Widening Net Loss From Aker Carbon Capture Q1 2022 Earnings Results

Widening Net Loss From Aker Carbon Capture Q1 2022 Earnings Results - Carbon Herald

Aker Carbon Capture reported its Q1 2022 earnings results on Thursday, April 28th. The company saw revenue growing 127% compared to Q1 last year, however, EBITDA is still in the negative territory with a wider net loss. 

Aker Carbon Capture ASA announced Thursday that its Q1 net loss widened due to increased activity related to research and development, digitalization, tenders, business development, sales, and international growth.

Relevant: Aker Carbon Capture Net Loss Increases But Company Keeps Expanding

It came at $6.4 million (NOK 60 million) on revenue of $15.5 million (NOK144.3 million), compared to a net loss of $2.6 million (NOK 23.8 million) for Q1 last year, on revenue of $6.8 million (NOK 63.5 million). 

“We continued to position for the future market through a significant and growing number of project studies and tenders for customers,” said Valborg Lundegaard, CEO of the company.

The company also expects operating expenses through 2022 to be around levels similar to those in 2021.

The quarter ended with net cash of $162 million (NOK 1.5 billion) reflecting increasing activity on the following projects: Brevik Carbon Capture And Storage (CCS), Twence CCUS and BP Net Zero Teesside Power FEED.

Further progress on projects is expected for the rest of 2022 with net cash anticipated to come below $107 million (NOK 1 billion) by year-end. More positive project-related cash flows are forecasted in 2023.

Relevant: Aker Carbon Capture Strikes A Partnership With SINTEF

Aker Carbon Capture stock was down after the announcement of the earnings. It ended yesterday’s session at 2.02 or -6.25% and it has lost 39% YTD. So far the stock seems like a buying opportunity if the company shows improvement on EBITDA results. 

The first quarter ending with a widening net loss is a red flag for the company’s long-term sustainability on the cash front, however, the next few quarters will show if this is going to be more of a concern. Increasing revenues, projects progress, and agreements are showing the potential that the stock could be a growth opportunity.

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