Slide 1: 2022 Q2 results
2022 Q2 results 31 August 2022 abl-group.com
Slide 2: Highlights, Financial review, Outlook
1. Highlights Reuben Segal, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook Reuben Segal, CEO © 2012-2022 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: Q2 2022 Highlights
Q2 2022 Highlights 41.4 • All time high quarterly revenue, EBIT and EBIT margin 39.6 • Revenue of USD 41.4m, up 8% compared to Q2 2021 (USD 38.3m) Revenue 38.3 (USDm) • Revenue growth primarily driven by renewables consultancy OWC (+25% YoY) and specialist engineers Longitude (+35% YoY) Q2'21 Q1'22
Slide 5: Our Markets
Our Markets 5 A=
Slide 6: Renewables hits milestone 30% of revenues LTM
Renewables hits milestone 30% of revenues LTM Market sector revenue LTM Segment revenue LTM1 Longitude 6% Maritime 20% Europe OWC 23% 16% 156.8 Oil&Gas 156.8 50% USDm USDm Americas 16% Renewables Asia Pacific 30% 22% Middle East 17% Note: No adjustment for intercompany eliminations 6 Note: Market se
Slide 7: ABL Group Service Portfolio
ABL Group Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Owner’s engineering • Marine design, upgrade Marine surveys, Marine warranty survey Marine casualty support & Expert witness & litigation • Technical due diligence & conversion inspections & audits • Renewables ma
Slide 8: Add Energy – Transaction details
Add Energy – Transaction details • In July, ABL Group acquired 100% of the shares of energy and engineering consultancy Add Energy • ABL Group also acquired substantially all interest-bearing debt in Add Energy from its main lender DNB • Total consideration of NOK 21.75 million for acquisition of th
Slide 9: Add Energy – Transaction rationale
Add Energy – Transaction rationale Broadens group service offering to asset integrity ✓ management and OPEX services for O&G and renewables Improving global energy transition offering through carbon ✓ storage, geothermal and energy efficiency services + Opportunities to globalise Add Energy’s servic
Slide 10: Some of Add Energy’s capabilities
Some of Add Energy’s capabilities Asset and Integrity Management Well Engineering and Management Safety and Risk Engineering Enhancing plant and business performance in Assure safety, regulatory compliance and Technical assurance of safety and the safest and most efficient way possible efficiency in
Slide 11: Sale of Adjusting business unit completed in May
Sale of Adjusting business unit completed in May • ABL has sold its Adjusting business to the management of the business unit (now trading as SteegeXP) • Revenues of approximately USD 10 million in 2021, predominantly from the oil and gas sector • Rationale • Negative synergies: Clients perceived co
Slide 12: Global partner, local expert – Reached 1,000 employee milestone
Global partner, local expert – Reached 1,000 employee milestone 1,083 Employees1 62 Offices 38 Countries Global footprint provides clients with local expertise and swift response 12 1 Includes subcontractors on 100% utilisation basis. Calculated as average during June, plus Add Energy (~140 employee
Slide 13: Project: Owner’s engineer on the Valorous floating wind project
RENEWABLES Project: Owner’s engineer on the Valorous floating wind project • OWC awarded contract for owner’s engineering services for the pre- FEED of the Valorous floating wind project • Developed by Blue Gem Wind (JV between Total and Simply Blue Group) • Valorous will be located approx. 47 km so
Slide 14: Project: Lender’s Technical Advisor on Hollandse Kust Zuid
RENEWABLES Project: Lender’s Technical Advisor on Hollandse Kust Zuid • OWC has been awarded a contract to provide lender’s technical advisor (LTA) on the 1.5GW Hollandse Kust Zuid offshore wind farm • Milestone award for OWC in strategically important LTA market • Hollandse Kust Zuid will be the wo
Slide 15: Project: MWS for Jansz-lo Compression
OIL & GAS Project: MWS for Jansz-lo Compression • ABL Australasia has been awarded an MWS contract for Chevron’s Jansz-lo Compression (J-IC) project, a modification of the existing Gorgon development, offshore Western Australia • ABL will be providing MWS approvals over four groups of activities as
Slide 16: Project: NEOM Green Hydrogen Project
MARITIME / ENERGY TRANSITION Project: NEOM Green Hydrogen Project • ABL Group’s independent engineering and design arm, Longitude Engineering, are providing engineering support to Air Products – the primary EPC contractor on the NEOM green hydrogen project, Saudi Arabia • The NEOM Green Hydrogen Com
Slide 17: Staff growth continues, to be accelerated by Add Energy acquisition
Staff growth continues, to be accelerated by Add Energy acquisition Highlights Q2 2022 Staff level development1 (Not including Add Energy) • Average staff levels up 2% from Q1 to Q2 1 200 50% • Sale of Adjusting reduced permanent headcount by 37 from 45% end of May 1 000 40% ▪ Staff levels increased
Slide 18: Highlights, Financial review, Outlook
1. Highlights Reuben Segal, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook Reuben Segal, CEO © 2012-2022 ABL Group
Slide 19: Revenue and adjusted EBIT
Revenue and adjusted EBIT Revenue (USDm) Adj EBIT (USDm) +8% +70% 41.4 39.6 4.7 38.3 38.0 37.8 36.7 3.4 2.8 2.4 2.5 19.2 18.4 19.6 2.0 1.8 1.0 0.6 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Revenue (reported) LOC Adjusted EBIT 19 Note: LOC results conso
Slide 20: Segment revenues and EBIT
Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 14.0 1.4 12.0 1.2 10.0 1.0 8.0 0.8 6.0 0.6 4.0 0.4 2.0 0.2 0.0 0.0 -2.0 -0.2 -4.0 -0.4 -6.0 -0.6 2Q21 1Q22 2Q22 2Q21 1Q22 2Q22 • Revenue growth primarily driven by renewables consultancy OWC (+25% YoY) and specialist eng
Slide 21: Income Statement
Income Statement USD thousands Consolidated income statement Q2 2022 Q2 2021 1H 2022 1H 2021 FY 2021 • Revenues of USD 41.3 million for Q2, up Revenue 41 367 38 266 81 010 74 964 150 748 8% from Q2 2021 (USD 38.3 million) Total revenue 41 367 38 266 81 010 74 964 150 748 Staff costs (20 624) (20 868
Slide 22: Strong financial position, returning excess cash to shareholders and banks
Strong financial position, returning excess cash to shareholders and banks Highlights Q2 2022 Working capital2 (% of quarterly revenue) • Net cash1 of USD 8.7 million (Q1 22: USD 10.4 million) 150% 135% • USD 18.7 million cash (Q1 22: USD 21.2 million) 127% • USD 10.0 million bank debt (Q1 22: 10.8
Slide 23: Semi-annual dividend of NOK 0.3 per share paid in June
Semi-annual dividend of NOK 0.3 per share paid in June Paid and proposed dividends (NOK/share) • NOK 0.3 per share dividend paid in June, corresponding to USD 2.9 million • Returning capital to shareholders remains a strategic priority for ABL 0.30 Group 0.25 0.25 • ABL Group has implemented a semi-
Slide 24: Highlights, Financial review, Outlook
1. Highlights Reuben Segal, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook Reuben Segal, CEO © 2012-2022 ABL Group
Slide 25: Summary and outlook
Summary and outlook • Highest quarterly revenues, EBIT and EBIT margin in company’s history • Lower activity in existing ABL business should be expected in Q3 in line with normal seasonality • Acquisition of Add Energy to boost revenue growth in Q3 and onwards • Current low profitability of Add Ener
Slide 26: Appendix
Appendix © 2012-2022 ABL Group
Slide 27: ABL Group targets
ABL Group targets • Financial targets • Organic revenue growth of 5 percent over a business cycle • Renewables and energy transition services target at 50% of revenue in 2025 • Adjusted EBIT margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparability) over a busines
Slide 28: Jackup activity up 10% from trough, E&P capex growing from low levels
OIL & GAS Jackup activity up 10% from trough, E&P capex growing from low levels E&P capex growth Rigs under contract 40.0% 360 140 +10% 30.0% 340 130 18.0% 20.0% 10.0% 320 120 # Jackups # Floaters 0.0% 300 110 -10.0% 280 100 -20.0% -30.0% 260 90 -40.0% 2021e 2022e 2003 2004 2005 2006 2007 2008 2009
Slide 29: Project: ABL to support Hollandse Kust Noord as MWS
RENEWABLES Project: ABL to support Hollandse Kust Noord as MWS • Awarded contract to provide marine warranty surveyor (MWS) services for the Hollandse Kust Noord offshore wind farm • Hollandse Kust Noord offshore wind farm will have a 759 MW nominal capacity, located 18.5 km from shore. It will incl
Slide 30: Billing ratio development
Billing ratio development Billing ratio1 – Total technical staff (including subcontractors) LOC consolidated from 1Q21 80.0% 78.0% 76.0% 74.0% 72.0% 70.0% 68.0% 66.0% 64.0% 62.0% 60.0% Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Billing ratio Gliding 3m average 1 Billing ratio exc
Slide 31: 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 32: 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 33: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Restructuring and integration costs 55 52 30 185 283 36 29 14 362 - - Other special items (incl. share-based expenses) 76 80 83 318 106 353 531 485 1 475 209 456 Transaction c
Slide 34: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Operating profit (loss) (EBIT) 1 577 506 (416) 2 946 1 859 2 281 1 319 1 916 7 375 2 806 3 868 Depreciation, amortisation and impairment 363 392 360 1 477 1 072 899 820 998 3
Slide 35: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Cash and cash equivalents 10 987 14 123 30 642 30 642 28 319 24 532 23 212 19 815 19 815 21 212 18 711 Less: Interest bearing bank borrowings - - 15 083 15 083 15 096 13 310 12 504 11 661
Slide 36: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Revenue 19 232 18 431 19 565 77 015 36 698 38 266 37 986 37 797 150 748 39 643 41 367 Total revenue 19 232 18 431 19 565 77 015 36 698 38 266 37 986 37 797
Slide 37: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Property, plant and equipment 475 452 1 213 1 350 1 284 1 169 1 137 1 345 1 787 Right-of-use assets 1 757 1 485 4 707 4 046 3 363 2 938 3 629 3 619 8 046 Goodwi
Slide 38: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q2 20 Q3 20 Q4 20 FY 2020 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Profit (loss) before taxes 1 394 441 (2 328) 2 507 1 414 1 866 495 2 408 6 184 3 151 2 847 Adjustments for: Depreciation, amortisation and impairmen
Slide 39: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Middle East 5 595 4 019 5 738 22 365 7 230 7 775 6 282 7 186 28 473 7 789 7 929 Asia Pacific 5 256 5 638 5 610 22 249 8 959 9 129 9 950 11 237 39 275 9 598 8 646 Europe 3
Slide 40: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Middle East 6 778 4 937 6 338 6 338 6 316 6 997 6 251 6 363 6 363 6 190 6 477 Asia Pacific 6 597 6 050 8 091 8 091 8 243 9 327 7 631 7
Slide 41: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 15.0% 2 HOLMEN SPESIALFOND 9 650 000 9.7% 3 BJØRN STRAY 6 017 743 6.0% 4 MELESIO INVEST AS 4 611 016 4.6% 5 SOBER AS 3 500 000 3.5% 6 MUSTANG CAPITAL AS 2 830 334 2.8% 7 KRB CAPITAL AS 2 539 065 2.6%
Slide 42: abl-group.com
© ABL Group, 2022 abl-group.com