Aker ASA: Fourth-quarter and preliminary annual results 2016 - Net Asset Value of NOK 34.3 billion
The net asset value of Aker ASA and holding companies ("Aker") increased by 15.3 per cent in the fourth quarter 2016 to NOK 34.3 billion, compared to NOK 29.8 billion as per 30 September 2016. Per-share net asset value ("NAV") amounted to NOK 462 as per 31 December 2016, compared to NOK 401 as per 30 September 2016 and NOK 282 as per year-end 2015 (prior to dividend allocation).
The Aker share gained 17.5 per cent in the fourth quarter. This compares to a 9.8 per cent increase in the Oslo Stock Exchange's benchmark index ("OSEBX"). The Aker share gained 97 per cent during 2016 and 106 per cent dividends included, compared to a 12.1 per cent increase in the OSEBX.
"In the fourth quarter, Aker continued on a positive trajectory by increasing our net asset value by 15 per cent, while the share price rose 17 per cent. The quarter concludes a transformational year for Aker. We ended 2016 with a more focused and cash generative portfolio than Aker has ever had before as an industrial investment company," said Aker President and CEO Øyvind Eriksen.
The value of Aker's Industrial Holdings portfolio rose to NOK 35.1 billion in the fourth quarter, up from NOK 30.2 billion in the third quarter and NOK 20.2 billion as per year-end 2015. The value of Aker's Financial Investments portfolio stood at NOK 8.0 billion in the fourth quarter, down from NOK 8.4 billion in the prior quarter, and up from NOK 7.7 billion as per year-end 2015.
Cash and liquid fund investments stood at NOK 4.9 billion at the end of the fourth quarter, on par with third quarter, and up from NOK 1.9 billion as per year-end 2015. The primary cash inflows in the fourth quarter were dividends received from Ocean Yield and Aker BP, while the primary cash outflows were repayment of debt under the USD term loan facility and operating and finance costs.
Aker's Board of Directors proposes a payment of NOK 16 per-share ordinary cash dividend for 2016. The proposal corresponds to a 5.0 per cent yield to the share price and 3.5 per cent of NAV at the close of 2016. Aker's policy is to pay annual dividends of 2-4 per cent of the company's NAV.
"The robustness of our upstream cash, combined with a strong balance sheet and liquidity position, enables Aker to both pay attractive dividends to its shareholders and to seize value-accretive investments going forward," Eriksen said.
The value-adjusted equity ratio was 80 per cent, up from 77 per cent as of 30 September 2016 and 75 per cent as per year-end 2015.
Net asset value (NAV) is Aker ASA's core performance indicator. Aker is an investment company with a majority of listed companies in its portfolio. Therefore, NAV is a more relevant indicator of the development of Aker's underlying value than the company's consolidated accounts.
For further information, please contact:
Atle Kigen, Head of Corporate Communications
Phone: +47 24 13 00 08
Mobile: +47 907 84 878
Per Kristian Reppe, Head of Investor Relations
Phone: +47 24 13 00 67
Mobile: +47 90 03 32 03
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.