Aker Carbon Capture ASA's (OB:ACC) Profit Outlook

We feel now is a pretty good time to analyse Aker Carbon Capture ASA's (OB:ACC) business as it appears the company may be on the cusp of a considerable accomplishment. Aker Carbon Capture ASA provides products, technology, and solutions within the field of carbon capture technologies, utilization, and storage in Norway and internationally. With the latest financial year loss of kr204m and a trailing-twelve-month loss of kr190m, the kr6.5b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Aker Carbon Capture's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Aker Carbon Capture

Consensus from 9 of the Norwegian Commercial Services analysts is that Aker Carbon Capture is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of kr72m in 2025. The company is therefore projected to breakeven around 2 years from today. 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 61% is expected, which signals high confidence from analysts. 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, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Aker Carbon Capture currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of 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 put together a list of important factors you should further examine:

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.