Aker Solutions Earnings and Corporate Presentation
Risk Factors (cont.)
Operational risk
Aker Solutions utilizes both reimbursable and fixed-price contracts. Contracts
that include fixed prices for all or parts of the deliverables are subject to the risk
of potential cost overruns. Aker Solutions is involved in projects that are both
demanding and complex in nature, with significant design and engineering
requirements, as well as extensive procurement and manufacturing of
equipment, sourcing supplies and construction management. In certain situations
the projects may also require the development of innovative new technology and
solutions. These can impact upon the company's ability to deliver on time and in
accordance with a contract, potentially harming Aker Solutions' reputation,
performance and finances. Factors that may have an adverse material effect on
the business, results of operations and finances of Aker Solutions include, but
are not limited to:
The loss of business from a significant customer, the failure to deliver a
significant project as agreed, or alterations to the order backlog
Aker Solutions' ability to compete effectively and maintain market positions
and sales volumes
The company's capability to successfully commercialize new technology
Partnerships, joint ventures and other types of cooperation that expose the
company to risks and uncertainties outside its control
Non-delivery and/or disputes with a key sub-supplier
Significant delays or quality issues impacting upon project delivery or
performance
Cybercrime leading to system downtime or significant loss of intellectual
property
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May 16, 2019 Slide 47
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