Aker Horizons ASA: Fourth-Quarter Results 2021

Aker Horizons ASA today announced financial results for the fourth quarter of 2021, during which the planet-positive investment company’s Net Asset Value rose to NOK 16.9 billion from NOK 16.1 billion at the end of the previous quarter.  

“We took several steps in the fourth quarter to strengthen our financial position in preparation for volatile capital markets,” said Kristian Røkke, Chief Executive Officer of Aker Horizons. “Although we see an increased cost of capital in public markets, we see the private transaction market continuing to be strong as witnessed by the divestment of the Aela platform in Mainstream. During the quarter, Aker Horizons and our portfolio companies also made further progress in securing new projects and partnerships, such as winning the FEED for the Net Zero Teeside CCS project and securing wind and solar projects in South Africa.”  

Portfolio Highlights 

Mainstream Renewable Power made significant industrial progress in key markets during the final three months of the year. Together with partners, Mainstream were awarded 1.27 GW of new wind and solar projects in South Africa, while in Vietnam, Mainstream secured an investment decision from local authorities for the first 200 MW of the 1.4 GW Phu Cuong Soc Trang offshore wind farm. The company also raised EUR 90 million in equity to accelerate new market entries and build out renewable assets. Aker Horizons participated in the capital raise pro rata to its 75 percent ownership in Mainstream. 

Aker Offshore Wind, Ocean Winds and Statkraft signed a collaboration agreement to bid for, develop, construct and operate floating offshore wind farms and associated infrastructure for the Utsira Nord license area. EDP Renovaveis, S.A. and EDP Ventures SGPS (jointly “EDP”) exercised their option to acquire shares in Principle Power, Inc. from Aker Offshore Wind resulting in equal ownership and a positive cash impact to Aker Offshore Wind of approximately NOK 100 million. After the end of the quarter, Aker Offshore Wind and Ocean Winds’ consortium in South Korea obtained Electric Business Licenses for a total capacity of 870 MW, a key step toward realizing some of the first commercial-scale floating wind farms in the world. The consortium has secured exclusive rights from the city of Ulsan to develop three offshore areas for up to 1.2 GW.   

Aker Horizons and Hanwha Solutions, a world leading solar PV manufacturer, joined forces in REC Silicon to explore US solar value chain expansion. Hanwha Solutions has through a private placement and acquisition of Aker Horizons’ shares in REC Silicon become a strategic investor in REC Silicon, and the transaction brings together two of the leading producers in different parts of the solar PV value chain.  

Aker Carbon Capture was, via a consortium, awarded a FEED contract for BP’s Net Zero Teeside gas-to-power project, which includes a CCS facility of about 2 million tonnes CO₂ per year. The company also secured its second firm EPC project – the delivery of a Just Catch™ modular carbon capture plant to Twence's waste-to-energy plant in the Netherlands. The plant will capture 100,000 tonnes of CO₂ per year and is scheduled to start operating in late 2023. In the UK, waste management company Viridor selected Aker Carbon Capture as its technology partner to realize carbon capture at five of its waste-to-energy plants in the country.  

Aker Clean Hydrogen’s project funnel grew by 0.2 GW to 2 GW in the fourth quarter. Project milestones included completing the feasibility phase for the Hegra green ammonia project with Yara and Statkraft and completing early-phase studies for the Aukra blue hydrogen project, where estimates show competitive levelized cost of hydrogen. The company has also entered a series of partnerships with Grieg Edge, Aker BP and Kuehne + Nagel to enable green fuel offtake in the maritime sector.  

Strengthening Aker Horizons 

Aker Horizons took several steps to raise a total of NOK 3.4 billion in additional liquidity during the fourth quarter and had available liquidity of NOK 5.4 billion as of Q4. ​The company raised capital from a variety of sources. 

• In November, Aker Horizons raised NOK 1 billion in a private placement of new shares at NOK 34.50 per share. The placement was over-subscribed multiple times with strong domestic and international demand.  

• Aker Horizons raised NOK 1 billion from the sale of shares in Aker Carbon Capture to three international institutional investors, which included UK fund manager Baillie Gifford. 

• Aker Horizons increased its revolving credit facility (RCF) by EUR 100m to EUR 500m. The RCF is undrawn as of Q4 21. 

• Aker Horizons agreed to sell shares in REC Silicon through a transaction with Hanwha Solutions of South Korea that saw the two companies join forces in REC Silicon. The proceeds of NOK 438 million was received in January 2022. 

New Initiatives 

Aker Horizons launched a series of strategic initiatives in the Narvik region to establish green value chains for power-intensive industries in Northern Norway. Together with the local community, Aker Horizons aims to develop industrial activities to convert renewable power into green jobs and sustainable export industries. The company continues to prepare and develop the sites and mature project opportunities together with business partners and authorities.   

In December, Aker ASA appointed Yngve Slyngstad, the former CEO of Norges Bank Investment Management (NBIM) from 2008 until 2020, as CEO of Aker Asset Management, starting 1 March. Aker Horizons is uniquely positioned to create attractive investment opportunities based on its technology and access to steady stream of new projects.  

Aker Horizons is working actively to further develop its ability and capacity to originate and mature early-phase decarbonization projects, and to optimize the process that connects long-term funding sources and capital-intensive green projects.  

ENDS 

The Q4 presentation is attached and can be downloaded on akerhorizons.com.  

Aker Horizons will present the results, followed by a Q&A session, at CET 14:00 today. The presentation will be broadcast on the following link: 

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220215_9

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements in Regulation EU 596/2014 and the Norwegian Securities Trading Act § 5-12. This stock exchange announcement was published by Ivar Simensen, Communications, Aker Horizons on 15 February 2022 at CET 07:00.