North Energy (NORTH) Q2 2024 earnings summary

Executive summary

• Net asset value (NAV) rose to NOK 588.8 million, up 23% from last quarter and 47% year-over-year, adjusted for dividends.

• Comprehensive loss of NOK 1.7 million in Q2 2024, mainly due to a NOK 13.2 million negative change in fair value of financial investments, offset by NOK 14.9 million net positive result from associates.

• Dividend of NOK 11.7 million distributed in April; received NOK 18.3 million dividend from Reach Subsea in June.

• Main portfolio investments: 18.7% in Reach Subsea (market value NOK 414.8 million) and 3.5% in Touchstone Exploration (NOK 34.9 million).

Financial highlights

• Q2 2024 operating loss of NOK 2.8 million vs. profit of NOK 39.7 million in Q2 2023.

• Q2 2024 comprehensive loss of NOK 1.7 million vs. income of NOK 39.7 million in Q2 2023.

• First half 2024 comprehensive income of NOK 11.4 million, down from NOK 46.9 million in H1 2023.

• Total assets at quarter-end NOK 334.8 million, down from NOK 360.2 million year-over-year.

• Equity ratio at 95.6% at quarter-end.

• Cash at quarter-end NOK 2.2 million; available liquidity NOK 44.1 million.

Outlook and guidance

• Global inflation moderating, with central banks starting to reduce rates; global growth projected to remain moderate but positive.

• Downside risks include higher interest rates, trade tensions, supply constraints, and policy uncertainty.

• Company maintains a cautious investment approach amid market uncertainty and aims to further develop its industrial portfolio.