Aker (AKER) Q3 2024 earnings summary

Executive summary

• Net asset value at quarter end was NOK 57 billion, down from NOK 63.9 billion last quarter, reflecting a 10.8% decrease mainly due to lower oil prices.

• Dividend policy increased to 4%-6% of net asset value, with a total 2024 payout of NOK 51 per share (NOK 3.8 billion), including NOK 35.5 per share in Q4.

• Portfolio streamlined for higher cash generation, with over NOK 18 billion in shareholder distributions from portfolio companies recently announced.

• Share price declined 10.9% in Q3 to NOK 548.0, underperforming the OSEBX but outperforming Brent crude.

• Strategic priorities focus on increased cash flow, a more focused portfolio, and 10% annual net asset value growth.

Financial highlights

• Gross asset value stood at NOK 66.2 billion, with 70% in listed assets and cash.

• Liquidity reserve of NOK 7.9 billion, including NOK 0.7 billion in cash and liquid funds.

• Net interest-bearing debt at NOK 4.1 billion; loan-to-value at 13% and value-adjusted equity ratio at 86%.

• Profit before tax for the quarter was NOK 577 million.

• Dividends received in Q3 totaled NOK 2,159 million.

Outlook and guidance

• Commitment to long-term value creation, portfolio optimization, and increased dividend payouts, targeting 10% annual NAV growth after dividends.

• Focus remains on larger, fewer, and dividend-paying holdings.

• SalMar Aker Ocean IPO considered when market conditions are right.