Akastor Asa · OSL:AKAST
Akastor Asa — Q2 2024 Earnings Presentation
35 slides from Akastor Asa's earnings presentation, Jul 12, 2024
Slide 1: Quarterly presentation – Akastor ASA 2Q 2024
2Q 2024 Quarterly presentation – Akastor ASA July 11, 2024 Akastor © 2024
Slide 2: 2Q 2024 Highlights
2Q 2024 Highlights NET CAPITAL EMPLOYED 1) NOK million, 30 June 2024 Book value per share (NOK) ▪ USD 176 million received in cash in quarter as payment of termination fees and reimbursement of costs and interest 11.9 2.9 1.2 1.1 1.0 -0.9 17.2 3.0 20.2 DRU ▪ Accounting gain of NOK 748 million in per
Slide 3: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 3
Slide 4: Summary and outlook
Summary and outlook ▪ HMH announced confidential submission of first draft registration statement for proposed initial public offering ▪ Revenue of USD 208 million in the quarter, up 10% year- on-year ▪ EBITDA of USD 42 million in the quarter, up 23% year- on-year ▪ EBITDA margin of 20% driven by pr
Slide 5: HMH highlights | 2Q 2024
HMH highlights | 2Q 2024 Proforma financials, IFRS ▪ Revenues up 10% year-on-year and up 7% quarter- REVENUE EBITDA1) EBITDA MARGIN (Adj.) on-quarter driven by increased aftermarket service USD millions USD millions % volume and increased product shipments 203 208 208 46 21.0 189 193 42 20.0 17.9 17
Slide 6: Segments highlights
Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Service revenue up 9% year-on-year and up 3% quarter-on-quarter 147 157 146 150 driven by spare part output partially offset by lower overhaul and 138 repair volume ▪ Order intake down 11% year-on-year driven by hi
Slide 7: Net interest-bearing debt
Net interest-bearing debt ▪ Net debt of USD 173 million as per end of period NET INTEREST-BEARING DEBT USD millions ▪ Leverage, NIBD/LTM EBITDA (adj.), at 1.1x per 2Q 2024 289 ▪ USD 13 million drawn on the RCF in Q2 2024 116 213 40 173 IBD as per end of period Amount Key terms Senior Secured Bond 20
Slide 8: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 8
Slide 9: Net Capital Employed
Net Capital Employed Net Capital Employed per 2Q 2024 1) Development in 2Q 2024 NOK million NOK million 831 285 (247) 296 338 (1 136) 794 196 128 (56) 5 546 5 523 36 22 2 4 714 4 714 3 248 Listed Other Net NIBD Equity Net DRU Listed Other Net holdings2) Capital Capital contracts holdings2) Capital E
Slide 10: Net interest-bearing debt
Net interest-bearing debt Net debt development 2Q 2024 highlights NOK million ▪ Net bank debt decreased by NOK 1 613 million in the quarter, to a net 1 373 cash position of NOK 240 million, driven by DRU proceeds totalling NOK 43 1.9 billion received in the period ▪ “Other” (as shown in graph) inclu
Slide 11: External financing facilities and liquidity
External financing facilities and liquidity Overview of financing facilities Cash and undrawn facilities as of 30 June 2024 NOK million 880 Facility Size Maturity Margin Revolving Credit Facility USD 30 million June 2026 4.0% (Akastor corporate) 560 Overdraft facility NOK 50 million Uncommitted 4.2%
Slide 12: Income statement 2Q 2024
Income statement 2Q 2024 COMMENTS ▪ JV holdings, including HMH and AKOFS, are not consolidated in the Akastor group financials. Consolidated revenue and EBITDA thus only represent a minor part of Akastor’s investments. ▪ Other income of NOK 31 million in 2Q related to final effects following DRU arb
Slide 13: Income statement 2Q 2024 (cont.)
Income statement 2Q 2024 (cont.) COMMENTS ▪ Other financial income include interest compensation related to DRU arbitration of NOK 717 million (cash effect in period) ▪ Net financial items include non- cash items from financial investments and a non-cash net foreign exchange loss of NOK 33 million ▪
Slide 14: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 14
Slide 15: Portfolio overview
Portfolio overview Private holdings Listed investments Company Service offering Ownership Global full-service offshore and onshore drilling equipment and service provider 50% Global engineering staffing and solution provider for highly technical industries ~15%1) Global provider of subsea well const
Slide 16: HMH
HMH Business model ▪ Global full-service offshore and onshore drilling REVENUE equipment provider with a broad portfolio of products USD millions Capital Employed and services 208 208 69% 189 203 193 NOK 3 248 million ▪ Large installed base providing firm foundation for strong customer relationship
Slide 17: NES Fircroft
NES Fircroft Business model REVENUE 1) ▪ World’s leading engineering staffing and solution USD millions provider for highly technical industries spanning a Capital Employed 750 17% range of staffing services: Contract, Permanent Hire 670 699 707 697 NOK 794 million & Managed Solutions ▪ Diversified
Slide 18: AKOFS Offshore
AKOFS Offshore Business model REVENUE ▪ Vessel-based subsea well construction and USD millions intervention services covering all phases from Capital Employed 37 6% conceptual development to project execution 32 35 NOK 285 million and offshore operations 30 28 ▪ Operates two SESV vessels in Brazil o
Slide 19: DDW Offshore
DDW Offshore Business model REVENUE ▪ Owns three Anchor Handling Tug Supply (AHTS) NOK millions vessels with capability to operate and support Capital Employed 80 7% clients on a world-wide basis NOK 338 million ▪ The vessels are specially designed to perform 57 anchor-handling, towing, and supply s
Slide 20: Key priorities for Akastor going forward
Key priorities for Akastor going forward Enable liquidity Optimize exit Develop and divest Targeting liquidity through Longer term horizon, with end Targeting to optimize timing of separate listings, enabling goal of realizing investments exit gradual realization (through cash or shares) TARGETING T
Slide 21: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 21
Slide 22: Appendix
Appendix Akastor © 2024 Akastor © | 2024 Slide 22
Slide 23: Selected transactions since inception in 2014
Selected transactions since inception in 2014 May 2024 May 2024 July 2023 April 2023 February 2023 November 2022 February 2022 Acquisition of Sale of two DDW Shares received 100% sale, against cash 100% sale to Offshore vessels to Establish JV pursuant to Warrant and shares in Agreement Sale of pref
Slide 24: Consolidated Income Statement
Consolidated Income Statement Akastor © 2024 Note: Presentation of quarterly results is not audited and may deviate from statutory reporting. Slide 24
Slide 25: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Akastor © 2024 Note: Presentation of quarterly results is not audited and may deviate from statutory reporting. Slide 25
Slide 26: Consolidated Statement of Cash flows
Consolidated Statement of Cash flows The statement includes cash flows from discontinued operations prior to the disposal. Akastor © 2024 Slide 26
Slide 27: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to the consolidated ▪ Gross debt - sum of current and non-current borrowings, which do not include lease liabilities financial statements. Such performance measures are used to provide an enh
Slide 28: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) June 30 December 31 June 30 December 31 NOK million 2024 2023 2024 2023 NOK million Non-current borrowings 262 236 Current operating assets 53 606 Current borrowings 102 1 133 Less: Gross debt 364 1 369 Current operating liabilities 233 339 Less: Cash and ca
Slide 29: Key figures | Group
Key figures | Group AKASTOR GROUP Akastor © 2024 Slide 29
Slide 30: Key figures | Split per company (1/4)
Key figures | Split per company (1/4) HMH Akastor © 2024 Note: HMH figures presented on 100% basis Slide 30 1) EBITDA (adj.) excludes non-recurring expenses or costs defined as outside of normal company operations. 2) Equipment backlog defined as Project and Product orders
Slide 31: Key figures | Split per company (2/4)
Key figures | Split per company (2/4) AKOFS OFFSHORE Akastor © 2024 Note: AKOFS Offshore figures presented on 100% basis Slide 31
Slide 32: Key figures | Split per company (3/4)
Key figures | Split per company (3/4) DDW Offshore Akastor © 2024 Slide 32
Slide 33: Key figures | Split per company (4/4)
Key figures | Split per company (4/4) OTHER HOLDINGS Akastor © 2024 Slide 33
Slide 34: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u
Slide 35: Akastor ASA contact details
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 Akastor © 2024 www.akastor.com