AKER ASA 2
Aker ASA annual report 2021 | |
Content | |
1. This is Aker | 3 |
Highlights 2021 | 4 |
Key performance indicators | 5 |
Changes in net asset value | 6 |
2. Letter from the president and CEO | 9 |
3. Shareholder information | 12 |
4. Investment overview | 14 |
Industrial holdings | 15 |
Financial investments | 25 |
Alternative performance measures | 26 |
5. Board of Directors' report | 27 |
6. Annual accounts | 43 |
Aker Group | 44 |
Aker ASA | 104 |
Aker ASA and holding companies | 124 |
7. Board of Directors | 136 |
8. Management | 138 |
9. Corporate Governance Report | 139 |
Financial calendar 2022 | |
Aker reserves the right to revise the dates. | |
Annual General Meeting: | 22 April |
Announcement of 1Q 2022: | 4 May |
Announcement of 2Q 2022: | 15 July |
Announcement of 3Q 2022: | 4 November |
This is Aker
Aker is the largest shareholder, directly or indirectly, in 11 companies listed on the Oslo Stock
Exchange, Euronext Expand Oslo or Euronext
Growth Oslo.
This is Aker
Since its establishment in 1841, Aker has been a driving force for the development of internationally focused, knowledge-based industry in Norway.
Aker ASA (Aker) is an industrial investment company that develops businesses and exercises active ownership to create value for its shareholders and society at large. Aker combines industrial expertise with knowledge of the capital markets and financial strength. In its capacity as owner, Aker helps to develop and strengthen its portfolio of Aker companies, working through the boards of the industrial holdings portfolio companies to drive strategy development, operational improvements, financing, restructuring and transactions.
Aker's ownership interests are concentrated in the oil and gas, renewable energy and green technologies, industrial software, seafood and marine biotechnology sectors. With effect from 2022, active asset management through Aker Asset Management will be a business area on an equal footing with industrial investments. In 2021, investments were divided into two portfolios:
Industrial holdings are strategic assets and are managed with a long-term perspective.
They comprise Aker's ownership interests in Aker BP, Aker Energy, Aker Solutions, Akastor, Aker Horizons, Aker BioMarine, SalMar Aker Ocean, Cognite and Aize.
Financial investments comprise cash and other assets. The portfolio includes the listed companies American Shipping Company,Philly Shipyard, and Solstad Offshore, in addition to Aker Property Group.
Size
Aker is the largest shareholder, directly or indirectly, in 11 companies listed on the Oslo Stock Exchange, Euronext Expand Oslo or Euronext Growth Oslo. Aker and companies in which Aker is the largest investor had a total turnover of more than NOK 94 billion in 2021, and a workforce of approximately 31 000, including temporary hires. About 18 000 people are employed in Norway.
Net Asset Value (NAV) growth is a key performance indicator for Aker ASA and holding companies. As at 31 December 2021, NAV amounted to NOK 69.8 billion, compared to NOK 53.4 billion one year prior. In addition, a dividend of NOK 1.75 billion was paid in 2021.
Ownership
As of 23 March 2022, Aker has generated an average annual return of 27 per cent, including dividends, since its re-listing on the Oslo Stock Exchange on 8 September 2004. At the beginning of 2022, Aker had 19 986 shareholders. Aker's main shareholder is Kjell Inge Røkke, who owns 68.2 per cent of Aker through his company TRG Holding AS. Through a private company, CEO Øyvind Eriksen owns 0.2 per cent of the B-shares in TRG Holding AS, as well as 219 072 shares in Aker ASA.
4 Aker ASA annual report 2021
Highlights 2021
Shareholder return:
+52 per cent
This is Aker | Highlights 2021
Aker BP:
Acquires Lundin Energy
The Aker share price increased from NOK 560 to NOK 825 during the course of 2021. Including dividends totalling NOK 23.50 per share, the shareholder return totalled 52 per cent. The NAV stood at NOK 939 at year-end 2021, up from NOK 718 at the end of 2020. Including dividends paid in 2021, value growth totalled 34 per cent. The Oslo Stock Exchange's benchmark index - Aker's benchmark - rose by 23 per cent in 2021.
Aker BP announced a transaction agreement with Lundin Energy for the takeover of the latter's oil and gas business. The completion of the transaction is expected to take place in the second quarter of 2022, after which Aker's shareholding in Aker BP will decrease to 21.2 per cent, while BP's shareholding will decrease to 15.9 per cent.
Aker Asset Management:
New business area
Aker has established active asset management as a new business area on an equal footing with the company's existing industrial holdings. Yngve Slyngstad has been appointed CEO and senior partner of Aker Asset Management (AAM). He had previously worked at Norges Bank Investment Management (NBIM) since its establishment in 1998. AAM will manage funds in the areas of infrastructure and the energy transition, including the asset classes private equity, venture capital and start-ups, which were established and staffed with competent key personnel and partners in 2021.
Sale of shares:
NOK 7.7 billion
In 2021, Aker released NOK 7.7 billion through the sale of shares. This further strengthens its investment capacity and gives it more room to invest in new and existing businesses. Aker sold its 61.7 per cent controlling interest in Ocean Yield to the American company KKR for NOK 4.5 billion. Aker and BP both divested shares in Aker BP. Aker's shareholding was reduced from 40 per cent to 37.1 per cent, releasing NOK 3.2 billion to Aker. Aker and BP continue their excellent partnership in Aker BP and in other areas, such as offshore wind power.
Distribution of Aker's NOK 80.0 billion gross asset value as at 31 December 2021
This is Aker | Key performance indicators
Key performance indicators
Aker's key performance indicators are net asset value growth and shareholder returns (share price and dividends).
Net asset value (NAV) expresses Aker's underlying financial value and provides the basis for the company's dividend policy (two to four per cent of NAV per year). The NAV is calculated on the basis of the market value of listed shares, most recent transaction value for non-listed assets subject to material transaction with third parties, while book value is used for other assets.
NAV per share NOK per share
In 2021, an ordinary dividend of NOK 11.75 per share was paid for the 2020 fiscal year. At the Annual General Meeting in April 2021, the board was authorised to disburse an additional dividend in 2021 on the basis of the annual accounts for 2020. In November
2021, an additional dividend of NOK 11.75 per share was paid. In
2022, the board is proposing that an ordinary dividend of NOK 14.50 per share be paid for 2021, and that the AGM authorise the Board to disburse an additional dividend in 2022 based on the 2021 annual accounts.
Dividend per share (see comments above)
NOK per share and per cent of NAV
850
650 450 250 50
2019
Allocated dividend
2020
NAV after allocated dividendShare price
25
20
15
10
5
0
2021
2019
Additional dividend (NOK)Allocated dividend (NOK)
2020
Per cent of NAV before dividend
2021
Gross assets per business segment NOK billion
70
40
60
50
30
20
10
0
2019
2019
Industrial holdingsFinancial investments
Gross assets per sector
NOK billion
90
80
70
60
50
40
30
20
10
0
2020
2021
Software
Other financial assetsCash
Seafood & marine biotec
2020
Renewables and green technology
Maritime assets
Oil services
E&P
2021
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Aker ASA published this content on 30 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2022 07:24:07 UTC.
