Slide 1: Q3 2024 Quarterly Results
Odfjell Technology Investor Presentation Q3 2024 Quarterly Results 07.11.2024
Slide 2: Important Notice
Important Notice By reading this company presentation (the “Presentation”), or attending any meeting or presentation held in relation there to, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been prepared by Odfjell Technology Ltd (th
Slide 3: Agenda
• Highlights of the quarter and key financials • Market and order backlog update • Refinancing and Capital allocation update • Improvement program • Financial information • Summary • Appendix 3
Slide 4: Highlights and key financials
Highlights and key financials Solid order backlog and balance sheet – expansion of quarterly dividend payout Revenue (NOK bn) EBITDA (NOK m) 1.33bn 201m Revenue Q3 EBITDA Q3 5.3bnNOK Revenue LTM 858mNOK EBITDA LTM 27m 13.7bn 1.0bn Available Liquidity (NOK m) NIBD / EBITDA Free Cash Flow Q3 Backlog A
Slide 5: Market and order backlog update
Market and order backlog update 5
Slide 6: Market outlook update
Market outlook update Well positioned for growth Market comments Revenue Q3 LTM per geographical market • Fluctuations in oil price due to supply-demand concerns affecting decisions processes among clients or ay urope t er countries sia an i le ast rica an mericas • Operators will continue to focus
Slide 7: Order backlog of 13.7 billion NOK
Order backlog of 13.7 billion NOK Solid Backlog and Strong Revenue Visibility Driven by Successful Contract Wins Backlog development (NOK bn) Major contracts won current year (NOK m) ptions irm , , , Customer Contract escription usiness rea otal alue , , , uinor isun an rane perations m , , , , , ,
Slide 8: Capital allocation framework
Capital allocation framework Prioritise maximum return and profitable growth while balancing risk Strong balance sheet Capex investment M&A investments Dividends • Conservative debt level • Optimise investment • Clear strategy with • Dividend growth remains STRATEGIC allocation to sustain priority o
Slide 9: Attractive shareholder return through dividends
Attractive shareholder return through dividends Target sustainable growth in dividend distributions Attractive growth in dividends Foundation for dividend distribution 12% implied annualized direct yield in Q3 m • Strategic focus on shareholder return NOK • Strong annual cash generation • Substantia
Slide 10: Performance and Improvement Program 2024-2026
Performance and Improvement Program 2024-2026 Commitment to Improvement: Deliver higher margins and cost- efficient operations and support Cost Efficiency Commercial targets CEO • Supply chain improvements / cost reductions • Improve revenue potential in operations and projects • Process and system
Slide 11: Financial information
*Sodfjell technology Financial information 11
Slide 12: Group financials
Group financials Change in product line mix and operational changes negatively affecting margins Revenue (mNOK) EBITDA (mNOK) Comments Results current quarter vs same quarter previous year • Revenue growth of 59 million, with higher activity for Operations and Projects & ey ures Engineering peratin
Slide 13: Well Services
Well Services Results affected by contract change in Norway and operational interruptions Revenue (mNOK) EBITDA (mNOK) Comments Results current quarter vs same quarter previous year • Revenue slightly down due to lower revenue in Norway and UK offset by improved activity in Middle East • EBITDA drop
Slide 14: Operations
Operations Steady performance with improved margin compared to previous quarter Revenue (mNOK) EBITDA (mNOK) Comments Results current quarter vs same quarter previous year • Revenue up 39 million mainly driven by improved activity level in the UK and Norway • EBITDA improved 4.6 million due to highe
Slide 15: Projects & Engineering
Projects & Engineering Continued strong activity level considering seasonalises Revenue (mNOK) EBITDA (mNOK) Comments Results current quarter vs same quarter previous year • Revenue up 21 million, mainly driven by special purpose survey (SPS) activities in Odfjell Drilling's (ODL) portfolio • EBITDA
Slide 16: 2024 YTD cash flow analysis
2024 YTD cash flow analysis High financial flexibility YTD cash flow bridge (mNOK) Comments • General comments ( ) – Working capital build up reversal expected in Q4 ( ) – Interest payment reduction from Q4 ( ) ( ) • None regular cash effects ( ) – Refinancing related payments of 49mNOK ( ) – Paymen
Slide 17: Revenue and EBITDA trailing twelve months (LTM) figures
Revenue and EBITDA trailing twelve months (LTM) figures LTM figures demonstrate consistent growth trend Revenue LTM EBITDA LTM 17
Slide 18: Summary
technology f 1] Summary 18
Slide 19: Key takeaways – on track for delivering long term value
Key takeaways – on track for delivering long term value • Maintain a clear plan to expand and grow despite • Ongoing focus on bolt-on and technology M&A slowing global economic growth opportunities that align with our strategy and enhance shareholder value • Strong balance sheet supports growth and
Slide 20: Appendix
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Slide 21: Summary income statement
Summary income statement P ( m) peratin revenue t er ains an losses Personnel e penses ( ) ( ) ( ) ( ) ( ) t er operatin e penses ( ) ( ) ( ) ( ) ( ) uste or operational lease epreciation an amortisation ( ) ( ) ( ) ( ) ( ) peratin pro t ( ) are o pro t (loss) rom oint ventures an associates ( ) ( )
Slide 22: Summary Balance Sheet
Summary Balance Sheet ssets uity an lia ilities Property, plant an e uipment Pai in capital ntan i le assets t er e uity ( ) ( ) e erre ta asset otal e uity on current ta asset on current interest earin orro in s nvestments in oint ventures an associates on current lease lia ilities t er non current
Slide 23: Summary statement of cash flows
Summary statement of cash flows Please refer to the Quarterly report for further details 23
Slide 24: For further information, please contact
For further information, please contact Gert Haugland, SVP Finance and Investor Relations gjha@odfjelltechnology.com www.odfjelltechnology.com 24