Aker ASA: Fourth-quarter and preliminary annual results 2019 – Net Asset Value of NOK 50 billion – cash dividend of NOK 23.5 per share proposed
Fornebu, 14 February 2020 – The Net Asset Value (“NAV”) of Aker ASA and holding companies (“Aker”) ended at NOK 50.0 billion in the fourth quarter of 2019 (NOK 43.1 billion at the third quarter 2019). For the full year, Aker’s NAV increased by 10 billion, including paid dividend of NOK 1.7 billion.
The Aker share price, included paid dividend, increased 22.5 per cent in 2019, outperforming the Oslo Stock Exchange benchmark index at 16.5 per cent. The NAV ended the year at NOK 50.0 billion, up from NOK 41.7 billion at the end of 2018, representing a return of 23.7 per cent, including paid dividend of NOK 1.7 billion.
“Aker delivered good return to our shareholders in 2019, despite high volatility and significant value fluctuations during the year. By continuing to build robustness, resilience and optionality, both at the Aker level and in each portfolio company, Aker is prepared for rainy days. A solid financial position with low debt ratio, predictable upstream cashflow, a liquid portfolio of assets, and well-performing industrial holdings, enable us to weather the storms, stick to our plans and strategies, maintain an attractive cash dividend to our shareholders, and pursue opportunities that tend to materialise when market uncertainties are high,” said Øyvind Eriksen, President and CEO at Aker ASA.
Aker received a record high NOK 3.5 billion in upstream cash in 2019. The Board of Directors proposes a cash dividend of NOK 23.50 per share for the fiscal year 2019, corresponding to a 4.3 per cent yield to the share price and 3.5 per cent of NAV at the close of the year.
“Aker is not ignorant to the fact that renewables and other ‘clean’ sources of energy will play a more important role in the energy mix going forward. However, facts and figures tell that the expected increase in demand for energy will require both more oil and gas and more ‘clean energy’. ‘Energy addition’ is therefore, in our opinion, a more appropriate description of the task at hand than ‘energy transition’. This reality fits well with how Aker operates with a portfolio of different industrial holdings, each focusing on their respective industry segments,” said Eriksen.
“New business opportunities will be screened and prioritised by Aker based on our financial metrics, including the 12 per cent return target over the cycle and the goal to increase upstream cash flow year-on-year from our portfolio,” said Eriksen.
Aker’s liquidity reserves, including undrawn credit facilities, stood at NOK 6.6 billion as per 31 December 2019. The value adjusted equity ratio prior to allocation of dividend was 81 per cent at the end of the fourth quarter, compared to 80 percent as per 30 September 2019.
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:
Torbjørn Kjus, Chief Economist & Head of Investor Relations
Phone: +47 94 14 77 30
Atle Kigen, Head of Corporate Communications
Phone: +47 90 78 48 78
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.