Aker (AKER) Q1 2025 earnings summary

Executive summary

• Announced major restructuring: Aker Horizons to merge with Aker ASA, with shareholders receiving Aker ASA shares and cash; Aker Carbon Capture's 20% JV stake with SLB acquired for cash, enabling capital return to shareholders.

• Net Asset Value (NAV) rose to NOK 61.9bn from NOK 58.2bn previous quarter, with per-share NAV at NOK 834 and share price up 13.3% to NOK 622.0.

• Portfolio streamlined through divestments and strategic transactions, including Aker Horizons merger and Aker Carbon Capture JV exit.

• Aker Horizons faced significant operational and financial challenges, leading to material losses and a 96% share price decline since 2021; Aker Carbon Capture remains a positive outlier.

• Portfolio focus sharpened on fewer, larger, cash-generative holdings in growth segments, with continued commitment to long-term value creation and active ownership.

Financial highlights

• Net asset value rose to NOK 61.9 billion from NOK 58.2 billion at 2024 year-end; share price up 13% in Q1, outperforming the Oslo Stock Exchange Benchmark Index.

• Dividend income of NOK 1.7 billion received in Q1, with major contributions from Aker BP, Philly Shipyard, Solstad Maritime, and AMSC.

• Profit before tax for the quarter was NOK 741 million; net value change was negative NOK 628 million, mainly due to Aker Horizons and Solstad Offshore.

• Net interest-bearing debt reduced to NOK 0.8 billion from NOK 2 billion sequentially; liquidity buffer at NOK 9.3 billion.

• Gross Asset Value at NOK 69bn, with ~70% in listed assets and cash.

Outlook and guidance

• Dividend policy maintained at 4%-6% of net asset value per year; NOK 26.5 per share approved for H1 2025, with potential for NOK 53 per share for the full year.

• Focus on sustaining production above 500,000 bbl/day beyond 2030 in oil and gas, and growth in digital and AI-driven industrial segments.

• Focus on developing existing assets, rebuilding shareholder value, and more focused capital deployment.

• Continued scenario-based planning and prudent risk assessment to navigate global uncertainties and market volatility.

• Continued risk management in Mainstream portfolio and pursuit of long-term industrial opportunities, including data centers and offshore wind.