Aker Solutions Declines As Total Terminates Contract

(RTTNews) - Shares of Aker Solutions ASA (AKKVF.PK), a provider of oilfield products, systems and services, plunged over 6 percent in Oslo on Wednesday after the company announced a contract termination by French oil giant Total SA (TTA.L, TTFNF.PK, TOT).

Aker Solutions' subsidiary Aker Oilfield Services was notified by Total in Angola of the termination of the $250 million, two-year contract for the Skandi Aker vessel.

Skandi Aker began operations as a well-intervention vessel for the first time in September 2013 when the contract with Total commenced.

The value of the remaining contract period is about $150 million, which will be removed from the order backlog.

The vessel's capacity utilization has been 37 percent so far in 2014 after operations halted at the end of March for maintenance and repairs.

Aker Solutions said it would present more information on July 17, when financial results for the second quarter are slated to be released.

The stock dropped 6.75 percent in Oslo to 105.00 Norwegian kroner.