Aker ASA Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Net Asset Value (NAV): Declined 10.8% from previous quarter to NOK58.5 billion (NOK788/share) as of Q1 2023, largely due to falling liquid prices and a 34% drop in natural gas prices affecting Aker BP valuation.
  • Share Price: Decreased 6.7% to NOK672/share, compared to an 8.1% Brent price decline and a 0.4% increase in Oslo Børs Benchmark Index.
  • Liquidity: Aker had NOK6.6 billion in liquidity reserves, including NOK1.2 billion in cash.
  • Gross Asset Value: NOK68.6 billion, 80% of which are listed assets and cash. Value adjusted equity ratio is 87%.
  • Divestment: Completed sale of Aker Energy to Africa Finance Corporation (AFC) under an earn-out model. Aker and TRG to receive 70% of future sales/production proceeds.
  • Financial Investments: Totalled NOK12.6 billion or 18% of Aker’s total assets, an increase of NOK388 million from Q4 2022.
  • Aker BP: Largest portfolio holding at NOK34.3 billion. Production doubled YoY post-merger with Lundin. Actively exploring CO2 storage opportunities (Poseidon license granted).

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Fredrik Berge: Hi, everyone, and welcome to the presentation of Aker's First Quarter Results 2023. My name is Fredrik Berge, and I'm Head of Investor Relations. Please note the following change to our quarterly earnings material moving forward. For Q1, Q3 and Q4, Aker will not publish a separate quarterly report. We will instead continue to provide the CEO letter and the presentation, including comprehensive financial tables. We are now also including more extensive historical data in these tables. In addition, we are publishing this data in XL format for an improved user experience. For the half year and annual reporting, we will, of course, continue to publish a separate half year and annual report as previously. For feedback or questions, please do not hesitate to get in contact. Now we will start today's presentation with Aker's President and CEO, Oeyvind Eriksen, who will take you through the highlights of the quarter and recent developments. Our CFO, Svein Stoknes will then take you through the financials for the quarter in more detail. And with that, I hand it over to Oeyvind Eriksen. Oyvind Eriksen: Thank you, Fredrik, and good morning, everyone. Aker closed the first quarter of 2023 with high activity across the portfolio, both within conventional energy, renewables and other segments. Oil and gas production reached a record level, coupled with industry-leading and record low emissions intensity. Key developments include the decision to sell Aker Energy to Africa Fin

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