Akastor ASA ((NO:AKAST)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The latest earnings call from Akastor ASA paints a picture of robust growth and improved financial health, driven by strategic partnerships and a positive market outlook. Despite some challenges in their legacy renewable projects, the overall sentiment was upbeat as the company outlined its impressive performance metrics.
Significant Revenue Growth
In an impressive stride, Akastor ASA reported a significant revenue increase, climbing from NOK 20 billion in 2020 to over NOK 50 billion in 2024. This represents a remarkable 47% growth between 2023 and 2024 alone, indicating effective strategies and a strong market presence.
Improved EBITDA Margin
The company also experienced an enhanced EBITDA margin, which rose to 8.7% in 2024. This increase of more than 500 basis points since 2020 underscores Akastor ASA’s efficiency in managing operational costs and improving profitability.
Solid Order Backlog
Akastor ASA ended the year with an impressive order backlog of NOK 61 billion. The company secured several new contracts at the start of 2025, reflecting its ability to maintain a steady pipeline of work and secure future revenues.
Successful Partnerships and Collaborations
The company achieved significant milestones through strategic partnerships, notably with Aker BP. These collaborations have been crucial in ensuring high-quality project delivery, bolstering their market reputation.
Strong Performance in Energy Consulting
Akastor ASA’s energy consulting division thrived, with revenues increasing by more than 50% for the second consecutive year, achieving double-digit margins. This growth highlights the division’s vital role in the company’s portfolio.
Positive Market Outlook
Despite facing volatile energy prices and geopolitical instability, Akastor ASA’s market outlook remains positive. The company has secured several opportunities, demonstrating resilience and adaptability in challenging conditions.
Significant Dividend Proposal
Reflecting its strong financial performance, Akastor ASA proposed a dividend increase to NOK 3.30 per share for 2024, representing approximately 50% of net income. This proposal underscores the company’s commitment to rewarding its shareholders.
Strong Financial Position
With a net cash position of NOK 2.9 billion at year-end, Akastor ASA is well-positioned to support future development and provide attractive returns to shareholders.
Legacy Renewables Project Losses
The company faced additional losses totaling NOK 1 billion in its legacy renewable projects in 2024, with NOK 400 million occurring in the fourth quarter. This segment continues to pose challenges due to increased subcontractor carryover work.
Guidance
Looking ahead, Akastor ASA provided an optimistic guidance for 2025, anticipating revenues between NOK 50 billion and NOK 55 billion, with an EBITDA margin between 7% and 7.5%, excluding OneSubsea contributions. The company aims to enhance project execution and profitability through strategic focus on projects with balanced risk-reward profiles. They also plan to increase dividends to NOK 3.30 per share, reflecting their solid financial standing and commitment to shareholder value.
In summary, Akastor ASA’s latest earnings call highlights a period of impressive growth and strategic achievements. Despite some ongoing challenges in the renewable segment, the overall sentiment is positive, driven by strong financial metrics and a promising outlook for 2025. Investors and stakeholders can look forward to continued progress and value creation from the company.