Aker Horizons (AKH) Q2 2024 earnings summary

Executive summary

• Completed joint venture with SLB, selling 80% of Aker Carbon Capture for NOK 4.1 billion, resulting in a NOK 4.9 billion net accounting gain and a significant positive impact on consolidated results; 20% stake retained with potential performance-based payments up to NOK 1.4 billion.

• Mainstream Renewable Power advanced key projects in Australia, Sweden, Chile, South Africa, and the Philippines, securing new offshore and onshore wind licenses and positive regulatory developments.

• Asset Development progressed hydrogen and ammonia projects in Norway, with Rjukan upscaled to 40 MW, Narvik Green Ammonia advancing toward offtake agreements, and significant regulatory and commercial milestones achieved.

• SuperNode advanced superconducting cable technology, engaging with European TSOs and signing a Letter of Intent with LEW Verteilnetz in Germany.

• Mainstream's Andes platform maintained positive commercial margins, with EUR 20 million in additional revenues from Chile's Tariff Stabilization Law.

Financial highlights

• Net profit for Q2 2024 was NOK 4,888 million, driven by the carbon capture transaction, with group revenues for H1 2024 at NOK 1,270 million.

• Mainstream recognized a positive EBITDA of NOK 55 million, including EUR 20 million in additional revenue from Chile's Tariff Stabilization Law.

• Mainstream reported a loss of NOK 393 million after depreciation and financial costs, with NOK 201 million attributable to Aker Horizons.

• Cash and cash equivalents at quarter end were close to NOK 3.1 billion, with total available liquidity of NOK 8.8 billion.

• Net debt stood at NOK 9,103 million at 30 June 2024, down from NOK 10,399 million at year-end 2023.

Outlook and guidance

• Board of ACC ASA is defining future strategy and use of proceeds from the SLB transaction.

• Mainstream targets a 30% cost base reduction, aiming for annual savings over EUR 45 million, and is seeking additional funding and further savings.

• Asset Development aims to finalize a joint development agreement for the Rjukan hydrogen project in Q3 2024 and initiate FEED in H2 2024.

• The Narvik Green Ammonia project is positioned for EU Innovation Fund support and is advancing term sheet discussions with large industrial offtakers.

• Significant developments expected in data center partnerships in Northern Norway over the next 12 months.