Investment portfolio

Strategy

As an industrial investment company, North Energy seeks to provide shareholders with an attractive return on its shares based on a strategy of active ownership. The Company generally expect its investment returns to be based on the value creation derived from the operating activities of its investments.

The Company may also, from time to time, invest in financial instruments using excess liquidity on a short- or medium-term basis. Regardless, shareholders should expect the majority of the company’s available financial resources to be deployed in industrial investments with a long-term ownership objective, giving the company a relatively high degree of concentration in a few selected companies.

The Company has a long-term view on identifying industrial investments and can generally be expected to make relatively few investments during a normal year. The Company’s overall strategy is based on a value oriented and contrarian philosophy, implemented by waiting for the right opportunities to emerge in industries or sectors that are offering attractive long-term returns.

The Company seeks to avoid early phase, venture or similar types of companies that are based on new technology and unproven business models. To maximize its ability to capture attractive opportunities the company generally intends to have a significant balance of cash and cash equivalents.

In its industrial investment activities, the Company targets ownership levels that allow the company to influence the strategic direction of its investments. As such, North Energy will often seek board representation, however, not as an absolute requirement provided the Company can still influence overall strategic direction.

North Energy seeks out investments in both listed and unlisted companies and can acquire shares either in secondary markets or through participating in primary issues. The overall ambition is to achieve the required degree of ownership at an entry level valuation which provides a basis for generating attractive financial returns. The company may convert its financial investments over time to industrial investments, and vice versa, depending on the development of its investments.

The Company measures its success based on criteria, including, but not limited to i) return on book equity and ii) growth in net asset value per share. The Company’s overall financial ambition is to increase its book equity per share at a competitive growth rate over time.

The Company is evaluating companies both within the traditional energy industry, as well as emerging sectors such as renewable energy production and related activities. In addition, the Company continues to evaluate possibilities within other industries outside the energy sector.