AKER - Aker ASA

[Guest hellsten]

Found Aker, a Norwegian holding company, which is trading at 0.62 times NAV when doing some research on European stocks:

Aker ASA is an industrial investment company that exercises active ownership. Aker is synonymous with industrial expertise and financial strength. As an active owner, the goal is to be a powerhouse in the development of strong companies. Aker drives operational improvement, strategy, financing, and restructuring – and executes industrial transactions. These capabilities create value for shareholders, customers, employees, and society in general.

 

Per today:

- Share price 176.5 NOK

- NAV 285 NOK

- NAV down 11% today

- Trading at 0.62 times NAV

 

Investor presentation:

http://www.akerasa.com/content/download/11903/132157/file/Aker%20ASA%20-%20Pareto%20conference%202012.pdf

 

2004-2012:

- 29% annual average return including dividend

- 24% annual average growth in NAV

 

68% of investments related to oil and gas sector

    - Oil services 45%

    - E&P 23%

    - Seafood & Marine BioTech 6%

    - Cash 14%

    - Other 12%

   

Industrial holdings 71% of total Aker assets:

    - 28% (of gross asset value) Aker Solutions: Global oil services company providing services, technologies, product solutions and field life solutions

    - 22% Det norske: Exploration & Production company on the Norwegian continental shelf

    - 11% Ocean Yield: Vessel owning company with focus on low risk investments in oil service & industrial shipping

    - 4% Kvaerner: Specialized EPC oil and gas company

   

- Solid cash position of NOK 3.3 billion

- objective is to pay annual dividends of 2-4 per cent of the company’s net asset value (NAV)

 

Chairman:

Kjell Inge Røkke

   

As at 31 December 2012, Mr Røkke holds 49 105 514 shares (67.9 per cent) in Aker ASA through his investment company TRG AS and its subsidiaries

 

The Chairman has a very interesting background and life story (fisherman's son, been to jail, etc):

http://en.wikipedia.org/wiki/Kjell_Inge_R%C3%B8kke

http://www.forbes.com/profile/kjell-inge-rokke/

 

I don't own Aker and don't intend on buying, but thought I would post my notes here for future reference.

[Hielko]

I own Aker Philadelphia Shipyard: Aker ASA owns 72% and it's run by the son of Kjell Inge Rokke. Obviously a lot smaller than Aker ASA itself, but also cheap.

[Guest hellsten]

I own Aker Philadelphia Shipyard: Aker ASA owns 72% and it's run by the son of Kjell Inge Rokke. Obviously a lot smaller than Aker ASA itself, but also cheap.

 

Interesting. 953.33% return in 3 years. I didn't attend this party, but maybe I can still get a ticket :)

[Sportgamma]

The disconnect between the market value of the holding company and its publicly traded stakes is particularly glaring given that the market value of holdings within its consolidated asset manager, Converto Capital Fund, stood at NOK1.4 billion as of year-end 2011. Converto owns shares of Aker Seafoods ASA, Aker Philadelphia Shipyard ASA, and American Shipping ASA, among others. In 2011, Aker purchased the 72% stake in Aker Floating Production held by Converto. It is currently accumulating the remaining shares not held. Aker ASA also has a 50% interest in privately owned Aker Clean Carbon. Over the past year, Aker ASA has traded at a 40%-50% discount to NAV (see exhibit below). About 65% of Aker’s interests are in the oil and gas sector, and, as a result, the stock will be heavily influenced by hydrocarbon prices.

 

http://www.horizonkinetics.com/docs/Bits_&_Pieces_March_2012.pdf

 

 

[oddballstocks]

I own Aker Philadelphia Shipyard: Aker ASA owns 72% and it's run by the son of Kjell Inge Rokke. Obviously a lot smaller than Aker ASA itself, but also cheap.

 

I own this as well