Slide 1: 2024 Q3 results
2024 Q3 results 31 October 2024 abl-group.com
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
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 2024 Highlights
Q3 2024 Highlights 86.2 • Revenue of USD 86.2m, up 23% compared to Q3 2023 (USD 70.4m) 70.4 68.6 • Growth from acquisition of Ross Offshore1 contributing USD 17.8m revenue Revenue • OWC experienced lower activity level because of a reduction in demand in the (USDm) offshore wind market Q3'23 Q2'24 Q
Slide 5: 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 6: 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 • Marine Operati
Slide 7: Abbreviated segment revenues and EBIT
Abbreviated segment revenues and EBIT USD million Revenues Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 • Revenue growth of 23% YOY driven by Ross Offshore ABL 35.9 34.5 36.3 36.2 35.6 OWC 11.4 10.3 9.1 8.8 8.0 acquisition adding USD 17.8m to AGR segment Longitude 3.5 3.0 3.0 2.9 3.2 • Flat revenue in ABL and exis
Slide 8: Abbreviated Financials: Income Statement
Abbreviated Financials: Income Statement USD million Abbreviated income statement Q3 23 Q3 24 Total revenue 70.4 86.2 • Increase in revenue (+23% YoY) and operating cost (+30%) primarily from acquisition of Ross Offshore in 2Q 2024 Operating costs (63.4) (82.1) Depreciation and amortisation (1.5) (1
Slide 9: Abbreviated Financials: Cash Flow
Abbreviated Financials: Cash Flow USD million Abbreviated cash flow Q3 23 Q3 24 • Negative cash flow from operations of USD 3.2 million Profit before taxes 6.5 1.0 • Working capital increase of USD 8.1m, primarily driven by delivery of Non-cash adjustments 1.9 1.8 prepaid contracts in Ross Offshore
Slide 10: Abbreviated Financials: Balance Sheet
Abbreviated Financials: Balance Sheet USD million • Net cash1 decreased to USD 7.9m, primarily due a negative WC Abbreviated balance sheet Q2 24 Q3 24 swing • Working capital ratio up to 40% Cash and cash equivalents 28.4 22.5 • Working capital balance increased partly due to FX movements during Oth
Slide 11: Declaring semi-annual dividend of NOK 0.40 per share
Declaring semi-annual dividend of NOK 0.40 per share to be paid in November Paid and proposed dividends • Declaring dividend of NOK 0.40 per share, corresponding to approximately USD 4.8 million 2.0x 0.40 0.40 0.35 0.35 • The dividend was resolved and declared in accordance with the NOK/share 0.30 0
Slide 12: 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 13: Modest organic staff growth
Modest organic staff growth Staff level development1 Tech staff development by segment, including freelancers2 2 000 40% 800 +5% -11% +2% +41% 35% 700 1 500 30% 600 25% 500 1 000 20% 400 15% 300 500 10% 200 5% 100 0 0% 0 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 ABL OWC Longitude AGR Permane
Slide 14: 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 15: Oil & Gas: Solid activity – increasing volatility in select markets
OIL & GAS Solid activity – increasing volatility in select markets 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 0% 0.0% 340 180 320 160 -10.0% 300 140 -20.0% 280 120 -30.0% 260 100 -40.0% 240 80 2024e 2003 2004 2005 2006 20
Slide 16: Summary and outlook
Summary and outlook • Mixed performance in Q3 2024 • Margins depressed by reduced utilisation and project phasing across several segments • Solid performance with quarterly improvement in Longitude and AGR • Through the cycle adjusted EBIT guidance still stands at 6.5% following Ross Offshore and Hi
Slide 17: Appendix
Appendix © 2012-2024 ABL Group
Slide 18: Revenue base increased 10x since 2017
Revenue base increased 10x since 2017 Revenue development, ABL Group (USDm) Key acquisitions • 2014: OWC • 2019: Braemar Technical 350 Services (BTS), forming AqualisBraemar • 2020: LOC Group, forming ABL 251 Group • 2021: East Point Geo, OSD-IMT 168 151 • 2022: Add Energy • 2023: AGR, Delta Wind Pa
Slide 19: Our Markets
Our Markets 16%1 9%1 75%1 19 1 % of LTM revenues on pro-forma combined basis including Ross Offshore
Slide 20: Global partner, local expert
Global partner, local expert 1,753 Employees1 76 Offices 42 Countries Global footprint provides clients with local expertise and swift response 20 1 Includes freelancers on FTE basis. Calculated as average during Q3 2024
Slide 21: In 2023, ABL Group worked across renewables, maritime and 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 22: Billing ratio development
Billing ratio development Billing ratio1 – Technical staff Comments • Freelancers are ~100% 79% utilisation by definition 77% 78% 77% 77% 74% 74% 74% 74% 69% 69% 68% 67% 68% 66% 64% 65% 64% Billing ratio - Own staff Billing ratio - Inc freelancers 22 1 Billing ratio excludes management, business dev
Slide 23: Pro-forma combined financials (simplified)
Pro-forma combined financials (simplified) USD millions Revenue Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q/Q growth Y/Y growth ABL Group, as reported 70.4 67.7 68.9 68.6 86.2 25.8% 22.5% Ross Offshore (consolidated 3Q24) 20.9 18.8 17.8 16.3 Pro-forma combined (simplified) 91.3 86.5 86.7 84.8 86.2 1.7% -5.5% Ad
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) Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Q3 24 Restructuring and integration costs 172 220 392 - - - Transaction costs related to M&A 197 - 720 - 185 39 Total adjustment items (EBITDA) 369 220 1 112 - 185 39 Adjustment items (EBIT) Q3 23 Q4 23 FY 23 Q1 2
Slide 27: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Q3 24 Operating profit (loss) (EBIT) 5 512 3 913 16 530 3 372 2 227 2 487 Depreciation, amortisation and impairment 1 515 1 576 5 301 1 394 1 371 1 679 EBITDA 7 027 5 489 21 831 4 766 3 598 4 166 Total adjustment
Slide 28: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Q3 24 Cash and cash equivalents 25 890 28 157 28 157 30 889 28 425 22 485 Less: Interest bearing bank borrowings 10 965 10 946 10 946 11 505 17 633 14 617 Net Cash 14 925 17 211 17 211 19 384 10 792 7 868 USD thousands Working
Slide 29: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Q3 24 Revenue 70 402 67 716 251 233 68 906 68 577 86 244 Staff costs (33 986) (33 000) (125 373) (35 319) (35 723) (38 790) Other operating expenses (29 389) (29 227) (104 029) (28 821) (29 256
Slide 30: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Q3 24 Profit (loss) before taxes 6 476 2 079 12 445 2 218 1 275 1 020 Non-cash adjustment to reconcile profit before tax to cash flow: Depreciation, amortisation and impairment 1 515 1 576
Slide 31: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Goodwill and intangible assets 55 969 56 828 55 248 66 671 67 150 Property, plant and equipment 9 511 10 613 9 457 9 911 11 573 Investment in associates 27 32 31 167 168 Deferred tax a
Slide 32: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Q3 24 ABL 35 912 34 488 138 786 36 276 36 179 35 582 OWC 11 353 10 327 41 615 9 086 8 836 7 980 Longitude 3 530 3 001 12 385 2 990 2 901 3 183 AGR 21 835 21 350 66 224 21 242 21 037 39 785 Eliminations (2 228
Slide 33: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 15 140 351 11.6% 2 HOLMEN SPESIALFOND 9 049 674 7.0% 3 DNB BANK ASA 7 637 835 5.9% 4 BJØRN STRAY 6 317 743 4.9% 5 RGA ENERGY HOLDINGS AS 6 055 556 4.7% 6 VERDIPAPIRFONDET HOLBERG NORGE 5 276 626 4.1% 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
Slide 35: abl-group.com
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