Aker Carbon Capture Revenue More Than Doubles During Q4 2023

Aker Carbon Capture Revenue More Than Doubles During Q4 2023 - Carbon Herald
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Q4 financial results for Aker Carbon Capture showed an improving picture for commercial activities, revenue and overall performance. The company published its four quarter 2023 results on January 25th indicating a slightly narrower net loss and a revenue figure 139% higher compared to Q4 2022.

Aker Carbon Capture reported a net loss of 35.2 million Norwegian kroner ($3.4 million) compared to a loss of NOK42.69 million ($4.9 million) an year ago and revenue of NOK572.8 million ($54.9) from NOK239.3 million ($22.9 million) in Q4 2022.

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The order backlog stands at NOK2.6 billion ($250 million), up from NOK1.3 billion (~$120 million) in the same period in 2022. Net cash continues to stay relatively stable over the last few quarters, in Q4 at NOK1.1 billion compared to the same amount in Q4 2022 and NOK 1.4 billion in the second quarter of 2023. It expects the cash position to trend below NOK1.0 billion through the next quarter due to progress with some major projects.

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) also came with an improvement at negative NOK 43 million, compared to negative NOK 47 million in the same period last year. The negative EBITDA was driven by high commercial and tender activity, United States entry and R&D activity.

“Aker Carbon Capture is experiencing an acceleration in market activity and strong interest in our growing range of modular carbon capture facilities… Through the coming year, we will strengthen our organization in the United States and Northern Europe to position for the significant growth opportunities ahead of us,” Chief Executive Egil Fagerland said.

The more than double revenue figure is driven by progress on projects and orders for new facilities. The company signed a FEED contract with Hafslund Oslo Celsio (Celsio) to deliver Norway’s first carbon capture project at a waste-to-energy plant. It was also awarded a pre-FEED by a major European power company covering several electricity generation facilities in Europe with a capture potential of up to 14 million tonnes of CO2.

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More studies were awarded in Germany, Switzerland, and Finland and a feasibility study to develop a joint power-to fuel-solution with MAN Energy Solutions. Overall, the company’s accumulated pipeline covers approximately 40 million tonnes of CO2 capture per year across all categories of contracted work.

Aker Carbon Capture stock (OTCMKTS: AKCCF) is still trading below $1 at around $0.98 as of January 25th 2024. It is trading in a range since August 2023 (~$1.42 – $0.92) as current net losses are still limiting further upside potential.

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