Slide 1: 2022 Q3 results
2022 Q3 results 3 November 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: Q3 2022 Highlights
Q3 2022 Highlights 44.1 • Revenue of USD 44.1m, up 16% compared to Q3 2021 (USD 38.0m) 41.4 38.0 • Approximately 8% YoY organic growth (excluding Add Energy, Adjusting) Revenue • Organic revenue growth primarily driven by renewables consultancy OWC (USDm) (+23% YoY) and specialist engineers Longitud
Slide 5: Our Markets
Our Markets 5 A=
Slide 6: 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 7: Global partner, local expert – Reached 1,000 employee milestone
Global partner, local expert – Reached 1,000 employee milestone 1,063 Employees1 62 Offices 38 Countries Global footprint provides clients with local expertise and swift response 7 1 Includes subcontractors on 100% utilisation basis. Calculated as average during 3Q 2022.
Slide 8: Diversified revenue base across sectors and regions
Diversified revenue base across sectors and regions Market sector revenue LTM1 Segment revenue LTM1,2 Add Energy Longitude 3% Maritime 6% Europe 19% 22% OWC 16% 162.9 Oil&Gas 162.9 50% USDm USDm Americas Asia Pacific Renewables 15% 22% 31% Middle East 16% Note: No adjustment for intercompany elimina
Slide 9: Relief Well Injection Spool (RWIS), an Add Energy hardware solution
OIL & GAS Relief Well Injection Spool (RWIS), an Add Energy hardware solution • The RWIS is a subsea hardware tool for well control that enables increased pump rates into a Relief Well during a blowout kill operation • Ensures compliance with legislation by guaranteeing single relief well solutions
Slide 10: Project: Spirit Energy enlists ABL Group for decom support
OIL & GAS Project: Spirit Energy enlists ABL Group for decom support • ABL Group was awarded marine warranty survey (MWS) and marine consultancy services for the Spirit Energy’s decommissioning portfolio in the southern North Sea and the Irish Sea. • ABL Aberdeen is contracted for three years to pro
Slide 11: Project: Due Diligence and Commissioning Support for EemsEnergy Terminal
OIL & GAS Project: Due Diligence and Commissioning Support for EemsEnergy Terminal • The EemsEnergyTerminal is a fast-track LNG import facility in Netherlands developed in response to threats to energy security • It came online in September 2022 and will provide up to 8 bcm/yr of gas to relieve Euro
Slide 12: Project: ABL Group assesses 2 GW renewable energy in South Africa
RENEWABLES Project: ABL Group assesses 2 GW renewable energy in South Africa • ABL Group was contracted by various developers in South Africa to provide energy yield assessment for more than 2 GW of potential solar and wind power plants. • Over 1.5 GW of the energy yield assessment work is related t
Slide 13: Project: ABL Group awarded marine warranty work for Dutch biofuel plant
RENEWABLES Project: ABL Group awarded marine warranty work for Dutch biofuel plant • ABL Group has been awarded a contract to provide marine warranty survey services (MWS) for the marine transportation of components for a hydrogenated vegetable oil (HVO) plant • The Shell Energy and Chemicals Park R
Slide 14: Project: QatarEnergy, Emergency Response Study
MARITIME Project: QatarEnergy, Emergency Response Study • ABL Doha awarded contract with QatarEnergy. First large project with QatarEnergy • IWO with ABL London for full work scope, with ABL Doha support. • Scope of work: • Study the capabilities of existing fleet of vessels to respond to an un- con
Slide 15: Staff growth continues, accelerated by Add Energy acquisition
Staff growth continues, accelerated by Add Energy acquisition Highlights Q3 2022 Staff level development1 • Average staff levels up 10% from Q2 to Q3 1 200 50% • Mainly driven by acquisition of Add Energy, counteracting the 45% sale of Adjusting 1 000 40% • Subcontractor share of 26%, down from 30%
Slide 16: 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 17: Revenue and adjusted EBIT
Revenue and adjusted EBIT Revenue (USDm) Adj EBIT (USDm) +16% +101% 44.1 4.7 41.4 39.6 38.3 38.0 37.8 36.7 4.0 3.4 2.8 2.4 2.5 18.4 19.6 2.0 1.0 0.6 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue (reported) LOC Adjusted EBIT 17 Note: LOC results con
Slide 18: Segment revenues and EBIT
Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 14.0 1.5 12.0 10.0 1.0 8.0 6.0 4.0 0.5 2.0 0.0 0.0 -2.0 -4.0 -0.5 -6.0 -8.0 -1.0 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 • Revenue growth primarily driven by renewables consultancy OWC (+23% YoY), specialist engineers Longitude (+
Slide 19: Income Statement
Income Statement USD thousands Consolidated income statement Q3 2022 Q3 2021 YTD 2022 YTD 2021 FY 2021 • Revenues of USD 44.1 million for Q3, up Revenue 44 100 37 986 125 109 112 951 150 748 16% from Q3 2021 (USD 38.0 million) Total revenue 44 100 37 986 125 109 112 951 150 748 • EBIT of USD 3.3 mil
Slide 20: Strong financial position, returning excess cash to shareholders and banks
Strong financial position, returning excess cash to shareholders and banks Highlights Q3 2022 Working capital2 (% of quarterly revenue) • Net cash1 of USD 15.1 million (Q2 22: USD 8.7 million) 150% • USD 29.3 million cash (Q2 22: USD 18.7 million) 127% • USD 14.2 million bank debt (Q2 22: 10.0 milli
Slide 21: Declaring semi-annual dividend of NOK 0.3 per share to be paid in November
Declaring semi-annual dividend of NOK 0.3 per share to be paid in November Paid and declared dividends (NOK/share) • Declared dividend of NOK 0.3 per share, corresponding to approximately USD 3.0 million • The dividend was resolved and declared in accordance with the 0.30 0.30 authorization granted
Slide 22: 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 23: Summary and outlook
Summary and outlook • Highest third quarter revenues and EBIT in company’s history • Strong cash flow amid working capital improvements • Ahead of schedule on Add Energy turnaround • Strong market outlook across the energy sector as focus turns to energy security • Renewables: Continued strong growt
Slide 24: Appendix
Appendix © 2012-2022 ABL Group
Slide 25: 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 26: Jackup activity up 14% from trough, approaching highest level since 2015
OIL & GAS Jackup activity up 14% from trough, approaching highest level since 2015 E&P capex growth Rigs under contract +14% 40.0% 360 140 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 20
Slide 27: 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% Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Billing ratio Gliding 3m average 1 Billing ratio exc
Slide 28: 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 29: 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 30: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Q3 22 Restructuring and integration costs 52 30 185 283 36 29 14 362 - - 19 Other special items (incl. share-based expenses) 80 83 318 106 353 531 485 1 475 456 209 504 Transaction
Slide 31: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Q3 22 Operating profit (loss) (EBIT) 506 (416) 2 946 1 859 2 281 1 319 1 916 7 375 2 806 3 868 3 329 Depreciation, amortisation and impairment 392 360 1 477 1 072 899 820 998 3 790
Slide 32: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Q3 22 Cash and cash equivalents 14 123 30 642 30 642 28 319 24 532 23 212 19 815 19 815 21 212 18 711 29 267 Less: Interest bearing bank borrowings - 15 083 15 083 15 096 13 310 12 504 11 661 11
Slide 33: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Q3 22 Revenue 18 431 19 565 77 015 36 698 38 266 37 986 37 797 150 748 39 643 41 367 44 100 Total revenue 18 431 19 565 77 015 36 698 38 266 37 986 37 797 150 74
Slide 34: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Property, plant and equipment 452 1 213 1 350 1 284 1 169 1 137 1 345 1 787 2 993 Right-of-use assets 1 485 4 707 4 046 3 363 2 938 3 629 3 619 8 046 7 954 Good
Slide 35: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q3 20 Q4 20 FY 2020 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Q3 22 Profit (loss) before taxes 441 (2 328) 2 507 1 414 1 866 495 2 408 6 184 3 151 2 847 3 026 Adjustments for: Depreciation, amortisation and impairmen
Slide 36: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Q3 22 Middle East 4 019 5 738 22 365 7 230 7 775 6 282 7 186 28 473 7 789 7 929 6 661 Asia Pacific 5 638 5 610 22 249 8 959 9 129 9 950 11 237 39 275 9 598 8 646 10 263 Europe
Slide 37: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 2021 Q1 22 Q2 22 Q3 22 Middle East 4 937 6 338 6 338 6 316 6 997 6 251 6 363 6 363 6 190 6 477 5 295 Asia Pacific 6 050 8 091 8 091 8 243 9 327 7 631 7 611 7
Slide 38: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 14.2% 2 HOLMEN SPESIALFOND 10 450 000 10.0% 3 BJØRN STRAY 6 017 743 5.7% 4 MELESIO INVEST AS 4 811 016 4.6% 5 SOBER AS 3 500 000 3.3% 6 HAUSTA INVESTOR AS 2 590 000 2.5% 7 KRB CAPITAL AS 2 539 065 2.
Slide 39: abl-group.com
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