Aker ASA Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Net Asset Value (NAV): Ended Q2 at NOK 66.9 billion, highest on record. Up NOK 5.6 billion (9%) from Q1. H1 increase of 27% (NOK 14.4 billion), driven by growth in renewables, exploration and production, and industrial software.
  • Share Price and Market Comparison: Aker share down 1% in Q2 (including dividend) to NOK 635. OSE Benchmark Index rose 5.9% in same period.
  • Liquidity and Financial Position: Liquidity reserves NOK 1.9 billion, including cash of NOK 529 million. Value-adjusted equity ratio of 84%. Interest-bearing debt stood at NOK 12.4 billion, up NOK 0.6 billion from Q1.
  • Industrial Holdings: Account for 90% of gross asset value. Highly liquid portfolio with 83% in listed assets and cash.
  • Key Assets:
    • Aker BP: Largest holding (~NOK 40 billion). Q2 featured record high operating profits driven by rising oil prices. Progress on major field developments including Kobra East/Gekko PDO and NOAKA project.
    • Aker Horizons: Second largest asset. Marked 1-year anniversary. Active strategy to build long-term partnerships in hydrogen, wind, carbon capture, e.g., with Yara, Statkraft, Microsoft, BP, Shell.

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Svein Oskar Stoknes: Hello, everyone, and good morning. Welcome to this presentation of Aker's Second Quarter and Half-Year Results for 2021. We will start today's presentation with Aker's President and CEO, Øyvind Eriksen, who will walk you through the highlights in the quarter and how the Industrial Holdings portfolio developed in the period. Our CFO, Svein Oskar Stoknes will then cover the financial investments portfolio and the second quarter and half year accounts in more detail. There will be a Q&A session following the presentation. You can submit your questions in the chat function on the webcast. And with that, I hand it over to Øyvind Eriksen. Øyvind Eriksen: Thank you, Christina, and good morning, everyone. In the second quarter, Aker's net asset value ended at NOK66.9 billion, the highest net asset value on record for the company. The value increase was mainly driven by growth in Aker BP, which was up 14%, including dividend and by Cognite following the USD150 million investment by the leading venture capital firm TCV. In general, we are seeing high activity across the portfolio with record high tender activity in Aker Solutions, Aker Horizons, companies entering into several important strategic partnerships and good momentum for growth across our Industrial segment. Aker's net asset value increased by NOK5.6 billion or 9% in the second quarter prior to payment of dividend. For the first half of the year, the net asset value increase was of 27% or NOK14.4 billion

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