Slide 1: Aqualis ASA 2019 Q1 results
Aqualis ASA 2019 Q1 results May 13, 2019 aqualis.no
Slide 2: Disclaimer
Disclaimer ▪ This Presentation has been produced by Aqualis ASA (the “Company” or “Aqualis ”) 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, has
Slide 3: Agenda
Agenda 1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 3
Slide 4: Q1 2019 Highlights
Q1 2019 Highlights • Revenues of USD 8.2 million in Q1 2019, same level as in Q1 2018 • Operating loss (EBIT) of USD 0.2m vs operating profit of USD 0.2 million in Q1 2018 • Adjusted EBIT of USD 0.1 million in Q1 2019 vs USD 0.2 million in Q1 2018 • Positive operational cash flow of USD 1.8 million
Slide 5: Aqualis at a glance – A leading global energy consultancy
Aqualis at a glance – A leading global energy consultancy OFFSHORE OIL & GAS • Global presence with established market position • Marine consultancy and engineering services • Clients: Offshore asset owners, oil companies, EPC contractors, financial institutions, insurance companies, investors OFFSH
Slide 6: Order backlog development
Order backlog development Order backlog (USDm) Highlights Q1 2019 • Order backlog increases to USD 9.0m 12 • Pipeline of future opportunities rising 10 • Pipeline of work expected from call out contracts is positive and increasing, but visibility in our industry is limited and timing 8 could be unce
Slide 7: Staff level development
Staff level development Staff level development1 Highlights Q1 2019 200 • Staff levels decreased from last quarter driven by reduced number of subcontractors 190 • Employment opportunities in Aqualis Average no. of employees 180 attractive in the job market • The use of subcontractors allows for a m
Slide 8: Billing ratio development
Billing ratio development - Total technical staff (including subcontractors), billing ratio1 % 90% 88% 86% 86% 87% 84% 84% 84% 84% 84% 85% 83% 83% 83% Billing ratio for Technical Staff 1 82% 81% 82% 82% 82% 82% 82% 81% 80% 80% 80% 80% 79% 78% 76% 76% 75% 70% 65% 60% (1) Billing ratio for technical s
Slide 9: OWC opens office in Boston (US) and launches new service
OWC opens office in Boston (US) and launches new service • OWC established a new office in Boston, US, to support renewables development in region • OWC launched a regulatory & permitting advisory team to meet offshore wind needs in the US • Assist developers to meet regulatory requirements, obtain
Slide 10: Agenda
Agenda 1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 10
Slide 11: Revenue and adjusted EBIT trend
Revenue and adjusted EBIT trend Revenue (USDm) Adjusted EBIT 1 development (USDm, %) 12,0 1,0 10% 10,0 0,8 8% 8,0 0,6 6% 6,0 0,4 4% 4,0 0,2 2% 2,0 0,0 0% 0,0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Adjusted EBIT (left axis) Adjusted EBIT margin (%) R
Slide 12: Geographical split
Geographical split Revenue split (USDm) Adjusted EBIT1 split (USDm) 5,0 0,6 4,0 0,5 0,4 3,0 0,3 2,0 0,2 1,0 0,1 0,0 0,0 2) Middle East Far East Europe Americas Other Middle East Far East Europe Americas Other -1,0 -0,1 -2,0 Q1 18 Q1 19 -0,2 Q1 18 Q1 19 • Regional revenue differences y-o-y for entiti
Slide 13: Income Statement
Income Statement USD thousands Consolidated income statement Q1 2019 Q1 2018 FY 2018 • Revenues for Q1 2019 up 0.3 % Revenue 8,182 8,159 36,185 from Q1 2018 Total revenues 8,182 8,159 36,185 • Results impacted by transaction Payroll and payroll related expenses (3,849) (3,821) (15,682) costs of USD
Slide 14: Cashflow and Financial Position
Cashflow and Financial Position Highlights Q1 2019 Working capital1 (%) • Solid financial position with no interest 100 % bearing debt and USD 7.2 million in cash 95 % • Positive operational cash flow of USD 1.8 90 % million 85 % • Working capital of USD 5.9 million, down 80 % 75 % from USD 8.1 mill
Slide 15: Agenda
Agenda 1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 15
Slide 16: Outlook
Outlook • Q1 2019 started weaker than expected and was affected by the fluctuations in the call out contracting market with delays in some operations • The O&G sector continues to face challenging market conditions, but signs of recovery • Offshore O&G exploration budgets increasing with 10 – 20% in
Slide 17: Appendix
Appendix 17
Slide 18: Adjustment items
Adjustment items Adjustment items (EBITDA) Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Gain (loss) on disposal of interest in associates 240 (7) 113 3,080 3,426 - (291) - - (291) - Transaction cost - - - - - - - - - - 384 Total adjustment items (EBITDA) 24
Slide 19: General
General Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated Aqualis discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced insight into the financial highlights for the quarter of the operations, financin
Slide 20: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Operating profit (loss) (EBIT) 220 406 130 (6,383) (5,628) 197 1,032 594 860 2,684 (248) Depreciation, amortisation and impairment 32 31 34 3,963 4,061 33
Slide 21: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Revenues 7,550 7,324 7,312 8,948 31,134 8,159 9,595 8,603 9,828 36,185 8,182 Total revenues 7,550 7,324 7,312 8,948 31,134 8,159 9,595
Slide 22: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 ASSETS Property, plant and equipment 163 162 191 160 153 180 167 141 223 Intangible assets 16,470 16,696 17,022 13,063 13,234 12,908 12,867 12
Slide 23: Consolidated Statement of Cash flow
Consolidated Statement of Cash flow USD thousands Consolidated cashflow statement Q1 17 Q2 17 Q3 17 Q4 17 FY 2017 Q1 18 Q2 18 Q3 18 Q4 18 FY 2018 Q1 19 Profit (loss) before taxes 120 104 (322) (6,234) (6,333) (182) 1,427 560 1,073 2,878 (368) Non-cash adjustment to reconcile profit before tax to cas
Slide 24: Revenues and EBIT - split per segment
Revenues and EBIT - split per segment USD thousands Revenues Q1 17 Q2 17 Q3 17 Q4 17 FY 2017 Q1 18 Q2 18 Q3 18 Q4 18 FY 2018 Q1 19 Middle East 3,368 2,851 2,585 3,702 12,505 3,984 5,029 3,855 4,928 17,796 4,164 Far East 1,643 1,913 1,947 2,262 7,764 1,595 1,858 2,155 3,002 8,610 2,135 Therein: OWC e
Slide 25: Trade receivable & Cash and cash equivalents - split per segment
Trade receivable & Cash and cash equivalents - split per segment USD thousands Trade receivables Q1 17 Q2 17 Q3 17 Q4 17 FY 2017 Q1 18 Q2 18 Q3 18 Q4 18 FY 2018 Q1 19 Middle East 2,219 2,527 2,139 3,400 3,400 3,413 4,099 3,865 4,824 4,824 4,069 Far East 985 1,050 1,241 1,897 1,897 1,271 1,456 1,845
Slide 26: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 Gross Management AS 7,367,996 17.4 2 Carnegie Investment Bank AB 2,711,291 6.4 3 Tigerstaden AS 1,886,663 4.5 4 Danske Bank A/S 1,702,036 4.0 5 Mp Pensjon Pk 1,463,128 3.5 6 Lgt Bank AG 1,402,923 3.3 7 Oma Invest AS 1,400,000 3.3
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