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  • Hold by micke (10/10/2023)
    • 50.00 +9.79% by 16/04/2024

    Management positive in the 23Q2 webcast. Very good growth. A JV with SLB (70%) and Subsea 7 (10%) and Aker Solutions (20%) will be completed during 2023H2, not sure about effects. Aker Solutions will receive 700MUSD in a combination of stock and cash for 20% of the JV, i.e. they are puting in more business than their share of the JV. Subsea is now about 1/3 of Aker Solutions. Good order intake, good result both in oil&gas as well as renewable energy (offshore wind). P/S=0.47. The stock has developed very well since bottom in March 2020. However AS is now an engineering company and I think AS should be able to have 10% margin on revenue which already with 2022 revenue would give a share price of 80 NOK, which might be a bit too optimistic but 60 NOK should be possible. The revenue would probably increase to 50 mdr NOK 2023, with current margin of 5% and no premium for growth the share price might be ~50 NOK - without the JV. From 23Q2 "Free cash flow generation of around NOK 0.8 billion on average annually from 2024 to 2026 excl. Subsea JV proceeds and dividends".

  • Risks (2)
    • lower energy prices might limit investments in oil&gas as well as wind

      10/10/2023 by MICKE
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    • The JV with SLB and Subsea 7 might not be that good for Aker Solutions. The Subsea that is being transfered to the JV is the part of Aker Solutions with the best margins. SLB seems to have a significantly higher valuation (P/E), Aker Solutions might be selling at a too low price.

      10/10/2023 by MICKE
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