Aker ASA Q2 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

  • Dividends: Aker paid NOK1.2 billion in dividends during Q2 2024. Aker BioMarine announced an extraordinary dividend of NOK35–45 per share following a partial sale, which will result in Aker receiving NOK2.4–3.1 billion.
  • Net Asset Value (NAV): Ended Q2 at NOK63.9 billion, up from NOK60.4 billion in Q1. Year-to-date NAV is up slightly from NOK63.2 billion, driven by Aker BioMarine (+NOK2.6B), offset by a dip in Aker BP (-NOK1.4B).
  • Share Price Performance: Aker’s share price declined 1.4% in Q2 to NOK615; total shareholder return, including dividends, was up 1.1%, underperforming against the Oslo Børs Benchmark Index (+7.1%).
  • Gross Asset Value: Increased to NOK75.1 billion in Q2. Industrial Holdings made up 84% (NOK63B) and Financial Investments & cash 16% (NOK12B).

Portfolio Company Highlights

  • Aker BP:
    • Increased full-year production guidance.
    • Johan Sverdrup field now producing close to 800,000 boe/d, 30% of Norway’s oil production.
    • Production cost: $6.2/bbl; CO2 emissions: 3kg/bbl; breakeven: $35–$40/bbl.
    • 94% production efficiency YTD; dividends increased 9% YoY in 2024.
    • Investing ~$5B in 2024, reduced to <$1B after tax incentives.

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Fredrik Berge: Hi, everyone, and welcome to the presentation of Aker's Second Quarter Results 2024. My name is Fredrik Berge, and I am Head of Investor Relations. We will start today's presentation with Aker's President and CEO, Oyvind Eriksen, who will take you through the quarterly highlights and recent developments in the portfolio. Our CFO, Svein Oskar Stoknes, will then take you through the quarterly financials in more detail. After the presentation, we will host our prepared Q&A session. And in case you have further questions or feedback, please do not hesitate to get in contact after the presentation. And with that, I hand it over to Oyvind Eriksen. Oyvind Eriksen: Thank you, Fredrik, and good morning, everyone. The first-half of 2024 was marked by high activity across the Aker portfolio, and we continue to progress on the strategy to focus and streamline our portfolio of investments. We also returned value to our shareholders in the form of NOK1.2 billion of dividends paid during the second quarter. Several important transactions and partnerships were announced during the first-half. Some of the main developments included the completion of the refinancing of Solstad and the establishment of Solstad Maritime, creating value through the formation of a global carbon capture player in the JV between Aker Carbon Capture and SLB and realizing value through the agreement to sell Philly Shipyard to Hanwha, with expected closing in the fourth quarter. Furthermore, Aker BP deli

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