Slide 1: 1st Quarter 2024 results
1st Quarter 2024 results 25 April 2024 abl-group.com
Slide 2: Highlights, Financial review, Operations and outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2024 ABL Group
Slide 3: Disclaimer
Disclaimer ▪ This Presentation has been produced by ABL Group ASA (the “Company” or “ABL Group”) 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, h
Slide 4: Q1 2024 Highlights
Q1 2024 Highlights • Revenue of USD 68.9m, up 53% compared to Q1 2023 (USD 45.2m) 67.7 68.9 • Growth primarily due to acquisition of AGR1 Revenue 45.2 • Organic growth across all existing businesses (USDm) • Adjusted EBIT of USD 3.7m (Q1 23: USD 3.2m) Q1'23 Q4'23 Q1'24 • Adjusted EBIT margin of 5.4%
Slide 5: Financial review
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2024 ABL Group
Slide 6: Guidance updated for presentational changes and business mix
Guidance updated for presentational changes and business mix Updated guidance: Adjusted EBIT margin of 7.5% over a business cycle • AGR – Structurally different business: Higher turnover, lower margin 1 • LTIP – Costs of share options no longer added back in Adj EBIT • WHT – Unrecoverable withholdin
Slide 7: Presentational changes from Q1 2024: Summary
Presentational changes from Q1 2024: Summary Q1 2023 Q1 2023 • Previous announced presentational changes have been Adjusted EBIT margin Change (previous) (restated) implemented from Q1 2024: ABL 19.6% (2.4)% 17.2% • Incentives Reallocation: Bonus and LTIP costs have been reallocated from Corporate t
Slide 8: Segment overview
Segment overview ABL AGR OWC Longitude • MWS & other asset surveys • Wells & reservoir consulting • Renewables consulting • Marine ops engineering Key services • Marine operations support • Resource solutions • Owner’s engineering • Vessel & facility design • Marine casualty support • Software • Tec
Slide 9: Abbreviated segment revenues and EBIT
Abbreviated segment revenues and EBIT USD million Revenues Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 • Revenue growth driven primarily by ABL (+12% YoY), ABL 32.4 36.0 35.9 34.5 36.3 OWC 8.8 11.2 11.4 10.3 9.1 Longitude (+12% YoY) and integration of AGR Longitude 2.7 3.2 3.5 3.0 3.0 AGR 3.3 19.7 21.8 21.4 21.2
Slide 10: Abbreviated Financials: Income Statement
Abbreviated Financials: Income Statement USD million Abbreviated income statement Q1 23 Q1 24 • Increase in revenue (+53% YoY) and operating costs (+54%) Total revenue 45.2 68.9 primarily from acquisition of AGR in 2Q 2023 Operating costs (41.6) (64.1) • Pro-forma combined1 YoY revenue growth (+6.5%
Slide 11: Abbreviated Financials: Cash Flow
Abbreviated Financials: Cash Flow USD million Abbreviated cash flow Q1 23 Q1 24 • Strong profit before tax flowing through to operating cashflows Profit before taxes 0.3 2.2 • Improvement in working capital impacted by weakening of Non-cash adjustments 1.3 1.5 local currencies measured in USD Change
Slide 12: Abbreviated Financials: Balance Sheet
Abbreviated Financials: Balance Sheet USD million • Net cash1 increased to USD 19.4 million Abbreviated balance sheet Q1 23 Q1 24 • Working capital ratio down to 45%, mainly due to weakening Cash and cash equivalents 28.8 30.9 of local currencies measured in USD Other current assets 58.9 78.2 • Refi
Slide 13: Proposed semi-annual dividend of NOK 0.40 per share upheld
Proposed semi-annual dividend of NOK 0.40 per share upheld Paid and proposed dividends • Proposed dividend of NOK 0.40 per share upheld, corresponding to +100% USD 4.7 million 0.40 0.35 0.35 NOK/share • The dividend is subject to shareholder approval at the AGM planned for 29 0.30 0.30 May 2024 and
Slide 14: Operations and outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2024 ABL Group
Slide 15: High organic staff growth, accelerated by AGR acquisition
High organic staff growth, accelerated by AGR acquisition Staff level development1 2 000 40% • 1,604 average number of employees in quarter represents 1 500 30% 42% growth from Q1 2023 1 000 20% • 33% increase in permanent staff 500 10% • Freelancer share of 24%, up from 20% in Q1 2023 0 0% • Increa
Slide 16: Offshore wind market: Cost inflation impacting short-term demand
RENEWABLES Offshore wind market: Cost inflation impacting short-term demand Offshore wind projects by installation year (GW) 1 Comments 31 37 • Inflation and interest rates impacted sector in 2H 2023, causing 29 project delays and developers to wait for government signals 24 18 20 • Significantly im
Slide 17: O&G investments stabilising, with increasing share of offshore execution
OIL & GAS O&G investments stabilising, with increasing share of offshore execution E&P capex growth Rigs under contract 40.0% 440 280 420 260 30.0% 400 240 20.0% 380 220 10.0% # Jackups 360 200 # Floaters 2% 0.0% 340 180 320 160 -10.0% 300 140 -20.0% 280 120 -30.0% 260 100 -40.0% 240 80 2024e 2003 2
Slide 18: Summary and outlook
Summary and outlook • Mixed operational performance in Q1 2024 • Solid YoY improvement across most of group, driving highest first quarter revenues and adjusted EBIT to date • Low utilisation in OWC continues, but improving throughout quarter • Seasonally lower group margin, as inflationary salary i
Slide 19: Appendix
Appendix © 2012-2024 ABL Group
Slide 20: Revenue base increased 650% since 2018
Revenue base increased 650% since 2018 Revenue development, ABL Group (USDm) Key acquisitions • 2014: OWC 275 • 2019: Braemar Technical 251 Services (BTS), forming AqualisBraemar • 2020: LOC Group, forming ABL 168 Group 151 • 2021: East Point Geo, OSD-IMT • 2022: Add Energy 77 55 • 2023: AGR, Delta
Slide 21: Our Markets
Our Markets 22%1 12%1 66%1 21 1 % of LTM revenues
Slide 22: Global partner, local expert
Global partner, local expert 1,604 Employees1 68 Offices 42 Countries Global footprint provides clients with local expertise and swift response 22 1 Includes freelancers on FTE basis. Calculated as average during Q1 2024.
Slide 23: In 2023, ABL Group worked across renewables, maritime, oil & gas
In 2023, ABL Group In 2023, ABL Group In 2023, ABL Group Renewables… Maritime… Oil&Gas… ...received ...carried out ...worked on 2,400+ 1,200+ 285 instructions from rig moves offshore wind projects with potential capacity of 1,200+ 650+ MWS projects 251 GW unique clients 1,250+ vessel/asset surveys …
Slide 24: Restatement of 2023 segment EBIT for comparability
Restatement of 2023 segment EBIT for comparability USD thousands USD thousands Reported EBIT - Previous Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Adjusted EBIT - Previous Q1 23 Q2 23 Q3 23 Q4 23 FY 23 ABL 6 347 8 284 9 012 8 253 31 896 ABL 6 347 8 284 9 012 8 253 31 896 OWC 1 484 1 092 1 365 258 4 200 OWC 1 484
Slide 25: Pro-forma combined financials (simplified)
Pro-forma combined financials (simplified) USD millions Revenue Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 ABL Group, as reported 45.2 67.9 70.4 67.7 68.9 AGR (consolidated 2Q23) 19.5 Pro-forma combined (simplified) 64.7 67.9 70.4 67.7 68.9 Adjusted EBIT Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 ABL Group, as reported 3.2 4
Slide 26: Billing ratio development
Billing ratio development Billing ratio1 – Technical staff Comments • Freelancers are ~100% 79% utilisation by definition 78% 77% 78% 77% 77% 75% • AGR consolidated from Q2 74% 74% 2023 69% 69% 69% 68% 67% 68% 66% 66% 64% Billing ratio - Own staff Billing ratio - Inc freelancers 26 1 Billing ratio e
Slide 27: General (1/2)
General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated ABL discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced insight into financial highlights for the quarter of the the operations, financ
Slide 28: 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 29: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Restructuring and integration costs - - 172 220 392 - Transaction costs related to M&A 351 172 197 - 720 - Total adjustment items (EBITDA) 351 172 369 220 1 112 - Adjustment items (EBIT) Q1 23 Q2 23 Q3 23 Q4
Slide 30: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Operating profit (loss) (EBIT) 2 708 4 397 5 512 3 913 16 530 3 372 Depreciation, amortisation and impairment 863 1 347 1 515 1 576 5 301 1 394 EBITDA 3 571 5 745 7 027 5 489 21 831 4 766 Total adjustment i
Slide 31: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Cash and cash equivalents 28 819 26 390 25 890 28 157 28 157 30 889 Less: Interest bearing bank borrowings 12 503 11 795 10 965 10 946 10 946 11 505 Net Cash 16 316 14 594 14 925 17 211 17 211 19 384 USD thousands Workin
Slide 32: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Revenue 45 177 67 938 70 402 67 716 251 233 68 906 Total revenue 45 177 67 938 70 402 67 716 251 233 68 906 Staff costs (25 468) (32 919) (33 986) (33 000) (125 373) (35 319) Other operat
Slide 33: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Profit (loss) before taxes 326 3 563 6 476 2 079 12 445 2 218 Non-cash adjustment to reconcile profit before tax to cash flow: Depreciation, amortisation and impairment 863 1 347 1 5
Slide 34: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Goodwill and intangible assets 29 386 53 644 55 969 56 828 55 248 Property, plant and equipment 9 802 10 565 9 511 10 613 9 457 Investment in associates 27 26 27 32 31 Deferred tax ass
Slide 35: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 ABL 32 370 36 016 35 912 34 488 138 786 36 276 OWC 8 751 11 184 11 353 10 327 41 615 9 086 Longitude 2 663 3 191 3 530 3 001 12 385 2 990 AGR 3 309 19 730 21 835 21 350 66 224 21 242 Eliminations (1 916
Slide 36: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 11.6% 2 HOLMEN SPESIALFOND 10 450 000 8.1% 3 DNB BANK ASA 7 637 835 5.9% 4 BJØRN STRAY 6 217 743 4.8% 5 RGA ENERGY HOLDINGS AS 6 055 556 4.7% 6 NORDEA BANK ABP, FIL 6 055 555 4.7% 7 MELESIO INVEST AS
Slide 37: The ABL Group family
The ABL Group family ABL Group ASA – a global brand family combining the deepest pool of expertise across energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans throughout the life-cycle of a project of asset. The Energy & Marine Consultants. The En
Slide 38: abl-group.com
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