Treasury
The Treasury department’s responsibilities include managing the liabilities side of Aker ASA’s balance sheet, particularly debt financing of Aker ASA and Holding companies, interest rate and currency hedging, and advising the operating companies on financing and capital structure. The unit also manages interest and currency risks that arise in our daily business activities. The management and monitoring of financial risk is reported regularly to Aker’s Finance Committee.
Financial objectives
Secure competitive total return to shareholders, year on year
Maintain a solid balance sheet protecting the company from adverse portfolio changes and market effects
Keep a solid liquidity buffer to have the financial flexibility to
- seize opportunities
- get through downwards cycles
Sustain annual dividend payments of 2-4 per cent of the company’s value-adjusted equity.
Green finance framework
Aker ASA and Aker Horizons with subsidiaries
The Green Finance Framework has been verified by DNV GL and enables Aker ASA and Aker Horizons AS and any of its subsidiaries to finance activities within Aker Horizons AS.
Click to read: Aker ASA and Aker Horizons AS Green Finance Framework (PDF)
Click to read: DNV GL Eligibility Assessment (PDF)
Debt strategy
Financial guidelines
- Maintain investment grade rating with strong financial metrics:
- Net LTV below 20% through the cycle with normalized target of 10-15%
- Balancing cash inflow and outflow at Aker ASA and holding companies
- Solid liquidity reserves to cover debt
- Parameters may fluctuate over time, but remain long term targets over business cycles
General principles
- Long-term funding profile
- Financial flexibility to optimise timing of refinancing activities
- Open dialogue with bond and bank market
- Portfolio companies financed independently from Aker
Interest-bearing items
Aker ASA and Holding companies held net interest-bearing debt of about NOK 2.8 billion as per 30 September 2022.
Debt
Aker's bond financing constitutes the majority of the company’s total debt financing. All bonds are senior unsecured.
Total debt in Aker ASA and Holding companies as of 30 September 2022 is as follows (the bond loan agreements are attached to the links below):
| Ticker | Issue | Maturity | Loan term | Coupon | Loan amount (MNOK) | Outstanding Amount1) |
|---|---|---|---|---|---|---|
| Bonds | ||||||
| AKER 14 | 31.01.2018 | 31.01.2023 | 5 | N3M+265 | 2 000 | 1 581 |
| AKER 15 | 22.11.2019 | 22.11.2024 | 5 | N3M+190 | 2 000 | 2 000 |
| Green Bond Floating rate 4) | 27.09.2022 | 27.09.2027 | 5 | N3M+275 | 1 300 | 1 300 |
| Green Bond Fixed rate4) | 27.09.2022 | 27.09.2027 | 5 | MS+265 | 700 | 700 |
| Total Bonds Aker ASA | 6 000 | 5 581 | ||||
| Revolving Credit Facilities 2) | April 2022 | 2025-2027 | 3-5 | 8 000 | 3 171 | |
| Schuldschein loan 3) | 27.03.2019 | 27.03.2024 | 5 | 1 058 | 1 058 | |
| Capitalised loan fees etc. | (50) | (50) | ||||
Total bank/SSD debt Aker ASA | 9 008 | 4 179 | ||||
Total debt Aker ASA and holding companies | 15 008 | 9 760 |
1) Loan amount drawn, less own bonds and/or repayments
2) Revolving credit facilities (RCF) of NOK 8 bn. NOK 4 bn at 3 y maturity, with 2 annual extension options and NOK 4 bn with 5 y maturity
3) MEUR 100 5 years Schuldschein loan
4) In process of beeing listed
Credit analysts
The below table provides an overview of the fixed income analysts who cover Aker ASA.
| COMPANY | ANALYST | TELEPHONE | |
|---|---|---|---|
| DNB Markets | Espen Korsmo Granly | +47 24 16 93 64 | Espen.granly@dnb.no |
| Nordea Markets | Martin Thorsen Kulsrud | +47 24 01 39 27 | martin.thorsen.kulsrud@nordea.com |
| Pareto Securities | Thomas Eriksen | +47 24 13 21 71 | thomas.eriksen@paretosec.com |
| SpareBank 1 Markets | Pål Holdø Dahl Christopher Møllerløkken | +47 24 13 37 14 +47 24 14 74 21 | phd@sb1markets.no chmo@sb1markets.no |
Treasury contacts
Baard Snekkevik, Corporate Treasurer
Phone: +47 24 13 00 03
Cell: +47 91 63 00 03
E-mail: baard.snekkevik@akerasa.com
Kristine Hauge, Controller Treasury
Phone: +47 24 13 00 16
Cell: +47 91 63 00 16
E-mail: kristine.hauge@akerasa.com
Treasury e-mail: treasury@akerasa.com