North Energy (NORTH) Q1 2026 earnings summary

Executive summary

• Net asset value (NAV) at quarter end was NOK 527.5 million, up 2.4% sequentially but down 4.6% year-over-year, adjusted for dividends.

• Comprehensive loss for Q1 2026 was NOK 28.1 million, mainly due to negative results from industrial investments.

• Operating expenses decreased by 44% year-over-year, reflecting cost discipline.

• Reach Subsea reported a significant loss, driven by lower utilization and reduced margins; Reach Remote is being spun off as a standalone company.

• Wind Catching Systems progressed on its demonstrator project and license process.

Financial highlights

• Operating profit for Q1 2026 was NOK -31.9 million, compared to NOK -11.2 million in Q1 2025.

• Comprehensive loss was NOK 28.1 million, versus NOK 9.2 million loss in Q1 2025.

• Operating expenses were NOK 7.5 million, down from NOK 13.4 million year-over-year.

• Payroll and related expenses were NOK 5.7 million, including NOK 0.7 million from the long-term incentive program.

• Changes in fair value of financial investments contributed NOK 6.5 million positively.

Outlook and guidance

• Backlog of NOK 1 billion provides short-term visibility; long-term tender volume remains at NOK 10 billion.

• Long-term demand for subsea services expected to remain robust; focus on scaling remote capabilities and expanding into offshore wind and carbon storage.

• Board developing a 2026-29 plan with value creation targets to be communicated in Q2.

• Geopolitical risks and energy security trends expected to benefit main investments.