North Energy (NORTH) Q4 2024 earnings summary

Executive summary

• Net asset value (NAV) reached NOK 603.3 million at year-end, up 2.0% from last quarter and 54.4% year-over-year, adjusted for dividends.

• Comprehensive income for Q4 was NOK 9.6 million, a turnaround from NOK -21.0 million in Q4 2023, mainly due to improved financial portfolio results.

• Board proposes an ordinary dividend of NOK 0.15 per share, consistent with the 3% NAV dividend policy.

• Major milestone for Wind Catching Systems: NOK 1.2 billion grant from ENOVA and partnership with EnBW for a demonstrator unit.

Financial highlights

• Q4 2024 operating profit was NOK 8.1 million, up from a loss of NOK -21.6 million in Q4 2023.

• Full-year 2024 comprehensive income was NOK 58.1 million, up from NOK 24.6 million in 2023.

• Changes in fair value of financial investments contributed NOK 47.1 million in 2024, mainly from Thor Medical and Heimstaden.

• Cash at year-end was NOK 102.0 million, up from NOK 6.0 million, as most financial investments were realized in Q4.

• NAV per share was NOK 5.15, while share price was NOK 2.52, a 51% discount to NAV.

Outlook and guidance

• Global inflation eased to 4.4% in 2024, with further decline to 4.2% expected in 2025; moderate global growth of 3.3% projected.

• Cautious optimism for 2025, but risks remain from geopolitical tensions, trade disruptions, and high debt levels.

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