$350 million to acquire Dubai’s NPS Energy
NPS Energy has a strong presence in the Middle East and North Africa, which combined hold approximately 60 per cent of the world’s proven oil and gas reserves.
After divesting non-oil and gas related business in 2010 and demerging from the EPC contractor Kvaerner in 2011, Aker Solutions takes a leap in the transformation into a leading and global oil field products, systems and services company.
Headquartered in Dubai and with a strong local presence in the Middle East and North Africa, NPS Energy represents a platform from which Aker Solutions will be able to provide its broad portfolio of technology and services to the oil and gas industry in the region.
NPS Energy currently employs approximately 900 people.
Aker Solutions: from subsea deep offshore technologies to Middle East onshore services
It also provides perforation equipment.
Aker Solutions‘ presence and activities in the Middle East have primarily focused on well intervention services in the United Arab Emirates, Oman and Saudi Arabia.
But the company has also executed numerous product and system contracts in the region, including drilling technologies, surface wellheads and process systems.
During the first quarter of 2012 alone, Aker Solutions has announced contracts in the Middle East and North Africa regions totalling almost $100 million.
This includes a contract for drilling equipment to be used in the Middle East as well as awards for surface wellhead equipment to Bahrain and Egypt.
With the added local presence and the NPS management’s deeper understanding of the market in the region, Aker Solutions expects to perform project pursuit with a much greater hit rate.
In parallel, NPS Energy will utilize Aker Solutions‘ product and service lines to spearhead market entry.
NPS has a strong position within well intervention services in the Middle East and North Africa region to be strengthened further by introducing Aker Solutions‘ technologies, such as wire-line tractors and down-hole tools, process systems, surface wellheads and drilling technologies.
A new engineering office will be established in the United Arab Emirates to tie the entire Aker Solutions offering together in a whole.
Aker Solutions will pay an equity value of $350 million and assume approximately $110 million in net interest bearing debt at the time of closing, depending on the capital expenditure in 2012.
The purchase price is a fixed equity value based on NPS Energy‘s 31 March 2011 balance sheet.
Aker Solutions has access to the necessary funding, and the transaction is expected to be completed by the end 2012 or early 2013.
NPS Energy in brief
Revenues have on average grown approximately 16 % per year since 2006.
For 2012, management forecasts operating revenues around $150 million and EBITDA around $48 million.
The company reported net interest bearing debt of $114.1 million in Q4 2011.
NPS Energy is headed by Adnan Ghabris who has more than 23 years’ international experience in the oil and gas industry.
He will take the role of Aker Solutions‘ regional president for the Middle East and North Africa region, reporting directly to CEO Øyvind Eriksen.
Aker Solutions in brief
The company brings together engineering and technologies for oil and gas drilling, field development, exploration and production.
It employs approximately 23 500 people in more than 30 countries.
In 2011 Aker Solutions had aggregated annual revenues of approximately $6.5 billion.
The company is listed on the Oslo Stock Exchange.
Through NPS Energy acquisition, Aker Solutions implements the transformation of its Business Model and extends it Market Leadership in the richest oil and gas region.