When Can We Expect A Profit From Aker Carbon Capture ASA (OB:ACC)?

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 kr3.8b market-cap company’s loss lessened since it announced a kr171m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr171m, as it approaches breakeven. The most pressing concern for investors is Aker Carbon Capture's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Aker Carbon Capture

According to the 8 industry analysts covering Aker Carbon Capture, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of kr19m in 2025. The company is therefore projected to breakeven just over a year 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 76% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Aker Carbon Capture given that this is a high-level summary, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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 aspects you should further research:

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.