Skel fjárfestingafélag (SKEL) Q2 2024 earnings summary

Executive summary

• H1 2024 marked by strategic acquisitions, including Stólpi, Kraftur, and a 50% stake in INNO, as well as ongoing merger talks with Samkaup.

• SKEL operates as an investment company listed on Nasdaq Iceland, focusing on long-term value creation for shareholders and stakeholders.

• Shift from development projects to income-generating properties, with increased foreign investment weight.

• Portfolio diversified across consumer, corporate, real estate, infrastructure, and financial markets.

• For the first half of 2024, investment activity revenues were ISK 362 million, down from ISK 2,494 million in 1H 2023, resulting in a net loss of ISK 314 million versus a profit of ISK 2,060 million a year earlier.

Financial highlights

• Net loss for H1 2024 was ISK 314 million, compared to a profit of ISK 2,060 million in H1 2023.

• Total assets at period end were ISK 49.1 billion; equity stood at ISK 36.6 billion.

• Revenues from investment activities fell to ISK 362 million from ISK 2,494 million year-over-year.

• Equity per share was ISK 19.5 at June 30, 2024.

• Equity ratio stood at 74.5%.

Outlook and guidance

• Focus on completing Samkaup merger negotiations, operational turnaround for INNO, and further growth and listing plans for Styrkás by 2027.

• Gallon sales process ongoing, with negotiations at an early stage.

• Completion of 50-apartment purchase expected before year-end.