Aker ASA: Fourth Quarter and Preliminary Annual Results 2023 – NAV of NOK 64.3 billion excl. dividends paid – Cash dividend of NOK 15.50 per share proposed

The Net Asset Value ("NAV") of Aker ASA and holding companies ("Aker") was NOK 63.2 billion at the end of the fourth quarter 2023, or NOK 64.3 billion before dividends paid, compared to NOK 64.1 billion at the end of the third quarter. Aker’s Board proposes to pay a cash dividend of NOK 15.50 per share for the fiscal year 2023 and, in-line with previous years practice, will propose for an authorization to pay an additional cash dividend in the second half of 2024.

Aker experienced strong operations and high activity across the portfolio in the fourth quarter. Despite ongoing macroeconomic challenges and a complex geopolitical landscape, continued progress was made across several key metrics. Aker delivered positive value to shareholders through both share price increase and dividends. A key strategic objective for Aker is to further strengthen and diversify upstream dividends. This work yielded results in 2023 as upstream dividends amounted to NOK 4.4 billion for the year, representing an increase of almost 60 percent from the previous year.

“Aker BP continues to be an important source of liquidity for Aker, providing valuable upstream dividends. The company’s contribution to Norway extends, however, far beyond the Aker group. The field developments currently executed by Aker BP creates approximately 150,000 jobs domestically and a recent report by Statistics Norway¹ revealed that Aker BP was the largest privately-owned taxpayer in Norway in 2022, contributing a remarkable 88 billion kroner. To put this into perspective, this was more than the combined total of all the 390,965 non-offshore related companies². Oil and gas companies paid in total a staggering 84% of all corporate income tax to the Norwegian state. It underscores the undeniable dependence of the Norwegian economy and its welfare state on the oil and gas industry. It is not an argument against decarbonization of industries and diversification of our economy, but rather and enabler of vital importance to Norway and Aker today and for decades to come,” said Øyvind Eriksen, President & CEO of Aker ASA.

Key financials – fourth quarter 2023:

• NAV: NOK 63.2 billion, or NOK 64.3 billion before dividends paid
• NAV per-share: NOK 851
• GAV: NOK 72.1bn
• Share price: NOK 666.00, an increase of +3.3% in the quarter incl. dividend, compared to OSEBX increase of +1.2% and Brent oil price decrease of -16% in the same period
• Dividends: NOK 1.1 billion paid in Q4 2023 (NOK 15.00 per share), bringing total dividend distribution in 2023 to NOK 2.2 billion (NOK 30.00 per share)
• Liquidity reserve: NOK 6.3bn, incl. NOK 0.8bn of cash and undrawn credit facilities
• Value-adjusted equity ratio: 88%
• Industrial Holdings portfolio: NOK 60.2bn
• Financial Investments portfolio: NOK 11.9bn. This was down from NOK 12.9bn at Q3 2023, mainly driven by an impairment of the USD 97 million earn-out related to the sale of Pecan Energies in April 2023

Several developments took place in Aker’s portfolio during the fourth quarter. Aker continued further deepening its long-term collaboration with SLB, as Aker Solutions closed its transformational OneSubsea-transaction. Aker Solutions also proposed to double its dividend from the previous year to NOK 2 per share, increased its dividend policy and initiated a share buy-back program. Aker BP continued to deliver strong oil and gas production coupled with high operational efficiency and industry-leading low emissions and announced a 9 percent dividend increase in 2024. The company’s new field developments remained on-track. Aker Horizons has been through a challenging period, however, an important step in the right direction was the conclusion of Mainstream’s debt restructuring in Chile during the quarter, providing a stable financial foundation for its Andes portfolio. Aker BioMarine delivered 21 percent revenue growth in 2023 and after quarter-end announced it has initiated a process to explore strategic alternatives for its Feed Ingredients segment.

A crucial milestone was concluded for Solstad after quarter-end when the refinancing was completed. “Together with Solstad, we have created value for all stakeholders involved. All original lenders have been repaid in full and close to 13,000 shareholders have, from the announcement on October 23, 2023 until completion on January 16, 2024, enjoyed a positive return of 14%. In addition, the shareholders will receive the value of the subscription rights in Solstad Maritime, on the same terms as Aker. This establishes Solstad Maritime as a robust industrial platform and a leading offshore operator, with one of the most modern fleets of high-end vessels, significantly reduced financial risk, and a healthy balance sheet,” said Eriksen.

Based on the company's financial position, Aker's Board of Directors proposes to pay a cash dividend of NOK 15.50 per share for the fiscal year 2023. In-line with previous years practice, the Board will propose for the Annual General Meeting in April 2024 that the Board is authorized to pay additional cash dividend in 2024 based on the 2023 annual accounts. If an additional cash dividend is declared by the Board in the second half of 2024, and it equals the proposed ordinary dividend for 2023 of NOK 15.50 per share, the total dividend paid during 2024 will be NOK 31.00 per share. This would represent a 4.7% dividend-yield to the share price at year-end 2023 and 3.6% of the NAV at year-end 2023.

For further information or questions following the presentation, please email the relevant contact below. The quarterly presentation and material are available at www.akerasa.com and www.newsweb.no

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Media contact
Atle Kigen, Head of Media Relations and Public Affairs Aker ASA
Tel: +47 90 78 48 78
E-mail: atle.kigen@akerasa.com

Investor contact
Fredrik Berge, Head of Investor Relations Aker ASA
Tel: +47 45 03 20 90
E-mail: fredrik.berge@akerasa.com

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Laila Hop, Paralegal, Aker ASA, on February 20, 2024, at 07:00 CET.

1) www.ssb.no/virksomheter-foretak-og-regnskap/skatt-for-naeringsvirksomhet/statistikk/skatt-for-selskaper/artikler/rekord-for-selskapsskatten-i-2022
2) The category ‘non-offshore’ related companies (Norwegian: landbasert virksomhet) exclude electric power producers and financial companies