Abl Group Asa · OSL:ABL
Abl Group Asa — AqualisBraemar LOC — Q1 2021 Earnings Presentation
42 slides from Abl Group Asa's earnings presentation, May 19, 2021
Slide 1: 2021 Q1 results
2021 Q1 results 19 May 2021 ABL-GROUP.COM
Slide 2: Highlights, Financial review, Outlook
1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC
Slide 3: Disclaimer
Disclaimer ▪ This Presentation has been produced by AqualisBraemar LOC ASA (the “Company” or “ABL”) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential
Slide 4: Q1 2021 Highlights
Q1 2021 Highlights Reported numbers1 Pro-forma combined2 • Revenues of USD 36.7 million (Q1 20: USD 19.8 million stand-alone1, USD 34.8 35.7 36.7 34.8 pro-forma combined2) 19.8 19.6 • Continued strong revenue growth3 in Renewables (+30% vs Q1 20 pro-forma) Revenue (USDm) • Encouraging improvement in
Slide 5: Our Markets
Our Markets 5
Slide 6: Our Service Portfolio
Our Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Technical due diligence • Clean shipping Marine surveys, Marine warranty survey Marine casualty support & Expert witness & litigation • Owner’s engineering & • Engineering & design inspections & audits • Renewables mana
Slide 7: The strategic vision
The strategic vision 1 2 3 Grow through continued expansion in Leverage our Capital efficiency, offshore renewables and sustainability- market leading position consistently return capital oriented services in the O&G and within shipping, oil and gas to improve to shareholders Maritime industries pro
Slide 8: Global partner, local expert
Global partner, local expert 896 Employees1 60 Offices 38 Countries Global footprint provides clients with local expertise and swift response 8 1 Includes subcontractors on 100% utilisation basis. Calculated as an average during Q1 2021
Slide 9: Integration update and rebranding
Integration update and rebranding Comma between renewables and oil & gas on the • AqualisBraemar and LOC have successfully finalised the initial Longitude integration process ahead of original schedule, operating as description AqualisBraemar LOC group effective from 21 April • The group now operate
Slide 10: Reporting structure: Operating segments and market sectors
Reporting structure: Operating segments and market sectors Operating segments Middle East Asia Pacific Europe Americas OWC Longitude Renewables Market sectors2 Maritime Global Global Regional Regional operations by operations by Regional operations in operations in Regional OWC, Innosea Longitude op
Slide 11: Diversified across markets – Renewables continues to grow
Diversified across markets – Renewables continues to grow Market sector revenue L12M – pro forma combined Segment revenue L12M – pro forma combined1 Adjusting Longitude 7% 4% OWC 12% Europe 27% Renewables 19% 141.4 Oil&Gas Middle East 141.4 51% 17% USDm USDm Maritime Asia Pacific 23% 22% Americas 18
Slide 12: Record offshore wind investments in 2020 as oil majors ramp up presence
RENEWABLES Record offshore wind investments in 2020 as oil majors ramp up presence Offshore wind FIDs (USDbn) Oil majors accounted for 30% of 2020 offshore wind FIDs 60 50.0 50 40 31.9 30 20 10 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 • Offshore wind FIDs in 2020 totaling USD 50 billion, up 56
Slide 13: Project: Owner's Engineering with Saman in South Korea
RENEWABLES Project: Owner’s Engineering with Saman in South Korea • ABL (OWC) has been engaged by Saman to conduct Owners Engineering services on two offshore wind farms in South Korea: Jeonnam Wando Geumil and Sinan • These two projects are the first large scaled Offshore Wind Farm projects beyond
Slide 14: Project: Jeju Hanlim OWF
RENEWABLES Project: Jeju Hanlim OWF • ABL (Innosea) has been engaged by KCI The Engineers to provide engineering services on the Jeju Hanlim offshore wind farm in South Korea • Innosea and KCI are performing the work on behalf of KEPCO E&C • Innosea will provide engineering review and consulting ser
Slide 15: Recovery started in rig activity, but capex expected to be muted in 2021
OIL & GAS Recovery started in rig activity, but capex expected to be muted also in 2021 E&P capex growth Rigs under contract 0.3 450 400 0.2 350 0.1 300 # Units 0 250 200 -0.1 150 -0.2 100 50 -0.3 0 -0.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Onshore Offshore Floaters Jackups 15
Slide 16: Project: Petrobel hires ABL for Egypt offshore work
OIL & GAS Project: Petrobel hires ABL for Egypt offshore work • AqualisBraemar LOC in Egypt was recently awarded a 2-year contract with Petrobel to provide marine warranty survey (MWS) • AqualisBraemar LOC will provide MWS on Petrobel’s upcoming marine campaigns and to support their offshore assets,
Slide 17: Project: Ever Given appointment
MARITIME Project: Ever Given appointment • From 23rd to 29th March 2021, the grounded container vessel Ever Given blocked the Suez Canal, causing a severe global supply chain disruption • Goods worth USD 9 billion held up • Created backlog of 420 vessels awaiting transit • The vessel is currently he
Slide 18: Order backlog development
Order backlog development Order backlog Highlights Q1 2021 80 • Order backlog at USD 71.3 million, down 6% from Q4 2020 70 • Increase in 4Q 20 was driven by consolidation of LOC at 60 quarter end, whose business model is more backlog intensive than AqualisBraemar stand-alone 50 • The main part of ou
Slide 19: Staff growth continues post LOC acquisition
Staff growth continues post LOC acquisition Highlights Q1 2021 Staff level development1 • Average staff levels increased 2% in Q1 relative to Q4 1 000 50% on pro forma combined basis, driven by seasonal increased activity primarily in Renewables • Staff count nearly doubled with LOC acquisition 800
Slide 20: Highlights, Financial review, Outlook
1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC
Slide 21: Revenue and adjusted EBIT
Revenue and adjusted EBIT Revenue (USDm) Adj EBIT1 (USDm) BTS consolidated LOC consolidated BTS consolidated LOC consolidated from 3Q19 from 1Q21 from 3Q19 from 1Q21 36.7 2.4 +6% 1.8 +85% 1.4 18.8 19.8 19.2 19.6 18.0 18.4 1.0 9.9 0.6 8.2 0.5 0.4 0.3 0.1 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1
Slide 22: Segment revenues and EBIT
Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 12.0 1.2 8.0 0.8 0.4 4.0 0.0 0.0 -0.4 -4.0 -0.8 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 • Consolidation of LOC from 1Q21 affects comparability of all segment figures • Underlying strong revenue growth in OWC continues • Decent pro
Slide 23: Income Statement
Income Statement USD thousands Consolidated income statement Q1 21 Q1 20 2020 • Revenues for Q1 2021 up 85% from Q1 2020 Revenue 36 698 19 787 77 015 • Reported growth driven by consolidation of LOC Total revenue 36 698 19 787 77 015 • Revenues up 6% vs pro-forma combined Q1 2020 Staff costs (20 295
Slide 24: Strong financial position, but poor cash flow due to working capital increase
Strong financial position, but poor cash flow due to working capital increase Highlights Q1 2021 Working capital1 (% of quarterly revenue) • USD 28.3 million in cash 150% 146% 142% 140% 138% 135% • Down from USD 30.6 million in Q4 2020, mainly due to 127% increase in working capital 125% • USD 15.1
Slide 25: Proposal of semi-annual dividend of NOK 0.25 per share to be paid in June
Proposal of semi-annual dividend of NOK 0.25 per share to be paid in June Paid and proposed dividends (NOK/share) • Proposed dividend of NOK 0.25 per share is upheld, corresponding to USD 2.8 million • The distribution will be classified as a repayment of paid-in capital 0.25 • The dividend is subje
Slide 26: Highlights, Financial review, Outlook
1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC
Slide 27: Summary and outlook
Summary and outlook • Improving operational performance in Q1 despite focus on integration and continued travel restrictions • Initial integration of LOC and East Point Geo completed ahead of schedule, positive response from staff and clients • Positive market outlook • Strong growth in renewables c
Slide 28: Appendix
Appendix © 2012-2021 AqualisBraemar LOC
Slide 29: AqualisBraemar LOC Group targets
AqualisBraemar LOC Group targets • Financial targets • Organic revenue growth of 5 percent over a business cycle • Renewable and sustainability-oriented services target at 50% of revenue in 2025 • EBITA margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparability) ov
Slide 30: Billing ratio development
Billing ratio development Billing ratio1 – Total technical staff (including subcontractors) BTS consolidated LOC consolidated from 3Q19 from 1Q21 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Billing ratio, Aqualis/AqualisBraemar Gliding 3
Slide 31: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Restructuring and integration costs - - 48 475 5 528 48 55 52 30 185 283 Other special items (incl. share-based expenses) - - - - - - 78 76 80 83 318 106 Transaction costs
Slide 32: General (1/2)
General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated AqualisBraemar LOC discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an financial highlights for the quarter of the enhanced insight into the ope
Slide 33: General (2/2)
General (2/2) Alternative Performance Measures (APMs) continued Return on equity (ROE) ROE is calculated as the adjusted profit (loss) for the period attributable to equity holders of the parent, divided by average total equity for the period. The adjusted profit (loss) is annualised for interim per
Slide 34: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Operating profit (loss) (EBIT) 2 684 (248) (284) (245) 444 (332) 1 279 1 577 506 (416) 2 946 1 859 Depreciation, amortisation and impairment 129 38 38 362 252 690 362 363
Slide 35: APMs and Key Figures
APMs and Key Figures USD thousands Working capital FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Trade and other receivables 9 870 8 371 27 534 25 896 24 252 24 252 26 064 26 568 24 714 41 498 41 498 45 954 Contract assets 2 297 1 910 12 288 13 518 12 019 12 019 11 145 9 26
Slide 36: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Revenue 36 185 8 182 9 869 17 957 18 785 54 792 19 787 19 232 18 431 19 565 77 015 36 698 Total revenue 36 185 8 182 9 869 17 957 18 785 54 792 19 787
Slide 37: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Property, plant and equipment 141 139 520 508 559 509 475 452 1 213 1 350 Right-of-use assets - 84 2 415 2 167 2 376 2 021 1 757 1 485 4 707 4 046 Goodwil
Slide 38: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 2020 Q1 21 Profit (loss) before taxes 2 878 (368) 11 116 144 (992) 9 900 3 000 1 394 441 (2 328) 2 507 1 414 Adjustments for: Depreciation, amortisation an
Slide 39: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Middle East 17 796 4 164 4 483 5 221 6 087 19 955 7 013 5 595 4 019 5 738 22 365 7 230 Asia Pacific 7 358 1 427 1 987 5 909 5 636 14 958 5 745 5 256 5 638 5 610 22 24
Slide 40: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Middle East 4 824 4 069 5 450 5 102 5 648 5 648 6 915 6 778 4 937 6 338 6 338 6 316 Asia Pacific 1 676 1 016 5 718 5 705 6 207 6 2
Slide 41: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 790 351 16.0% 2 BRAEMAR SHIPPING SERVICES PLC 9 640 621 10.4% 3 HOLMEN SPESIALFOND 9 240 763 10.0% 4 BJØRN STRAY 5 017 743 5.4% 5 MELESIO INVEST AS 4 441 016 4.8% 6 MP PENSJON PK 2 081 128 2.2% 7 HAUSTA INVE
Slide 42: © AqualisBraemar LOC, 2021 ABL-GROUP.COM
© AqualisBraemar LOC, 2021 ABL-GROUP.COM