| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 0.90 | -93 |
| Intrinsic value (DCF) | 4.63 | -66 |
| Graham-Dodd Method | 3.80 | -72 |
| Graham Formula | 100.30 | 646 |
Akastor ASA is a Norway-based investment company specializing in oilfield services, primarily serving the oil and gas industry. Founded in 1841 and headquartered in Bærum, Norway, Akastor provides a range of services including vessel-based subsea well construction, intervention services, well design, drilling project management, reservoir and field management, and technical consultancy. The company owns five offshore vessels, enhancing its operational capabilities in the energy sector. Operating in the Oil & Gas Equipment & Services industry, Akastor plays a critical role in supporting offshore exploration and production activities. Despite challenges in the energy sector, Akastor remains a key player due to its diversified service offerings and long-standing industry presence. With a market capitalization of approximately NOK 3.4 billion, the company is listed on the London Stock Exchange (LSE) and continues to adapt to evolving market conditions in the global energy landscape.
Akastor ASA presents a mixed investment profile. The company operates in the cyclical and capital-intensive oilfield services sector, which is sensitive to oil price fluctuations and industry spending. In FY 2023, Akastor reported a net loss of NOK -264 million and negative operating cash flow of NOK -296 million, reflecting operational challenges. However, its diversified service portfolio and asset base, including five offshore vessels, provide some resilience. The company’s low beta (0.227) suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. With no dividend payouts and significant total debt (NOK 1.4 billion), Akastor’s financial health remains a concern. Investors should weigh its niche expertise in subsea services against broader sector headwinds and the company’s recent financial performance.
Akastor ASA competes in the highly fragmented oilfield services market, where scale, technological expertise, and asset ownership are critical differentiators. The company’s competitive advantage lies in its specialized subsea well construction and intervention services, supported by its owned offshore vessels. This vertical integration allows Akastor to control costs and offer end-to-end solutions. However, its relatively small market cap (NOK 3.4 billion) limits its ability to compete with larger global players in terms of R&D and geographic reach. Akastor’s focus on the Norwegian and North Sea markets provides regional strength but exposes it to localized demand cycles. The company’s consultancy and software services add higher-margin revenue streams, but its financial performance in FY 2023 highlights vulnerability to industry downturns. To strengthen its position, Akastor may need to pursue strategic partnerships or further diversify its service offerings beyond traditional oil and gas.