Aker ASA ((NO:AKER)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Aker ASA’s recent earnings call painted a picture of strategic ambition and robust shareholder returns, tempered by some challenges in key investments. The company emphasized its strong focus on AI infrastructure and substantial returns to shareholders, while also addressing uncertainties in Aker Horizons and the financial structure of SBB.
Significant Increase in Net Asset Value
Aker ASA reported a notable increase in its net asset value, reaching NOK 67.5 billion, equivalent to NOK 909 per share. This was accompanied by a nearly 20% rise in share price, reflecting the company’s solid financial standing and market confidence.
Strong Total Shareholder Return
The company boasted an impressive year-to-date total shareholder return of nearly 50%, which includes dividends. This performance underscores Aker’s commitment to delivering value to its shareholders.
Dividend Increase
Aker’s Board approved a second dividend of NOK 26.5 per share, bringing the total to NOK 53 per share or NOK 4 billion in total. This move highlights the company’s strong cash flow and dedication to rewarding its investors.
AI Infrastructure Investment Success
Aker’s strategic investment in AI infrastructure is paying off, with the launch of the Aker Nscale joint venture for AI data centers. The company secured significant customer agreements with tech giants OpenAI and Microsoft, marking a successful foray into this burgeoning sector.
Cognite’s Exceptional Growth
Cognite, a key player in Aker’s portfolio, reported a staggering 425% year-over-year growth in Q3 SaaS bookings. This exceptional growth trajectory underscores Cognite’s strong market position and potential for future expansion.
Aker BP’s Solid Performance
Aker BP, another significant investment, raised its full-year production guidance and announced a major discovery in Norway. These developments highlight the company’s operational strength and growth prospects in the energy sector.
Negative Adjustments in Key Investments
Despite the positive news, Aker faced negative value adjustments of NOK 1 billion for Aker Solutions and NOK 0.6 billion for Aker BP. These adjustments reflect challenges in some of its key investments.
Challenges with SBB Financial Structure
Aker acknowledged the complex legal and financial structure challenges in SBB. Efforts are underway to strengthen its balance sheet, indicating a proactive approach to mitigating these issues.
Aker Horizons Uncertain Future
The future of Aker Horizons remains uncertain, with no specific growth plans currently in place. The company is exploring alternatives, including potential liquidation, highlighting the challenges in this segment.
Forward-Looking Guidance
Aker provided comprehensive guidance, highlighting a 20% rise in share price and a nearly 50% year-to-date total shareholder return. The company aims for an unlevered return above 12% on AI investments, with an EBITDA margin target above 70%. Aker’s strategy focuses on fewer, larger companies, with AI infrastructure and real estate as new growth pillars. The financials reveal a robust position with NOK 55 billion in listed equity investments and a total liquidity buffer of NOK 7.8 billion.
In summary, Aker ASA’s earnings call reflected a strong strategic focus on AI and shareholder returns, despite some challenges in investments. The company’s forward-looking guidance suggests continued growth and a commitment to delivering value, making it a compelling prospect for investors.