Akastor ASA · OSL:AKAST
Akastor ASA — Q1 2024 Earnings Presentation
37 slides from Akastor ASA's earnings presentation, Apr 25, 2024
Slide 1: Quarterly presentation – Akastor ASA 1Q 2024
1Q 2024 Quarterly presentation – Akastor ASA April 25, 2024 Akastor © 2024
Slide 2: 1Q 2024 Highlights
1Q 2024 Highlights NET CAPITAL EMPLOYED 1) NOK million, 31 March 2024 ▪ EBITDA (adj.) of USD 33 million in quarter, approx. 75% Book value per share increase year-on-year driven by higher aftermarket activity 11.8 4.1 2.8 1.2 1.2 -1.0 20.2 -3.0 17.2 ▪ USD 22 million draw on RCF paid down in quarter
Slide 3: DRU arbitration award
DRU arbitration award ▪ DRU arbitration award received 17th April 2024 ― Award issued by Singapore International Arbitration Centre ▪ Total gross amount awarded to MHW/AKAST of about USD 173 million, including interest calculation ― About USD 108 million awarded as payment of termination fees and re
Slide 4: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 4
Slide 5: Summary and outlook
Summary and outlook ▪ Order intake of USD 209 million in the quarter, with a book-to-bill >1x ▪ EBITDA of USD 33 million in the quarter, up ~75% year- on-year ▪ USD 22 million draw on RCF paid down in quarter as planned ▪ Signed two new multi-year contractual service agreement supporting future grow
Slide 6: HMH highlights | 1Q 2024
HMH highlights | 1Q 2024 Proforma financials, IFRS ▪ Revenues up 4% year-on-year driven by increase in REVENUE EBITDA1) EBITDA MARGIN (Adj.) DLS output offset by lower project activity and USD millions USD millions % down 7% quarter-on-quarter driven by product 203 208 46 21.0 volume and prior quart
Slide 7: Segments highlights
Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Service revenue up 19% year-on-year driven by increased 147 157 146 overhaul and repair activity and down 7% quarter-on-quarter 123 138 driven by lower spares output ▪ Order intake down 8% year-on-year driven by ti
Slide 8: Net interest-bearing debt
Net interest-bearing debt ▪ Net debt of USD 151 million as per end of period NET INTEREST-BEARING DEBT USD millions ▪ LTM NIBD/EBITDA (adj.) at 1.1x per 1Q 2024 265 ▪ USD 22 million RCF draw fully repaid in Q1 2024 200 114 49 151 IBD as per period end Amount Key terms Senior Secured Bond 200 Nordic
Slide 9: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 9
Slide 10: Net Capital Employed
Net Capital Employed Net Capital Employed per 1Q 2024 1) Development in 1Q 2024 NOK million NOK million 316 (263) 47 (67) 53 (15) 340 (811) 758 628 1 125 233 5 523 5 523 4 712 3 247 4 645 DRU Other Net NIBD Equity Net Capital DRU Other Net Capital contracts Capital Employed contracts Employed Employ
Slide 11: Net interest-bearing debt development
Net interest-bearing debt development Net debt bridge 1Q 2024 highlights NOK million ▪ Net bank debt increased by NOK 189 million in the quarter, to NOK 1 373 1 373 million 82 58 ▪ “Other” (as shown in graph) includes negative non-cash foreign exchange 1 184 49 (295) effects of NOK 54 million ▪ DDW
Slide 12: External financing facilities and liquidity
External financing facilities and liquidity Overview of financing facilities Cash and undrawn facilities as of 31 March 2024 NOK million 338 Facility Size Maturity Margin Revolving (USD) USD 60 million [1] June 2024 5.5% 98 240 Revolving (NOK) NOK 241 million [1] June 2024 5.5% Subordinated Aker fac
Slide 13: Income statement 1Q 2024
Income statement 1Q 2024 COMMENTS ▪ JV holdings, including HMH and AKOFS, are not consolidated in the Akastor group financials. Consolidated revenue and EBITDA thus only represent a minor part of Akastor’s investments. ▪ Other income of NOK 599 million in 1Q related to DRU arbitration award of termi
Slide 14: Income statement 1Q 2024 (cont.)
Income statement 1Q 2024 (cont.) COMMENTS ▪ Net financial items include non- cash items from financial investments and a non-cash net foreign exchange gain of NOK 96 million ▪ Equity accounted investees contributed negatively with NOK 21 million (non-cash for Akastor) ▪ Award of interest compensatio
Slide 15: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 15
Slide 16: Portfolio overview
Portfolio overview Industrial investments Financial investments Company Service offering Ownership Global full-service offshore and onshore drilling equipment and service provider 50% Global engineering staffing provider within multiple sectors ~15%1) DRU Full economic Financial interest in four dri
Slide 17: HMH
HMH Business model ▪ Global full-service offshore and onshore drilling REVENUE equipment provider with a broad portfolio of products USD millions Capital Employed and services 208 59% 186 189 203 193 NOK 3 247 million ▪ Large installed base providing firm foundation for strong customer relationship
Slide 18: NES Fircroft
NES Fircroft Business model REVENUE 1) ▪ World’s leading engineering staffing and solution USD millions provider for highly technical industries spanning a Capital Employed 699 707 697 14% range of staffing services: Contract, Permanent Hire 622 670 NOK 758 million & Managed Solutions ▪ Diversified
Slide 19: AKOFS Offshore
AKOFS Offshore Business model REVENUE ▪ Vessel-based subsea well construction and USD millions intervention services covering all phases from Capital Employed 37 6% conceptual development to project execution 36 32 NOK 340 million and offshore operations 30 28 ▪ Operates two SESV vessels in Brazil o
Slide 20: DDW Offshore
DDW Offshore Business model REVENUE ▪ Owns three Anchor Handling Tug Supply (AHTS) NOK millions vessels with capability to operate and support Capital Employed 80 6% clients on a world-wide basis NOK 316 million ▪ The vessels are specially designed to perform anchor-handling, towing, and supply serv
Slide 21: Key priorities for Akastor going forward
Key priorities for Akastor going forward DRU award Monetize HMH liquidity event ✓ DRU contracts DEBT REPAYMENT DISTRIBUTION TO SHAREHOLDERS (CASH OR SHARES) Akastor © 2024 Slide 21
Slide 22: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 22
Slide 23: Appendix
Appendix Akastor © 2024 Akastor © | 2024 Slide 23
Slide 24: Selected transactions since inception in 2014
Selected transactions since inception in 2014 July 2023 April 2023 February 2023 November 2022 August 2022 June 2022 February 2022 a HMH company Sale of two DDW 100% sale, against cash 100% sale to Offshore vessels to 100% acquisition of Sale to Establish JV and shares in Sale of preferred equity ho
Slide 25: Consolidated Income Statement
Consolidated Income Statement Akastor © 2024 Note: Presentation of quarterly results is not audited and may deviate from statutory reporting. Slide 25
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Akastor © 2024 Note: Presentation of quarterly results is not audited and may deviate from statutory reporting. Slide 26
Slide 27: Consolidated Statement of Cash flows
Consolidated Statement of Cash flows The statement includes cash flows from discontinued operations prior to the disposal. Akastor © 2024 Slide 27
Slide 28: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to the consolidated ▪ Gross debt - sum of current and non-current borrowings, which do not include lease liabilities financial statements. Such performance measures are used to provide an enh
Slide 29: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) March 31 December 31 March 31 December 31 NOK million 2024 2023 2024 2023 NOK million Non-current borrowings 253 236 Current operating assets 1 267 606 Current borrowings 1 263 1 133 Less: Gross debt 1 516 1 369 Current operating liabilities 395 339 Less: Ca
Slide 30: Key figures | Group
Key figures | Group AKASTOR GROUP Akastor © 2024 Slide 30
Slide 31: Key figures | Split per company (1/4)
Key figures | Split per company (1/4) HMH Akastor © 2024 Note: HMH figures presented on 100% basis Slide 31 1) EBITDA (adj.) excludes non-recurring expenses or costs defined as outside of normal company operations. 4Q 23 EBITDA updated with final adjustments 2) Equipment backlog defined as Project a
Slide 32: Key figures | Split per company (2/4)
Key figures | Split per company (2/4) AKOFS OFFSHORE Akastor © 2024 Note: AKOFS Offshore figures presented on 100% basis Slide 32
Slide 33: Key figures | Split per company (3/4)
Key figures | Split per company (3/4) DDW Offshore Akastor © 2024 Slide 33
Slide 34: Key figures | Split per company (4/4)
Key figures | Split per company (4/4) OTHER HOLDINGS Akastor © 2024 Slide 34
Slide 35: Odfjell Drilling warrant structure
Odfjell Drilling warrant structure Description Warrant overview Exercise dates ▪ Warrant structure adjusted in Q2 2022 following the spin-off of Odfjell Technology 31 May 31 May 31 May 31 May 31 May 31 May 31 May 2019 2020 2021 2022 2023 2024 2024 ▪ The warrant structure comprise six tranches with 1
Slide 36: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u
Slide 37: AKASTOR ASA contact details
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 Akastor © 2024 www.akastor.com