Intel stock extends gains after report of possible U.S. government stake
Introduction & Market Context
SKEL (ICE:SKEL) released its H1 2025 investor presentation on August 14, 2025, reporting a loss of 559 million ISK for the period, primarily driven by negative fair value changes in its listed assets. The company’s stock closed at 16.9 ISK, down 0.59% on the day of the presentation, trading below its reported equity and unpaid dividends per share value of 21.4 ISK.
The Icelandic investment company highlighted several strategic milestones achieved during the first half of the year, with the formation of Drangar hf—a new retail group combining Orkan, Lyfjaval, and Samkaup—taking center stage in its transformation efforts.
Executive Summary
SKEL reported total assets of 57 billion ISK and equity of 37 billion ISK as of June 30, 2025. The company maintained a strong cash position with 3.7 billion ISK in cash and treasury bonds. While unlisted assets delivered a positive performance of 1.1 billion ISK, listed assets declined by 1.7 billion ISK, resulting in the overall loss for the period.
As shown in the following financial overview:
The company’s asset allocation remains diversified across multiple sectors, with consumer market (25%), real estate (24%), and corporate market (17%) representing the largest segments. SKEL emphasized that 82% of its assets are valued based on recent transactions or have known market prices, highlighting the reliability of its valuation methods.
The following chart illustrates SKEL’s asset allocation:
Strategic Initiatives
The formation of Drangar hf represents SKEL’s most significant strategic move during the period. The new retail group combines several of SKEL’s consumer-facing businesses, creating a substantial challenger in Iceland’s retail market with approximately 160 locations nationwide.
SKEL holds a 68.3% stake in Drangar following the transaction, with other shareholders including Kaupfélag Suðurnesja (15%), Birta lífeyrissjóður (5.3%), and several other institutional investors. The company plans to list Drangar on the Iceland Stock Exchange before the end of 2027.
The following breakdown shows Drangar’s nationwide presence across its various brands:
Drangar’s operations showed promising results in H1 2025, with its Home segment (grocery stores) reporting revenue of 23.9 billion ISK, a 6.9% increase year-over-year. The Vehicle segment (Orkan and Löður) generated gross profit and other income of 2.89 billion ISK, while the Health segment (Lyfjaval) saw a nearly 13% increase in gross profit to 653 million ISK.
The operational performance of these segments is illustrated here:
Management has outlined ambitious initiatives to improve earnings in the grocery segment by 2.5-3 billion ISK over the next two years through procurement optimization, cost reduction, operational simplification, and improved customer experience:
Detailed Financial Analysis
SKEL’s financial results for H1 2025 were significantly impacted by fair value changes across its investment portfolio. While unlisted assets contributed positively with a 1.13 billion ISK gain, listed assets declined by 1.66 billion ISK, resulting in a net negative impact of 531 million ISK.
The breakdown of these fair value changes reveals that Baridi contributed the largest positive impact (+1.65 billion ISK), while Kaldalón (-890 million ISK) and Skagi (-510 million ISK) were the main detractors:
SKEL’s balance sheet remains solid with 56.66 billion ISK in total assets and 37.2 billion ISK in equity. The company’s major assets include Drangar (13.73 billion ISK), Styrkás (9.82 billion ISK), and real estate holdings (9.84 billion ISK).
The following balance sheet overview provides a comprehensive look at SKEL’s financial position:
In terms of asset valuation methods, SKEL emphasized transparency by providing a detailed breakdown:
Forward-Looking Statements
Drangar’s financial forecast shows steady revenue growth from 74.7 billion ISK in 2024 to 79.6 billion ISK in 2026, with more substantial improvements in profitability. EBITDAAL is projected to increase from 1.91 billion ISK (2.6% margin) in 2024 to 5.19 billion ISK (6.5% margin) in 2026, reflecting the expected benefits from operational improvements and strategic initiatives.
The following forecast illustrates Drangar’s expected financial trajectory:
Compared to its larger competitors FESTI and Hagar, Drangar positions itself as a challenger in the retail market with a different revenue mix. While Drangar derives 63% of its revenue from groceries and 30% from fuel, FESTI generates 50% from fuel and 25% from groceries, and Hagar earns 68% from groceries.
SKEL also highlighted its commitment to shareholder returns, noting that it has distributed 8.6 billion ISK to shareholders since 2022, including 6 billion ISK in 2025 alone. The company plans to continue this strategy while pursuing operational improvements at Drangar, exploring further projects in Northern Europe, growing Styrkás through targeted mergers, strengthening INNO stores, and continuing real estate asset sales.
Looking ahead, SKEL will focus on Drangar’s capital raise, which is expected to begin in September 2025 with an underwriting commitment from Íslandsbanki for 2 billion ISK. The company also plans to continue divesting real estate assets and exploring new investment opportunities in Northern Europe.
Full presentation:
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