Financial investments totalled NOK 8.0 billion at the end of 2016, including NOK 4.5 billion in cash. This equates to 18 per cent of the gross asset value of Aker ASA and holding companies.
The Financial investments segment encompasses cash, liquid fund investments, equity investments in listed companies such as American Shipping Company, Cxense, Philly Shipyard and Solstad Offshore, real estate and other assets. The aim is to develop, maximise and realise investments.
Cash reserves of NOK 4.5 billion and liquid fund investments of NOK 0.4 billion give Aker financial flexibility.
Aker established a NOK 1.0 billion drawing right which will run until 22 February 2020. Aker also took up a USD 250 million bank loan as part of the financing arrangement for the purchase of 33.8 million Aker BP shares from BP plc. In the fourth quarter of 2016, the dollar loan was reduced by USD 25 million, equal to the dividend received from Aker BP.
As at 31 December 2016, the total outstanding bond debt amounted to NOK 6.4 billion. Bank debts totalled NOK 1.9 billion, while the unused credit facility stood at NOK 1.0 billion.
The financial investments in the listed companies American Shipping Company, Philly Shipyard, Solstad Offshore and Cxense were valued at NOK 1.1 billion at the end of 2016. Over the course of the year, Aker invested NOK 55 million in shares in the listed technology company Cxense. Aker has an interest in innovative technology and knowledge institutions.
Other financial investments totalled NOK 1.6 billion at the end of 2016. These include interest-bearing receivables of NOK 1.0 billion and equity investments in unlisted companies. In 2016, the portfolio of unlisted companies was written down by a total of NOK 260 million.