Higher Sales Activity Evident From Aker Carbon Capture Q2 2023 Results

Higher Sales Activity Evident From Aker Carbon Capture Q2 2023 Results - Carbon Herald
Credit: Aker Carbon Capture

Aker Carbon Capture – one of the largest carbon capture companies, announced its Q2 2023 earnings results on July 11th. It presented an increase in revenue compared to the last quarter and the same period a year ago, however, profitability is still on the negative side. 

In Q2 revenue hit NOK 305 million ($29 million), while in Q2 last year it came to NOK 194 million ($18.6 million). The increase was mainly driven by progress on Big Catch and Just Catch projects, ongoing FEEDs, pre-FEEDs, studies and MTU campaigns.

Relevant: Aker Carbon Capture Delivers Q1 2023 Financial Results

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) came at negative NOK 53 million ($5.1 million), compared to negative NOK 51 million ($4.9 million) in Q1 2023 and negative NOK 49 million ($4.7 million) in the same period last year which is a slight improvement considering the significant revenue growth. 

According to the company, the overall negative EBITDA in the period was driven by high sales, tender and R&D activity. The cash position stayed at the solid NOK 1.1 billion ($106 million), same as last quarter and the order backlog closed at NOK 3.3 billion ($318 million).

Aker Carbon Capture ASA stock (OTCMKTS: AKCCF) is currently on the rise, +3.17% as of 15:53 pm BST at $1.30 and 12% higher year to date. Last week, the stock has a significant decline of 6.9% mainly driven by the disproportionate ownership structure of the company’s shares.

Relevant: Aker Carbon Capture Will Deliver Five Just Catch Units To Ørsted

During Q2, Aker Carbon Capture secured a key contract with Ørsted delivering five Just Catch units, as well as additional equipment, temporary carbon storage, and on-loading and offloading facilities, worth an expected total of over €200 million ($219 million). That is the company’s largest order to date. 

Aker Carbon Capture was also awarded an integration feasibility study by Söderenergi for the capture of around 500,000 metric tons of biogenic carbon annually Igelstaverket – Sweden’s second-largest biomass combined heat and power plant. The company’s goal is to have secured contracts for carbon capture plants for a total of 10 million metric tons per year by the end of 2025.

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