Aker Carbon Capture ASA

Q1 revenue was NOK 566 million, up 97% or NOK 279 million versus the same period last year. Reported EBITDA before transaction and related costs was negative NOK 22 million, improving by NOK 29 million year over year; transaction-related costs were NOK 48 million, taking total EBITDA margin to negative NOK 70 million. Net current operating assets were negative NOK 522 million, net capital employed was negative NOK 257 million, cash and cash equivalents ended at NOK 902 million, and equity was NOK 649 million. Backlog was NOK 2.3 billion, with roughly NOK 1.4 billion in 2024 and NOK 0.9 billion in 2025. Guidance-wise, management said Brevik delivery is planned toward the end of 2024, and continued to work toward the 10 million tons in 2025 pipeline target; they also reiterated that the SLB deal is expected to close in Q2, with cash typically received just after closing.

Egil Fagerland emphasized that the first quarter was highly active, with continued demand for test campaigns, pre-FEEDs, FEEDs and studies across Europe and North America. His main strategic message was that partnering with SLB should accelerate commercialization and geographic expansion, especially into North America, by combining ACC’s carbon capture technology and project experience with SLB’s scale and industrialization capabilities. His tone was constructive but cautious on post-deal structure, repeatedly referring questions about capital allocation, dividends, future investments and reporting to the board’s ongoing strategy review.

Julie Berg said revenue growth to NOK 566 million came mainly from Big Catch and Just Catch projects, including Ørsted Kalundborg CCS, and that EBITDA before transaction and related costs improved to negative NOK 22 million. She highlighted NOK 48 million of non-recurring transaction-related costs, mainly advisor fees and other deal costs, and said the quarter ended with cash and cash equivalents of NOK 902 million after a NOK 210 million cash outflow. She also noted NOK 20 million of CapEx, mainly for product development and upgrades to the second mobile test unit for the U.S. market, and said equity was NOK 649 million.

Analysts focused heavily on what ACC will do with the expected NOK 4 billion-plus cash proceeds, whether the company would remain listed, and whether a dividend or new investments were being considered; management declined to provide specifics and said the board is updating strategy. Questions also probed the chances of receiving the performance-based SLB consideration, with management saying it depends on milestones, order intake and margin targets from 2025 to 2027. On projects, management confirmed ACC is no longer involved in Viridor Runcorn after Technip won the FEED, said Brevik delivery is expected toward the end of 2024, and reiterated active pursuit of opportunities in the UK, Europe and North America.