Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aker Carbon Capture's joint venture, SLB Capturi, secured its first US-based project, marking a significant milestone in the carbon capture market.
- Mainstream Renewable Power achieved financial close on the 50 megawatt Ilikwa solar project in South Africa, highlighting its strong position in the region.
- The South Korean KF Wind project reached major milestones, including securing Environmental Impact Assessment approval, advancing its development.
- Aker Horizons' Narvik Green Ammonia project optimization led to reduced complexity and significant CapEx savings.
- SuperNode received several million euros in grants and funding, supporting its research and development in superconducting cable systems.
Negative Points
- Mainstream Renewable Power recognized an impairment net of tax of EUR134 million due to increased market risk on the Andes Renovables portfolio.
- Aker Horizons reported a net loss of NOK2.2 billion for the third quarter, reflecting financial challenges.
- The Aukra project was discontinued due to unfavorable market conditions for blue hydrogen.
- The Rjukan project's dialogue around liquid hydrogen was terminated, indicating challenges in project advancement.
- Aker Horizons' net capital employed was reduced by NOK1.1 billion in Mainstream Renewable Power, impacting financial performance.
Q & A Highlights
Q: Can you confirm that Mainstream's cost base reduction target of EUR45 million is achievable?
A: Julie Berg, CFO of Mainstream Renewable Power, confirmed that they have achieved EUR28 million in reductions and are on track to meet the EUR45 million target in 2025 through further cost optimization programs.
Q: How does Aker Horizons plan to recapitalize the balance sheet regarding outstanding debt?
A: Kristoffer Dahlberg, CFO of Aker Horizons, stated that with a cash position of NOK3 billion and an undrawn RCF of EUR500 million, they are positioned to fund growth investments. They will evaluate strategic options to optimize the balance sheet for future growth through M&A, incubation, capital recycling, and partnerships.
Q: Are there plans to sell Mainstream or its assets in Chile?
A: Lars Sperre, CEO of Aker Horizons, did not comment on media speculations but emphasized their focus on maximizing Mainstream's value. They continuously assess strategic options, including partnerships, and believe in the growth potential of their core markets.
Q: With the termination of certain projects, is Narvik the only hydrogen project left, and what is the risk of it being shelved?
A: Kristoffer Dahlberg explained that while the green hydrogen market is developing slower than expected, they see continued interest in the Narvik Green Ammonia project and are maturing it along with other early-phase opportunities selectively.
Q: Will Mainstream pursue more sales of ready-to-build projects or focus on constructing projects on its own books?
A: Mary Quaney, CEO of Mainstream Renewable Power, stated that their business plan involves a combination of selling ready-to-build projects for capital recycling and retaining stakes in projects to build operating cash flows.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
