Abl Group Asa · OSL:ABL
Abl Group Asa — AqualisBraemar LOC — Q3 2021 Earnings Presentation
42 slides from Abl Group Asa's earnings presentation, Oct 28, 2021
Slide 1: 2021 Q3 results
2021 Q3 results 28 October 2021 ABL-GROUP.COM
Slide 2: Highlights, Financial review, Outlook
1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC
Slide 3: Disclaimer
Disclaimer ▪ This Presentation has been produced by AqualisBraemar LOC ASA (the “Company” or “ABL”) 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
Slide 4: Q3 2021 Highlights
Q3 2021 Highlights Reported numbers1 Pro-forma combined2 • Revenue increased 9% proforma YoY and was flat QoQ in a normally seasonal weaker quarter 34.7 38.3 38.0 • Revenues of USD 38.0 million (Q3 20: USD 18.4 million stand-alone1, USD 34.7 Revenue (USDm) 18.4 pro-forma combined2) • Revenue growth
Slide 5: Our Markets
Our Markets 5
Slide 6: Our Service Portfolio
Our Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Technical due diligence • Clean shipping Marine surveys, Marine warranty survey Marine casualty support & Expert witness & litigation • Owner’s engineering & • Engineering & design inspections & audits • Renewables mana
Slide 7: The strategic vision
The strategic vision 1 2 3 Grow through continued expansion in Leverage our Capital efficiency, offshore renewables and sustainability- market leading position consistently return capital oriented services in the O&G and within shipping, oil and gas to improve to shareholders Maritime industries pro
Slide 8: Renewables now ABL's second largest market LTM. 30% in 3Q21!
Renewables now ABL’s second largest market LTM. 30% in 3Q21! Market sector revenue LTM – pro forma combined Segment revenue LTM – pro forma combined1 Longitude 5% Maritime OWC 22% Europe 13% 25% 147.9 147.9 Oil&Gas USDm 53% Middle East USDm 17% Renewables 25% Asia Pacific 23% Americas 17% Note: No a
Slide 9: Global partner, local expert – new office in Cork, Ireland
Global partner, local expert – new office in Cork, Ireland 922 Employees1 63 Offices 39 Countries Global footprint provides clients with local expertise and swift response 9 1 Includes subcontractors on 100% utilisation basis. Calculated as an average during Q3 2021
Slide 10: Offshore wind going global – Europe to drop below 50% of installed base by 2025
RENEWABLES Offshore wind going global – Europe to drop below 50% of installed base by 2025 Offshore wind, new installations (GW) Total installations (% and GW) 10 Source: GWEC
Slide 11: Project: TDD on acquisition of world's largest offshore wind farm development
RENEWABLES Project: TDD on acquisition of world’s largest offshore wind farm development • ABL’s renewables consultancy OWC conducted a full technical due diligence of the 1.5 GW Hollandse Kust Zuid offshore wind farm to support BASF’s acquisition of a 49.5 percent ownership share in the project • T
Slide 12: Expanding into onshore wind and storage with key senior hires
RENEWABLES Expanding into onshore wind and storage with key senior hires OWC services before LOC acquisition LOC / Longitude / Innosea services Fixed OWF Floating OWF Wave & Tidal Emerging Tech. Solar New 2021 services Onshore wind Battery storage Hydrogen Richard Abrams Alan Smith Nguyen Dinh 12
Slide 13: Recovery started in rig activity, capex investments to follow from 2022
OIL & GAS Recovery started in rig activity, capex investments to follow from 2022 E&P capex growth Rigs under contract 30% 450 400 20% 350 10% 300 0% # Units 250 -10% 200 150 -20% 100 -30% 50 -40% 0 Onshore Offshore Floaters Jackups 13 Source: IHS Markit, SB1 Markets
Slide 14: Project: MWS of subsea installation for Buzios 5 project offshore Brazil
OIL & GAS Project: MWS of subsea installation for Buzios 5 project offshore Brazil • ABL was recently awarded the Buzios 5 contract with Saipem for MWS of installation of subsea equipment in the pre-salt Libra field • Saipem has been awarded a contract by Petrobras for the installation of a rigid ri
Slide 15: Project: MWS of subsea installation for Mero 2 project offshore Brazil
OIL & GAS Project: MWS of subsea installation for Mero 2 project offshore Brazil • Following the Mero 1 contract awarded in 2020, ABL was recently awarded a second contract with TechnipFMC for MWS of installation of subsea equipment in the pre-salt Libra field • The Mero 2 project, is a part the pha
Slide 16: Project: ABL to develop green hydrogen production barge concept
MARITIME Project: ABL to develop green hydrogen production barge concept • ABL and the group’s specialist engineering company Longitude Engineering has been awarded an innovative R&D project to develop a green hydrogen production barge under the Clean Maritime Demonstration Competition (CMDC) • The
Slide 17: ABL Yachts growing in buoyant market
MARITIME ABL Yachts growing in buoyant market • ABL Yachts, our specialist superyacht survey business, has had its busiest year yet driven by buoyant conditions in the superyacht market and a significant increase market share increase in our area of focus (high value yachts > 50 metres) • Laid end t
Slide 18: Project: Adjusting Renewable Energy Losses
ADJUSTING / RENEWABLES Project: Adjusting Renewable Energy Losses • ABL’s Adjusting Dubai office was instructed in relation to a solar (PV) construction loss in the Arabian gulf • This is the first significant renewable energy award to the MENA region for the Group, not just Adjusting • The Singapor
Slide 19: Recruitment continued through seasonal low quarter
Recruitment continued through seasonal low quarter Highlights Q3 2021 Staff level development1 • Average staff levels remained flat from Q2 to Q3, as 1 000 50% seasonal lower activity curtailed subcontractor use • Growth in permanent staff driven primarily by Renewables 800 40% • Subcontractor share
Slide 20: Highlights, Financial review, Outlook
1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC
Slide 21: Revenue and adjusted EBIT
Revenue and adjusted EBIT Revenue (USDm) Adj EBIT1 (USDm) LOC consolidated LOC consolidated from 1Q21 from 1Q21 2.8 38.3 38.0 2.4 36.7 +9% 2.0 +106% 1.8 1.4 18.8 19.8 19.2 19.6 18.0 18.4 1.0 0.6 0.4 0.3 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Revenue
Slide 22: Segment revenues and EBIT
Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 12.0 1.4 10.0 1.2 8.0 1.0 6.0 0.8 0.6 4.0 0.4 2.0 0.2 0.0 0.0 -2.0 -0.2 -0.4 -4.0 -0.6 -6.0 -0.8 3Q20 2Q21 3Q21 3Q20 2Q21 3Q21 • Revenue growth primarily driven by renewables consultancy OWC and specialist engineers Long
Slide 23: Income Statement
Income Statement USD thousands Consolidated income statement Q3 2021 Q3 2020 YTD 2021 YTD 2020 FY 2020 • Revenues for Q3 2021 up 106% from Q3 2020 Revenue 37 986 18 431 112 951 57 450 77 015 • Reported growth driven by consolidation of LOC Total revenue 37 986 18 431 112 951 57 450 77 015 • Revenues
Slide 24: Strong financial position, returning excess cash to shareholders and banks
Strong financial position, returning excess cash to shareholders and banks Highlights Q3 2021 Working capital1 (% of quarterly revenue) • USD 23.2 million in cash 150% 142% 140% 138% 135% • Down from USD 24.5 million in Q2 127% • USD 0.5 million cash flow from operations negatively 125% affected by
Slide 25: Semi-annual dividend of NOK 0.25 per share to be paid in December
Semi-annual dividend of NOK 0.25 per share to be paid in December Paid and declared dividends (NOK/share) • Declared dividend of NOK 0.25 per share, corresponding to approximately USD 2.9 million • The dividend was resolved and declared in accordance with the 0.25 0.25 authorization granted by the A
Slide 26: Highlights, Financial review, Outlook
1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC
Slide 27: Summary and outlook
Summary and outlook • Continued year-on-year growth in revenues and EBIT in seasonal weak quarter • Higher activity should be expected in Q4 in line with normal seasonality • Cost synergy target of USD 4.0 million maintained, to be gradually realised from Q4 2021 • Positive market outlook • Strong g
Slide 28: Appendix
Appendix © 2012-2021 AqualisBraemar LOC
Slide 29: AqualisBraemar LOC Group targets
AqualisBraemar LOC Group targets • Financial targets • Organic revenue growth of 5 percent over a business cycle • Renewable and sustainability-oriented services target at 50% of revenue in 2025 • Adjusted EBIT margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparabi
Slide 30: Billing ratio development
Billing ratio development Billing ratio1 – Total technical staff (including subcontractors) LOC consolidated from 1Q21 85% 80% 75% 70% 65% 60% 55% Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Billing ratio, Aqualis/AqualisBraemar Gliding 3m average, AB 1 For AqualisBraemar: Billing
Slide 31: General (1/2)
General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated AqualisBraemar LOC discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an financial highlights for the quarter of the enhanced insight into the ope
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) Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Restructuring and integration costs 475 5 528 48 55 52 30 185 283 36 29 Other special items (incl. share-based expenses) - - - 78 76 80 83 318 106 353 531 Transaction costs rela
Slide 34: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Operating profit (loss) (EBIT) (245) 444 (332) 1 279 1 577 506 (416) 2 946 1 859 2 281 1 319 Depreciation, amortisation and impairment 362 252 690 362 363 392 360 1 477 1 072 8
Slide 35: APMs and Key Figures
APMs and Key Figures USD thousands Working capital Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Trade and other receivables 25 896 24 252 24 252 26 064 26 568 24 714 41 498 41 498 45 954 51 977 51 898 Contract assets 13 518 12 019 12 019 11 145 9 264 9 873 12 916 12 916 14 952 1
Slide 36: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Revenue 17 957 18 785 54 792 19 787 19 232 18 431 19 565 77 015 36 698 38 266 37 986 Total revenue 17 957 18 785 54 792 19 787 19 232 18 431 19 565 77 015 36
Slide 37: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Property, plant and equipment 508 559 509 475 452 1 213 1 350 1 284 1 169 Right-of-use assets 2 167 2 376 2 021 1 757 1 485 4 707 4 046 3 363 2 938 Goodwill and
Slide 38: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 2020 Q1 21 Q2 21 Q3 21 Profit (loss) before taxes 144 (992) 9 900 3 000 1 394 441 (2 328) 2 507 1 414 1 866 495 Adjustments for: Depreciation, amortisation and impairment 36
Slide 39: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Middle East 5 221 6 087 19 955 7 013 5 595 4 019 5 738 22 365 7 230 7 775 6 282 Asia Pacific 5 909 5 636 14 958 5 745 5 256 5 638 5 610 22 249 8 959 9 129 9 950 Europe 3 50
Slide 40: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Middle East 5 102 5 648 5 648 6 915 6 778 4 937 6 338 6 338 6 316 6 997 6 251 Asia Pacific 5 705 6 207 6 207 6 844 6 597 6 050 8 091 8 0
Slide 41: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 15.4% 2 HOLMEN SPESIALFOND 9 240 763 9.5% 3 BJØRN STRAY 6 017 743 6.2% 4 MELESIO INVEST AS 4 611 016 4.8% 5 SOBER AS 3 500 000 3.6% 6 MUSTANG CAPITAL AS 2 805 334 2.9% 7 KRB CAPITAL AS 2 348 818 2.4%
Slide 42: © AqualisBraemar LOC, 2021 ABL-GROUP.COM
© AqualisBraemar LOC, 2021 ABL-GROUP.COM