Akershus Energi affirms A- stable outlook rating by Scope Ratings

Scope Ratings GmbH affirmed Akershus Energi AS's A- issuer rating with a Stable Outlook, along with its A- senior unsecured debt and S-1 short-term debt ratings. This affirmation underscores the company's strong financial risk profile, characterized by low indebtedness and solid credit metrics, despite expected increases in capital expenditure. The rating also incorporates a one-notch uplift due to its status as a government-related entity, being fully owned by Akershus county.

The company's business risk profile is supported by its environmentally friendly hydropower generation and district heating operations in southeastern Norway, contributing to consistent annual power generation of around 2.5 TWh. While Akershus Energi faces exposure to volatile power prices, its low marginal generation costs and strong market positioning help mitigate these risks. Scope expects EBITDA to reach approximately NOK 1,400m in 2025, moderating to NOK 1,100m in 2026-2027.

Debt is projected to increase to around NOK 800m by end-2027 from NOK 89m at end-2024, driven by planned high capital expenditure for infrastructure upgrades and the maintenance of its dividend policy. Despite this, leverage is expected to remain low, with debt/EBITDA between 0.5x and 1.0x in 2026-2027, and liquidity is anticipated to remain adequate with metrics above 200% in 2025-2026.