Aker Solutions says it is on track to boost cost efficiency in all areas of the company by a 30% goal - or NOK9 billion (US$1.11 billion) annually - in a bid to meet current market conditions.
A quarter of the targeted improvement is expected to be achieved this year, with the final target due to be met by the end of 2017, based on the 2015 cost base and work volumes.
The announcement came as Aker revealed it had won a three-year contract extension from Total to provide maintenance and operations services at the Elgin and Franklin fields in the UK North Sea. On Monday, the firm won its largest ever umbilicals contract, for work on Eni's Zohr field in the Mediterranean.
"We're simplifying how we work and standardizing our products and services to drive through savings and become more competitive," CEO Luis Araujo told investors at an event in Fornebu, outside Oslo, today. "These efforts are supporting our margins and we are winning new work through increased collaboration with customers and industry participants on key projects and technology."
Over the past two years, Aker Solutions has formed alliances with peers including Baker Hughes, ABB, MAN Diesel & Turbo and Saipem, covering the subsea value chain from the reservoir, to the seabed and up to the topside.
"We have a healthy order backlog and solid financial position underpinned by our continuous improvement efforts and consistently strong execution on major projects worldwide," said Araujo. "We are building on all of this with key collaborations that boost our competitiveness, particularly in the subsea area."