Aker Carbon Capture ASA: Fourth quarter 2022 results

Aker Carbon Capture completed the year with strong progress on projects and partnerships. The company’s flagship projects, Brevik CCS and Twence CCU, are currently the large-scale carbon capture projects in the construction phase in Europe. The unique partnerships with Microsoft and Siemens Energy will enable joint innovation and services to accelerate deployment of carbon capture.

Aker Carbon Capture accelerated its market activity in the fourth quarter. In December, the pure-play carbon capture company became Viridor’s partner on a pre-FEED for the Runcorn CCS project. Together with the ongoing FEEDs for bp’s Net Zero Teesside Power and SSE’s Keadby 3, both mega scale gas-to-power plants with carbon capture, this demonstrated the company’s continued growth in the UK.

In early 2023, Aker Carbon Capture signed a Letter of Intent for the delivery of two Just Catch™ units. The company was also awarded two new studies; one for energy company St1 in Finland, and one for German chemicals company Röhm. 

“The Letter of Intent for two Just Catch™ units, the pre-FEED for Viridor and studies in new industries and regions, are a testimony to our stronger presence in the growing CCUS market. Our projects remain our top priority. We have realized solid progress on both of our flagship projects in Norway and the Netherlands. By the end of 2023, we will achieve our goal of delivering our first industrial carbon capture plant at Twence’s waste-to-energy facility,” said Valborg Lundegaard, Chief Executive Officer at Aker Carbon Capture. 

Aker Carbon Capture aims to take a leading position in the global CCUS industry, and the company has launched a long-term goal of '10 by 25', which states that the company will have secured firm contracts for carbon capture plants for a total of 10 million tonnes per year by the end of 2025.  

Financial results

Aker Carbon Capture saw continued revenue growth through the fourth quarter. Revenues reached NOK 239 million in the period, which was up 85% compared to the same period last year. The increase in revenues was mainly driven by progress on the Brevik CCS project, Twence CCU project, UK FEED projects, and the CO2 Hub Nord MTU campaign with Elkem.

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in the fourth quarter was negative NOK 47 million, compared with negative NOK 66 million in the same period last year. The Twence CCU project started to recognize profit in the period. Both the Brevik CCS project and Twence CCU project are now recognizing profit and are expected to continue to deliver positive results through 2023. The overall negative EBITDA continued to be driven by high sales and tender activity and ongoing investment into technology and innovation, including digitalization.

Aker Carbon Capture ended the fourth quarter with a solid cash position at NOK 1.1 billion, and equity remained strong at NOK 0.9 billion. The order backlog closed at NOK 1.3 billion.

ENDS

Aker Carbon Capture will present the results in a webcast, followed by a live Q&A session, today at 15:00 CET. Click on the following link to follow the event: https://channel.royalcast.com/landingpage/hegnarmedia/20230215_10/