Slide 1: 2024 Q2 results
2024 Q2 results 22 August 2024 abl-group.com
Slide 2: Agenda: 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: Q2 2024 Highlights
Q2 2024 Highlights • Revenue of USD 68.6m, up 1% compared to Q2 2023 (USD 67.9m) 67.9 68.9 68.6 • Organic growth within AGR, while OWC and Longitude experienced lower Revenue activity level because of a reduction in demand in the renewable energy (USDm) market • Adjusted EBIT of USD 2.8m (Q2 23: USD
Slide 5: Operational segment performance in Q2 2024
Operational segment performance in Q2 2024 • ABL • Overall solid performance, but reduced utilisation and profitability relative to stand-out performance in Q2 2023 • European operations unable to replace exceptional projects from Q2 2023 • AGR • Performing ahead of same period last year, with impro
Slide 6: Agenda: 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 7: Acquisition of Ross Offshore completed on 17 June
Acquisition of Ross Offshore completed on 17 June Net purchase price (USDm) • ABL Group acquired Ross Offshore for a purchase price of USD 9.5m (USD 5.4 million net of cash) Cash consideration 9.5 Net debt (cash) on closing (4.0) • Cash consideration of NOK 100 million (USD 9.5 million) Net purchase
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 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 • Nearly flat revenue growth within the group ABL 36.0 35.9 34.5 36.3 36.2 OWC 11.2 11.4 10.3 9.1 8.8 • The AGR segment grew 7%, while OWC and Longitude had Longitude 3.2 3.5 3.0 3.0 2.9 negative growth AGR 19.7
Slide 10: Abbreviated Financials: Income Statement
Abbreviated Financials: Income Statement USD million Abbreviated income statement Q2 23 Q2 24 • Revenue nearly flat YoY(+1% YoY), curtailed by reduced Total revenue 67.9 68.6 utilisation across multiple segments Operating costs (62.2) (65.0) • Operating costs up 4%, largely in line with inflation De
Slide 11: Abbreviated Financials: Cash Flow
Abbreviated Financials: Cash Flow USD million Abbreviated cash flow Q2 23 Q2 24 • Positive cash flow contribution from working capital Profit before taxes 3.6 1.3 • USD 6.5m cash outflow from investing activities driven Non-cash adjustments 1.8 1.5 primarily by acquisition of Ross Offshore Changes i
Slide 12: Abbreviated Financials: Balance Sheet
Abbreviated Financials: Balance Sheet USD million • Ross Offshore consolidated in Q2 24 balance sheet, no P&L effect until Q3 Abbreviated balance sheet Q2 23 Q2 24 • Driving increase in other current assets, non-current assets and other current liabtilies Cash and cash equivalents 26.4 28.4 • Net ca
Slide 13: Agenda: 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 14: Modest organic staff growth
Modest organic staff growth Staff level development1 • 1,610 average number of employees including freelancers in quarter, representing 4% growth from Q2 2023 2 000 Ross Offshore 40% • 10% growth in permanent staff 1 500 30% • Ross Offshore, consolidated from end Q2 2024, will bring the 1 000 20% nu
Slide 15: Offshore wind: Slowdown extended, but long-term view remains strong
RENEWABLES Offshore wind: Slowdown extended, but long-term view remains strong Offshore wind projects by installation year (GW) 1 Comments 2022 report OWC’s main market: 3-5 years • High interest rates and developer caution/sentiment before installation continue to impact offshore wind roll out – in
Slide 16: Oil & Gas: Overall solid market - downtick in jackup activity
OIL & GAS Overall solid market - downtick in jackup activity mainly in Saudi Arabia E&P capex growth Rigs under contract 40.0% 440 280 420 260 30.0% 400 240 20.0% 380 220 10.0% # Jackups # Floaters 360 200 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
Slide 17: Summary and outlook
Summary and outlook • Weak performance in Q2 2024 • Margins depressed by reduced utilisation and project phasing across several segments • Acquisition of Ross Offshore completed, strengthening AGR segment with P&L effect from Q3 2024 • Mixed market outlook • O&G: Overall solid market expected to sup
Slide 18: Appendix
Appendix © 2012-2024 ABL Group
Slide 19: Revenue base increased 10x since 2017
Revenue base increased 10x since 2017 Revenue development, ABL Group (USDm) Key acquisitions • 2014: OWC 333 • 2019: Braemar Technical Services (BTS), forming AqualisBraemar 251 • 2020: LOC Group, forming ABL Group 168 • 2021: East Point Geo, OSD-IMT 151 • 2022: Add Energy • 2023: AGR, Delta Wind Pa
Slide 20: Our Markets
Our Markets 21%1 11%1 68%1 20 1 % of LTM revenues, excluding Ross Offshore
Slide 21: Global partner, local expert
Global partner, local expert 1,758 Employees1 70 Offices 42 Countries Global footprint provides clients with local expertise and swift response 21 1 Includes freelancers on FTE basis. Calculated as average during Q2 2024, including Ross Offshore employees.
Slide 22: 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 23: Billing ratio development
Billing ratio development Billing ratio1 – Technical staff Comments • Freelancers are ~100% 79% utilisation by definition 78% 77% 78% 77% 77% 74% 74% 74% 69% 69% 69% 68% 67% 68% 66% 64% 65% Billing ratio - Own staff Billing ratio - Inc freelancers 23 1 Billing ratio excludes management, business dev
Slide 24: 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 25: 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 26: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Restructuring and integration costs - 172 220 392 - - Transaction costs related to M&A 172 197 - 720 - 185 Total adjustment items (EBITDA) 172 369 220 1 112 - 185 Adjustment items (EBIT) Q2 23 Q3 23 Q4 23 FY
Slide 27: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Operating profit (loss) (EBIT) 4 397 5 512 3 913 16 530 3 372 2 227 Depreciation, amortisation and impairment 1 347 1 515 1 576 5 301 1 394 1 371 EBITDA 5 745 7 027 5 489 21 831 4 766 3 598 Total adjustment
Slide 28: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Cash and cash equivalents 26 390 25 890 28 157 28 157 30 889 28 425 Less: Interest bearing bank borrowings 11 795 10 965 10 946 10 946 11 505 17 633 Net Cash 14 594 14 925 17 211 17 211 19 384 10 792 USD thousands Workin
Slide 29: 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 Q2 24 Revenue 45 177 67 938 70 402 67 716 251 233 68 906 68 577 Staff costs (25 468) (32 919) (33 986) (33 000) (125 373) (35 319) (35 723) Other operating expenses (16 138) (29 274) (29
Slide 30: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Profit (loss) before taxes 3 563 6 476 2 079 12 445 2 218 1 275 Non-cash adjustment to reconcile profit before tax to cash flow: Depreciation, amortisation and impairment 1 347 1 515
Slide 31: 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 Q2 24 Goodwill and intangible assets 29 386 53 644 55 969 56 828 55 248 66 671 Property, plant and equipment 9 802 10 565 9 511 10 613 9 457 9 911 Investment in associates 27 26 27 32
Slide 32: 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 Q2 24 ABL 32 370 36 016 35 912 34 488 138 786 36 276 36 179 OWC 8 751 11 184 11 353 10 327 41 615 9 086 8 836 Longitude 2 663 3 191 3 530 3 001 12 385 2 990 2 901 AGR 3 309 19 730 21 835 21 350 66 224 2
Slide 33: 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 8 950 000 7.0% 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 VERDIPAPIRFONDET HOLBERG NORGE 5 155 555 4.0% 7 MELESIO
Slide 34: 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
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