits for each member of the current executive management team

Name / TitleAgreed periodof notice Severance pay Pension benefits

President & CEOSimen Lieungh

6 months 12 months Standard employee defined benefit plan as described in note 20.In addition vested company pension rights (see description previous page).

Executive Vice President & CFOLeif Hejø Borge

6 months 6 months Standard employee defined benefit plan as described in note 20.

Executive Vice PresidentNiels Didrich Buch


Executive Vice PresidentMads Andersen


Executive Vice PresidentNils Arne Hatleskog


Executive Vice PresidentPer Harald Kongelf


Executive Vice PresidentJarle Tautra


Share-based paymentsIncluding the members of the executive management team, a total of 48 managers are entitled to variable pay according to the programme described onthe previous page. The total accrual for the variable pay programme is NOK 112 million at 31 December 2008. The development of the company’s shareprice is an element of the variable pay programme.

Amounts in NOK 2008 2007 2006

Paid in the year 11 665 450 115 419 678 35 122 508Expensed in the year - 9 381 273 - 90 094 622Accrued at the end of the year - 21 046 724 136 466 401

Directors’ and executive management team’s shareholdingThe following number of shares were owned by the Directors and the members of the executive management team (and their related parties) as at31 December 2008.

Shares

Martinus Brandal, Chairman 7 500Bjørn Flatgård, Vice Chairman 5 535Leif-Arne Langøy, Director 175 000Åsmund Knutsen, Director 1 505Simen Lieungh, President & CEO 5 014Leif Hejø Borge, Executive Vice President & CFO 15 000Gary Mandel, Executive Vice President 1 350Mads Andersen, Executive Vice President 2 395

Note 19:■ Number of employees (unaudited)

2008 20071

Energy Development & Services 8 542 8 163Subsea 4 108 3 673Products & Technologies 4 003 2 666Process & Construction 5 417 5 516Other 1 290 1 280

Total Aker Solutions employees 23 360 21 298Agencies 10 601 11 623

Total 33 961 32 920Employees in Norway 11 464 10 931Employees in other countries 11 896 10 367

Due to the 2008 restructuring of Field Development (FD) and Maintenance, Modification and Operations (MMO) into the new business area named Energy Development & Services (ED&S),1)historical Aker Solutions numbers were restated according to the new structure. The recently announced restructuring of the Subsea business area and Products and Technologies businessarea will be effective as at 1 January 2009, hence figures have not been restated in the annual report.


Our performance


Note 20:■ Employee benefits – pension

The group’s pension costs show the future pension entitlement earned by employees in the financial year. In a defined contribution plan the company is respon-sible for paying an agreed contribution to the employee’s pension assets. The employee bears the risk related to the investment return on the pension assets.In a defined benefit plan, the company is responsible for paying an agreed pension to the employee based on his or her final pay.

Pension plans in NorwayThe Norwegian companies in the group are obligated to follow the Act on Mandatory company pensions and these companies’ pension schemes followthe requirements as set in the Act. On 1 July 2008 all the Norwegian companies in Aker Solutions changed from a defined benefit plan to a defined contributionplan in which the company is responsible for paying an agreed contribution to the employee’s pension assets. Employees over 58 years at the time of transitionremain in the defined benefit plan. The change of pension plan resulted in a one-time positive effect (gain) of NOK 291 million. The gain is mainly related tothe difference between pension obligations recognised for these employees and the paid up policy received by the employees participating in the plan.

To ensure that the employees were treated fairly on the change over to the new plan the company has introduced a Compensation plan. The basis for decidingthe compensation amount is the difference between calculated pension capital in the defined benefit plan and the value of the defined benefit plan at the ageof 67 years. The compensation amount will be adjusted annually in accordance with the adjustment of the employees’ pensionable income, and accruedinterest according to market interest. If the employee leaves the company voluntarily before the age of 67 years, the compensation amount will be reduced.

The defined benefit plan is covered by the Aker Pension Fund. Aker Solutions participates in a multi-employer plan called AFP together with the Norwegianstate and other employers. The participating employers pay a contribution to the plan independent of the company’s use of it. The employers also pay 25percent of the pension paid to own pensioners. The Norwegian state pays a contribution of 40 percent of paid pensions. The figures regarding defined benefitbelow include Aker Solutions’s cost and liability related to the AFP-plan.

Definied benefit plans in Norway largely consist of a defined benefit plan for employees over 58 years when the plan was changed to defined contribution planon 1 July 2008, special pension schemes financed through company operations and contractual early retirement (AFP) schemes. In addition the net pensionliability will include the accrued liabilities in the compensation plan.

Pension plans outside NorwayGroup companies in Canada and Germany have defined benefit plans. The benefit plan in Canada was closed to new members as at 1 September 2008. Mostcompanies in other countries have defined contribution plans where the employer only contributes an agreed amount that is separately administered.

Net periodic pension cost / return (-)


Defined benefit plansService cost 199 263 195Interest on projected benefit obligation 171 180 143Expected return on plan assets - 150 - 138 - 122Net amortisations and deferrals 33 68 9Curtailments and settlements - 296 - -Administration cost 19 9 7Social security tax 4 53 31

Pension cost defined benefit plans - 20 435 263Pension cost compensation plan 51 - -Pension cost defined contribution plans 291 108 74

Total pension cost 18 322 543 337


Our performance


Status of pension plans reconciled with the balance sheet

2008 2007

Amounts in NOK million Funded Unfunded Total Funded Unfunded Total

Defined benefit plansAccumulated benefit obligation 1 918 537 2 455 2 931 509 3 440Effect of projected future compensation levels 225 98 323 827 83 910

Projected benefit obligation (PBO) 2 143 635 2 778 3 758 592 4 350Social security tax on plan assets in excess of / less than PBO 46 82 128 150 74 224Plan assets at fair value 1 872 - 1 872 2 662 - 2 662

Plan assets in excess of (+) / less (-) that PBO - 317 - 717 - 1 034 - 1 246 - 666 - 1 912Unrecognised net gain (-) / loss (+) 452 109 561 906 84 990

Net employee benefit assets (+) / employee benefit obligations (-) 135 - 608 - 473 - 340 - 582 - 922

As presented in the balance sheet:

Employee benefit assets 234 - 234 15 - 15Employee benefit obligation - 99 - 608 - 707 - 355 - 582 - 937Compensation plan obligation - - 51 - 51 - - -

Total employee benefit obligation - 99 - 659 - 758 - 355 - 582 - 937

NOK 26 million of the pension prepayment at the end of 2008 relates to group companies in Canada (NOK 14 million in 2007). NOK 49 million andNOK 33 million of the accrued pension liability at the end of 2008 relates to group companies in Canada and Germany respectively (NOK 43 million andNOK 31 million in 2007).

Economic assumptions

Economic assumptions (Norwegian plans) 2008 2007Discount rate 4.50% 4.50% 5.00% 5.00%Asset return 6.50% 6.50% 6.00% 6.00%Salary progression 4.25% 4.25% 4.25% 4.25%Pension indexation 3.00% 3.00% 2.50% 2.50%

The discount rate is based on the Norwegian 10-year government bond rate. The asset return is expected to be higher than the discount rate because theassets are invested in instruments with a higher risk than government bonds. Experience has shown that the rate of return on pension assets has been about1 percent higher than the discount rate over an extended period of time.

Generally, a 1 percent increase in the discount rate will lead to approximately 20 percent decrease in service cost / projected benefit obligation.

Economic assumptions (outside Norway)For the Canadian plans, a discount rate of 7.5 percent (5.25 percent in 2007), an expected rate of return on assets of 7.25 percent (unchanged from 2007)and an expected salary increase of 3.5 percent (unchanged from 2007).

Movement in pension obligation and plan asset


Projected benefit obligation as at 1 January 4 350 4 034Service cost incl. cost related to the compensation plan 300 263Interest on projected benefit obligation 171 180Benefits paid by the plan - 109 - 107Curtailment / settlement - 1 926 - 13Acquisition / disposal - 26Change in unrecognised gain (-) / loss (+) 18 - 40Currency translation differences 9 7

Projected benefit obligation as at 31 December 2 813 4 350

Plan assets at fair value as at 1 January 2 662 2 438Expected return on plan assets 150 138Contributions paid into the plan 350 383Benefits paid by the plan - 79 - 80Curtailment / settlement - 1 041 -Change in unrecognised gain (-) / loss (+) - 159 - 199Administration costs - 19 - 20Currency translation differences 8 2

Plan assets at fair value as at 31 December 1 872 2 662


Our performance


Analyses of the plan assets and the expected return on plan assets at the balance sheet date

Major categories of plan assets in percent of total plan assets (Norwegian plans) 2008 2007

Equity instruments 3.6% 6.9%Debt instruments 94.7% 66.2%Money market 0.0% 22.3%Other assets 1.7% 4.6%

Plan assets 100.0% 100.0%

The estimated contributions expected to be paid to the plans during 2009 are NOK 56 million in Norway and NOK 20 million in Canada. Annual return on planassets is NOK 138 million in 2008 (NOK 182 million in 2007).

Overview of net pension obligation and change in unrecognised gains and losses

Amounts in NOK million 2008 2007 2006 2005

Projected benefit obligation 2 813 4 350 4 034 3 339Plan assets at fair value 1 872 2 662 2 438 2 073

Net pension obligation - 941 - 1 688 - 1 596 - 1 266

Change in unrecognised gain (-) / loss (+) projected benefit obligation 18 - 40 615 112Change in unrecognised gain (-) / loss (+) plans assets - 159 - 199 101 4

Note 21:■ Equity accounted investees

Associated companies 2008


Book valueas at

1.1.2008

Additions /Disposals /Payments

Profitafter tax /

Impairment

Currencyand other

adjustments

Book valueas at

31.12.2008

Aker Offshore Oy1 15 - 15 - - -Siva Verdal Eiendom AS 14 - - - 14JSC Astrakhan Korabel 31 - 31 - - -Power Maintenance and Constructors, LLC 19 - 2 - 6 23Aker Bravo AS 2 - - - 2Beijing Bomco – MH Offshore 6 - 2 2 - 6Aker Clean Carbon AS - 32 - 13 - 19Aker Encore AS - 20 - - 20Aker Oilfield Services AS - 269 - 9 - 260Nippon Pusnes Co. Ltd 6 - 2 2 10TNT Company LLP - 26 - 6 32DOS Marine LLP - 29 - 6 35Other companies 28 - 2 - 3 - 23

Total 121 324 - 21 20 444

Associated companies 2007


Book valueas at

1.1.2007

Additions /Disposals /Payments

Profitafter tax /

Impairment

Currencyand other

adjustments

Book valueas at

31.12.2007

Aker Offshore Oy1 16 - - - 1 15Siva Verdal Eiendom AS 14 - - - 14JSC Astrakhan Korabel 31 - - - 31Power Maintenance and Constructors, LLC 19 3 - - 3 19Aker Bravo AS 6 - - 4 - 2Beijing Bomco – MH Offshore 5 - 1 - 6Other companies 31 2 1 - 34

Total 122 5 - 2 - 4 121


Our performance


The group’s interest in its principal associates were as follows2

2008

Amounts in NOK million Business office

Percentageof voting

rightsPercentage

held Assets Liabilities Equity RevenuesNet profit

/ loss

Siva Verdal Eiendom AS Trondheim, Norway 46.0% 46.0% 40 4 36 7 -Power Maintenance and Constructors, LLC Hammond, USA 49.0% 49.0% 118 70 48 625 -Aker Bravo Oslo, Norway 45.0% 45.0% 21 19 2 - - 2Beijing Bomco – MH Offshore Beijing, China 50.0% 50.0% 17 - 17 17 2Nippon Pusnes Co. Ltd Tokyo, Japan 28.0% 28.0% 198 162 36 334 6Aker Oilfield Services AS Oslo, Norway 32.3% 32.3% 726 270 456 - - 24Aker Clean Carbon AS Oslo, Norway 30.0% 30.0% 140 75 65 8 - 44TNT Company LLP Aktau, Kazakhstan 49.0% 49.0% 5 5 - 4 -DOS Marine LLP Aktau, Kazakhstan 49.0% 49.0% 1 1 - 1 -Aker Encore AS Oslo, Norway 50.0% 50.0% 41 - 41 - -

2007

Amounts in NOK million Business office

Percentageof voting

rightsPercentage

held Assets Liabilities Equity RevenuesNet profit

/ loss

RR Offshore Oy1 Ulvila, Finland 40.0% 26.0% 186 183 3 255 7Siva Verdal Eiendom AS Trondheim, Norway 46.0% 46.0% 44 8 36 6 1JSC Astrakhan Korabel Astrakhan, Russia 56.0% 56.0% 31 - 31 - -Power Maintenance and Constructors, LLC Hammond, USA 49.0% 49.0% 69 27 42 306 5Aker Bravo AS Oslo, Norway 45.0% 45.0% 24 21 3 2 - 10Beijing Bomco – MH Offshore Beijing, China 50.0% 50.0% 11 3 8 2 1

Former name RR Offshore Oy, subsidiary from January 2008.1)Balance sheet and profit and loss items listed above are 100 percent of total.2)

Note 22:■ Investment in joint ventures

The group has interests in several joint venture activities, whose principal activities are construction contracts. The group’s share of assets, liabilities,income and expenses of the joint venture operating agreements and entities are included in the consolidated financial statements. The material agree-ments and entities are listed below.

Joint venture operating agreements

Percentage share 2008 2007

Aker Kvaerner Clough Murray & Robertsen Joint Venture 61% 61%Aker Maritime Kiewit Contractors 49% 49%AKTIV Joint Venture 40% 40%ASC – ERSAI Consortium 50% -Angel 50% 50%Anglian Water 3 Joint Venture1 - 50%Anglian Water 4 Joint Venture 50% 50%Cameron LNG (Sempra) 50% 50%Hull Water2 - 50%IHI Ingleside3 - 50%JV Yansab 50% 50%O&G Solutions Joint Venture 50% 50%Snøhvit4 - 65%Halton Hills Power Partners Joint Venture 50% 50%Siemens / Aker Kvaerner Songer – Longview Consortium 50% 50%AK / IHI Gulf 50% 50%ASO / IHI 50% -KAT Nuclear 45% 45%

Anglian Water 3 joint venture agreement was terminated in December 2008.1)Hull Water joint venture agreement was terminated in December 2008.2)IHI Ingleside was terminated in March 2008.3)Snøhvit joint venture agreement was terminated in December 2008.4)


Our performance


Joint venture operating entities

Percentage share1 Business Office 2008 2007

AKCS Offshore Partner Newfoundland, Canada 40% 40%K_WAC Ltd Brendford, UK 30% -Aker Reinertsen AS Trondheim, Norway 50% 50%Aker Kvaerner & Soapro Egenharia Ltda Luanda, Angola 50% 50%Wirth Maschinen- und Bohrgeräte-Fabrik GmbH2 Erkelenz, Germany 50% 50%

The share of legal ownership equals the share of voting shares for all joint ventures.1)Subsidiary as at January 2009.2)

The table below presents the assets, liabilities, income and expenses included in the annual accounts relating to joint venture operating entities.


Current assets 845 568Non-current assets 215 157Current liabilities - 541 - 363Non-current liabilities - 263 - 229

Net assets/liabilities 256 133

Operating income 1 142 559Operating expenses - 973 - 492

Operating profit 169 67

Note 23:■ Financial risk management

Financial risksThe group is exposed to a variety of financial risks: currency risk, interest rate risk, price risk, credit risk, liquidity risk and capital risk. The market riskswill affect the group’s income or the value of financial instruments held. The objective of financial risk management is to manage and control financial riskexposures, within acceptable parameters. The group’s overall risk management programme focuses on the unpredictability of financial markets and seeksto minimise potential adverse effects on the group’s financial performance. The Aker Solutions group uses financial instruments to hedge certain riskexposures and seeks to apply hedge accounting in order to reduce the volatility in the income statement.

Risk management is the responsibility of the business unit and project managers in cooperation with the central treasury department (Corporate Treasury)to identify, evaluate and hedge all financial risks under policies approved by the Board of Directors. The Board provides written principles for overall riskmanagement, as well as written policies covering specific areas. There have been no changes in these policies during the year.

Currency risk policyThe group operates internationally and is exposed to currency risk on commercial transactions, recognised assets and liabilities and net investmentsin foreign operations which are denominated in a currency other than the respective functional currencies of the business unit. The group exposure tocurrency risk is primarily to the USD, EUR, GBP and NOK but is in addition in smaller scale exposed to currencies all over the world.

The Aker Solutions policy requires group companies to hedge their entire currency risk exposure in any project with Corporate Treasury using forward con-tracts and currency options. This is done for the project’s lifetime. Corporate Treasury manages the internal exposures in accordance with the CorporateTreasury’s risk management policy entering into forward contracts or currency options with the financial market place. Any changes to the hedged cashflows shall be amended and adjusted as they occur. See note 25.3 Derivative financial instruments for further details. The currency exposure from foreigncurrency investments are not hedged. Dividend or return on capital invested is hedged when paid.

For segment reporting purposes, each business unit designates contracts with Corporate Treasury as fair value hedges or cash flow hedges, as appro-priate. External foreign exchange contracts are designated at group level as hedges of currency risk on specific assets, liabilities or future transactions ongross basis, and hedge accounting is applied to more than 80 percent of these hedges. For Aker Solutions segment reporting all foreign currency hedgesare treated as qualifying hedges. The correction where disqualifying hedges no longer are reflected in accordance to hedge accounting, is performed atgroup level and is included in the “unallocated” part of the segment reporting.

The principal amounts and interests of the group’s non-current borrowings are denominated in currencies that match the cash flows generated by thegroup companies holding the loans, primarily NOK, but also GBP and USD. This provides an economic hedge without entering into any derivatives.

Transaction exposureThe transaction exposure is defined as the currency risk in projects and working capital.


Our performance


The group’s exposure to the main foreign currencies were as follows based on notional amounts as at 31 December:

2008 2007

Amounts in million USD EUR GBP USD EUR GBP

Bank - 324 - 70 - 26 - 229 - 20 - 22Intercompany loans 145 25 86 17 - 21 35External funding - 100 - - - - -Trade receivables 596 106 28 598 36 -Trade payables - 105 - 79 - 77 - 191 - 106 - 43

Balance sheet exposure 212 - 18 11 195 - 111 - 30Estimated forecast sales 1 854 9 - 1 243 66 -Estimated forecast purchases - 431 - 334 - 27 - 198 - 219 - 49

Cash flow exposure 1 423 - 325 - 27 1 045 - 153 - 49Forward exchange contracts - 1 633 344 14 - 1 250 255 80

Net exposure 2 1 - 2 - 10 - 9 1

Trade receivables, trade payables and estimated forecast sales and purchases in the table above are calculated based on the group’s hedge transactions.These are considered to be the best estimate of the currency exposure given that all currency exposure is hedged, in accordance with the group’s policy.The net exposure is handled by the Corporate Treasury that is allowed to hold positions within an approved trading mandate. This mandate is closelymonitored and reported on a daily basis to the management. The group also has minor exposure to other currencies.

A foreign currency sensitivity analysis indicates that changes in the foreign currency rates result in minor effects on equity and profit and loss. A 10 percentstrengthening of the NOK against the following currencies at 31 December would have increased (decreased) equity and profit and loss by the amountsshown below. The selected rate of 10 percent reflects the recent years’ changes in currency rates. The sensitivity analysis is calculated based on thehedged transactions as in the currency exposure table above, and the effect from hedge accounting rules were fair value effects from non-qualifyinghedges will be reported as profit and loss. It includes only project related items and assumes that all other variables, in particular interest rates, remainconstant. Calculations are based on amounts and foreign currency exchange rates as at 31 December, and the outstanding amounts are representative forthe whole year due to a low degree of seasonality. The analysis is performed on the same basis for 2007.

Although hedge accounting is not applied to all foreign exchange contracts, these contracts are still “economically” hedged. This means that the effect onprofit and loss under financial items in the table below, will have an opposite effect on future operating income or expense as progress on projects increase.

2008 2007

Effect in NOK million Profit and loss Equity1 Profit and loss Equity1

USD 45 133 - 262 - 328EUR 23 243 - 4 119GBP 32 2 34 22

The effects to equity that follows directly from the effects to profit and loss are not included.1)

A 10 percent weakening of the NOK against the above currencies at 31 December would have had the equal but opposite effect on the above amounts,on the basis that all other variables remain constant.

The most important risk, related to currency, is the risk of reduced competitiveness abroad in the case of a strengthened NOK. This risk is related to futurecommercial contracts and is not included in the sensitivity analysis above.

The sensitivity analysis does not include effects on the consolidated result and equity from changed exchange rates used for consolidation of foreign subsidiaries.

Translation exposureThe translation exposure is defined as assets and investments made in foreign currency.

The group has several investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arisingfrom the net assets of the group’s foreign operations is normally not hedged.

Exchange ratesThe following significant exchange rates applied during the year:

Average rate Closing rate

NOK 2008 2007 2008 2007

USD 5.649 5.853 7.024 5.403EUR 8.307 8.016 9.888 7.966GBP 10.356 11.700 10.145 10.792

Interest rate riskThe group’s interest rate risk arises from non-current borrowings. Borrowings issued at variable rates expose the group to cash flow interest rate risk.Borrowings issued at fixed rates expose the group to fair value interest rate risk, however as these borrowings are measured at amortised cost, interestrate variations do not effect profit and loss. Group policy is to maintain approximately 30 – 50 percent of its borrowings in fixed rate instruments usinginterest rate swaps to achieve this when necessary.


Our performance


As the group has no significant interest-bearing operating assets, operating income and operating cash flows are substantially independent of changesin market interest rates. At year end 50 percent of the NOK 1.6 billion bond debt interest rate was fixed for the duration of the bonds through interest rateswaps. In addition we have entered into a NOK 2 000 million fixed rate swap as hedge for drawings on the Revolving Credit Facilities.

The group does not account for any fixed rate financial assets or liabilities at fair value through profit and loss, and the group does not designate deriva-tives (interest rate swaps) as hedging instruments under a fair value hedge accounting model. Therefore a change in interest rates at the reporting datewould not effect profit and loss with respect to the fixed rate instruments.

An increase of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit and loss by the amounts shown below.This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis as for 2007.

2008 2007

Amounts in NOK million Profit and loss Equity1 Profit and loss Equity1

Cash and cash equivalents 38 - 35 -FRA (forward rate agreement) - - 1 -Interest rate swap 35 27 12 19Non-current interest-bearing receivables 1 - - -Current interest-bearing receivables 5 - 5 -Borrowings - 62 - - 15 -Interest-bearing current liabilities -5 - - -

Cash flow sensitivity (net) 12 27 39 19

The effects to equity that follow directly from the effects to profit and loss are not included.1)

A decrease of 100 basis points in interest rates at the reporting date would have had the equal but opposite effect on the above amounts, on the basis thatall other variables remain constant.

Price riskThe group is exposed to fluctuations in market prices both in the investment portfolio and in the operating businesses related to individual contracts.

The investment portfolio is limited and does not include shareholdings in listed companies.

The businesses may be exposed to changes in market price for raw material, equipment and development in wages. This is partly managed in the bidphase by locking in committed prices to customers without adequate protection on such costs and partly managed in the execution phase after award.The group makes individual assessments of such risks and protects itself either through escalation clauses with customers, locking in subcontractor orequipment providers, or by adding risk contingencies to the price calculations. The group does not enter into commodity derivative contracts.

Credit riskCredit risk is the risk of financial losses to the group if customer or counterparty to financial investments / instruments fails to meet its contractualobligations, and arises principally from investment securities and group receivables.

The investment portfolio is primarily related to deposits with banks. There is a separate procedure for the acceptance of final counterparties both for derivativesand deposits, and counterparties have to be investment graded. Credit risk on financial counterparties is reviewed on a regular basis and is monitored closely.

Assessment of credit risk related to customers and subcontractors is an important requirement in the bid phase and throughout the contract period. Suchassessments are based on credit ratings, income statement and balance sheet reviews and using credit assessment tools available (e.g. Dun & Bradstreetand Credit Watch). Sales to customers are settled in cash.

Based on estimates of incurred losses in respect of trade and other receivables, the group establishes an allowance for impairment. Main componentsof this allowance are a specific loss component relating to individually significant exposures, and a collective loss component in respect of losses incurredbut not yet identified. Provisions for impairment of receivables are low (NOK 116 million in 2008, NOK 83 million in 2007), which is higher than the historicallosses (NOK 5 million in 2008, NOK 4 million in 2007). Revenues are mainly related to large and long-term projects closely followed up in terms of pay-ments up front and in accordance with agreed milestones. Normally, lack of payments are due to disagreements of project deliveries and are solved bychange of deliveries (see note 13 Contingent events). The customers are mainly large and highly reputable oil companies with a low credit risk, which redu-ces the credit risk significantly. Based on the above the group’s credit risk is considered to be insignificant.

At the balance sheet date, there were no significant concentrations of credit risk. The maximum exposure to credit risk at the reporting date equals the fairvalue of each category of financial instruments (see note 25 Financial instruments). The group does not hold collateral as security.

Aker Solutions ASA gives parent company guarantees to group companies. For further information, see note 9 Guarantees in the Aker Solutions ASA accounts.

Liquidity riskLiquidity risk represents the risk that the group will not be able to meet its financial obligations as they fall due. The group’s approach to managing liquidityis to ensure, as far as possible, that it will always have sufficient liquidity reserves to meet its liabilities when due.

Prudent liquidity risk management includes maintaining sufficient cash, the availability of funding from an adequate amount of committed credit facilitiesand the ability to close out market positions. Due to the dynamic nature of the underlying businesses, Corporate Treasury maintains flexibility in fundingby maintaining availability under committed credit lines (note 25.6 Borrowings and other non-current liabilities).

Management monitors rolling weekly and monthly forecasts of the group’s liquidity reserve on the basis of expected cash flow. For information regardingcapital expenditures and net operating assets, see note 6 Segment information.


Our performance


Financial liabilities and the period in which they are mature:

2008 2007

Amounts in NOK million Total

6 mthsandless

6-12mths

1-2years

2-5years

Morethan

5years Total

6 mthsand less

6-12mths

1-2years

2-5years

Morethan

5years

Unsecured bond issues1

Fixed rate bondNOK 150 mill. - 195 - - 9 - 9 - 177 - - 204 - 5 - 4 - 9 - 27 - 159

Floating rate bondsNOK 500 mill. - 523 - 14 - 509 - - - - 566 - 17 - 17 - 533 - -NOK 650 mill. - 735 - 19 - 13 - 24 - 679 - - 834 - 23 - 23 - 46 - 742 -NOK 300 mill. - 380 - 9 - 6 - 12 - 353 - - 432 - 11 - 11 - 22 - 66 - 322

Committed credit facilitiesEUR 750 mill. - 5 523 - 100 -100 - 183 - 5 140 - - - - - - -NOK 2 000 mill.

Other non-current borrowings - 312 - 99 - 9 - 18 - 186 - - 20 - - - - 20 -Other non-current liabilities - 1 194 - 126 - 126 - 126 - 816 - - 914 - 134 - 134 - 134 - 512 -

Derivative financial instrumentsAssets 24 582 11 211 6 121 5 873 1 377 - 26 210 16 478 6 704 2 523 505 -Liabilities - 25 637 - 11 602 - 6 288 - 6 263 - 1 484 - - 25 647 - 16 151 - 6 528 - 2 480 - 488 -Trade and other payables - 20 796 - 20 306 - - 490 - - - 15 165 - 15 141 - - 24 - -Interest-bearing current liab. - 59 - - 59 - - - - 25 - - 25 - - -

Total - 30 772 - 21 064 - 998 - 1 252 - 7 458 - - 17 597 - 15 004 - 38 - 725 - 1 350 - 481

Nominal currency value including interests.1)

See note 25.3 Derivative financial instruments for maturity analysis of foreign currency contracts included in cash flow hedge accounting.

Capital riskThe group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide returns for share-holders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the group may adjust the amounts of dividends paid to shareholders, return capital to shareholders,issue new shares or sell assets to reduce debt. From time to time, the group purchases its own shares in the market; the timing of these purchases isdepending on market prices.

During the first quarter of 2007 Aker Solutions announced a buy-back of own shares, and in connection with the Annual General Meeting it was decidedto cancel some of the own new shares. Furthermore, there were additional share buy-backs in 2008 and as per year end the group holds 1.8 percent ofoutstanding shares. The Statement of changes to equity includes further details.

The group monitors capital on the basis of a gearing ratio (gross debt / EBITDA) and Interest coverage ratio (EBITDA / Net finance cost). The ratios arecalculated from gross debt, including all interest-bearing liabilities as shown in note 25 Financial instruments, EBITDA (earnings before interest, tax,depreciation and amortisation) and consolidated finance cost. The reported ratios are well within the requirements in the loan agreements.

The ratio as at 31 December 2008 and 2007 were as follows:


Gearing ratioGross debt 6 716 1 615EBITDA 3 382 3 913

Gross debt / EBITDA 2.0 0.4

Interest coverageEBITDA 3 382 3 913Consolidated finance cost 263 124

EBITDA / Finance cost 12.9 31.6


Our performance


Note 24:■ Financial income and expenses

Recognised in profit and loss


Net change in fair value of disqualified hedge instruments1 - 439 155 241

Interest income on bank deposits 116 85 172Net foreign exchange gain / loss 31 18 20Ineffective portion of changes in fair value of cash flow hedges - 6 7 -Other finance income 34 2 2

Finance income 175 112 194

Interest expense on financial liabilities measured at amortised cost - 379 - 209 - 429Refinancing cost2 - - - 652

Finance expenses - 379 - 209 - 1 081

Net finance expense recognised in profit and loss3 - 643 58 - 646

Some hedge transactions do not qualify for hedge accounting under IFRS, primarely because a large number of internal transactions are grouped and netted before external hedge1)transactions are established. The fair value changes on foreign exchange forward contracts, not hedge accounted, have been recorded in the income statement as financial items. Hedgeaccounting is explained in note 25.3 Derivative financial instruments.Refinancing costs consist of capitalised refinance costs from the refinancing in 2004, unwinding of discount, interest on second priority lien notes due 15 June 2007 and interest on deposit2)for neutralisation of loan 15 June 2007.Net finance expense recognised in profit and loss includes income and expense from financial instruments only (see note 25 Financial instruments). Share of profit or loss from associates is3)therefore not included.

The above financial income and expense include the following in respect of assets (liabilities) not at fair value through profit or loss.


Total interest income on financial assets 116 85 172Total interest expenses on financial liabilities - 379 - 209 - 1 081

Recognised directly in equity


Hedging reserve as at 1 January 315 203 -Fair value of cash flow hedges transferred to profit and loss 373 - 633 - 178Effective portion of changes in fair value of cash flow hedge - 241 788 461Deferred tax - 37 - 43 - 80

Hedging reserve movements 95 112 203Hedging reserve as at 31 December 410 315 203

Currency translation reserve as at 1 January - 595 - 161 - 216Effective portion of change in fair value of net investment hedge - 120 7Foreign currency translation differences for foreign operations 695 - 554 48

Currency translation reserve movements 695 - 434 55Currency translation reserve as at 31 December 100 - 595 - 161

An impairment loss of NOK 5 million (NOK 4 million in 2007 and NOK 13 million in 2006) in respect of trade receivables was recognised in cost of sales.See note 25 Financial instruments for information of the financial income and expenses generating items.


Our performance


Note 25:■ Financial instruments

2008 2007

Amounts in NOK million Note Assets Liabilities Assets Liabilities

Cash and cash equivalents 25.1 3 828 - 3 524 -Investments in other companies 25.2 123 - 133 -

Non-current available-for-sale financial assets 123 - 133 -Derivative financial instruments 25.3 3 100 - 2 403 1 468 - 954

Current financial assets and liabilities through profit or loss 3 100 - 2 403 1 468 - 954Non-current interest-bearing receivables 25.4 97 - 14 -Non-current loans and receivables 4 - 9 -Trade and other receivables 25.5 20 796 - 13 361 -Current interest-bearing receivables 480 - 540 -Borrowings 25.6 - - 6 163 - - 1 591Other non-current liabilities - - 1 194 - - 914Trade and other payables - - 21 052 - - 15 165Interest-bearing current liabilities - - 553 - - 24

Total loans and receivables and financial liabilities at amortised cost 21 377 - 28 962 13 924 - 17 694Less non-current portion loans and receivables and financial liabilitiesat amortised cost - 101 7 357 - 23 2 505

Current portion loans and receivables and financial liabilitiesat amortised cost 21 276 - 21 605 13 901 - 15 189

Basis for determining fair values and fair values versus carrying amounts

Cash and cash equivalentsThe carrying amount is a reasonable approximation of fair values for cash and cash equivalents.

Non-current available-for-sale financial assetsAvailable-for-sale financial assets are measured at fair value. Fair values are estimated using market-based pricing techniques.

Current financial assets and liabilities through profit or lossFinancial assets and liabilities through profit or loss are measured at fair value. The fair value of financial instruments traded in active markets (suchas currency forward contracts and options, interest swaps and forward rate agreements) is based on quoted market prices (current bid price) at the ba-lance sheet date.

Loans and receivables and financial liabilities at amortised costDue to the short term nature, the carrying amount is a reasonable approximation of fair values for the financial instrument current receivables and liabilities,with the exception of financial borrowings, which is detailed in the table below.

2008 2007

Amounts in NOK millionCarryingamount Fair value

Carryingamount Fair value

Bonds1 1 582 1 600 1 571 1 600Other borrowings 5 134 5 160 44 44

Total Borrowings 6 716 6 760 1 615 1 644

Fair value is quoted prices on the Oslo Stock Exchange. The difference between the carrying amount and the fair value of the bonds is due to amortisation of issue costs and accrued1)interests.

In all material financial instruments measured at fair value, the measurement is performed by using valuation techniques based on assumptions supportedby observed market prices or rates.

Note 25.1:■ Cash and cash equivalents

Group cash pool systemsThe group policy for the purpose of optimising availability and flexibility of cash within the group is to operate a centrally managed cash pooling arrange-ment. Such arrangements are either organised with a bank as a service provider, or as a part of the operation of the internal treasury function. An importantcondition for the participants (business units) in such cash pooling arrangements is that the group as an owner of such pools is financially viable and isable to prove its capability to service its obligations concerning repayment of any net deposits made by business units.


Our performance


Note 25.2:■ Investments in other companies


Investments in other companies as at 1 January 133 16Additions1 66 119Disposals2 - 76 - 2

Investments in other companies as at 31 December 123 133

Additions in 2008 are mainly related to additional investments in Aker Pensjonskasse. In 2007 the additions were mainly related to Aker Solutions ASA’s purchase of 19.1 percent1)of Aker Oilfield Services AS.Disposals are mainly related to additional investments in Aker Oilfield Services AS which is now classified as an associated company, see note 21 Equity accounted investees.2)

Note 25.3:■ Derivative financial instruments

Fair value of financial instruments2008 2007

Amounts in NOK million Assets Liabilities Assets Liabilities

Forward foreign exchange contracts – cash flow hedges 979 - 115 925 - 409Forward foreign exchange contracts – fair value hedges 27 - 303 - -Forward foreign exchange contracts – embedded derivatives included in ordinarycommercial contracts 1 933 - 30 - -Forward foreign exchange contracts – not hedge accounted 154 - 1 895 500 - 545Forward foreign exchange contracts – hedge of net investments in US entities - - 25 -Interest rate swaps – cash flow hedges - - 52 17 -Interest rate swaps – not hedge accounted 7 - 8 1 -

Total 3 100 - 2 403 1 468 - 954

Trading derivatives are classified as current assets or liabilities. The full fair value of a hedging derivative is classified as a non-current asset or liability if theremaining maturity of the hedged item is more than 12 months, and as a current asset or liability if the maturity of the hedged item is less than 12 months.If the hedged item is related to projects, such as work in progress or trade receivables, the hedging derivative is always classified as current asset or liability.No material embedded derivatives were identified in 2007.

The ineffective portion recognised in the profit and loss that arises from cash flow hedges amounts to a loss of NOK 6 million (gain of NOK 7 million in 2007).There was no material ineffectiveness on fair value hedges in 2008. In 2007, there were no fair value hedges.

Derivative contractsCorporate Treasury hedge future transactions in foreign currencies. Approximately 80 percent of the exposure to foreign exchange variations in future cashflows are related to a few large projects. These projects have been hedged as one-to-one contracts in order to meet the requirements for hedge accounting.All other hedges are not designated as IAS 39 hedges and will have an effect on profit or loss. Most qualifying hedges are classified as cash flow hedges(hedges of highly probable future revenues and / or expenses). Some hedges that clearly qualify as hedges of firm commitments, are classified as fair valuehedges.

The fair value of the net qualifying forward foreign exchange cash flow hedges recognised in the balance sheet as at 31 December 2008, were NOK 864million (NOK 516 million in 2007).

The hedged transactions in foreign currency are highly probable future transactions expected to occur at various dates during the next 1 – 7 years, dependingon progress in the projects. Gains and losses on forward foreign exchange contracts recognised in the hedging reserve in equity as at 31 December 2008,are recognised in the income statement in the period or periods during which the hedged transactions affect the income statement. This is generally within12 months from the balance sheet date unless the gain or loss is over the life of the asset.

The following table indicates the periods in which the cash flows associated with derivatives that are cash flow hedges are expected to occur and whenthe cash flows related to project revenues are expected to impact profit and loss. Given the hedging policy this table also constitutes a maturity analysis forderivative financial assets and liabilities.


Our performance


2008 2007


Expectedcashflows

6 mthsor less

6-12mths

1-2years

2-5years

Morethan 5years

Expectedcash flows

6 mthsor less

6-12mths

1-2years

2-5years

Morethan 5years

Interest rate swaps1

Receivables 76 20 20 17 19 - 288 41 43 77 74 53Payables - 110 - 23 - 36 - 28 - 23 - - 251 - 32 - 38 - 69 - 62 - 50

Foreign currencyforward contracts2

Receivables 6 760 2 645 1 621 1 982 512 - 10 160 5 693 2 756 1 426 285 -Payables - 3 497 - 2 364 - 332 - 590 - 211 - - 6 619 - 3 861 - 1 660 - 905 - 193 -

Total 3 229 278 1 273 1 381 297 - 3 578 1 841 1 101 529 104 3

50 percent of the group’s interest exposure related to the Norwegian bonds and part of anticipated drawings on committed facilities are swapped to fixed interest rate. The cash flows in the1)table are based on fixed rate of 4.5 percent and market floating rate.The figures include the hedges that qualify for hedge accounting, which comprises approximately 400 transactions and 80 percent of the group’s exposure. The amounts are NOK nominal2)values of foreign currency cash flows at NOK closing exchange rates 31 December 2008. The group has economic hedges on the remaining exposures which are not hedge accounted.These economic hedges constitute about 1 900 transactions.

The following table shows the unsettled cash flow hedges’ impact on profit and loss and equity as at 31 December:

2008 2007


Fair value of allhedging

instruments asat 31.12.2008

Recognisedin profit and

loss

Deferred inequity (the

hedgingreserve)

Fair value of allhedging instruments as

at 31.12.2007

Recognisedin profit and

loss

Deferred inequity (the

hedging reserve)

Interest rate swaps1 - 52 - - 52 17 9 17Forward exchange contracts2 864 157 707 516 308 208

Total3 812 157 655 533 317 225

The value of the interest swaps is attributable to changes in the interest swap curve for Norwegian kroner during the period from inception of the hedge to the balance sheet date.1)The purpose of the hedging instrument is to secure a situation where the hedged item and the hedging instrument together represent a predetermined value independent of fluctuations2)of exchange rates. Revenue and expense on the underlying construction contracts are recognised in the income statement in accordance with progress. Consequently, NOK 308 million ofthe value of the forward contracts have already affected the income statement indirectly as revenues and expenses are recognised based on updated forecasts and progress. The NOK 208million that are currently recorded directly in the hedging reserve, will be reclassified to income statement over approximately the next three years.

Interest rate swapsAs at 31 December 2008, Aker Solutions has one bond of NOK 150 million with fixed interest rates at 6 percent and three bonds with a total of NOK 1 450million with floating interest rates. Parts of the cash flow interest rate risks represented by these floating interest rates (mainly NIBOR and LIBOR) are hedgedto fixed interest rates using interest rate swaps. The share of floating / fixed interest rates is 50 / 50. In addition, NOK 2 000 million of drawings undercommitted facilities are swapped to 12 months fixed rate from 15 January 2009. Hedge accounting is applied using the cash flow hedge accounting modelwhich means that gains and losses on interest rate swap contracts as at 31 December 2008 are recognised in the hedging reserve in equity and will becontinuously released to the income statement until the repayment of the bank borrowings (Note 25.6 Borrowings and other non-current liabilities).

The fair value amounts of the outstanding interest rate swap contracts as at 31 December 2008 were NOK -52 million (NOK 17 million in 2007).

Note 25.4:■ Interest-bearing non-current receivables


Loans to employees1 6 10Loans to related parties2 88 -Other 3 4

Non-current interest-bearing receivables 97 14

Average interest rate for loans to employees is 5.79 percent in 2008, and was 4.42 percent in 2007.1)Related to Aker Bravo AS, Aker Clean Carbon AS and Aker Oilfield Services AS (see note 5 Related parties).2)

The group has not recognised any impairment losses related to its interest-bearing non-current receivables.


Our performance


Note 25.5:■ Trade and other receivables


Trade receivables 9 039 5 898Less provision for impairment of receivables - 116 - 83

Trade receivables net 8 923 5 815Advances to suppliers 717 434Work in progress 6 868 4 774Other receivables 4 288 2 338

Trade and other receivables 20 796 13 361Derivative financial instruments 3 100 1 468

Total current trade and other receivables 23 896 14 829

The aging of loans and receivables as at 31 December 2008 was:


Not past due 4 738 3 924Past due 0 – 30 days 2 276 1 219Past due 31 – 90 days 1 052 411Past due 91 days to one year 844 255More than one year 129 89

Total 9 039 5 898

Note 25.6:■ Borrowings and other non-current liabilities

31 December 2008:

Amounts in NOK millionNominal

currency valueBookvalue

Interestrate

Fixedinterestmargin

Interestcoupon

Maturitydate Interest terms

Norwegian bondsISIN NO 0010341316 NOK 500 million 494 5.93% 0.70% 6.63% 01.12.2009 Floating, 3 monthsISIN NO 0010341324 NOK 650 million 643 5.93% 1.05% 6.98% 01.12.2011 Floating, 3 monthsISIN NO 0010341332 NOK 300 million 297 5.93% 1.35% 7.28% 01.12.2013 Floating, 3 monthsISIN NO 0010342587 NOK 150 million 148 6.00% 6.00% 01.12.2013 Fixed

Total bonds1 1 582

Bank debtRevolving credit facility EUR 750 million 4 776 0.50% 25.10.2012 IBOR + Margin2

Revolving credit facility4 NOK 2 000 million - 19.12.2011 IBOR + Margin3

Other loans 358

Total borrowings 6 716

Classified as current borrowings 553Classified as non-current borrowings 6 163


Other non-current liabilities5 1 194


Our performance


31 December 2007:

Amounts in NOK millionNominal

currency valueBookvalue

Interestrate

Fixedinterestmargin

Interestcoupon

Maturitydate Interest terms

Norwegian bondsISIN NO 0010341316 NOK 500 million 491 5.81% 0.70% 6.51% 01.12.2009 Floating, 3 monthsISIN NO 0010341324 NOK 650 million 638 5.81% 1.05% 6.86% 01.12.2011 Floating, 3 monthsISIN NO 0010341332 NOK 300 million 295 5.81% 1.35% 7.16% 01.12.2013 Floating, 3 monthsISIN NO 0010342587 NOK 150 million 147 6.00% 6.00% 01.12.2013 Fixed

Total bonds1 1 571

Bank debtRevolving credit facility EUR 750 million - 0.50% 25.10.2012 IBOR + Margin2

Other loans 44


Classified as current borrowings 24Classified as non-current borrowings 1 591


Other non-current liabilities5 914

The book value is calculated by reducing the nominal value of NOK 1 600 million by total issue costs related to the new financing of NOK 28 million (NOK 38 million in 2007). It also comprises1)accrued interest and issue costs related to the bonds.The margin applicable to the facility is decided by a price grid based on the gearing ratio. Commitment fee is 40 percent of the margin.2)The margin applicable to the facility is decided by a price grid based on the gearing ratio. Commitment fee is 50 percent of the margin.3)The facility is increased from NOK 1 500 million to NOK 2 000 million in February 2009.4)Other non-current liabilities mainly consist of estimated deferred payment related to the acquisition of Qserv Ltd NOK 531 million, deferred payment TH Global NOK 234 million (NOK 4075)in 2007) and insurance liabilities of NOK 173 million (NOK 315 million in 2007). The deferred liabilities are non-interest bearing, but have been discounted in the financial statements.

Norwegian bondsAker Solutions has issued four bonds with maturities of three, five and seven years (two loans), starting 1 December 2006. The bonds are denominated inNorwegian kroner and are issued in the Norwegian bond market. Three of the bonds are issued based on a floating interest rate plus a predefined margin.One of the bonds, NOK 150 million with seven years maturity, has a fixed interest rate of 6 percent.

The bonds are issued with Norsk Tillitsmann as trustee and the loan agreements are based on Norsk Tillitsmann’s standard loan agreement for suchbonds. The bonds are unsecured on a negative pledge basis and include no dividend restrictions.

The bonds are listed on the Oslo Stock Exchange.

Bank debtThe bank debt consists of two revolving credit facilities of EUR 750 million with initial maturity in October 2012 and NOK 2 000 million maturing in Decem-ber 2011. The facilities are provided by a bank syndicate consisting of Nordic and international high quality banks. The EUR 750 million facility was drawnwith NOK 4 100 million and USD 100 million at year end 2008 and the NOK 2 000 million facility was undrawn. The terms and conditions include restric-tions which are customary for this kind of facility, including inter alia negative pledge provisions and restrictions on acquisitions, disposals and mergers.Furthermore, there are certain changes of control provisions included. The facility includes no dividend restrictions and is unsecured.

The financial covenants are based on two sets of key financial ratios; a gearing ratio based on gross debt / EBITDA and an interest coverage ratio basedon EBITDA / net finance costs. The financial covenants are tested on a quarterly basis. The margin applicable to the facility is based on a price grid determinedby the gearing ratio.

The facility is hedged to fixed rate through an interest rate swap for NOK 2 000 million through 2009.

Repayments of non-current borrowings

Amounts in NOK million Bonds1 Other Total

2009 - 500 - 149 - 6492010 - - -2011 - 650 - - 6502012 - - 4 750 - 4 7502013 - 450 - 261 - 711

Total repayments - 1 600 - 5 160 - 6 760

All figures are stated at nominal value.1)


Our performance


Mortgages and guarantee liabilitiesThe group has NOK 1 million in mortgage liabilities, which is secured by pledges on property, plant and equipment with book values of NOK 1 million.The group has no guarantee liabilities as at 31 December 2008, except for guarantees related to contracts.

Note 26:■ Subsequent events

DividendThe Board of Directors of Aker Solutions will propose an ordinary dividend of NOK 1.60 per share.

Wirth Maschinen- und Bohrgeräte- Fabrik GmbHIn August 2007, Aker Solutions acquired the first 50 percent of the shares in the German company Wirth, with an option to buy the remaining stocks.In January 2009, Aker Solutions signed an agreement to buy the remaining 50 percent share in Wirth. Wirth’s technology complements Aker Solutions’portfolio of drilling equipment products and technology. This acquisition is pending antitrust clearance.

Employee share purchase programmeAker Solutions has decided to offer approximately 14 100 of its employees the opportunity to buy Aker Solutions ASA shares with a market value of approximatelyNOK 15 000 per employee including a discount of NOK 1 500. The duration of the programme will be 12 months, from March 2009 through to March 2010.

Employees who keep their shares until 1 September 2011 and are still employed by the company will be entitled to a bonus share award of one bonusshare for every two Aker Solutions ASA shares held under the programme. The programme will be introduced in 2009 in Norway, the United Kingdom, theNetherlands, Canada and Chile and in addition the US, pending approval from local authorities.

Note 27:■ Discontinued operations

Aker Solutions’ Pulping & Power businesses were sold in the fourth quarter of 2006.

Note 28:■ Group companies as at 31 December 2008

Company Location Ownership (percent)1

Aker Solutions ASA Fornebu, Norway 100Aker Advantage Pty Ltd Melbourne, Australia 100Aker Marine Contractors Pty Ltd Perth, Australia 100Aker Process Systems Pty Ltd Welshpool, Australia 100Aker Solutions Australia Pty Ltd Melbourne, Australia 100Aker Subsea Pty Ltd Melbourne, Australia 100Aker Solutions Belgium NV/SA Antwerp, Belgium 100Aker Solutions do Brasil Ltda Curitiba, Brazil 100MC Engenharia Ltda São Paulo, Brazil 100Aker Chemetics Offshore Services Inc Vancouver, Canada 100Aker Construction Canada Ltd Ontario, Canada 100Aker Solutions Canada Inc Vancouver, Canada 100Aker Solutions Oilfield Services Canada Inc St. Johns Newfoundland, Canada 100Aker Solutions Chile S.A Santiago, Chile 100Aker Cool Sorption (Beijing) Technology Ltd Beijing, China 100Aker E&C (Shanghai) Co Ltd Shanghai, China 100Aker Projects (Shanghai) Co Ltd Shanghai, China 100Aker Cool Sorption AS Glostrup, Denmark 100Aker Cool Sorption International AS Glostrup, Denmark 100Aker Operations APS Glostrup, Denmark 100Aker Offshore OY Pori, Finland 100Aker Process Systems SAS Vincennes Cedex, France 100Aker Process GmbH Lagenfeld, Germany 100Aker MH (India) Pvt Mumbai, India 51Aker Powergas Pvt Ltd Mumbai, India 64PT Aker Kvaerner Indonesia Snd Bhd Jakarta, Indonesia 100PT Aker Solutions Subsea Indonesia Jakarta, Indonesia 100Kvaerner (Ireland) Ltd Dublin, Ireland 100Aker Engineering Malaysia Snd Bhd Kuala Lumpur, Malaysia 90Aker Process Systems Asia Pacific Sdn Bhd Shah Akam, Malaysia 100Aker Process Systems Snd Bhd Kuala Lumpur, Malaysia 100Aker Solutions Malaysia Snd Bhd Kuala Lumpur, Malaysia 100Phoenix Polymers Malaysia Ltd Kuala Lumpur, Malaysia 50Aker Solutions Asia Pacific Snd Bhd Kuala Lumpur, Malaysia 100


Our performance



Aker Solutions (Mauritius) Ltd Port Louis, Mauritius 100Aker Solutions SA de CV Lomas de Chaputtepec, Mexico 100Aker Advantage BV Gravenhage, Netherlands 100Aker Process BV Zoetermeer, Netherlands 100Aker Process Engineering Services BV Maastrichts, Netherlands 100Aker Solutions BV Zoetermeer, Netherlands 100Caspian Sea Solutions BV Zoetermeer, Netherlands 100Aker Kvaerner Nigeria Ltd Lagos State, Nigeria 100Aker Academy AS Fornebu, Norway 100Aker Advantage AS Bergen, Norway 100Aker Business Services AS Fornebu, Norway 100Aker Carbon AS Lysaker, Norway 100Aker Contracting Russia AS Fornebu, Norway 100Aker Egersund AS Egersund, Norway 100Aker Elektro AS Stord, Norway 100Aker Engineering & Technology AS Fornebu, Norway 100Aker Geo AS Stavanger, Norway 100Aker Installation FP AS Fornebu, Norway 100Aker Insurance AS Fornebu, Norway 100Aker Insurance Services AS Fornebu, Norway 100Aker Jacket Technology AS Verdal, Norway 100Aker Kværner Contracting International (Spain) AS Fornebu, Norway 100Aker Kværner Contracting Italy AS Fornebu, Norway 100Aker Kværner Process Systems International AS Fornebu, Norway 100Aker Marine Contractors AS Fornebu, Norway 100Aker MH AS Kristiansand S, Norway 100Aker O&G Group AS Fornebu, Norway 100Aker Offshore Partner AS Stavanger, Norway 100Aker Operations AS Stavanger, Norway 100Aker P&C Americas AS Fornebu, Norway 100Aker P&C Europe AS Fornebu, Norway 100Aker P&C Group AS Fornebu, Norway 100Aker Piping Tecnology AS Verdal, Norway 100Aker Porsgrunn AS Porsgrunn, Norway 100Aker Process System International AS Fornebu, Norway 100Aker Process Systems AS Fornebu, Norway 100Aker Pusnes AS Arendal, Norway 100Aker Sakkyndig Virksomhet AS Verdal, Norway 100Aker Solutions AS Fornebu, Norway 100Aker Solutions Contracting AS Lysaker, Norway 100Aker Stord AS Stord, Norway 100Aker Subsea AS Fornebu, Norway 100Aker Valves AS Stord, Norway 100Aker Verdal AS Verdal, Norway 100Aker Well Service AS Stavanger, Norway 100Drilltech AS Kristiansand S, Norway 100First Interactive AS Stavanger, Norway 60KB eDesign AS Oslo, Norway 100Kogas AS Fornebu, Norway 100Kværner Engineering AS Fornebu, Norway 100Kværner Eureka AS Tranby, Norway 100Maritime Promeco AS Kristiansand S, Norway 100Norwegian Contractors AS Fornebu, Norway 100Step Offshore AS Hvalstad, Norway 51Stord Montasje AS Stord, Norway 100Stord Verft AS Stord, Norway 100Aker Solutions Peru SA San Isidro, Peru 100Aker Kvaerner Caribe LLP San Juan, Puerto Rico 98Kvaerner Davy GOT Moscow, Russia 51Aker Process Gulf Ltd Al Khobar, Saudi Arabia 100Aker MH (Singapore) Pte Ltd Singapore, Singapore 100Aker Solutions (Services) Pte Ltd Singapore, Singapore 100Aker Solutions Singapore Pte Ltd Singapore, Singapore 100Aker Pusnes Korea Co Ltd Pusan, South Korea 80Kvaerner Pulping SL Barcelona, Spain 100Kvaerner Water AB Ørnskjøldsvik, Sweden 100Kvaerner Holdings Switzerland AG Zug, Switzerland 100


Our performance



Aker Cool Sorption Siam Ltd Rayong, Thailand 100Aker Cool Sorption Thailand Ltd Rayong, Thailand 100Aker Kvaerner (Thailand) Ltd Bangkok, Thailand 100Aker Kvaerner E&C (Thailand) Ltd Bangkok, Thailand 100Aker Kvaerner E&C Holdings (Thailand) Ltd Bangkok, Thailand 100Aker Advantage Ltd London, UK 100Aker Business Services Ltd London, UK 100Aker Construction (Stevanage) Ltd London, UK 100Aker Kvaerner Kazakhstan Ltd London, UK 100Aker MH UK Ltd Aberdeen, UK 100Aker Offshore Partner Ltd London, UK 100Aker Process Ltd London, UK 100Aker Process Systems Ltd Aberdeen, UK 100Aker Qserv Ltd Aberdeen, UK 100Aker Solutions Angola Ltd Maidenhead, UK 100Aker Solutions DC Trustees Ltd London, UK 100Aker Solutions E&C Ltd Stockton on Tees, UK 100Aker Subsea Ltd Maidenhead, UK 100Aker Well Services Ltd Aberdeen, UK 100Phoenix Polymers International Ltd Aberdeen, UK 50Qserv Pipeline & Process Ltd London, UK 100Woodfield Systems Co Ltd Kent, UK 100Aker Kvaerner Well Service LLC Muscat, United Arab Emirates 70Aker MH FZE Dubai, United Arab Emirates 100Aker Advantage Inc Houston, USA 100Aker Business Services Inc Houston, USA 100Aker Construction Inc Houston, USA 100Aker Enercon Inc Houston, USA 100Aker Field Development Inc Houston, USA 100Aker Industrial Constructions Inc Houston, USA 100Aker Kvaerner Pharmaceuticals LLC Houston, USA 100Aker Kvaerner Power Inc Charlotte, USA 100Aker Kvaerner Process Systems US Inc Houston, USA 100Aker Kvaerner US LLP Houston, USA 100Aker Kvaerner Willfab Inc Williamsport, USA 100Aker Marine Contractors US Inc Houston, USA 100Aker Maritime US Inc Houston, USA 100Aker Metals Inc Houston, USA 100Aker MH Inc Katy, USA 100Aker Michigan Inc Houston, USA 100Aker Oil & Gas US LLC Houston, USA 100Aker P&C Inc Houston, USA 100Aker P&C US Inc Houston, USA 100Aker Plant Services Group Inc Houston, USA 100Aker Solutions Chile Corporation Houston, USA 100Aker Solutions US Inc Houston, USA 100Aker Solutions USA Corporation Houston, USA 100Aker Strategic Operations Inc Washington, USA 100Aker Subsea Inc Houston, USA 100Aker US Holdings Inc Houston, USA 100Aker Well Services Inc Houston, USA 100DSI Constructors Houston, USA 100Kvaerner Process Services Inc Houston, USA 100RIG Specialities Inc Houston, USA 100

The share of legal ownership equals the share of voting shares.1)


Our performance



Operating revenues 22 17Operating expenses 2 - 212 - 171

Operating loss - 190 - 154

Income from investments in subsidiaries - 2 157Net financial items 3 472 436

Profit before tax 282 2 439

Tax 4 - 77 - 149

Net profit 205 2 290

Net profit for the year is distributed as follows:Proposed dividends 430 809Other equity - 225 1 481

Total distributed 205 2 290

Aker Solutions ASA:

Income statement 1.1 – 31.12


Our performance

Annual accounts


ASSETSDeferred tax asset 4 - 40Investments in group companies 5 6 744 6 856Investments in associates 5 270 72Interest-bearing non-current receivables 8 90 8

Total non-current assets 7 104 6 976

Interest-bearing current receivables from group companies 8 14 996 9 726Non interest-bearing receivables from group companies 6 2 764 2 843Other current receivables 6 1 168 1 494Cash and cash equivalents 8 1 404 1 855

Total current assets 20 332 15 918

Total assets 27 436 22 894

LIABILITIES AND SHAREHOLDERS’ EQUITYIssued capital 7 548 548Own shares 7 - 10 - 9Share premium reserve 7 4 279 4 279Other equity 7 3 105 3 447

Total equity 7 922 8 265

Interest-bearing debt 8, 9 6 373 1 571Deferred tax liability 4 14 -

Total non-current borrowings 6 387 1 571

Interest-bearing current debt to group companies 8 9 006 9 999Provision for dividend 6 430 809Non interest-bearing dept to group companies 6 1 284 1 259Other current liabilities 6 2 407 991

Total current liabilities 13 127 13 058

Total liabilities and shareholders’ equity 27 436 22 894

Fornebu, 3 March 2009Board of Directors of Aker Solutions ASA






Aker Solutions ASA:

Balance sheet as at 31.12


Our performance

Annual accounts

Aker Solutions ASA:

Statement of cash flow 1.1 – 31.12


Profit before tax 282 2 439

Unrealised exchange gain - - 26Accrued interest long-term debt 18 2Depreciation and amortisation (+) - 28Changes in other net operating assets 1 724 3 684

Net cash flows operating activities 2 024 6 127

Acquisition of businesses - 167 - 394Disposal of businesses 112 31

Net cash flow from investing activities - 55 - 363

Proceeds from non-current debt 4 802 -Changes in net borrowings from group companies - 6 345 - 4 240Buy-back of own shares - 70 - 781Dividends paid - 807 - 2 182

Net cash from financing activities - 2 420 - 7 203

Net decrease (-) / increase (+) in cash and bank deposits - 451 - 1 439

Cash and cash equivalent at 1 January 1 855 3 294

Cash and cash equivalent at the end of the period 1 404 1 855


Our performance

Annual accounts

Note 1:■ Accounting principles

Aker Solutions ASA is a company domiciled in Norway. The accounts are presented in conformity with Norwegian legislations and Norwegian generallyaccepted accounting principles.

Investment in subsidiaries and associatesInvestments in subsidiaries and associates are accounted for using the cost method in the parent company accounts. The investments are valued at costless impairment losses. Write-down to fair value are according to good accounting practice recognised when the impairment is considered not to betemporary and reversed if the basis for the write-down is no longer present.

Dividends and other payouts are recognised as income the same year as it is appropriated in the subsidiary. If the dividend exceeds accumulated profitsin the subsidiary after the day of acquisition the payment is treated as a reduction of the carrying value of the investment.

Classification and valuation of balance-sheet itemsCurrent assets and current liabilities includes items due within one year or items that are part of the operating cycle. The rest is classified as fixedassets / non-current debt.

Current assets are valued at the lowest of cost and fair value. Current debt is valued at nominal value at the time of recognition.

Fixed assets are valued at cost less accumulated depreciation, but are written down to fair value if impairment is not expected to be temporary. Non-current debts are initially valued at transaction value less attributable transaction cost. Subsequent to initial recognition, interest-bearing long-term debt isstated at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the borrowingon an effective interest basis.

Trade receivables and other receivables are recognised at nominal value less provision for expected losses. Provision for expected losses is consideredon an individual basis.

Other receivables are valued at nominal value less provisions for expected loss. Provisions for losses are based on individual judgement of each receivable.

Cash and cash equivalents is the parent company’s cash as well as net deposits from subsidiaries in the group cash pooling systems owned by the parentcompany. Correspondingly the parent company’s current debt to group companies will include the same net deposits in the group’s cash pooling system.

Foreign currency and interest swapsCash, receivables and foreign currency debt are valued at the exchange rate at the end of the fiscal year. Subsidiaries have entered into agreements withthe parent company to hedge their foreign exchange exposure. In the parent company this risk is hedged in the external financial markets. All agreementsare booked at fair value with any gains or losses booked against the income statement. In order to reduce the financial market exposure, interest swapagreements are entered. The value of these are recognised directly against equity and released to income statement in proportion to the relevant interestexpense.

TaxTax expense in the profit & loss account comprises current tax and changes in deferred tax. Deferred tax is calculated as 28 percent of temporary differen-ces between accounting and tax values as well as any tax losses carry forward at the year end. A net deferred tax asset is recognised only to the extent itis probable that future taxable profits will be available against which the asset can be utilised.

Note 2:■ Operating expenses

There are no employees in Aker Solutions ASA and hence no salary or pension related costs and also no loans or guarantees related to the executivemanagement team. Group management and corporate staff are employed by other Aker Solutions companies and costs for their services as well as otherparent company costs are charged to Aker Solutions ASA. Remuneration to and shareholding of directors and senior management, Simen Lieungh andLeif Hejø Borge, are described in note 18 Salaries, wages and social security costs to the consolidated accounts.

Fees to KPMG for statutory audit of the parent company including group consolidation amounted to NOK 4 million, fees for other assurance servicesamonted to NOK 0.2 million and fees for other advisory services amounted to NOK 0.2 million.

Aker Solutions ASA:



Our performance

Annual accounts

Note 3:■ Net financial items


Income from investment in other companies 31 -

Interest income 1 050 945Interest expense - 677 - 664

Net interest 373 281

Net foreign exchange gain 68 155

Net other financial items 68 155

Net financial items 472 436

Note 4:■ Tax


Basis for taxable incomeNet profit (+) / loss (-) before tax 282 2 439Group contribution without taxes impact - - 1 935Changes in non-current assets - 31 28Permanent differances 11 -Change in timing differences - 484 100Transferred to (utilisation of) tax loss carried forward 222 - 632

Taxable income - -

Positive/(negative) timing differencesCurrent assets 339 - 75Tax loss carry forward - 289 - 67

Total positive / negative timing differences 50 - 142

Deferred tax (28 percent of timing differences) - 14 40

Tax expenseOrgination and reversal of temporary differences - 135 28Benefit of tax losses recognised 62 - 177Withholding tax - 4 -

Total income tax expense in income statement - 77 - 149

The tax loss carry forward is assumed to be fully deductible against future taxable income in the Norwegian group companies.


Our performance


Note 5:■ Investments in subsidiaries and other companies

Investments in subsidiaries

Amounts in NOK millionRegistered

officeShare

capitalNumber of

shares held Book valueOwner- /

voting share

Aker P&C Group AS Fornebu, Norway 500 500 000 1 189 100%Aker O&G Group AS Fornebu, Norway 1 110 1 110 000 5 555 100%

Total investments in group companies 6 744

Investments in subsidiaries are changed with 112 million from the sale of shares in Aker Business Services Ltd.

Investments in subsidiaries and other companies are held at the lower of cost and estimated fair value.

Investments in other companies

Amounts in NOK millionRegistered

officeShare

capitalNumber of

shares held Book valueOwner- /

voting share

Aker Oilfield Services AS Oslo, Norway 321 10 379 470 270 32.29%

Total investments in other companies 270

Note 6:■ Non interest-bearing items


Non interest-bearing receivables from group companies1 2 764 2 843Other receivables2 1 168 1 494

Current assets 3 932 4 337Non interest bearing liabilities to group companies3 - 1 284 - 1 259Other current liabilities2 - 2 407 - 991

Current liabilities excl. tax and dividend - 3 691 - 2 250

Net current assets excl. tax and dividend 241 2 087Dividend - 430 - 809Deferred tax assets / liabilities - 14 40

Net operating assets incl. tax and dividend - 203 1 318

Hereof NOK 2 755 million in unrealised gains on group companies foreign exchange hedging with the parent company and NOK 9 million in other receivables from group companies.1)Unrealised gains and losses in relation to foreign exchange hedging of the company’s borrowing and lending portefolio2)Hereof NOK 1 211 million are unrealised losses on group companies foreign exchange hedging with the parent company and NOK 73 million in other liabilities to group companies.3)

All current assets and liablities are due within one year.


Our performance


Note 7:■ Shareholders’ equity

Amounts in NOK millionNumber

of shares Share capital Own shares Share premium Other equity Total

Equity as at 1 January 2007 55 029 234 550 4 279 2 713 7 542Dividend from shares heldby Aker Solutions ASA 19 19Change in 2006 dividend - 1 - 1Increase caused by share split (1:5) 220 116 936 - -Cancellations of shares - 1 146 170 - 2 2 - -Share buy back2 - 11 - 770 - 781Net profit 2 290 2 290Proposed dividend - 809 - 809Cash flow hedge1 5 5

Equity as at 31 December 2007 274 000 000 548 - 9 4 279 3 447 8 265Dividend from shares heldby Aker Solutions ASA 2 2Share buy back2 - 1 - 69 - 70Net profit 205 205Proposed dividend - 430 - 430Cash flow hedge1 - 50 - 50

Equity as at 31 December 2008 274 000 000 548 - 10 4 279 3 105 7 922

The value of interest swap agreements changing interest from floating to fixed interest is recognised directly in equity and will be released to income together with the corresponding interest1)expense.A further 595 000 shares were bought in January 2008. After the acquisition, Aker Solutions ASA holds in total 4 966 830 shares.2)Proposed dividend is excl. dividend on own shares as at 31 December 2008.3)

The share capital of Aker Solutions ASA is divided into 274 000 000 shares with a nominal value of NOK 2. The shares can be freely traded. An overviewof the company’s largest shareholders is to be found in page 129 Share and shareholder information.

Own shares have been acquired for the purpose of being used in prospective share programs for employees, as settlement in future corporate acquisitionsor for other purposes as decided by the Board of Directors.

Note 8:■ Interest-bearing items


Cash and cash equivalents 1 404 1 855Interest-bearing current receivables from group companies 14 996 9 726Other interest-bearing non-current receivables1 90 8Interest-bearing current borrowings from group companies - 9 006 - 9 999Interest-bearing non-current borrowings - 6 373 - 1 571

Net interest-bearing assets (+) / liabilities (-) 1 111 19

Interest income 1 050 945Interest expense - 677 - 664

Net interest 373 281

Loan to Aker Bravo AS NOK 8 million, loan to Aker Clean Carbon AS NOK 15 million, loan to Aker Oilfield Services AS NOK 65 million and deposit in Stiftelsen Aker Solutions1)Kompensasjonsordning NOK 2 million.

For information on the group cash pooling system see note 25.1 Cash and cash equivalents to the consolidated accounts.


Our performance


Note 9:■ Non-current borrowings


Revolving credit facility 4 802 -Norwegian bonds 1 600 1 600Refinancing costs to be amortised - 55 - 37Accrued interest 26 8

Non-current borrowings at 31 December 6 373 1 571

Repayments of non-current loans1

2009 - 500 - 5002011 - 650 - 6502012 - 4 802 -2013 - 450 - 450

Total repayments - 6 402 - 1 600

Norwegian bonds and revolving credit facility as described in note 25.6 Borrowings and other non-current liabilities to the consolidated accounts relates entirely to Aker Solutions ASA, see1)this note for information regarding interest rates, covenants and pledges.

Note 10:■ Guarantees


Parent company guarantees to group companies1 44 594 34 725Counter guarantees for bank / surety bonds2 7 855 5 548

Total guarantee liabilities 52 449 40 273

Parent company guarantees to support subsidiaries in contractual obligations towards customers. Aker Solutions ASA has also issued counter indemnities in relation to office rental on behalf1)of subsidiaries.Bank guarantees and surety bonds are issued on behalf of Aker Solutions subsidiaries, and counter indemnified by Aker Solutions ASA.2)

Note 11:■ Financial instruments

The corporate treasury function is located within Aker Solutions ASA and as part of this the company do investment and hedging deals with groupcompanies. After internal netting the remaining net exposure is hedged in the external market. Corporate Treasury is allowed to hold positions within anapproved trading mandate. Investments in group companies are normally not hedged and will be subject to currency fluctuations. Group policy is tomaintain approximately 30 – 50 percent of its borrowings in fixed rate instruments using interest rate swaps to achieve this when necessary. For moreinformation please see note 23 Financial risk management to the consolidated accounts.

Note 12:■ Contingent events and related parties

Aker Solutions ASA’s investment in Aker Oilfield Services AS and contract with Intellectual Property Holding AS are described in note 5 Related parties tothe consolidated accounts.


Our performance



Our performance

Auditor’s report


Our performance

Accurate, timely publication of informationrelevant to the market is important inensuring that Aker Solutions’ share pricereflects the company’s underlying value.Aker Solutions’ objective is that thecompany’s shareholders will receive com-petitive returns on their investments overtime through a combination of dividends,share buybacks, and share price growth.

Dividend policyThe Board of Directors considers that long-term average dividend payments to share-holders should amount to 30 to 50 percentof the Aker Solutions group’s net profit,through cash dividends and/or share buy-backs. Considerations affecting dividenddisbursements are alternative uses forsuch funds and applying them to furtherstrengthen the company’s financial struc-ture.

The Board will propose to Aker Solutions’Annual General Meeting that a total per-share dividend of NOK 1.60 be paid for2008.

The following table shows Aker Solu-tions’ dividend payments for the period2005–2008:

Year Dividend

2005 NOK 12006 NOK 22006 – extraordinary NOK 62007 NOK 32008 – proposed NOK 1.60

Shares and share capitalAker Solutions ASA has 274 000 000 ordi-nary shares. Each share has a par value ofNOK 2 (see page 75 of the consolidatedaccounts). As of 31 December 2008, thecompany had 5 231 shareholders, of whom

562 (10.7 percent) were non-Norwegian.Aker Solutions has a single class of shares.Each share is entitled to one vote. As of31 December 2008, the company held4 966 830 or 1.8 percent of its own (treasury)shares. No share issues were carried out in2008.

Stock exchange listingAker Solutions shares are listed on theOSEBX, the main list of the Oslo StockExchange (ticker: AKSO). Aker Solutionsshares are registered in the NorwegianCentral Securities Depository; DnB NOR isthe company’s registrar. The shares havethe securities registration number ISINNO0010215684. Aker Solutions ASA waslisted on the Oslo Stock Exchange on2 April 2004.

Largest shareholder

Aker ASA

Aker Holding

Aker Solutions

Aker ASA: 60%The Norwegian Government: 30%SAAB AB: 7.5%Investor AB: 2.5%

Aker Holding: 40.27%

Aker Solutions’ largest shareholder is AkerHolding AS, which owns 40.27 percent ofthe company’s shares as of 31 December2008. Aker ASA holds a controlling 60percent stake in Aker Holding. TheNorwegian government owns 30 percentof Aker Holding’s shares and the Swedishcompanies SAAB AB and Investor AB own

Aker Solutions is committed to maintaining an open and direct dialoguewith its investors, analysts, and the financial community in general.

Open and direct dialogue

7.5 percent and 2.5 percent, respectively.The co-owners of Aker Holding haveagreed that Aker Solutions will continue tobe developed as an internationally com-petitive, major supplier of technology,products, systems, and services, withoperations concentrated in the energy, oil,and gas sectors.

Aker Holding’s owners will continue theestablished, close industrial cooperationbetween Aker Solutions and other Akercompanies. While these companies arelegally and financially independent units,they share many unifying features andcomplementary capabilities. Aker compa-nies are linked by their Aker ASA owner-ship.

When agreements are entered intobetween two or more Aker companies, theboards of directors and other partiesinvolved are critically aware of the need toact in the best interests of the involvedcompanies and in accordance with goodcorporate governance. If needed, external,independent opinions are sought.

Current Board authorisationsThe 3 April 2008 Annual General Meetingof Aker Solutions authorised the Board ofDirectors to acquire company shares up toa total par value of NOK 54 800 000. Theauthorisation also allows for using com-pany shares as security. The lowest per-share price to be paid under this authorisa-tion is NOK 1; the highest is NOK 300. Theauthorisation is valid until the 2009 AnnualGeneral Meeting or until 30 June 2009,whichever occurs first.

Acquisition of own sharesThe company’s share buy-back programmewas continued under the Board authorisa-tion granted by the 2008 Annual General

Change in share capitalDate Change in share capital Share capital in NOK Number of shares Par value in NOK

1 January 2006 550 292 340 55 029 234 10.0031 December 2006 550 292 340 55 029 234Change in 2007 - 2 292 340 218 970 76631 December 2007 548 000 000 274 000 000 2.0031 December 2008 548 000 000 274 000 000 2.00


Our performance

Share and shareholder information

Geographic distribution of ownershipAs of 13 february 2009

Nationality Number of shares Ownership

Non-Norwegian shareholders 134 796 609 49.20%Norwegian shareholders 139 203 391 50.80%

Total 274 000 000 100%

Meeting. The Board has authorised thecompany’s administration to repurchasetreasury shares up to 5 percent of thecompany’s outstanding shares. The sharebuy-back programme runs until the 2 April2009 Annual General Meeting. As of 28February 2009, none of the company’sshares had been acquired pursuant to theBoard authorisation.

The Board will propose an extension ofthe mandate from the date of the AGM’sdecision until the next AGM.

Stock option programmeAker Solutions ASA has as of 31 December2008 no stock option programme.

Share purchase programme foremployeesIn January, Aker Solutions announcedthat it is offering approximately 14 100 ofits employees in Norway, the Netherlands,United Kingdom, Chile and Canada theopportunity to buy Aker Solutions ASAshares at a discount. The discount is NOK1 500 per employee and the total buyingamount per employee is NOK 15 000 forthe 12 months (from March 2009 to March2010) the programme is running. The per-share purchase price will be equal to theaverage (volume-weighted) share price ofAker Solutions ASA’s shares on the OsloStock Exchange on the last trading daybefore the shares are distributed.

Employees who keep their shares until1 September 2011 and who are continu-ously employed by Aker Solutions through-out the period for which they hold theirshares will be entitled to a bonus shareaward, free of charge, of one bonus sharefor every two Aker Solutions ASA sharesheld under the programme.

Investor relationsAker Solutions seeks to maintain an openand direct dialogue with shareholders,financial analysts, and the financialcommunity in general. In addition tomeetings with analysts and investors, thecompany schedules regular presentationsat major financial centers in Europe andthe US.

2008 share data2008 2007

Highest closing share price NOK 157.00 190.75Lowest closing share price NOK 26.15 131.75Average closing share price NOK 101.80 152.15Closing price as of 31 December NOK 45.00 144.50Own (treasury) shares as of 31 December No. of shares 4 966 830 4 371 830Shares issued and outstanding as of 31 Dec. No. of shares 274 000 000 274 000 000Market capitalisation as of 31 December NOK million 12 330 39 593Daily turnover No. of shares 2 173 788 2 171 000Turnover ratio Percent 200.9 197.5Earnings per share NOK 5.34 8.84

Ownership structure by numbers of shares heldAs of 13 february 2009

Shares held Number of shareholders Share capital

1 – 100 1 262 0.03%101 – 1 000 2 912 0.51%1001 – 10 000 1 191 1.39%10 001 – 100 000 266 3.58%100 001 – 500 000 115 8.65%More than 500 000 50 85.85%

Total 5 796 100%

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Our performance


Visitors to Aker Solutions’ website cansubscribe to email delivery of companynews. All Aker Solutions press releases andinvestor relations (IR) publications, includingarchived material, are available at the com-pany’s website www.akersolutions.com.

This online resource provides thecompany’s quarterly and annual reports,prospectuses, corporate presentations,articles of association, financial calendar,Investor Relations and Corporate Govern-ance policies, and other information. AtAker Solutions’ annual capital markets daypresentation, open to all stakeholders, keyexecutives provide detailed, up-to-dateinformation about the company’s busi-ness activities and market conditions.

Shareholders can contact the company’sinvestor relations staff at: [email protected]. The Oslo Stock Exchange displaysspecial symbols alongside company list-ings to indicate satisfactory distribution ofinformation (i) and information in English(E). Both the i and the E symbols havebeen awarded to Aker Solutions. Detailson these designations are available atwww.oslobors.no.

Electronic interim and annualreportsAker Solutions encourages its shareholdersto subscribe to the company’s annualreports via the electronic delivery systemof the Norwegian Central SecuritiesDepository (VPS). Please note that VPSservices (VPS Investortjenester) aredesigned primarily for Norwegian share-holders. Subscribers to this service receiveannual reports in PDF format via email.VPS distribution takes place at the sametime as distribution of the printed versionof Aker Solutions’ annual report to share-holders who have requested it.

Quarterly reports, which are generallyonly distributed electronically, are availa-ble from the company’s website and othersources. Shareholders who are unable toreceive the electronic version of quarterlyreports may subscribe to the printed ver-sion by contacting Aker Solutions’ investorrelations staff.

Nomination committeeAker Solutions has a nomination committeeconsisting of no fewer than three members,

as set forth in the company’s articlesof association. The composition of thenomination committee must reflect theinterests of shareholders and the commit-tee’s members must be independent.

The nomination committee has thefollowing members:

Kjell Inge Røkke (Chairman),2008–2010Gerhard Heiberg, 2008–2010Kjeld Rimberg, 2007–2009

Annual General MeetingAnnual General Meetings are normally heldin late March or early April. Written notifi-cation is sent to all shareholders or theirnominees individually. All information relevantto the Annual General Meeting is also avail-able on the company’s website. To vote atshareholders’ meetings, shareholders (ortheir duly authorised representatives) musteither be physically present, or vote byproxy; registration and proxy instructionsare published on the company’s website.

2008 share dataThe company’s total market capitalisationas of 31 December 2008 was NOK 12 330million. During 2008, a total of 550 522 000Aker Solutions shares were traded,corresponding to 3.4 times the company’sfreely tradeable stock. Of the company’soutstanding shares, 59.73 percent werefreely tradeable in 2008; the remaining40.27 percent was owned by Aker HoldingAS. Shares traded on all of the 252 possibletrading days. The average daily tradingvolume was 2 184 611 shares.

RegistrarShareholders may contact Aker Solutions’registrar with questions pertaining to theirshareholding:

DnB NOR ASAVerdipapirserviceStranden 21NO-0021 Oslo, NorwayTelephone: + 47 22 48 27 70Telefax: + 47 22 48 11 71www.dnbnor.com

AnalystsThe following security brokers provide analytic coverage of Aker Solutions (as of 13 February 2009)

Company Name Phone

ABG Sundal Collier Ole Martin Westgaard + 47 22 01 61 60ABN AMRO Thomas Deitz + 44 207 67 881 07Arctic Securities Kjetil Garstad + 47 21 01 32 24Barclays Mick Pickup + 44 203 13 466 95Citigroup Fiona Maclean + 44 207 98 641 44Carnegie Frederik H. Lunde + 47 22 00 93 79Credit Agricole Cheuvreux Geoffroy Stern + 33 1 41 89 73 79Danske Bank Endre Storløkken + 47 24 00 84 42Deutsche Bank Christyan F Malek + 44 207 54 582 49DnB NOR Lars-Daniel Westby + 47 22 94 89 83Fearnley Fonds Truls Olsen + 47 22 93 63 93First Securities Pål Dahl + 47 23 23 81 98Fondsfinans Gøran Andreassen + 47 23 11 30 33Goldman Sachs Henry Tarr + 44 207 55 259 81Handelsbanken Håkon Amundsen + 47 22 94 09 95HSBC David Phillips + 44 207 99 153 88JP Morgan Amy Wong + 44 207 32 594 60Merrill Lynch Alejandro Demichelis + 44 207 99 615 68Nordea Anne Ulriksen + 47 22 48 68 67Nomura Iqbal Nasim + 44 207 10 239 77Orion Securities Aleksandr Solovjov + 37 05 24 61 968Pareto Rune Juliussen + 47 22 87 87 32RS Platou Markets Terje Mauer + 47 22 01 63 24SEB Enskilda Terje Fatnes + 47 21 00 85 38UBS Alex Brooks + 44 207 56 758 04


Our performance


20 largest shareholdersAs of 13 February 2009

Name Nominee No. of shares held Ownership

Aker Holding AS 110 333 615 40.27%JPMorgan Chase Bank x 16 236 318 5.93%State Street Bank and Trust CO. x 14 765 932 5.39%State Street Bank & Trust CO. x 9 566 744 3.49%Clearstream Banking S.A. x 5 783 983 2.11%Aker Solutions ASA 4 966 830 1.81%Bank of New York Mellon x 4 740 961 1.73%Citibank N.A. New York Branch x 4 600 000 1.68%JPMorgan Chase Bank x 4 170 163 1.52%Bank of New York, Brussels Branch 3 767 650 1.38%Citibank N.A. New York Branch x 3 541 890 1.29%The Northern Trust C.O. x 3 313 890 1.21%JPMorgan Chase Bank x 2 856 722 1.04%Deutsche Bank AG Frankfurt x 2 736 889 1.00%JPMorgan Chase Bank x 2 540 803 0.93%Bank of New York Mellon x 2 473 158 0.90%RBC Dexia Investor Services Trust x 2 373 573 0.87%Folketrygdfondet 2 118 400 0.77%State Street Bank and Trust CO. x 2 078 473 0.76%Investors Bank & Trust Company x 2 016 178 0.74%

Total, 20 largest shareholders 204 982 172 74.81%

Other shareholders 69 017 828 25.19%

Total 274 000 000 100%


Our performance


Analytical information Aker Solutions


Order backlog 31.12 58 016 58 261 59 695Order intake 55 590 57 942 62 271Revenue 58 252 57 957 50 592EBITDA 3 382 3 913 2 872EBITDA margin 5.8% 6.8% 5.7%

Profit before tax 2 103 3 538 1 869Rate of taxation 28.1% 30.4% 30.8%Net profit from continuing operations 1 513 2 464 1 294Basic earnings per share continuing operations 5.34 8.84 4.53Cash flow from operating activities - 868 2 675 2 636Cash flow from investing activities - 3 732 - 1 576 985Cash flow from financing activities 4 105 - 3 013 - 4 688Cash flow per share 1.11 - 7.82 - 3.93Total capital 42 724 28 516 31 396Borrowings 6 716 1 615 1 568Equity ratio 20.14% 25.48% 25.84%Liquidity ratio 117.49% 116.04% 120.04%Gearing ratio 73.56% 64.59% 59.90%Return on total capital 6.97% 12.51% 10.23%Return on equity 17.58% 33.91% 46.70%Return on capital employed 8.50% 16.97% 12.52%

Revenue

Amounts in NOK million 1Q07 2Q07 3Q07 4Q07 2007 1Q08 2Q08 3Q08 4Q08 2008

ED&S 6 998 6 864 5 691 5 368 24 921 5 879 6 690 5 577 4 538 22 684Subsea 2 136 2 429 2 571 2 715 9 851 3 038 2 550 2 205 3 413 11 206P&T 2 513 2 690 3 287 3 863 12 353 3 251 3 326 3 388 4 251 14 216P&C 2 842 2 929 2 992 2 834 11 597 2 205 2 649 2 595 3 253 10 702Other - 342 - 215 - 304 96 - 765 - 156 - 142 - 258 - - 556

Total 14 147 14 697 14 237 14 876 57 957 14 217 15 073 13 507 15 455 58 252

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7%

8%

200820072006

EBITDA margin

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6%

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14%

16%

18%

200820072006

Return on capital employed

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RevenueAmounts in NOK million


Our performance

Analytical information

EBIT


ED&S 320 361 316 267 1 264 307 261 186 - 1 322 - 568Subsea 150 198 250 250 848 265 236 234 327 1 062P&T 188 202 227 270 887 254 283 297 429 1 263P&C 160 216 195 181 752 169 225 229 256 879Other - 46 - 72 - 83 - 68 - 269 - 98 -9 48 190 131

Total 772 905 905 900 3 482 897 996 994 - 120 2 767

EBITDA


ED&S 336 378 332 345 1 391 325 281 221 - 1 302 - 475Subsea 171 222 282 285 960 295 288 269 376 1 228P&T 202 218 245 294 959 278 313 352 505 1 448P&C 168 221 201 186 776 175 230 235 264 904Other - 21 - 46 - 63 - 43 - 173 - 71 14 74 260 277

Total 856 993 997 1 067 3 913 1 002 1 126 1 151 103 3 382

Order intake


ED&S 7 556 1 730 6 542 3 964 19 792 3 431 3 503 5 388 4 359 16 681Subsea 2 266 4 200 1 905 4 006 12 377 2 972 3 045 1 714 3 735 11 466P&T 1 889 3 476 1 872 3 496 10 733 2 760 4 089 6 611 2 661 16 121P&C 6 414 3 281 3 462 1 839 14 996 4 265 3 657 1 655 1 714 11 291Other - 821 629 252 - 16 44 - 145 - 298 427 47 31

Total 17 304 13 316 14 033 13 289 57 942 13 283 13 996 15 795 12 516 55 590

Order backlog


ED&S 30 299 25 083 25 871 24 317 24 317 21 750 18 545 18 479 18 315 18 315Subsea 8 838 10 618 9 706 10 951 10 951 10 677 11 357 11 039 11 876 11 876P&T 12 092 12 861 11 371 11 520 11 520 10 930 11 692 16 045 14 705 14 705P&C 14 265 14 343 13 824 12 519 12 519 12 170 12 980 13 032 13 300 13 300Other - 2 736 - 1 973 - 1 443 - 1 046 - 1 046 - 1 045 - 1 185 - 392 - 180 - 180

Total 62 758 60 932 59 329 58 261 58 261 54 482 53 389 58 203 58 016 58 016

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Order backlogAmounts in NOK million

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Our performance

Analytical information

The following presents Aker Solutions’practices regarding each of the recom-mendations contained in the most recentversion of the Norwegian Code of Practicefor Corporate Governance. Deviationsfrom these recommendations are ex-plained under the appropriate Code head-ing.

PurposeAker Solutions’ corporate governance prin-ciples are intended to ensure an appropri-ate division of roles and responsibilitiesamong the company’s owners, its Board ofDirectors, and its executive management.An appropriate division of roles is intendedto ensure that goals and strategies are es-tablished, that adopted strategies areimplemented, and that performance issubject to measurement and follow-up.

Aker Solutions’ corporate governanceprinciples also help ensure that the group’sactivities are subject to satisfactory control.An appropriate division of roles and satis-factory control contribute to the greatestpossible value creation over time, to thebenefit of owners and other stakeholders.

The corporate governance policy hasbeen prepared by the Board of Directors ofAker Solutions ASA. The principles arebased on the Norwegian Code of Practicefor Corporate Governance, dated 4 De-cember 2007. The following presents AkerSolutions’ practices regarding each of therecommendations contained in the Codeof Practice.

Corporate values and ethicalguidelinesThe Board has approved and adopted AkerSolutions’ corporate values, which are pre-sented on page 10 of this annual report.Our ethical guidelines and other policydocuments have been prepared in accord-ance with these values.

Our businessAker Solutions’ business purpose clausereads as follows: “The company’s purposeis owning and operating industrial busi-nesses and other, related activities, capital

management and other group functions,and participation in or acquisition of otherbusiness activities.”

The business purpose clause ensuresthat shareholders have control of thescope of the business activities and theirrisk profile, without limiting the Board ormanagement’s ability to carry out strategicand financially viable decisions within thedefined purpose. The group’s financialgoals and main strategies are presented inthis annual report.

Equity and dividendsThe group’s equity as of 31 December2008 amounted to NOK 8 605 million,which corresponds to an equity ratio of20.1 percent. Aker Solutions ASA regardsthe current equity structure as appropriateand adapted to the group’s objectives,strategy, and risk profile.

Aker Solutions ASA’s dividend policy isdiscussed in the section Share and share-holder information, see page 126 of thisannual report. The group’s dividend policyis among the factors considered in prepar-ing the Board’s proposal for allocation ofprofit for 2008.

Board authorisationsThe Board’s proposals for future Boardauthorisations are to be limited to definedissues and are to remain in force until thenext annual shareholders’ meeting.

The current Board authorisation toacquire company (treasury) shares is alsopresented in the section Share and share-holder information on page 126 of thisannual report.

Equal treatment of shareholders andtransactions with related partiesAker Solutions has a single class of shares;all shares carry the same rights in the com-pany. Equal treatment of all shareholdersis crucial. If existing shareholders’ preemp-tive rights are waived upon an increase inshare capital, the Board must justify thewaiver. Transactions in own (treasury) sharesare executed on the Oslo Stock Exchangeor by other means at the listed price.

Aker Solutions’ goal is to ensure the greatest possible value creation overtime, based on good corporate governance. Aker Solutions’ corporategovernance principles establish an appropriate division of roles andresponsibilities among the company’s owners, its Board of Directors,and its executive management.

Safeguarding shareholder interests

Aker Solutions ASA has prepared guide-lines designed to ensure that members ofthe Board of Directors and executive man-agement notify the Board of any materialdirect or indirect interest they may have inagreements entered into by the group.

Aker ASA owns 60 percent of the sharesin Aker Holding AS; as of 31 December2008, Aker Holding owned 40.27 percentof Aker Kværner ASA (now Aker SolutionsASA) stock. The Norwegian parliamentarybill St.prp. no. 88 (2006–2007) providesfurther details on the establishment of AkerHolding AS and the agreement betweenAker ASA and the other Aker Holding ASshareholders.

Based on its shared industrial historyand ownership ties, Aker Solutions aims tomaintain its close cooperation with theAker group and various other companiesassociated with Aker ASA. For example,there is major potential in joint projectsbetween Aker Solutions and other Akercompanies that serve the oil and gasindustry.

Aker Solutions ASA is not regarded as arelated party, under the Norwegian PublicLimited Liability Companies Act, withregard to Aker ASA or companies in whichAker ASA has ownership interests. Never-theless, the Board and management ofAker Solutions are keenly aware that AkerSolutions must conduct relations with Akercompanies at arm’s length.

Further, transactions of a certain sizebetween Aker Solutions ASA and Aker groupcompanies are subject to the proceduresset forth in section 3-8 of the NorwegianPublic Limited Liability Companies Act.For further information, see note 5 Relatedparties to the consolidated accounts.

Freely negotiable sharesAker Solutions shares are freely negotiable.No restrictions on transferability are foundin the company’s articles of association.

Annual General MeetingsAker Solutions encourages shareholdersto participate in its Annual General Meet-ings. Holding Annual General Meetings as


Our organisation and governance

Corporate governance

soon as possible after year-end is a priority.Our goal is to publish notices of share-holders’ meetings and comprehensivesupporting information — including therecommendations of the nomination com-mittee — on the company’s website nolater than 21 days before the AnnualGeneral Meeting, and to distribute thesedocuments to shareholders with knownaddresses within the deadlines set forth inthe Norwegian Public Limited LiabilityCompanies Act. The deadline for share-holders to register to attend is set as closeto the date of the meeting as possible.Shareholders who are unable to attend themeeting in person may vote by proxy. Fur-ther information on procedures for regis-tration and proxy voting is provided withthe meeting notice and registration andproxy forms.

Pursuant to Aker Solutions’ articles ofassociation, the Board Chairman or anotherperson appointed by the Board Chairmanchairs Annual General Meetings. To theextent possible, Board members, thenomination committee chairman, and thecompany’s auditor attend Annual GeneralMeetings.

The nomination committee focuses oncomposing a Board that works as a teamand on selecting Board members whoseexperience and qualifications complementeach other. Thus, typically, the AnnualGeneral Meeting is invited to vote for theBoard as a whole.

Minutes of Annual General Meetingsare published as soon as practical via theOslo Stock Exchange messaging servicewww.newsweb.no (ticker: AKSO) and on thecompany’s website www.akersolutions.com under the heading Investor Relations.

Nomination committeeThe company has a nomination committee,as set forth in its articles of association.The nomination committee comprises nofewer than three members, who normallyserve for two years. The composition ofthe nomination committee must reflect theinterests of shareholders, as well as main-tain the committee members’ independ-ence from Aker Solutions’ Board and ex-ecutive management. The members andchair of the nomination committee areelected by the company’s Annual GeneralMeeting, which also determines theirremuneration.

Pursuant to the articles of association,the nomination committee recommends

candidates for election to the Boardof Directors. The nomination committeealso makes recommendations as to theremuneration of Board members. Thecomposition of the nomination committeeis presented under the section Share andshareholder information in this annualreport. The nomination committee is toprovide written justifications of its recom-mendations.

Board composition andindependenceUnder an agreement with employee repre-sentatives the company does not have acorporate assembly, which is provided forunder Norwegian law. Employees’ rightsto representation and participation in deci-sion making have been secured throughextended employee representation on theBoard of Directors, among other measures.

Pursuant to the company’s articles ofassociation, the Board comprises from sixto ten members, one-third of whom are tobe elected by and among Aker Solutionsemployees. Further, up to three share-holder-elected deputy Board membersmay be elected. The nomination commit-tee’s recommendations generally proposean appointment for Board Chairman; theBoard Chairman is elected by sharehold-ers at the Annual General Meeting. TheBoard elects its Deputy Chairman. Boardmembers are elected for a two-yearperiod.

The majority of shareholder-electedBoard members are independent of AkerSolutions’ executive management and keybusiness associates. Further, no fewerthan four of the shareholder-elected Boardmembers are independent of the com-pany’s largest shareholder.

The current composition of the Boardand the Board members’ expertise, capa-bilities, and independence are presentedon page 136 of the annual report. Boardmembers’ shareholdings are presented innote 18 Salaries, wages, and social securitycosts to the consolidated accounts. Thecompany encourages Board members toown Aker Solutions stock. The share-holder-elected Board members have abroad range of expertise, capabilities, andexperience from finance, industry, andnon-governmental organisations.

Three of the shareholder-elected Boardpositions are up for election in 2009. Thenomination committee’s recommendationsand accompanying justification will be

published on the company’s website andvia the Oslo Stock Exchange’s messageservice, www.newsweb.no, as soon as it isavailable.

The work of the Board of DirectorsThe Board annually adopts a plan for itswork, emphasising goals, strategy, and ex-ecution. Further, the Board has adoptedBoard instructions that regulate areas ofresponsibility, tasks, and division of rolesof the Board, Board Chairman, and Presi-dent & CEO. The Board instructions alsofeature rules as to Board schedules, noticeand chairing of Board meetings, decisionmaking, the President & CEO’s duty andright to disclose information to the Board,professional secrecy, impartiality, andother matters.

Pursuant to the Board instructions, theBoard evaluates its own performance andexpertise once a year. The Board hasappointed a compensation committee.

Risk management and internalcontrolAker Solutions has established a compre-hensive set of internal control proceduresand systems to ensure unified and reliablefinancial reporting. Each of the group’sbusiness units must annually evaluate itsinternal control systems and financialreporting procedures. The group also reg-ularly conducts internal audits of individualunits’ adherence to systems and proce-dures. The Board receives reports on thecompany’s financial performance andstatus reports on the group’s most impor-tant individual projects on a monthly basis.Page 58 of the annual report presents amore detailed description of the manage-ment of operational and financial risksassociated with the group’s businessactivities.

Board remunerationRemuneration paid to Aker Solutions’

“The principles arebased on theNorwegian Code ofPractice for CorporateGovernance, dated4 December 2007”




Board of Directors reflects the Board’s re-sponsibilities, expertise, time spent, andthe complexity of the business. Remuner-ation is not profit-dependent.

Additional information on remunerationpaid to Board members for 2008 ispresented in note 18 to the consolidatedaccounts.

Remuneration of executivemanagementThe Board has adopted guidelines forremuneration of Aker Solutions’ executivemanagement in accordance with the rulesand regulations of section 6-16a of theNorwegian Public Limited Liability Compa-nies Act.

Aker Solutions ASA does not have stockoption plans or other share award pro-grammes for employees for 2008, but ashare purchase programme has been initi-ated for 2009. Further details are availableon the company’s website. Note 18 to theconsolidated accounts provides furtherdetails as to remuneration paid in 2008to individual members of Aker Solutions’executive management. The company’sguidelines for remuneration of executivemanagement are discussed in note 18 tothe consolidated accounts, and arepresented to the Annual General Meeting.

Information and communicationThe company has prepared an InvestorRelations (IR) policy, which is available atAker Solutions’ website. Aker Solutions’reporting of financial and other informationis to be based on openness and on equaltreatment of market participants.

The long-term purpose of Aker Solu-tions’ systematic IR work is to ensure thecompany’s access to capital at competi-tive terms and correct pricing of shares forshareholders. These goals are to beaccomplished through accurate and timelydistribution of information that can affectthe company’s share price; the companyalso complies with current rules and mar-ket practices, including the requirement ofequal treatment.

All stock exchange notices and pressreleases are made available on the com-pany’s website, www.akersolutions.com;stock exchange notifications are alsoavailable from www.newsweb.no. All infor-mation that is distributed to shareholders issimultaneously published on Aker Solutions’website. The company endeavors to holdpublic presentations of its financial reporting;

such presentations are often broadcastsimultaneously via the Internet.

Aker Solutions’ financial calendar ispublished on the company’s website.

TakeoversIn light of Aker Solutions’ ownership struc-ture, the Board has thus far not deemed itappropriate to prepare separate guidelinesfor takeover situations.

AuditorThe auditor makes an annual presentationof its plan for auditing work to the Board.Further, the auditor has provided the Boardwith a written confirmation that the require-ment of independence is met.

The auditor participates in the Boardmeeting that deals with the annualaccounts, and the auditor has reviewedthe company’s internal controls with theBoard. The Board of Directors has beengiven the opportunity to meet with theauditor without the company’s executivemanagement present; however, no suchmeeting has been requested.

The Board has not deemed it necessaryto introduce guidelines for executive man-agement’s use of auditors for servicesother than auditing. However, the Boardreceives an annual overview of servicesother than auditing that have been sup-plied to the company.

Remuneration to auditors for auditingand other services is presented in note 7Other operating expenses to the consoli-dated accounts. Such data and theselection of the auditor for the 2009accounting year are also presented to theAnnual General Meeting.







Board of Directors

Martinus Brandal (born 1960) rejoined Aker in 2008. He was President & CEO of Aker Solutions ASAfrom July 2006 to March 2008. From July 2004 to July 2006 Brandal was EVP in charge of operations,strategy and business development for Aker ASA. From 1985 to 2004, Brandal held various manage-ment positions in the ABB Group at its headquarters in Zurich, including Group SVP and Head ofBusiness Area Process Automation. He is also Chairman of the Boards of Aker Drilling and Aker FloatingProduction, and a Board member of Aker Oilfield Services and of Odim. He holds a BSc in ElectricalEngineering from Oslo University College. As of 31 December 2008, Brandal holds, through a privatelyowned company, 7 500 shares in the company and has no stock options. Brandal is a Norwegiancitizen. He has been elected for the period 2008–2010.

Bjørn Flatgård (born 1949) runs his own business, the principal activities of which are participation onBoards of directors and investing. Flatgård was President and CEO of Elopak AS from 1996 to 2007.He previously served as President and CEO of Nycomed Pharma and EVP of Hafslund Nycomed andNycomed AS. Flatgård holds multiple Board positions in major Norwegian companies. Flatgård has anMSc in Chemical Engineering from the Norwegian University of Science and Technology and a degreefrom the Norwegian School of Management. As of 31 December 2008, Flatgård holds 5 535 shares in thecompany, and has no stock options. Flatgård is a Norwegian citizen. He has been elected for the period2008–2010.

Heidi M. Petersen (born 1958) is an independent businesswoman. From 2000 to July 2007, she wasManaging Director of Future Engineering AS and of Rambøll Oil & Gas AS. Petersen was employed inKvaerner Oil & Gas from 1988, becoming head of Kvaerner Oil & Gas Sandefjord in 1997. Petersenhas varied Board experience of industrial, oil and gas-based operations as well as of energy supplyand financial enterprises. She currently chairs the Board of Sandefjord Airport and is a member of theBoards of Norsk Hydro ASA, Nordea AB, Songa Floating Production ASA and Noreco ASA among others.She holds an MSc from the Norwegian University of Science and Technology. As of 31 December2008, Petersen holds no shares in the company, and has no stock options. Petersen is a Norwegiancitizen. She has been elected for the period 2007–2009.

Vibeke Hammer Madsen (born 1955) has been CEO of the Federation of Norwegian Commercial andService Enterprises since 2002. Prior to this she was Partner in PA Consulting Group. From 1993 to1999 Hammer Madsen was Vice President and held various positions in StatoilHydro. Hammer Madsenholds a range of Board positions. She is a graduate of the Norwegian School of Radiography. As of31 December 2008, Hammer Madsen holds no shares in the company, and has no stock options.Hammer Madsen is a Norwegian citizen. She has been elected for the period 2007–2009.

Leif-Arne Langøy (born 1956) was President & CEO of Aker ASA, formerly Aker RGI, from 2003 to 2008.From 2006 to 2008 he was also Chairman of the Board. Langøy has previously served as President &CEO of the Aker Yards Group, and for 13 years as Managing Director of Aker Brattvaag. He is Chairmanof the Boards of Aker Holding, Aker Seafoods and Aker BioMarine, a Board member of Aker Exploration,and Deputy Chairman of TRG Holding. Langøy has an MBA from the Norwegian School of Economicsand Business Administration. As of 31 December 2008, Langøy holds, through a privately ownedcompany, 175 000 shares in the company and has no stock options. Langøy is a Norwegian citizen.He has been elected for the period 2008–2010.

Martinus BrandalChairman of the Board

Bjørn FlatgårdDeputy Chairman

Heidi M. PetersenDirector

Vibeke Hammer MadsenDirector

Leif-Arne LangøyDirector



Board of Directors

Siri Fürst (born 1958) has been Partner and Business Consultant in Considium Consulting Group sinceJanuary 2005. From 1984 to 1999 she held various management positions in Hafslund, HafslundNycomed and Nycomed Pharma. From 1999 to 2003 she was Managing Director of DiaGenic ASA.Fürst is a graduate of the Norwegian School of Economics and Business Administration. As of 31December 2008, Fürst holds no shares in the company, and has no stock options. Fürst is a Norwegiancitizen. She has been elected for the period 2007–2009.

Atle Teigland (born 1957) was elected by the employees of Aker Solutions to the Board of Directors inOctober 2004. He has previously served for several years on the Boards of Aker RGI and Aker Maritime.Teigland is a Group Union Representative for Aker Solutions on a full time basis and has been employedby Aker Elektro AS since 1978. Teigland is a certified electrician. As of 31 December 2008, Teiglandholds no shares in the company, and has no stock options. Teigland is a Norwegian citizen. He hasbeen elected for the period 2007–2009.

Åsmund Knutsen (born 1959) was elected by the employees of Aker Solutions to the Board of Directorsin October 2004. He has held various positions in Aker Engineering & Technology AS since 1991 andis now a Group Union Representative for white collar employees on a full time basis. Knutsen holds aMSc in Hydrodynamics. As of 31 December 2008, Knutsen holds 1 505 shares in the company, andhas no stock options. Knutsen is a Norwegian citizen. He has been elected for the period 2007–2009.

Ingebreth Forus (born 1950) was elected by the employees of Aker Solutions as a deputy Boardmember in 2007. He took over as a full Board member in May 2007. Forus was employed by Kvaernerbetween 1975 and 1980, and joined Aker Well Service as a wireline supervisor in 1995. He became aUnion Representative on a full time basis in 2004 and is also a member of the Board of Industri Energi(formerly NOPEF). Forus holds a degree in civil engineering from Stavanger Technical School and afurther degree from the University of Bergen. As of 31 December 2008, Forus holds no shares in thecompany, and has no stock options. Forus is a Norwegian citizen. He has been elected for the period2007–2009.

Arve Toft (born 1966) was elected by the employees of Aker Solutions to the Board of Directors inMarch 2007. Toft has been employed by Aker Solutions since 1983 and is a Group Union Representativefor Aker Solutions on a full time basis. He has been a full time local union representative at Aker StordAS for 5 years. Toft is a certified mechanic and scaffolder. As of 31 December 2008 Toft holds noshares in the company, and has no stock options. Toft is a Norwegian citizen. He has been elected forthe period 2007–2009.

Siri FürstDirector

Atle TeiglandDirector

Åsmund KnutsenDirector

Ingebreth ForusDirector

Arve ToftDirector



Board of Directors


Simen Lieungh (born 1960) first joined Aker Solutions in 1988 and has been President & CEO sinceMarch 2008. He has more than 20 years’ experience with large field development projects, coveringall phases from conceptual studies to completion and delivery of complete installations. Prior to this,Lieungh was a research scientist with the Norwegian Defence Research Establishment and fromOctober 2007 to February 2008 he was Managing Director of Arne Blystad AS. Lieungh is a graduate ofthe Norwegian University of Science and Technology. As of 15 February 2009, Lieungh holds 15 014shares in the company and has no stock options. Lieungh is a Norwegian citizen.

Leif Borge (born 1963) joined Aker Solutions in 2008. From 2002 to 2008 he was CFO of Aker YardsASA, after serving as CFO of Zenitel NV, Stento ASA and Vitana, a subsidiary of Rieber & Søn ASA inthe Czech Republic. Borge is a graduate of the Pacific Lutheran University in Washington State. As of15 February 2009, he holds 20 000 shares in the company, and has no stock options. Borge is aNorwegian citizen.

Niels Didrich Buch (born 1963) joined Aker Solutions in 1999 and was appointed Chief of Staff & EVPin 2008. From 2005 he was head of corporate business development in Aker Solutions and previouslyhe held various other positions in the company, in corporate legal. Before this he worked ten yearswith the Norwegian Foreign Service, including six of them abroad in Asia and Europe. Buch holds alaw degree from the University of Oslo. As of 15 February 2009, he holds no shares in the companyand has no stock options. Buch is a Norwegian citizen.

Mads Andersen (born 1965) joined Aker Solutions in 2000 and has been an EVP since 2003. He has20 years’ experience in the upstream oil and gas industry. Andersen has held a range of technical andmanagerial positions in oilfield service and oil companies including Schlumberger and Saga Petroleum(now StatoilHydro). Andersen is a graduate of Glasgow University and the Norwegian School ofManagement. As of 15 February 2009, he holds 12 395 shares in the company and has no stockoptions. Andersen is a Norwegian citizen.

Per Harald Kongelf (born 1959) was appointed EVP of the reorganised business area Products &Technologies in October 2008. He has 20 years’ experience within the oil and gas industry. For thepast five years he was president of Aker Solutions’ process systems business unit. Before that heworked as an investment manager in the Statkraft Group and in Aker Solutions. He holds an MScfrom the Norwegian University of Science and Technology. As of 15 February 2009, he holds noshares in the company and has no stock options. Kongelf is a Norwegian citizen.

Simen LieunghPresident & CEO

Leif BorgeChief Financial Officer & EVP

Niels Didrich BuchChief of Staff & EVP

Mads Andersen 1

EVP Subsea

Per Harald Kongelf 2

EVP Products & Technologies




Jarle Tautra (born 1953) has been an EVP with Aker Solutions since 2002. He has 27 years’ experiencein offshore-related activities. From 1997 to 2002 Tautra served as President of Aker Oil & Gas and asEVP of EPC Norway in Aker Maritime ASA. Prior to this, he held various positions in Norsk HydroASA. Tautra is a graduate of the Norwegian University of Science and Technology. As of 15 February,he holds no shares in the company and has no stock options. Tautra is a Norwegian citizen.

Gary Mandel (born 1960) first joined Aker Solutions in 1995. He has over 25 years of experience in theoil and gas industry, both upstream and downstream. Prior to Aker Solutions Mandel held the positionof Chairman & CEO at Aker American Shipping ASA and Vice Chairman of Aker Philadelphia ShipyardASA. Previously, he served as EVP for Aker Solutions between 2002 and 2007. Mandel is an engineeringgraduate from the University of Nuevo Leon, Mexico. As of 15 February 2009, he holds 1 350 sharesin the company and has no stock options. Mandel is a US citizen.

Mads Andersen replaced Raymond Carlsen as EVP Subsea in October 2008. Carlsen was EVP Subsea from 2002 to 2008.1)Per Harald Kongelf replaced Mads Andersen in October 2008. Andersen was EVP in Products & Technologies from 2003 to 2008 and is now EVP Subsea.2)Jarle Tautra replaced Nils Arne Hatleskog as EVP Energy Development & Services in February 2009.3)Gary Mandel replaced Jarle Tautra in February 2009. Tautra is now heading the Energy Development & Services business area.4)

Jarle Tautra 3

EVP Energy Development & Services

Gary Mandel 4

EVP Process & Construction




Aker Solutions ASASnarøyveien 361364 Fornebu

Postal address:P.O. Box 169NO-1325 Lysaker

Telephone: +47 67 51 30 00Telefax: +47 67 51 30 10

E-mail: [email protected]: www.akersolutions.com

COPYRIGHT AND LEGAL NOTICE Copyright in all published material including photographs, drawings and images in this publication remains vestedin Aker Solutions and third party contributors to this publication as appropriate. Accordingly, neither the whole nor any part of this publication can bereproduced in any form without express prior permission. Articles and opinions appearing in this publication do not necessarily represent the views ofAker Solutions. While all steps have been taken to ensure the accuracy of the published contents, Aker Solutions does not accept any responsibility forany errors or resulting loss or damage whatsoever caused and readers have the responsibility to thoroughly check these aspects for themselves.Enquiries about reproduction of content from this publication should be directed to Aker Solutions ASA.

The following corporate publications are alsoavailable from www.akersolutions.com

Face valueCorporate responsibility report 2008/2009

The art of engineeringPowered to perform 2008/09



Company information


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