Aker Horizons (AKH) Q3 2024 earnings summary

Executive summary

• New CEO appointed, with a focus on extracting value from the portfolio and achieving milestones in U.S. carbon capture and Mainstream's updated business plan.

• SLB Capturi, a JV with SLB, secured its first U.S. carbon capture project and a major FEED contract for an 800,000-ton CO2 plant on the Gulf Coast.

• Mainstream Renewable Power reached financial close on the Ilikwa 50 MW solar project in South Africa and improved commercial margins in the Andes platform.

• Narvik Green Ammonia project optimization completed, moving to Lallasletta, with strong data center interest in Northern Norway sites.

• SuperNode advanced superconducting cable technology, securing significant grants and opening a new Cable Technology Centre in the UK.

Financial highlights

• Net loss for Q3 2024 was NOK 2.2 billion, reversing a net gain of NOK 4.4 billion in Q2, mainly due to impairments.

• EBITDA for Q3 2024 was negative NOK 199 million; adjusted for impairments, negative NOK 12 million.

• Mainstream recognized an impairment of EUR 134 million, reflecting increased market risk in the Andes portfolio and other non-core assets.

• Commercial margin in Andes (Chile) was positive EUR 27 million (NOK 313 million) in Q3.

• Available liquidity at quarter end was NOK 8.8 billion, including NOK 3.0 billion cash and undrawn EUR 500 million RCF.

Outlook and guidance

• Mainstream to focus growth in South Africa, Australia, and the Philippines, with further cost optimization and capital recycling planned.

• ACC Board to determine future strategy and structure, with conclusions expected by Q1 2025.

• Narvik Green Ammonia project is in late-stage offtake discussions, progressing zoning and grid applications.

• Continued development and exploration of green hydrogen projects and Powered Land sites.