Release Date: July 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aker ASA (AKAAF, Financial) paid NOK1.2 billion in dividends during the second quarter, returning value to shareholders.
- Aker BP delivered solid production and increased its production guidance for the full year.
- Aker Solutions secured order intake of NOK15 billion and increased its full-year revenue guidance by 40% from last year.
- Cognite achieved record highs in annual recurring revenues and monthly active users, indicating strong commercial development.
- Aker BioMarine announced an agreement to sell its feed ingredients business, which is expected to result in an extraordinary dividend of NOK35 to NOK45 per share.
Negative Points
- Aker ASA (AKAAF) share price decreased by 1.4% in the second quarter, underperforming the Oslo Stock Exchange benchmark index.
- Aker Horizons faced negative sentiment in the renewable sector, which is ripe for further consolidation.
- Aker BP experienced an underserved negative share price development year-to-date, performing worse than peers.
- The renewable sector's market values have declined significantly, posing challenges for Aker Horizons.
- Aker ASA (AKAAF) reported a decrease in cash holdings by NOK240 million from the previous quarter.
Q & A Highlights
Q: Has any of your partnerships developed differently than you expected?
A: Partnerships have been a great value driver for Aker in recent years, particularly the transaction with BP in June 2016. The collaboration with BP remains excellent, and other parts of the group, like Cognite, have also benefited from joining forces with global leaders. While there have been some differences of opinion, these have been resolved effectively.
Q: What is the overall plan regarding the cash holdings in the portfolio?
A: The Boards of each relevant portfolio company will decide on this. Aker's role is to engage with these companies, express expectations, and provide recommendations. Having deep pockets of capital is seen as an opportunity.
Q: Do you think the market has misinterpreted certain aspects of Aker BP's investment proposition?
A: We should not second-guess the market but respond proactively to questions raised. Aker BP is working effectively with its assets and suppliers, making it one of the most attractive E&P investments offshore today and for years to come.
Q: Given the large declines in market values in the renewables sector, is the sector ripe for consolidation, and could it involve Aker?
A: Consolidations will definitely happen in the renewable industry globally. Aker will pursue opportunities that create shareholder value, whether through developing new industries, companies, or M&A transactions.
Q: Any comments on Cognite's shift to the US and its future direction?
A: Establishing a strong presence in North America is crucial for Cognite's success. With a US-based CEO, more leadership will be located in the US, especially on the commercial side, while engineering may remain more global.
Q: What is next for Solstad after the refinancing? Will the companies be merged, and will Solstad Maritime be listed?
A: Solstad Maritime is expected to start paying dividends in the second half of this year and be listed within the next 12 months. A merger is unlikely unless the maximus claim is settled or resolved by the court.
Q: What should we expect from Aker in the second half of the year?
A: Aker will continue to streamline its portfolio, focusing on larger, cash-dividend-paying entities. The exact steps will depend on internal work and third-party engagement, but the goal remains to create more shareholder value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
