Aker Carbon Capture ASA: First quarter 2024 results

In the first quarter 2024, Aker Carbon Capture recorded high commercial activity across Europe and North America. The company’s order backlog increased to NOK 2.3 billion, up from NOK 1.0 billion in the same period last year. Revenues rose to NOK 566 million, up 97 percent compared to the same period last year. The cash position at the end of the first quarter was NOK 902 million. The company announced the agreement to form a Joint Venture with SLB.

“The decision to combine Aker Carbon Capture and SLB’s carbon capture business is underpinned by a strategic vision that reflects our commitment to accelerate the industrial adoption of carbon capture,” said Egil Fagerland, Chief Executive Officer at Aker Carbon Capture. “In this first quarter of 2024, we have experienced high levels of activity. In North America, we were awarded the first mobile test unit campaign in the pulp & paper industry, and we signed an MoU agreement with CO280 and Microsoft, aiming for large-scale carbon removal,” continued Egil Fagerland.

Agreement to form Joint Venture with SLB

In the quarter, the company announced an agreement with SLB to combine their respective carbon capture businesses to support accelerated industrial decarbonization at scale (see Aker Carbon Capture’s announcement on 27 March 2024). The new company will combine technology portfolios, expertise and operations platforms to bring carbon capture solutions to market, faster and more economically. The transaction is subject to regulatory approvals and is expected to close by the end of the second quarter, 2024.

Operational and commercial activity progressing

The Twence CCU, Heidelberg Materials Brevik CCS and Ørsted Kalundborg CCS projects continued to progress in the quarter and are currently the most mature large-scale carbon capture projects under construction in Europe. 

The company’s first test campaign in the US signifies a milestone for Aker Carbon Capture’s rapid expansion into the significant North American market. The test campaign, which was awarded by CO280 and a leading pulp and paper company, will enable the full-scale implementation of multiple Just Catch 400 modular capture facilities with permanent storage, and the creation of carbon removal credits. 

In March, Aker Carbon Capture established a strategic alliance with CO280, providing unique access into both the pulp and paper and CDR markets. North America’s pulp and paper industry represents a carbon removal opportunity of up to 130 million tonnes per year. 

After the quarter end, Aker Carbon Capture signed – together with CO280 - an MoU agreement with Microsoft to explore opportunities for scaling the full physical and digital value chain of carbon removal in the US and Canada. Together the three companies have the expertise, technologies, and resources to develop this market by creating a scalable model to deploy large-scale carbon capture projects quickly to meet global net zero targets.

Aker Carbon Capture also made strong progress in securing studies, a test campaign and pre-FEED work across Northern Europe in the first quarter. 

Financial results

Aker Carbon Capture saw continued revenue growth through the first quarter compared to the same period last year. Revenues reached NOK 566 million in the period, up from NOK 287 million in the same period last year. The increase in revenues was driven mainly by progress on ongoing Big Catch and Just Catch projects.

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) excluding transaction and other related costs in the first quarter was negative NOK 22 million, compared to negative NOK 51 million in the same period last year. While Big Catch and Just Catch projects delivered positive contributions, the overall EBITDA in the period was driven by high commercial and tender activity, North America entry and R&D activity. Non-recurring transaction and other related costs of NOK 48 million brought the reported EBITDA to negative NOK 70 million for the quarter.

Aker Carbon Capture ended the first quarter with NOK 902 million in cash and a solid equity position at NOK 649 million. The order backlog increased to NOK 2.3 billion, up from NOK 1.0 billion in the same period last year.

ENDS

Aker Carbon Capture will present the results in an audiocast, followed by a live Q&A session, today at 15:00 CEST. Click on the following link to follow the event: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240425_20

Media contact:
Hanne Rolén, mob: 47 99 00 25 71, email: hanne.rolen@akercarboncapture.com

Investor contacts:
David Phillips, mob: +44 7710 568279, email: david.phillips@akercarboncapture.com

Aker Carbon Capture is a pure-play carbon capture company with solutions, services and technologies serving a range of industries with carbon emissions, including the cement, bio and waste-to-energy, gas-to-power and blue hydrogen segments. Aker Carbon Capture’s proprietary, carbon-capture technology offers a unique, environmentally friendly solution for removing CO₂ emissions. 

Visit akercarboncapture.com and connect with us on LinkedIn, Facebook, Twitter, Instagram and YouTube. This press release may include forward-looking information or statements and is subject to our disclaimer, see akercarboncapture.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 Katja Aanestad, Marketing Communications, Aker Carbon Capture on 25 April 2024 at CEST 07:00.