Aker ASA Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Net Asset Value (NAV): Decreased 3.1% in Q4 to NOK66.9 billion and 4.2% YoY (NOK2.9 billion), mainly impacted by value decreases in Aker Horizons (-NOK9.4 billion annually) and partially offset by value increases in Aker BP (+NOK7 billion) and Aker Solutions (+NOK2.6 billion).
  • Dividend: Proposed dividend of NOK15 per share. A second tranche may bring a total 2023 payout to NOK30/share (4.2% yield vs share price, 3.3% of NAV).
  • Shareholder Return 2022: Adjusted return of -9.3% vs -1% for Oslo Stock Exchange Benchmark Index. Aker share rose 4% in Q4 (dividend-adjusted) vs index growth of 7.8%.
  • Liquidity: Ended 2022 with a liquidity reserve of NOK6.4 billion, including NOK1.3 billion in cash. Value adjusted equity ratio was 88%.
  • Industrial Holdings: Accounted for 85% of gross values. Aker BP remains the largest asset at NOK40.7 billion.

Portfolio Highlights

  • Aker BP: Record production (432,000 boe/day). Integration with Lundin complete. Submitted field development plans totaling over NOK200 billion.
  • Aker Solutions: Strong 2022 with record NOK100 billion order backlog. Subsea JV with SLB and Subsea 7 progressing, expected to close in H2 2023.

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Fredrik Berge: Hi, everyone, and welcome to the Presentation of Aker's Fourth Quarter Results 2022. My name is Fredrik Berge, and I am Head of Investor Relations. We will start the presentation with Aker's President and CEO, Oyvind Eriksen, who will take you through the highlights of the quarter and how the Industrial Holdings portfolio developed. Our CFO, Svein Oskar Stoknes, will then cover the Financial Investments portfolio and the fourth quarter accounts in more detail. There will be a Q&A session following the presentation. You may submit your questions via the chat function on the webcast. And with that I hand it over to Oyvind Eriksen. Oyvind Eriksen: Thank you, Fredrik, and good morning, everyone. We are putting 2022 behind us, leaving a year that will be remembered as a particularly disruptive period in human history. The war in Europe is first and foremost a tragedy for the people of Ukraine, but it has also been a reminder of the vulnerability of both the world order in general and the energy system in particular. Gone is the sentiment over the last few decades, marked by political stability, free trade, cheap energy and liberalization, a time where business has trimmed politics, instead politics is now trumping business. Aker is actively considering the long-term impact of a new world order. We cautiously observe the results of increased protectionism, leading to significant regional differences and investment plans and we are forced to make strategic decisions u

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