Aker (AKER) Q4 2024 earnings summary

Executive summary

• Net asset value at year-end was NOK 58.2 billion after dividends, up from NOK 57 billion the previous quarter; per-share NAV at NOK 783.

• Share price ended at NOK 549, up 6.7% in Q4 including dividends; total shareholder return for 2024 was -9.9%.

• Over NOK 32 billion in dividends paid by portfolio companies in 2024, including extraordinary payouts from Aker Solutions and Aker BioMarine.

• Aker distributed NOK 3.8 billion in dividends in 2024 and proposes NOK 26.5 per share for 2024/1H 2025, with a potential second tranche later in 2025.

• Major portfolio actions include the sale of Philly Shipyard, Solstad Maritime IPO plans, and the sale of 80% of Aker Carbon Capture.

Financial highlights

• Gross asset value reached NOK 65.4 billion; net asset value was NOK 56.2 billion (756 kroner per share).

• Net profit before tax for 2024 was NOK 9.2 billion, a significant turnaround from a loss of NOK 1.034 billion in 2023.

• Dividends received in 2024 totaled NOK 9.38 billion, up from NOK 4.41 billion in 2023.

• Cash holdings were NOK 617 million; total available liquidity reserve was NOK 8.4 billion.

• Net interest-bearing debt reduced to NOK 2 billion from NOK 4.1 billion sequentially; loan-to-value at 10%.

Outlook and guidance

• Focus remains on cash-generative investments and further portfolio streamlining.

• Proposed dividend of NOK 26.5 per share for 1H 2025, with authorization for additional dividends in 2H 2025.

• Upstream dividend to Aker expected at NOK 5.5 billion in 2025, with potential for extraordinary dividends from announced transactions.

• Dividend policy remains 4%-6% of NAV, but opportunistic higher payouts possible based on financial strength and investment needs.

• Aker BP is expected to drive long-term value with increased production and cash flow above 500 mboepd into the 2030s.