October 23, 2019 / 8:10 AM / 21 days ago

UPDATE 1-Aker Solutions eyes 20% of revenue from renewables by 2030

(Adds details, share price)

OSLO, Oct 23 (Reuters) - Aker Solutions, Norway’s largest oil services firm, aims to derive almost half of its revenue from renewable energy and low-carbon technologies by 2030, the company said on Wednesday in a strategy update.

The company, which depends largely on income from the oil and gas industry, said it expected to see slightly lower revenue and margins in 2020 compared to this year due to a very competitive market.

“The oil and gas industry will remain Aker Solutions’ biggest market, but over the next decade the company will have a more balanced portfolio of products and technologies that either generate renewable energy or remove or substantially reduce CO2 emissions,” it said in a statement.

Aker Solutions said it aimed to derive 20% of revenue from renewable energy by the end of the next decade, focusing on floating wind power, and 25% from carbon capture and storage (CCS) and other solutions that help reduce emissions, it added.

In an attempt to diversify its business, the company has taken a 23% stake in U.S.-based Principle Power, a developer of floating wind power technology, and is involved in floating wind power projects in the United States and South Korea.

Aker Solutions also provides technology to capture carbon emissions from offshore and onshore industry, and is part of an Equinor-led project to develop offshore carbon storage in Norway.

The company’s shares were trading 1.4% lower by 0745 GMT on Wednesday, and were down by more than 50% down from a year ago. (Reporting by Nerijus Adomaitis, editing by Terje Solsvik and David Evans)

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