Abl Group Asa · OSL:ABL

Abl Group Asa — Q4 2023 Earnings Presentation

40 slides from Abl Group Asa's earnings presentation, Feb 22, 2024

  1. Slide 1: 2023 Q4 results

    2023 Q4 results 22 February 2024 abl-group.com

  2. Slide 2: 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

  3. 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

  4. Slide 4: Q4 2023 Highlights

    Q4 2023 Highlights • Revenue of USD 67.7m, up 58% compared to Q4 2022 (USD 42.8m) 70.4 67.7 • Growth primarily due to acquisition of AGR1 Revenue 42.8 • Organic growth across all existing businesses (USDm) • Adjusted EBIT of USD 5.0m (Q4 22: USD 3.5m) Q4'22 Q3'23 Q4'23 • Adjusted EBIT margin of 7.4%

  5. Slide 5: 2023 Highlights – Continued delivery on growth

    2023 Highlights – Continued delivery on growth Revenue and adj EBIT development 2018-2023, USDm • 2023 revenue of USD 251.2 million, up 50% from 2022 (2022: USD 167.9 million) • On a pro-forma combined basis with AGR for the full year, 2023 revenues were USD 270.7 million (2022: USD 258 251 9% milli

  6. Slide 6: Financial review

    1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2024 ABL Group

  7. Slide 7: 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

  8. Slide 8: Abbreviated segment revenues and EBIT

    Abbreviated segment revenues and EBIT USD million Revenues Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 ABL 30.8 32.4 36.0 35.9 34.5 • Revenue growth driven primarily by OWC (+33% YOY) and OWC 7.8 8.8 11.2 11.4 10.3 integration of AGR Longitude 2.9 2.7 3.2 3.5 3.0 AGR 2.9 3.3 19.7 21.8 21.4 • Significant reduction

  9. Slide 9: Abbreviated Financials: Income Statement

    Abbreviated Financials : Income Statement USD million • Increase in revenue (+58% YoY) and operating costs (+58%) Abbreviated income statement Q4 22 Q4 23 primarily from acquisition of AGR in 2Q 2023 • Pro-forma combined1 YoY revenue growth (+6%) driven Total revenue 42.8 67.7 mainly by high growth

  10. Slide 10: Abbreviated Financials: Cash Flow

    Abbreviated Financials : Cash Flow USD million • Reduced working capital driven mainly by reduced days sales Abbreviated cash flow Q4 22 Q4 23 outstanding in OWC and ABL • Positive impact from FX in operating cash flow due to Profit before taxes 1.6 2.1 unrealised effects of movements in exchange ra

  11. Slide 11: Abbreviated Financials: Balance Sheet

    Abbreviated Financials : Balance Sheet USD million • Net cash1 increased to USD 17.2 million Abbreviated balance sheet Q3 23 Q4 23 • Working capital ratio down to 46% due to low working capital intensity of AGR, driving improved return on capital employed Cash and cash equivalents 25.9 28.2 • Refina

  12. Slide 12: Proposing semi-annual dividend of NOK 0.40 per share

    Proposing semi-annual dividend of NOK 0.40 per share Paid and proposed dividends • Proposing dividend of NOK 0.40 per share, corresponding to USD 4.8 million 0.40 0.35 0.35 NOK/share • The dividend is subject to shareholder approval at the AGM planned for 29 0.30 0.30 0.25 0.25 May 2024 and will be

  13. Slide 13: 2024 – modification to financial information

    2024 – modification to financial information Moving into 2024 we will make changes to the manner in which we present our financial results, reflecting the increasing maturity of the Group and certain re-organisation of activities: • Incentive Plans (STIP and LTIP) – costs will reside in the operatin

  14. Slide 14: 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

  15. Slide 15: High organic staff growth, accelerated by AGR acquisition

    High organic staff growth, accelerated by AGR acquisition Staff level development1 2 000 40% • 1,613 average number of employees in quarter represents 1 500 30% 47% growth from Q4 2022 1 000 20% • 35% increase in permanent staff 500 10% • Freelancer share of 33%, up from 26% in Q4 2022 0 0% • Increa

  16. Slide 16: Diversified revenue base across sectors and segments

    Diversified revenue base across sectors and segments Market sector revenue LTM pro-forma combined1 Segment revenue LTM pro-forma combined1,2 Maritime Longitude 12% 4% OWC 15% Renewables 22% 270.7 270.7 ABL 50% USDm USDm Oil&Gas 66% AGR 31% 16 Note: Market sector revenue based on management accounts

  17. Slide 17: In 2023, ABL Group worked on 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 …

  18. Slide 18: Offshore wind market: Cost inflation impacting short-term demand

    RENEWABLES Offshore wind market: Cost inflation impacting short-term demand Offshore wind projects by installation year (GW), ex China1 Comments 2022 report 2023 report • As previously indicated, inflation and interest rates impacted 38.9 sector in 2H 2023, causing project delays and developers to 3

  19. Slide 19: O&G investments stabilising, with increasing share of offshore execution

    OIL & GAS O&G investments stabilising, with increasing share of offshore execution E&P capex growth Rigs under contract 40.0% 440 280 420 260 30.0% 400 240 20.0% 380 220 10.0% # Jackups 360 200 # Floaters 3% 0.0% 340 180 320 160 -10.0% 300 140 -20.0% 280 120 -30.0% 260 100 -40.0% 240 80 2023e 2024e

  20. Slide 20: Summary and outlook

    Summary and outlook • All time high operational cash flow amid mixed operational performance • Improved profitability in ABL, AGR and Longitude relative to Q4 2022 • OWC continues to grow rapidly, 33% compared to same quarter last year, but market pause weighing on profitability • Positive market ou

  21. Slide 21: Appendix

    Appendix © 2012-2024 ABL Group

  22. Slide 22: Revenue base increased 650% since 2018

    Revenue base increased 650% since 2018 Revenue (USDm) and adjusted EBIT margin development, ABL Group Key acquisitions • 2014: OWC 9% 271 • 2019: Braemar Technical 8% Services (BTS), forming AqualisBraemar 7% 6% 6% • 2020: LOC Group, forming ABL 6% 168 Group 151 • 2021: East Point Geo, OSD-IMT • 202

  23. Slide 23: Our Markets

    Our Markets 23 ABLGroup

  24. Slide 24: 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

  25. Slide 25: ABL Group Service Portfolio

    ABL Group Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Owner’s engineering • Well engineering, Surveys, inspections & Marine warranty survey Marine casualty support & Expert witness & litigation • Technical due diligence management & servicing audits • Renewables mana

  26. Slide 26: Global partner, local expert

    Global partner, local expert 1,613 Employees1 67 Offices 41 Countries Global footprint provides clients with local expertise and swift response 26 1 Includes freelancers on FTE basis. Calculated as average during Q4 2023.

  27. Slide 27: Pro-forma combined financials (simplified)

    Pro-forma combined financials (simplified) USD millions Revenue Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q/Q growth Y/Y growth ABL Group, as reported 42.8 45.2 67.9 70.4 67.7 -3.8% 58.3% AGR (consolidated 2Q23) 21.3 19.5 Pro-forma combined (simplified) 64.0 64.7 67.9 70.4 67.7 -3.8% 5.7% Adjusted EBIT Q4 22 Q1

  28. Slide 28: Billing ratio development

    Billing ratio development Billing ratio1 – Technical staff Comments • Freelancers are ~100% 79% utilisation by definition 78% 77% 78% 77% 77% 75% • AGR consolidated from Q2 74% 73% 2023 69% 69% 69% 68% 67% 68% 66% 66% 62% Billing ratio - Own staff Billing ratio - Inc freelancers 28 1 Billing ratio e

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: Adjustment items

    Adjustment items USD thousands Adjustment items (EBITDA) Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Restructuring and integration costs 14 362 - - 19 170 189 - - 172 220 392 Other special items (incl. share-based expenses) 485 1 475 456 209 504 603 1 773 393 404 607 524

  32. Slide 32: APMs and Key Figures

    APMs and Key Figures USD thousands Profitability measures Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Operating profit (loss) (EBIT) 1 916 7 375 2 806 3 868 3 329 2 512 12 514 2 708 4 397 5 512 3 913 16 530 Depreciation, amortisation and impairment 998 3 790 810 758 939 8

  33. Slide 33: APMs and Key Figures

    APMs and Key Figures USD thousands Net Cash Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Cash and cash equivalents 19 815 19 815 21 212 18 711 29 267 30 974 30 974 28 819 26 390 25 890 28 157 28 157 Less: Interest bearing bank borrowings 11 661 11 661 10 817 9 997 14 166 1

  34. Slide 34: Consolidated Statement of Income

    Consolidated Statement of Income USD thousands Consolidated income statement Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Revenue 37 797 150 748 39 643 41 367 44 100 42 788 167 897 45 177 67 938 70 402 67 716 251 233 Total revenue 37 797 150 748 39 643 41 367 44 100 42 788

  35. Slide 35: Consolidated Statement of Cash Flow

    Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Profit (loss) before taxes 2 408 6 184 3 151 2 847 3 026 1 629 10 654 326 3 563 6 476 2 079 12 445 Non-cash adjustment to reconcile profit before

  36. Slide 36: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Property, plant and equipment 1 137 1 345 1 787 2 993 2 101 2 163 2 329 2 209 2 464 Right-of-use assets 3 629 3 619 8 046 7 954 7 904 7 639 8 236 7 302 8 149 Go

  37. Slide 37: Revenues and EBIT - split per segments

    Revenues and EBIT - split per segments USD thousands Revenues Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 ABL 31 062 125 047 31 299 32 002 31 253 30 803 125 357 32 370 36 016 35 912 34 488 138 786 OWC 6 759 24 110 7 199 7 587 8 191 7 762 30 739 8 751 11 184 11 353 10 327

  38. Slide 38: Trade receivable & Cash and cash equivalents - split per segments

    Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 ABL 28 742 28 742 30 462 30 730 24 880 24 902 24 902 25 564 27 560 28 029 28 290 28 290 OWC 3 004 3 004 3 234 3 896 3 512 3 192 3

  39. Slide 39: 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 10,450,000 8.1% 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 NORDEA BANK ABP, FIL 6,055,555 4.7% 7 MELESIO INVEST AS

  40. Slide 40: abl-group.com

    © ABL Group, 2024 abl-group.com

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