Hello everyone, good morning. Welcome to Aker's half year and second quarter 2019 results presentation. We will start today's presentation with Aker's President and CEO, Øyvind Eriksen. He will walk you through the highlights of the quarter and the development of our industrial holdings portfolio. Aker's CFO, Frank Reite, will go through the financial investments portfolio and the first half accounts in more detail. After the presentation, we will open up for a Q&A. With that, I hand it over to Øyvind.
Thank you to Bjørn. Good morning and welcome to Aker's second quarter and half year results presentation. Let me start with the highlights from the first half of the year. Aker's Net Asset Value was up NOK 4.7 billion in the first half of 2019, including NOK 1.7 billion in paid dividends. The Net Asset Value was NOK 44.8 billion at the end of the second quarter, up from NOK 41.7 billion at the year end 2018. Our share price rose 11.1% in the first half, adjusting for dividend. This compares to an 8.2% return in the same period for the Oslo Stock Exchange. Aker's liquidity reserve stood at NOK 6.1 billion, including NOK 3.4 billion in cash. In May, we distributed a NOK 22.5 per share dividend to our shareholders, equal to 4% of Net Asset Value and a 4.9% direct yield as per year end 2018.
Net Asset Values decreased by NOK 9.8 billion in the second quarter, mainly due to a large value drop in our key asset, Aker BP. This highlights the volatility in the markets in which we operate. After the close of the quarter, the Net Asset Value has, however, increased by NOK 300 million. The second quarter offered the following main events for our portfolio companies. Aker BP agreed a senior unsecured credit facility of $4 billion USD. Aker BP also raised $750 million in a senior note, priced at a favorable rate of 4.75%. Aker Energy resubmitted a plan for operation and development in Ghana. Aker Energy also assisted AJM Petroleum, a company controlled by our main shareholder, in drilling operations in the South Deepwater Tano Block with discovery of oil as a result. Ocean Yield acquired three dry bulk vessels on long-term charters.
Subsequent to quarter end, Aker Energy entered into a financing agreement with Africa Finance Corporation, a multilateral investment-grade rated financial institution focusing on infrastructure projects in Africa. The institution intends to participate also in future capital market activities with Aker Energy. Moreover, Aker BP made a large new oil discovery in the NOAKA area named Liatårnet. The preliminary estimates suggest 80-200 million barrels of recoverable reserves. Aker BP's ownership of Liatårnet is 90%, making this a high-impact discovery for the company. Moving on to slide three. In the first half of 2019, Aker's Net Asset Value rose to NOK 44.8 billion representing an 11.3% value increase when including dividend paid in the second quarter. Of the listed industrial holdings, Aker BP again contributed to most of the increased value.
The Aker BP value increased NOK 3.8 billion in the first half. Aker has, in addition, received NOK 1.3 billion in dividends from the company in the period. The return has been more than NOK 5 billion. Ocean Yield increased NOK 100 million in share value, including received dividends of NOK 300 million. The largest drop in value for the industrial holdings came in Aker Solutions, which fell NOK 500 million in the first half. Kværner was a positive story and gained NOK 128 million and in addition, paid NOK 67 million in dividend. Slide four. Aker's share price rose 42.4% in the first quarter and fell 25.4% in the second quarter, leading to a 6.2% gain in the first half of the year. The return was, however, 11.1% per Aker share when including dividend paid in May.
Aker's gross asset value as per June 30th was NOK 56.8 billion, where the industrial holdings portfolio represented 87% of this. When deducting liabilities of NOK 12 billion, the value-adjusted equity ratio stood at 79%. Slide five. The Industrial Holdings portfolio currently consists of eight assets, five listed and three non-listed companies. Aker Energy and Cognite were included in Aker's industrial holdings in the first half of 2019. Both companies are considered value triggers in our portfolio. In the second quarter, Aker BioMarine's CEO acquired 2% of the shares in Aker BioMarine from Aker, taking Aker's ownership to 98% of the company. As per June 30th, E&P accounted for 64% of our gross values, Oil Services 10%, Maritime Assets 11%, and Seafood and Marine Biotech 6%. Slide six.
Aker's liquidity reserves stood at NOK 6.1 billion at the end of the second quarter, of which cash amounted to NOK 3.4 billion. Aker's dividend income was NOK 1.7 billion in the first half. We remain on track to reach in excess of NOK 3 billion in upstream cash this year, which will represent a new milestone for Aker. Moving on to Slide seven and more details in our Industrial Holdings portfolio. Starting with Aker BP. Aker BP made up 62% of our gross asset value as per June 30th. In the second quarter, Aker BP produced 127,300 barrels per day, 20% down from the prior quarter as output was negatively affected by planned field maintenance. Aker BP also reported an EBITDAX of $583 million, compared with $629 million in the first quarter. Aker BP paid a quarterly dividend, of which Aker received NOK 653 million.
Subsequent to the end of the second quarter, Aker BP made a large new oil discovery in the NOAKA area named Liatårnet. The preliminary estimates suggest 80 to 200 million barrels of recoverable reserves. Aker BP's ownership in Liatårnet is 90%, making this a high-impact discovery for Aker BP. Liatårnet can increase the company's resource base significantly and lay a solid foundation for further production growth in Aker BP. In order to develop and produce the estimated 700 million barrels of recoverable resources in NOAKA, the deadlock with Equinor has to be resolved. With responsible leadership on both sides, I am confident that a compromise will ultimately be achieved. The dialogue with Equinor is ongoing. It's premature to say how and when a solution will be concluded.
As an active owner, we are reminded to keep a steady course, focus on our long-term objectives, and spend time on our true value drivers. Our ownership agenda in Aker BP remains focused on lowering break-even costs and reducing production costs. A large contributor to achieve these targets will be the implementation of digitalization, where one of our portfolio companies, Cognite, plays an important role. Slide eight. In the second quarter, Aker Energy submitted an updated PDO application to Ghanaian authorities. Approval of the PDO and a subsequent final investment decision is targeted in the second half of 2019. The company has announced the results of its appraisal drilling campaign. In addition to the original discovery of 334 million barrels in the Pecan area, it's estimated that the Pecan South well holds between five and 15 million barrels, while the Pecan Southeast well is most likely not commercial.
Continuing to prove up additional volume in the area is still a priority for Aker Energy. In the quarter, Aker Energy acted as service provider to AJM in drilling the South Deepwater Tano block and will continue to assist in the future appraisal and exploration activities. TRG has, over the last five years, invested around NOK 1.5 billion in AJM. We are therefore pleased to announce that oil has been discovered also in the AJM block. When it comes to volume ranges, AJM will communicate this at a later stage. The drilling results, including quantification of volume, is subject to further analysis. Aker considers a consolidation of ownership across the two blocks as a natural future step. Subsequent to quarter end, Aker Energy entered into an agreement with Africa Finance Corporation, AFC, to issue a NOK 100 million convertible subordinated bond.
AFC has also received equity warrants with the right to subscribe shares in Aker Energy in future equity offerings. Moving on to slide nine. In the second quarter, Aker Solutions reported NOK 623 million in EBITDA and an order intake of NOK 3.8 billion. As per the end of the quarter, the backlog stood at NOK 29.5 billion. The market is showing signs of improvement for Aker Solutions and operational performance remains strong. This positions the company to take a fair share of new contract awards. Aker Solutions is expecting significantly increased order intake in the second half of the year, but at weaker margins. Ole Martin Grimsrud has been appointed CFO of Aker Solutions and will replace Svein Oskar Stoknes effective August 1st, 2019. Slide 10.
In order to strengthen its onshore aftermarket services and presence in North America, MHWirth acquired in the second quarter Bronco Manufacturing, a company that manufactures parts to the global drilling industry, as well as delivers engineering and procurement services. The acquisition is a step in Akastor's strategy for MHWirth, which includes expanding the company both organically and through acquisitions. Operationally, MHWirth has seen a positive trend in aftermarket revenues during the last quarters. In April, MHWirth secured a contract for a full drilling package to Keppel FELS for a new harsh environment semi-submersible rig to be built for Awilco Drilling. Akastor continues to work closely with its portfolio companies to support cost-saving programs, operational improvements, and strategic initiatives to further enhance their competitiveness.
Aker encourages Akastor to continue to play an active role in M&A to secure value-enhancing transactions and selectively pursue investment opportunities that strengthen its existing portfolio. Slide 11. In the second quarter, Kværner delivered revenues of NOK 1.9 billion and an EBITDA of NOK 132 million. The company continues its strong operational performance, as evidenced by the delivery of the Valhall flank west platform for Aker BP. The top side was ready to transport to the field only 14 months after cutting the first steel plates. The order backlog ended at NOK 9 billion, including the award of the dismantling and recycling of the Statfjord A and FEED study for the Jotun UWP. Kværner remains committed on increasing efficiency to strengthen competitiveness in order to secure new work beyond the current backlog.
Flexibility to assess strategic alternatives is secured with NOK 2.7 billion in cash, in addition to undrawn credit facilities of NOK 2 billion. Moving on to slide 12. Ocean Yield reported an EBITDA of $57 million in the second quarter. The backlog ended at NOK 3.3 billion, with an average contract duration of 10.9 years. In the second quarter, Ocean Yield extended its agreement with Aker Energy to 1st September 2019, where Aker Energy has an option to bareboat charter the FPSO Dhirubhai-1 for a period of 15 years. The company is also in parallel pursuing other employment opportunities for the FPSO. In the quarter, the company acquired three dry bulk vessels for a total consideration of $82 million, net of seller's credit. All vessels are chartered on long-term contracts.
Ocean Yield also took delivery of the first two VLCC new buildings in a series of four vessels with a 15-year bareboat charter to Okeanis Eco Tankers. The company declared $0.191 per share in dividends in the quarter, unchanged from the prior quarter. If no satisfactory long-term employment for the FPSO can be firmed up within the end of the first quarter 2020, Ocean Yield has announced that the company will consider an adjustment of the dividend level to $0.15 per share. Slide 13. In the second quarter, Aker BioMarine's revenue ended at $67 million, with an EBITDA of $17 million, corresponding to a margin of 25%. The second quarter revenues are positively affected by increased downstream activities, mainly as a result of the acquisition of Lang Pharma Nutrition earlier this year. Year to date, the company reports record-high harvesting and production volumes.
The company expects growth in the demand for its products, driven by expansion into the Asian markets. Finally, on Slide 14, some comments on Cognite, the fastest-growing company in our portfolio of industrial investments. In the second quarter, Cognite reported NOK 71 million in revenues compared to NOK 26 million in the same period last year, supported by a growing customer base. Customer projects are progressing, and the company has a solid pipeline of potential new customers. In the second quarter, the company signed a multi-year agreement with OMV to support OMV's digital transformations. This contract is a major milestone for the company, as it allows for the expansion, both geographically and into the onshore domain. Cognite's organization continues to grow and expanded by another 34 employees during the second quarter. The company now has 227 employees, compared with 98 employees a year ago.
One of the key expansions are taking place in North America, where Cognite, during the summer 2019, will open a new office in Austin, Texas. That marks the end of my presentation today. Before I leave the word to our CFO, Frank Reite, I would like to thank him for his significant contribution to Aker ASA. Frank has been Aker's CFO for the past four years, and today holds his last quarterly presentation for the company, as he will be stepping down for calmer days due to health reasons. Please take our audience through Aker's financial accounts, Frank.
Thank you, Øyvind, good morning, everyone. I will spend some minutes on Aker's financial investments before I go through the second quarter accounts. Let's start with slide number 16. The financial portfolio accounted for 13% of Aker's total assets, or NOK 7.1 billion. This is up NOK 0.6 billion from the previous quarter, mainly explained by increased borrowings and cash dividends received from Aker BP and Ocean Yield, partly offset by dividend paid. The main components under financial investments are cash, listed investments, real estate investments, and interest-bearing receivables. Let's look into the details of the financial investment portfolio, starting with cash on slide number 17. Our cash holdings represent 6% of Aker's gross asset value, or NOK 3.4 billion. This is up NOK 0.3 billion from the previous quarter.
The main cash inflows were the NOK 1.7 billion drawn over credit facilities and NOK 898 million in dividends from mainly Aker BP and Ocean Yield. The main cash outflow in the quarter was the NOK 1.7 billion paid as dividend to our shareholders. In addition, our receivables against portfolio companies increased by NOK 253 million, mainly towards Aker BioMarine, and we increased our investments in Aker Energy by NOK 138 million. Payments in the quarter for operating expenses and net interest were NOK 152 million. Other cash movements mainly includes NOK 100 million prepayment for the new airplane. Our liquidity reserve at the end of the second quarter was NOK 6.1 billion, including undrawn credit facilities of NOK 2.6 billion. Turning to page 18. Listed investments, including our financial portfolio, represent 1% of Aker's total assets or NOK 770 million.
The net value increase in the quarter was NOK 21 million, mainly explained by the value increase of American Shipping Company of NOK 37 million. Partly offset by a NOK 12 million value reduction of Philly Shipyard. The total exposure towards AMSC also includes two TRS agreements with a value increase of NOK 62 million in the quarter, presented as part of other financial investments. We posted a dividend income from American Shipping Company of NOK 21 million in the quarter.
Next, on page 19, real estate and other financial investments. Combined, the two represent 5% of Aker's gross asset value, or NOK 2.9 billion. The NOK 350 million increase in the quarter is mainly explained by NOK 220 million in increased funding to Aker BioMarine, and NOK 100 million in prepayment for the new airplane. I will now go through the second quarter financial highlights for Aker ASA and holding companies.
The consolidated group accounts are included in the half year report. I will not comment on those figures. Let me start with the balance sheet on page 21. The book value of our investments was down with NOK 99 million in the quarter, mainly explained by value reduction on our direct investments in Aker Solutions and Akastor. This was partly offset by increased investments in Aker Energy. Total book value of our assets was NOK 25.9 billion, and in our accounts we used the lowest of historic cost and market values. Share prices for our investments continue to be volatile, and this quarter we faced a NOK 10.3 billion decrease of our fair value adjustment, bringing it down to NOK 30.9 billion. This is, however, NOK 3.4 billion higher than at year end 2018. The gross asset value stood at NOK 56.8 billion at the end of the quarter.
Aker's liability mainly consists of bond debt of NOK 6.1 billion, U.S. denominated bank loans of NOK 4.7 billion, and a NOK 969 million EUR denominated loan. The book equity was NOK 13.9 billion, up NOK 569 million from the first quarter, explained by the net profit before tax for the second quarter. If we adjust for fair value on our listed assets, we get our Net Asset Value of NOK 44.8 billion at the end of the second quarter, down NOK 9.8 billion from the first quarter. The Net Asset Value per share was NOK 603, and the value adjusted equity ratio was 79%. Let's continue on to page 22. Our total interest-bearing debt stood at NOK 11.7 billion, which is up by NOK 1.7 billion from the previous quarter due to a $200 million drawn on our credit facility.
In July, we will repay the AKER12 bond at maturity with SEK 1.5 billion from our cash holdings, taking the gross interest-bearing debt down towards NOK 10 billion again. As before, we have significant headroom with regards to our loan covenants. We had a net interest-bearing debt of NOK 7.2 billion at the end of the second quarter, up from NOK 6 billion in the previous quarter. To the income statement on slide number 23. The operating expenses for the second quarter were NOK 69 million. The net value change in the quarter was negative NOK 190 million, mainly explained by write-downs of our direct investments in Aker Solutions and Akastor. Net other financial items were positive NOK 831 million, mainly explained by dividend income of NOK 838 million. The profit before tax was NOK 566 million in the quarter. Bjørn, we should open for questions.
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Okay. Operator, we will then cut the questions, and if there's no questions, we will then conclude our presentation for today. We would like to thank everyone who attended, and we take the opportunity to wish you all a great summer.