Aker Carbon Capture ASA (OB:ACC): When Will It Breakeven?

Aker Carbon Capture ASA (OB:ACC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aker Carbon Capture ASA provides products, technology, and solutions within the field of carbon capture technologies, utilization, and storage in Norway and internationally. The kr8.7b market-cap company posted a loss in its most recent financial year of kr192m and a latest trailing-twelve-month loss of kr226m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Aker Carbon Capture's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Aker Carbon Capture

Aker Carbon Capture is bordering on breakeven, according to the 8 Norwegian Commercial Services analysts. They expect the company to post a final loss in 2024, before turning a profit of kr279m in 2025. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 57% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Aker Carbon Capture given that this is a high-level summary, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Aker Carbon Capture has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Aker Carbon Capture which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Aker Carbon Capture, take a look at Aker Carbon Capture's company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is Aker Carbon Capture worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Aker Carbon Capture is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aker Carbon Capture’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.