Aker Q2 opg 20 mln nkr vs 582 mln after structural changes, share sales UPDATE

Aker Q2 opg 20 mln nkr vs 582 mln after structural changes, share sales UPDATE

	Published : Tue, 14 Aug 2007 10:31 By : Agencies Print this Story

(Updates with outlook)

OSLO (Thomson Financial) - Norwegian industrial conglomerate Aker ASA posted second quarter operating profits of 20 mln nkr, down from last year's 582 mln, after six months of major structural upheaval and the sale of significant stakes in both Aker Yards and Aker Kvaerner.

Aker, controlled by Norwegian business tycoon Kjell Inge Rokke, saw pretax profits come in at 309 mln nkr, down from 965 mln last year, while sales fell to 1.37 bln nkr from the previous year's 14.04 bln.

During the first six months of the year Aker underwent major structural changes, selling all of its shares in shipbuilder Aker Yards and 10 pct of its stake in engineering giant Aker Kvaerner.

The holding company has also transferred ownership of its remaining 40 pct stake in Aker Kvaerner to a new holding company, Aker Holding, whilst in the process selling a portion of the shares to the Norwegian government and Sweden's Investor and Saab.

While these changes have freed billions of Norwegian kroner, Aker reiterated today that it will not be paying any extraordinary dividends to shareholders.

'Assets freed up will be retained by Aker; they will provide Aker shareholders with additional predictability as to future dividend payments in line with the company's established dividend policy,' the firm said.

'Moreover, Aker has strengthened its financial clout for further industrial targeting and innovation.'

Aker still owns major stakes in a range of companies including Aker Drilling and Aker Floating Production, and the firm said the outlook for these businesses remains positive.

'Going forward, the business outlook and projected growth for Aker's main activities are favourable,' it said, pointing out that the total order-book at the end of the second quarter stood at 78 bln nkr, up from 76 bln at the end of the first quarter.

alastair.reed@thomson.com

ar/ajb/ar/dca

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.