Aker Horizons, an investor in renewable energy and emissions-reducing technologies, announced that its net asset value declined to 11.1 billion Norwegian kroner ($1.1 billion) at the end of the second quarter. This is a decrease from the NOK15.8 billion recorded at the end of the first quarter.
During this period, Aker Horizons had a cash position of NOK3.58 billion and an undrawn credit facility amounting to 500 million euros ($556.5 million). These financial resources result in an available liquidity of NOK9.44 billion.
Aker Horizons, which is primarily owned by Aker, holds stakes in various companies including Aker Carbon Capture, Aker Horizons’ Asset Development, and Mainstream Renewable Power.
One of its investments, Mainstream Renewable Power, is currently involved in a restructuring process in Chile. The company is working on wind and solar energy projects in the country. However, the Chilean power system is facing challenges due to limited flexibility in its transmission system and power-market structure. Consequently, the limitations in grid capacity have led to higher system costs and pricing volatility. Mainstream also encountered default events related to its portfolio in Chile, resulting in Aker Horizons recording an impairment of NOK2.3 billion in the second quarter.
Despite these setbacks, Chief Executive Kristian Rokke remains optimistic about the global energy transition and the opportunities it presents. He stated, “We’re seeing the energy transition gaining momentum across the globe, and with it come new challenges and opportunities. This quarter’s report reflects that dynamic landscape.” Rokke reassured stakeholders that Aker Horizons is committed to sustainable energy projects despite the hurdles faced by Mainstream in Chile.