Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Aker Solutions Hldg — Q3 2024 Earnings Presentation
35 slides from Aker Solutions Asa's earnings presentation, Oct 31, 2024
Slide 1: 3Q 2024 Results
Picture Comms 3Q 2024 Kjetel Digre, CEO Idar Eikrem, CFO
Slide 2: Solid Performance Driving Enhanced Value Creation
3Q 2024 | Solid Performance Driving Enhanced Value Creation Revenue Excluding special items EBITDA Excluding special items 14 1.4 12% Solid operational and financial performance 12 1.2 10% 10 1.0 9% 9% 8% ▪ Significant revenue growth and improved profitability 9% 8 0.8 6 0.6 6% ▪ High activity acros
Slide 3: Operational Highlights
3Q 2024 | Operational Highlights Take out? Johan Castberg FPSO Troll West Electrification Life Cycle International Aker BP Portfolio, Norway Ormen Lange Phase 3 Northern Lights Phase 1 Third-Quarter Results 3
Slide 4: Newly Opened Robotic Production Line at Verdal
3Q 2024 | Newly Opened Robotic Production Line at Verdal 7x Increased Welding Speed 13x Increased Surface Treatment Speed Third-Quarter Results 4
Slide 5: Tender Value at about NOK 82 Billion
3Q 2024 | Tender Value at about NOK 82 Billion Majority related to opportunities in Norway and Europe Tender Value Development NOK BILLION 90 60 72 NOK BILLION 30 0 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 7 NOK BILLION 2 NOK BILLION 2 NOK BILLION NOK billion Third-Quarter Results 5
Slide 6: Outlook
3Q 2024 | Outlook ▪ Large secured backlog ▪ Majority being executed in well-proven alliance model with balanced risk-reward ▪ Continued focus on predictable project execution ▪ Positive market outlook ▪ Early access to key customers through early-phase studies and technology development projects ▪ L
Slide 7: Financial Performance
Financial Performance Idar Eikrem, CFO
Slide 8: Key Figures
3Q 2024 | Key Figures NOK million 3Q 2024 3Q 2023 2Q 2024 2023 Revenue Revenue ex. special items1 13,184 13,181 9,102 9,114 12,826 12,827 36,262 36,107 Financials and Highlights Of which Net profit equity accounted ivestees 245 8 166 205 ■ Revenue1 of NOK 13.2 billion for the quarter EBITDA 1,204 19
Slide 9: Renewables and Field Development
3Q 2024 | Renewables and Field Development Revenue Excluding special items EBITDA Excluding special items 10 900 10% Financials and Highlights 800 9% 8 700 8% 8% ▪ Revenue of NOK 9.2 billion in quarter 600 8% 6 500 6% ▪ 65% increase compared to same period last year 400 4 5% 4% 300 4% 2 200 100 2% ▪
Slide 10: Life Cycle
3Q 2024 | Life Cycle Revenue Excluding special items EBITDA Excluding special items 4.0 250 10% Financials and Highlights 3.5 200 8% 3.0 ▪ Revenue of NOK 3.5 billion in quarter 2.5 150 7% 6% ▪ 6% increase from same period last year 7% 6% 2.0 6% 1.5 100 5% 4% 1.0 50 2% ▪ EBITDA of NOK 244 million (7.
Slide 11: OneSubsea
3Q 2024 | OneSubsea Revenue1 EBITDA 1, 2 12 2.5 25% Financials and Highlights 10 2.0 20% 8 1.5 19% 18% 19% 18% 15% ▪ Revenue1 of NOK 10.7 billion in quarter 6 1.0 10% ▪ High activity levels in all major basin 4 2 0.5 5% ▪ EBITDA1,2 of NOK 2.0 billion in the quarter 0 0.0 0% 4Q23 1Q24 2Q24 3Q24 4Q23
Slide 12: Cash Generation
3Q 2024 | Cash Generation Change in Cash and Cash Equivalents NOK MILLION Improved Cash Position in the Quarter 11,747 ▪ Cash flow from operations of negative NOK 519 11,030 million in the third quarter ▪ Driven by NOK 1.2 billion working capital reversal 7,275 6,173 ▪ CAPEX investments of NOK 254 m
Slide 13: Net Cash Position of NOK 11.7 Billion
3Q 2024 | Net Cash Position of NOK 11.7 Billion Working Capital1 of minus NOK 7.7 billion Working Capital1 NOK BILLION ■ NOK 1.2 billion working capital normalization in the quarter 1 0 CAPEX2 in the quarter was NOK 254 million -1 -2 ■ Safeguarding investment program completed on time and budget -3
Slide 14: Attractive Capital Allocation Strategy
3Q 2024 | Attractive Capital Allocation Strategy Capital Allocation Priorities Maintain sufficient Invest in Return Financial robustness Profitable growth Value creation Ordinary Dividend Policy Proposed Extraordinary Dividend 40-60 % NOK 21 per Share of Annual Net Profit excluding Special Items Pro
Slide 15: Summary Outlook
Summary Outlook ▪ Significant increase in revenues and improved ▪ 2024 revenue expected to grow by more than 40% margins in the quarter compared to last year from 2023-levels ▪ 2024 EBITDA-margin expected to be around 7.5% ▪ Strong operational performance with several excluding the net income from O
Slide 16: We solve global energy challenges for future generations
Lk — | We solve global energy challenges gy for future generations S@ 4
Slide 17: Additional Information
ES Aker Solutions Additional Information
Slide 18: Order Intake and Backlog
3Q 2024 | Order Intake and Backlog Order Backlog by Execution Year NOK BILLION Order Backlog by Type 40 36.3 30 10.7 20 13.7 14.6 3.6 25.2 10 8.8 10.0 5.4 0 4Q 24 2025 2026 -> 1 2 3 4 Renewables and Field Development Life Cycle Other Alliance Reimbursable Lump Sum Renewables and Transitional Other Q
Slide 19: Timing of Selected Large Projects in the Portfolio, by Segment
Timing of Selected Large Projects in the Portfolio, by Segment Renewables and Field Development Life Cycle Project Customer Award year Delivery year (est.) Project Customer Award year Delivery year (est.) Johan Castberg FPSO Equinor 2017 2024 Aker BP EMM /Modific. Alliance (FA) Aker BP 2015 2025 Hug
Slide 20: Renewables and Transitional Energy Solutions
Renewables and Transitional Energy Solutions NOK million Revenue 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 Total revenue (excl. special items) 6,619 8,274 27,461 7,145 8,826 9,114 11,021 36,107 11,477 12,827 13,181 Renewables and Transitional Energy Solu
Slide 21: Alternative Performance Measures
Alternative Performance Measures Basis for Preparation This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange. The same measurement principles as presented in the Annual Report 2023 have been used when prepari
Slide 22: Alternative Performance Measures
Alternative Performance Measures Profit Measures Renewables & Other/ Life Cycle Aker Solutions Field Development eliminations NOK million 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 EBITDA and EBIT terms are presented as they are used by financial analysts Revenue Net profit equi
Slide 23: Alternative Performance Measures
Alternative Performance Measures Financing Measures Alternative financing and equity measures are presented as they are indicators of the Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used company’s ability to obtain financing and service its debts. by manag
Slide 24: Alternative Performance Measures
Alternative Performance Measures Order Intake Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, as they are indicators of the company’s revenues and operations in the future. Order intake includes new agreed customer contracts in the peri
Slide 25: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 Restructuring (0) (0) 1 2 0 3 19 24 0 3 1 Non-qualifying hedges (4) 2 12 5 10 3 (0) 17 (2) 0 (3) Other special items 2 7 10 11 16 15 46 87 22 7 6 To
Slide 26: Income Statement
Income Statement NOK million Income statement consolidated 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 Revenue 6,614 8,248 27,468 7,213 8,880 9,094 10,870 36,057 11,273 12,661 12,940 Net profit equity accounted investees (1) 27 33 0 1 8 197 205 207 166 245
Slide 27: Cash Flow
Cash Flow NOK million Cash flow 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 EBITDA continuing operations 150 220 647 229 193 194 551 1,166 967 1,206 1,204 EBITDA discontinued operations 586 727 2,288 640 906 1,225 0 2,772 - - - Change in cash flow from ope
Slide 28: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Property, plant and equipment 3,533 3,596 3,762 4,246 2,883 3,487 3,830 3,956 4,043 Intangible assets including Goodwill 6,064 5,949 5,958 5,933 3,413 3,563 3,536 3,510 3,514 Right-of-us
Slide 29: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Total equity attributable to the parent 9,129 9,244 9,940 10,506 11,187 19,082 20,176 19,379 20,070 Non-controlling interests 41 (4) (3) (3) (56) (129) (1
Slide 30: Split per Segment
Split per Segment NOK million Revenue 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 Renewables and Field Development 3,551 4,553 14,857 4,128 5,369 5,576 7,447 22,520 8,003 9,402 9,217 Life Cycle 2,938 3,576 12,164 2,933 3,343 3,249 3,547 13,072 3,031 2,988
Slide 31: Split per Segment
Split per Segment NOK million NCOA 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 NCOA (2,347) (4,032) (4,920) (5,753) (6,631) (8,484) (8,774) (8,898) (7,655) Order intake 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 Renewables and
Slide 32: Split per Segment – Excluding Special Items
Split per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 Renewables and Field Development 124 185 488 171 208 239 362 979 617 887 774 Life Cycle 146 188 663 161 164 163 197 686 195 205
Slide 33: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 3Q 2023 3Q 2024 Norway 84 % 86 % Europe 9% 8% North America 5% 3% Asia Pacific 2% 2% Africa 0% 2% Total 100 % 100 % Total backlog (NOK billion) 68.9 64.7 Third-Quarter Results 33
Slide 34: | Aker
| Aker Solutions
Slide 35: Copyright and Disclaimer
Copyright and Disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any for