Saga Pure: Second quarter 2022 financial results
(Oslo, 25 August 2022) Saga Pure ASA (Saga Pure, OSE: SAGA) reported a net profit for the second quarter 2022 of NOK 138 million (Q2 2021: NOK 3.5 million), corresponding to a year-to-date return on equity of 17.8 percent. The Board of Directors has decided to distribute a dividend of NOK 0.1 per share.
“Having worked very actively with our biggest investment, Bergen Carbon Solutions, over the last year and a half, we stepped down from the board in May. This resulted in a change of the classification of the investment from an associated company to a non-current financial asset. With profit and loss adjustments from the company from June, the positive net effect from the investment in Bergen Carbon Solutions is in excess of NOK 200 million, which contributed to an overall very good result for the quarter,” says Bjørn Simonsen, Chief Executive Officer of Saga Pure.
Saga Pure reported a net profit in the second quarter 2022 of NOK 138 million (Q2 2021: NOK 3.5 million), with a reported return on equity of 17.8 percent for the first half year, adjusted for the dividend distributed in the first quarter of 2022. The company had NOK 674 million in cash at the end of the quarter. Saga Pure is an investment company, where holdings in certain companies are regarded as associated companies. Hence, the full underlying value development will not be reflected in the consolidated financial statements.
During the second quarter, the investment in Bergen Carbon Solutions (BCS) ceased to be classified as an associated company. Hence the investment in BCS was adjusted to market value end of May and was exposed to market adjustments. The net positive effect over the profit and loss from the investment in BCS during the second quarter was NOK 205 million. No other material changes were made in the long-term investment portfolio.
The Board of Directors has decided to distribute a dividend of NOK 0.1 per share, as a result of the positive development of the portfolio and realization of gains year to date. Including the dividends paid after the first half of 2022, the total distributed dividends over the last twelve months ended up at NOK 0.2 per share.
After the quarter end, Saga Pure has sold 2 million shares in BCS at NOK 37 per share, reducing the ownership from 22.4% to 17.7%. The sale has increased the company’s cash balance with gross NOK 74 million. Further the company also entered an agreement to buy an additional 770 000 shares in Heimdall Power for NOK 17.7 million, resulting in a total ownership share of 22% in the company.
“The sale of shares in BCS in August has strengthened our cash balance, reduced the risk in our portfolio and put us in a better position to distribute dividends, while we continue to have a strong balance sheet to take advantage of potential investment opportunities going forward, such as our recent increased exposure in Heimdall Power. We still have strong conviction of our investment in BCS along with a substantial exposure in the company. With volatile markets, uncertain future inflation, increasing interest rates and tightening monetary policies going forward, we will continue to be selective in our investment approach and focus on further developing our portfolio companies,” says Simonsen.
Saga Pure will host a company update on 25 August at 12:00 CEST. The Presentation will be held at Haakon VII’s gate 2, Oslo and can also be followed live at www.sagapure.com, or at https://channel.royalcast.com/landingpage/hegnarmedia/20220825_9/
The presentation of the financial results for the second quarter 2022 and the Board of Directors’ report is enclosed.
ENDS
For additional information, please contact:
Bjørn Simonsen, CEO, +47 971 79 821
Espen Lundaas, CFO, +47 924 31 417
About Saga Pure | www.sagapure.com
Saga Pure ASA is an investment company focusing on opportunities within renewable energy, hydrogen, circular economy and CO2-reduction.
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 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Espen Lundaas, CFO, Saga Pure ASA, on 25 August 2022 at 08:00 CET.