Aker Horizons ASA: 4Q:22 Results

(Aker, 16.Feb.2023) — Aker Horizons ASA (OSE: AKH), a developer of green energy and industry, today announced results for the fourth quarter 2022. Aker Horizons’ net asset value stood at NOK 15.1bn in the fourth quarter. The company had a cash position of NOK 4.1bn and an undrawn credit facility of EUR 500 million, giving available liquidity of NOK 9.4bn.

Fourth-quarter highlights:           

  • Aker Carbon Capture matured projects and accelerated its market activity
    • Key equipment installed at both Brevik and Twence
    • Pre-FEED study for waste-to-energy company Viridor for Runcorn CCS project in the UK
  • Mainstream progressed projects in a challenging macro environment
    • Reached 1.1 GW solar and wind operational in Chile
    • Signed project agreements for six solar plants awarded under Round 5 in South Africa
    • Entered into 1.8 GW ScotWind seabed lease agreement with partner Ocean Winds
  • Aker Horizons Asset Development matured offtake and industrial partnerships for key hydrogen projects

Kristian Røkke, CEO of Aker Horizons, commented:

“2022 was characterized by a volatile and uncertain macro environment. The outlook for green energy and green industry looks bright. We expect to see positive momentum in 2023 driven by favourable regulatory developments in the US and the EU as well as technologies and value chains maturing. As the energy transition accelerates, Aker Horizons will benefit from its early mover position in carbon capture, offshore wind and hydrogen. We continue to see an expanding opportunity set in our core markets, and our priority is converting these prospects into firm projects.”

Aker Horizons’ net asset value (NAV) stood at NOK 15.1bn in the fourth quarter, compared to NOK 16.5bn in the third quarter. Aker Carbon Capture as reported in Aker Horizons’ NAV was reduced by NOK 624mn reflecting the share price development in the period. Mainstream decreased by NOK 736mn in the quarter reflecting an impairment to goodwill and intangible assets in Chile, partly offset by a strengthening of the EUR to NOK exchange rates. Aker Horizons gross asset value stood at NOK 21.2bn at 31 December 2022, down from NOK 22.6bn in the prior quarter.

Portfolio highlights:

Aker Carbon Capture

Key equipment was delivered and installed at both of Aker Carbon Capture’s main projects under construction in Brevik, Norway, and Twence, Netherlands.

Aker Carbon Capture also accelerated its market activity in the fourth quarter. In December, the company became Viridor’s partner on a pre-FEED for the Runcorn CCS project, targeting 1 million tonnes CO2 per year. The award underlined the strong momentum Aker Carbon Capture is benefiting from in the UK.

In early 2023, Aker Carbon Capture signed a Letter of Intent for the delivery of two Just Catch™ units. This was followed by the award of two studies: a pre-engineering study for energy company St1 in Finland, and a feasibility study for German chemicals company Röhm.

Mainstream Renewable Power

During the fourth quarter, Mainstream reached 1.1 GW of wind and solar assets delivering power to the Chilean grid, marking a significant milestone in the delivery of the 1.4 GW Andes Renovables platform.

In South Africa, Mainstream signed PPAs for six solar projects, which have a combined capacity of 450 MW. These projects were awarded under Round 5 of the government’s renewable energy procurement program and are on track to reach financial close this year.

In the UK, Mainstream signed a 1.8 GW ScotWind seabed lease agreement with Crown Estate Scotland to the value of GBP 36 million for the development of a floating offshore wind farm off the Shetland Islands in Scotland. In Norway, Mainstream is preparing for the upcoming offshore licensing rounds, which are expected to commence during the first half of 2023.

Aker Horizons Asset Development

Aker Horizons Asset Development continues to mature its industrial projects, with a particular focus on the early mover green hydrogen plant in Rjukan, and the large-scale green industrial hub in Narvik.

In Rjukan, Aker Horizons Asset Development has signed a Memorandum of Understanding (MoU) with a leading industrial gas company to join the project as partner, and a Letter of Intent for substantial offtake from the project.

In Narvik, Aker Horizons Asset Development is in advanced dialogue with industrial partners for a large-scale green ammonia project. Several major European offtakers are showing interest in the project.