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The stock market thought Aker’s last two stock market babies were just as beautiful at birth. But after just one week on the stock market, Aker Carbon Capture is valued at more than NOK 650 million more than Aker Offshore Wind.
The stock market seems to have a clear preference for Aker Carbon Capture, led by Valborg Lundegaard (center), of Aker’s two new stock market babies.
Gorm Kallestad
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The two twin companies Aker Carbon Capture and Aker Offshore Wind Holding were separated by mother Aker Solutions on the same day in July. Just over a month later, both were made public on the Merkur market of the Oslo Stock Exchange.
Aker Carbon Capture was by far the largest, priced at NOK 962 million following a capital increase just before the IPO. At the same time, Aker Offshore Wind was priced at NOK 900 million. This meant a “weight difference” in favor of Aker Carbon Capture of NOK 62 million.
But now, after just a week on the stock market, Aker Carbon Capture has put on much more weight than its sister company Aker Offshore Wind. Now, the price difference between them has increased to more than NOK 650 million.
Astrid Onsum leads Aker Offshore Wind, which has been well received in the capital markets. But not as good as the Aker Carbon Capture.
Marius Lorentzen / E24
Most unique carbon capture
After a sharp drop in the price of both companies on Tuesday, Aker Carbon Capture is priced at NOK 2.44 billion, while Aker Offshore Wind is priced at NOK 1.79 billion. Despite falling prices on Tuesday, both companies have invested heavily since their respective capital increases in mid-August. But while they were listed on the stock market at a similar size, the stock market now fiercely favors one of them.
– Aker Carbon Capture is a more exclusive company than Aker Offshore Wind. To my knowledge, no other company offers as pure exposure to carbon capture development as Aker Carbon Capture, and it is also publicly traded, says analyst Haakon Amundsen at the ABG Sundal Collier brokerage.
– In addition, the technology with which Aker Carbon Capture works is more scalable. This means that if they can build large-scale carbon capture plants, they can build many more plants in Europe and the rest of the world, Amundsen continues.
NEL vs. Scatec Solar
Some compare Aker’s carbon sequestration to the hydrogen comet NEL. In other words, a company that develops new technology for the delivery of the so-called EPC contracts, but without immobilization of its own capital. An EPC contract, in short, will state that Aker Carbon Capture is responsible for the design, purchase and construction of a carbon plant on behalf of a customer.
Aker Offshore Wind is more comparable to solar park provider Scatec Solar. Aker Offshore Wind has the advantage of operating in an increasingly larger and more developed market, but at the same time it requires more capital invested in the facilities. And so, for today’s investors, it will also be necessary to calculate the potential dilution effects of likely future capital increases.
Aker Carbon Capture is also likely ahead of the curve in earning its first revenue, if, as many believe, solid money is given in the state budget for 2021 to Norcem’s carbon capture plant in Brevik. Aker Carbon Capture has one of their two contracts so far on this project.
Read on E24 +
Aker’s Green Stock Market Success Is Light Soup, But Swallowed
Aker Carbon Capture and Aker Offshore Wind aren’t exactly the first two stock market babies of Aker shop owner Kjell Inge Røkke. Now he has sent many Aker companies to the stock exchange.
Åserud, Lise / NTB scanpix
Praised for faith and hope
Amundsen at ABG Sundal Collier believes there are more alternatives to Aker Offshore Wind.
– Aker Offshore Wind also offers pure exposure to offshore wind energy. But as an investor, you can get similar exposure by investing in Norwegian Bonheur or Danish Ørsted, says Amundsen.
Of course, it is not the case that Aker Offshore Wind has run out of bleach and cold water in the first week on the stock market. Even after a sharp price drop on Tuesday, the share price is still above 99% compared to the August issue price. But the big brother Aker Carbon Capture is much more, more specifically more than 154 percent measured against the issue price.
– The similarity between Aker Carbon Capture and Aker Offshore Wind is that the pricing of both companies is based on the expectation that they will generate significantly more revenue than today, as they now have limited profits, says Amundsen.
Both companies have fallen sharply from the most euphoric levels of late last week. Aker Offshore Wind is down 32 percent from its preliminary peak, while Aker Carbon Capture is down just over 24 percent from the highest price level.
