Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Aker Solutions Hldg — Q2 2024 Earnings Presentation
32 slides from Aker Solutions Asa's earnings presentation, Jul 12, 2024
Slide 1: Second-Quarter Results 2Q 2024
Picture Comms 2Q 2024 July 12, 2024 Kjetel Digre, CEO Idar Eikrem, CFO
Slide 2: Strong Performance Driven by Solid Execution
2Q 2024 | Strong Performance Driven by Solid Execution Revenue Excluding special items EBITDA Excluding special items 14 1,400 Financials 12 1,200 ▪ Significant revenue growth and improved profitability 10 1,000 8 800 ▪ High order intake and solid secured backlog creating good visibility on future 6
Slide 3: Operational Highlights
2Q 2024 | Operational Highlights Take out? Aker BP portfolio Troll West Electrification Løkjelsvatn Hydropower Johan Castberg FPSO Adriatic LNG Northern Lights Carbon Storage Second-Quarter Results 2024 July 12, 2024 3
Slide 4: Solid Progress on Aker BP Portfolio
2Q 2024 | Solid Progress on Aker BP Portfolio ▪ Alliance model with balanced risk-reward profile and aligned incentives ▪ 4 topsides and jacket substructures with a combined dry weight of about 90,000 tons ▪ High activity across own and partner locations ▪ Innovative technology and digital solutions
Slide 5: New Orders of NOK 15.5 Billion in the Quarter
2Q 2024 | New Orders of NOK 15.5 Billion in the Quarter Renewables and Field Development Growth in existing contracts High activity in consultancy and FEED studies NOK 8.8 BILLION Life Cycle Topside modification for the Bestla (prev. Brasse) tie-back project for Okea in Norway Upgrade of the
Slide 6: Broad Portfolio of Offerings in Life Cycle
2Q 2024 | Broad Portfolio of Offerings in Life Cycle Frame Agreements Modifications Hook-Up & Commissioning Transitional Energy • Long term frame • Modification of existing oil • Cost-effective, predictable • Leading position for agreements w/operators and gas assets and safe completion electrificat
Slide 7: Tender Value at about NOK 70 Billion
2Q 2024 | Tender Value at about NOK 70 Billion Majority related to opportunities in Norway and Europe Tender Value Development NOK BILLION 90 60 52 NOK BILLION 30 0 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 13 NOK BILLION 3 NOK BILLION 1 NOK BILLION NOK billion Second-Quarter Results 202
Slide 8: Navigating the Energy Transition Together
2Q 2024 | Navigating the Energy Transition Together Aker Solutions’ dedicated consultancy arm launched in 2Q 2024 Ideas, Insights & Impact Across our Key Markets Our mission is to provide customers with unrivalled, impactful advice, Low Carbon Electrical Hydrogen & Ocean & Wind Oil & Gas Transmissio
Slide 9: Outlook
2Q 2024 | Outlook ▪ Delivering on financial targets ▪ Strong operational performance ▪ Large secured backlog with balanced risk- reward profile ▪ Well positioned in global energy trends ▪ Energy security and affordability ▪ Renewables and transitional energy solutions ▪ Technology and digitalization
Slide 10: Financial Performance
Financial Performance July 12, 2024 Idar Eikrem, CFO
Slide 11: Key Figures
2Q 2024 | Key Figures NOK million 2Q 2024 2Q 2023 1H 2024 1H 2023 2023 Revenue Revenue ex. special items 12,826 12,827 8,881 8,826 24,307 24,303 16,094 15,971 36,262 36,107 Financials and Highlights Of which Net profit equity accounted investees 166 1 373 1 205 ■ Revenue1 of NOK 12.8 billion for the
Slide 12: Net Cash Position of NOK 11.0 Billion
2Q 2024 | Net Cash Position of NOK 11.0 Billion Working Capital1 of minus NOK 8.9 billion Working Capital1 NOK BILLION ■ Working capital continues to be expected to normalize during 2024 with a 1 cash outflow of around NOK 3 billion during the second half of the year 0 -1 -2 CAPEX2 in the quarter wa
Slide 13: Cash Generation
2Q 2024 | Cash Generation Change in Cash and Cash Equivalents NOK MILLION Improved Cash Position in the Quarter 11,030 ▪ Cash flow from operations of NOK 1.4 billion in the second quarter 9,384 ▪ Driven by improved operational performance 6,173 ▪ CAPEX investments of NOK 413 million 64 ▪ Mainly rela
Slide 14: Renewables and Field Development
2Q 2024 | Renewables and Field Development Revenue Excluding special items EBITDA Excluding special items 10 900 10% Financials and Highlights 800 8 700 9% 8% ▪ Revenue of NOK 9.4 billion in quarter 600 ▪ Substantial increase compared to same period last year 8% 6 6% 500 400 4 5% 4% 300 4% 2 200 4%
Slide 15: Life Cycle
2Q 2024 | Life Cycle Revenue Excluding special items EBITDA Excluding special items 4.0 250 10% Financials and Highlights 3.5 200 8% 3.0 ▪ Revenue of NOK 3.0 billion in quarter 2.5 150 6% 2.0 6% 7% ▪ Decrease from same period last year due to lower third-party costs 6% 1.5 100 5% 5% 4% 1.0 ▪ EBITDA
Slide 16: Order Intake and Backlog
2Q 2024 | Order Intake and Backlog Order Backlog by Execution Year NOK BILLION Order Backlog by Type 35 33.3 30 25.1 10.1 25 6.2 20 15 13.0 22.9 10 18.6 7.5 5 5.3 0 2H 2024 2025 2026 -> 1 2 3 4 Renewables and Field Development Life Cycle Other Alliance Reimbursable Lumpsum Renewables and Transitiona
Slide 17: Summary Outlook
Summary Outlook ▪ Significant increase in revenues and improved ▪ 2024 revenue is now expected to grow around 40% margins in the quarter compared to last year from 2023 driven by the solid backlog ▪ 2024 EBITDA-margin is now expected to be around ▪ Strong operational performance with several 7.5% ex
Slide 18: We solve global energy challenges for future generations
Lk — | We solve global energy challenges gy for future generations S@ 4
Slide 19: Additional Information
Additional Information July 12, 2024
Slide 20: Timing of selected large projects in the portfolio, by Segment
Timing of selected large projects in the portfolio, by Segment Renewables and Field Development Life Cycle Project Customer Award year Delivery year (est.) Project Customer Award year Delivery year (est.) Johan Castberg FPSO Equinor 2017 2024 Aker BP EMM /Modific. Alliance (FA) Aker BP 2015 2025 Hug
Slide 21: Renewables and Transitional Energy Solutions
Renewables and Transitional Energy Solutions NOK million Revenue 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 Total revenue (excl. special items) 7,228 6,619 8,274 27,461 7,145 8,826 9,114 11,021 36,107 11,477 12,827 Renewables and Transitional Energy Solut
Slide 22: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 Restructuring 0 (0) (0) 1 2 0 3 19 24 0 3 Non-qualifying hedges 32 (4) 2 12 5 10 3 (0) 17 (2) 0 Other special items 0 2 7 10 11 16 15 46 87 22 7 Tot
Slide 23: Income Statement
Income Statement NOK million Income statement consolidated 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 Revenue 7,276 6,614 8,248 27,468 7,213 8,880 9,094 10,870 36,057 11,273 12,661 Net profit equity accounted investees 6 (1) 27 33 0 1 8 197 205 207 166 To
Slide 24: Cash Flow
Cash Flow NOK million Cash flow 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 EBITDA continuing operations 121 150 220 647 229 193 194 551 1,166 967 1,206 EBITDA discontinued operations 532 586 727 2,288 640 906 1,225 0 2,772 - - Change in cash flow from ope
Slide 25: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Property, plant and equipment 3,424 3,533 3,596 3,762 4,246 2,883 3,487 3,830 3,956 Intangible assets including Goodwill 6,101 6,064 5,949 5,958 5,933 3,413 3,563 3,536 3,510 Right-of-us
Slide 26: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Total equity attributable to the parent 8,727 9,129 9,244 9,940 10,506 11,187 19,082 20,176 19,379 Non-controlling interests 64 41 (4) (3) (3) (56) (129)
Slide 27: Split per Segment
Split per Segment NOK million Revenue 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 Renewables and Field Development 3,958 3,551 4,553 14,857 4,128 5,369 5,576 7,447 22,520 8,003 9,402 Life Cycle 3,160 2,938 3,576 12,164 2,933 3,343 3,249 3,547 13,072 3,031
Slide 28: Split per Segment
Split per Segment NOK million NCOA 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 NCOA (2,307) (2,347) (4,032) (4,920) (5,753) (6,631) (8,484) (8,774) (8,898) Order intake 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 Renewables and
Slide 29: Split per Segment – Excluding Special Items
Split per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 Renewables and Field Development 76 124 185 488 171 208 239 362 979 617 887 Life Cycle 189 146 188 663 161 164 163 197 686 195
Slide 30: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 2Q 2023 2Q 2024 Norway 82 % 84 % Europe 10 % 9% North America 5% 4% Asia Pacific 3% 2% Africa 0% 2% Total 100 % 100 % Total backlog (NOK billion) 73.1 71.4 Second-Quarter Results 2024 July 12, 2024 30
Slide 31: Aker Solutions
E Aker Solutions
Slide 32: Copyright and Disclaimer
Copyright and Disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any for