Aker ASA: Fourth-quarter and preliminary annual results 2018 - Net Asset Value of NOK 41.7 billion – cash dividend of NOK 22.50 per share proposed
2018 was a year with continued strong industrial development and value creation to Aker's shareholders:
- The Aker share gained 19.1 per cent, dividend included, compared to a 1.8 per cent decline in the Oslo Stock Exchange’s benchmark index (“OSEBX”).
- The net asset value (“NAV”) of Aker ASA and holding companies (“Aker”) stood at NOK 41.7 billion at the end of the fourth quarter, on par with year-end 2017. In addition, a NOK 1.3 billion dividend was paid to shareholders in May.
- Aker generated NOK 2.2 billion in upstream cash, up from NOK 1.6 billion in 2017.
“2018 became yet another year with attractive value creation to Aker’s shareholders. In total, our share price, dividend adjusted, rose 19.1 per cent. We received a record high NOK 2.2 billion in upstream cash from our portfolio companies in 2018, and in 2019 we expect upstream dividends to exceed NOK 3 billion,” said Aker’s President and CEO Øyvind Eriksen.
Aker's Board of Directors proposes a payment of NOK 22.50 per share cash dividend for 2018. The proposal corresponds to a 4.9 per cent yield to the share price and 4.0 per cent of NAV at the close of 2018. Aker’s policy is to pay annual dividends of 2-4 per cent of the company’s NAV.
“A proposal to pay NOK 22.50 per share in cash dividend for the fiscal year 2018 reflects both the strong industrial development, a robust balance sheet and a prosperous outlook. Aker’s dividend policy has been consistently applied since 2006. In 2018, Aker's NAV ended at NOK 562 per share. Hence, the dividend proposed is in the upper end of the range,” Eriksen said.
Geopolitical uncertainties, increased volatility and an oil price decline of 35 per cent led to a financially weak fourth quarter:
- The Aker share decreased 37.1 per cent, compared to a 14.8 per cent decrease in the OSEBX.
- NAV fell 34.0 per cent to NOK 562 per share, compared to NOK 852 per share as of 30 September 2018.
- The value adjusted equity ratio decreased 5.8 percentage points from 87 per cent in the prior quarter.
“Oil prices dropped by 35 per cent in the fourth quarter and capital market volatility increased due to geopolitical uncertainties, in turn impacting Aker’s values. However, I’m pleased to say that the value decline last quarter did not affect the underlying development of our investments. Rather to the contrary. Good and important progress was made in our portfolio companies,” Eriksen said.
The full report and presentation can be downloaded from www.akerasa.com .
Net asset value (NAV) is Aker ASA's core performance indicator. Aker is an investment company with a majority of listed companies in its portfolio. Therefore, NAV is a more relevant indicator of the development of Aker's underlying value than the company's consolidated accounts.
For further information, please contact:
Per Kristian Reppe, Investment Manager & Head of Investor Relations
Phone: +47 24 13 00 67
Mobile: +47 90 03 32 03
Atle Kigen, Head of Corporate Communications
Phone: +47 24 13 00 08
Mobile: +47 90 78 48 78
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.