Aker Carbon Capture – the carbon capture projects developer, announced its Q1 2023 financial results on April 28th. The company’s performance is impressive with an ever-increasing revenue quarter by quarter.
Due to progress made on existing projects in the first quarter of this year, the company’s revenue reached NOK 287 million ($27 million) which is a 99% increase compared to the same period last year when revenue came to NOK144.3 million ($15.5 million). The Aker Carbon Capture (OTC: AKCCF) stock is under pressure as of 17:53 BST on April 26th, trading at an all-time low near $0.97 which indicates a potential opportunity to buy at a cheap price.
Relevant: Widening Net Loss From Aker Carbon Capture Q1 2022 Earnings Results
EBITDA also showed a slight improvement of negative NOK 51 million, compared with negative NOK 61 million in Q1, 2022. The still negative EBITDA is driven by high sales and tender activity and ongoing investment into technology and innovation, including digitalization.
Net cash came at NOK 1.3 billion compared to net cash of NOK 1.5 billion ($162 million) for Q1 2022. Equity remained strong at NOK 0.8 billion and order backlog closed at NOK 1.0 billion.
The increase in revenues was mainly driven by progress on the Brevik CCS project, UK FEED and pre-FEED projects, Twence CCU project, and the CO2 Hub Nord MTU campaign with Elkem. Both the Brevik CCS project and Twence CCU project are currently delivering profit and are expected to continue to have positive results through 2023. The FEEDs, pre-FEEDs and studies also delivered positive contributions during the period.
Relevant: Aker Carbon Capture Secures Test Campaign From Fortum Waste Solutions
During Q1 Aker Carbon Capture won a pre-FEED for an undisclosed European power utility customer and secured several studies across industries such as waste-to-energy and smelting. In April, it was awarded a Mobile Test Unit campaign and feasibility study for Fortum’s facility in Nyborg, Denmark, with a planned capture capacity of around 170,000 metric tons of CO2 per year.