North Energy (NORTH) Q1 2025 earnings summary

Executive summary

• Net asset value (NAV) at quarter-end was NOK 571.2 million, up 19.0% year-over-year when adjusted for dividends, but down 5.3% sequentially.

• Comprehensive loss of NOK 9.2 million in Q1 2025, compared to income of NOK 13.1 million in Q1 2024, mainly due to higher payroll expenses and lower financial portfolio results.

• Ordinary dividend of NOK 0.15 per share approved, consistent with a 3% NAV payout policy.

• Wind Catching Systems secured NOK 1.2 billion in state funding for a commercial demonstrator project.

Financial highlights

• Operating loss of NOK 11.1 million in Q1 2025, versus a profit of NOK 12.4 million in Q1 2024.

• Operating expenses rose to NOK 13.4 million from NOK 7.7 million year-over-year; payroll expenses increased to NOK 11.4 million.

• Cash at quarter-end was NOK 92.7 million, up from NOK 3.1 million a year earlier.

• Equity ratio at 90%, down from 95% in Q1 2024.

• NAV per share was NOK 4.87, with the share price at NOK 2.59, a 47% discount to NAV.

Outlook and guidance

• Economic outlook for 2025 is cautiously optimistic, with IMF projecting 3.3% global growth and inflation expected to ease gradually.

• North Energy will continue disciplined, opportunistic expansion of its industrial portfolio, focusing on long-term return objectives.