Odfjell Technology Ltd. · OSL:OTL
Odfjell Technology — Pareto Securities Energy Conference 2024
24 slides from Odfjell Technology's conference presentation, Sep 11, 2024
Slide 1: Odfjell Technology Ltd Pareto Securities Energy Conference 2024
Odfjell Technology Ltd Pareto Securities Energy Conference 2024 CEO – Simen Lieungh 11 September 2024
Slide 2: Important Notice
Important Notice By reading this company presentation (the “Presentation”), or attending any meeting or presentation held in relation there to, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been prepared by Odfjell Technology Ltd (th
Slide 3: Odfjell Technology – who we are
Odfjell Technology – who we are Highly integrated technology and engineering company delivering specialist services, technology and competence across the energy value chain Projects & Engineering Well Services Operations Engineering and project Global technology & service Extensive experience and ex
Slide 4: Odfjell Technology What we do
Odfjell Technology What we do Projects & Platform drilling, Engineering hubs slot recovery, P&A, Strategic partner of in Norway, UK, Odfjell Oceanwind maintenance, Serving onshore Dubai and Manila modifications, and and offshore upgrades segments Rig expertise: • Jack-up operation • Compliance Globa
Slide 5: Current global presence and strategic targets
Current global presence and strategic targets Well positioned for further growth in coming years Global presence Revenue Q2 LTM per geographical market Norway UK Canada Netherlands Romania Turkmenistan USA Kuwait Saudi Arabia UAE Thailand Guyana Philippines Suriname Vietnam Malaysia Congo Brunei Ind
Slide 6: Summary of financial performance since listing
Summary of financial performance since listing Substantial improvements in earnings and capital structure Revenue (NOKbn) EBITDA (NOKm) Cash from Operations (NOKm) Available Liquidity NIBD1 Leverage Ratio2 1. NIBD is defined as non-current interest-bearing borrowings plus current interest-bearing bo
Slide 7: Revenue and EBITDA trailing twelve months (LTM) figures
Revenue and EBITDA trailing twelve months (LTM) figures LTM figures demonstrate consistent growth trend Revenue LTM (NOKm) EBITDA LTM (NOKm) 7 Note: Company listed as separate entity following spin-off from Odfjell Drilling in Q1 2022
Slide 8: Successful placement of new NOK 1.1 bn bond and USD 50 m RCF
Successful placement of new NOK 1.1 bn bond and USD 50 m RCF Secured new 4-year term financing with significantly improved terms Key transaction terms Deal highlights Outcomes • Senior Secured NOK 1,100 m • The order book peaked at nearly • Substantial 3.5% margin • Tap facility at NOK 600 m NOK 4 b
Slide 9: Key takeaways
Key takeaways • Strategically positioned for growth, with a clear • Targeting bolt-on and technology M&A plan to expand into new markets and enhance opportunities which are aligned with our strategy service offerings and enhance shareholder value • Strong cash flow enabling both investments in • Ref
Slide 10: Supporting slides
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Slide 11: Projects & Engineering
Projects & Engineering Specialised engineering and energy transition solutions Who we are • Trusted project & engineering partner: Expertise in operational engineering and offshore disciplines • End-to-end project management • Specialised in offshore floating wind: Expertise in design, production pr
Slide 12: Projects & Engineering – key financial performance
Projects & Engineering – key financial performance Revenue by quarter (NOKm) EBITDA by quarter (NOKm) Revenue LTM (NOKm) EBITDA LTM (NOKm) 12
Slide 13: Operations
Operations Extensive expertise in operating offshore drilling facilities and managing jack-up rigs Who we are • Major platform drilling contractor in the North Sea: Known for our regional expertise, quality delivery, safety commitment, and adherence to the highest regulatory standards • Comprehensiv
Slide 14: Operations – key financial performance
Operations – key financial performance Revenue by quarter (NOKm) EBITDA by quarter (NOKm) Revenue LTM (NOKm) EBITDA LTM (NOKm) 14
Slide 15: Well Services
Well Services Specialist provider of essential services and equipment for the entire lifecycle of a field Who we are • Global technology & service provider: Focus on delivering the technology and equipment to execute efficiently and safely. Evolving to meet the changing priorities of our clients and
Slide 16: Well Services - Key financial performance
Well Services - Key financial performance Revenue by quarter (NOKm) EBITDA by quarter (NOKm) Revenue LTM (NOKm) EBITDA LTM (NOKm) 16
Slide 17: Customer base
Customer base Long-lasting relationships with leading energy companies in key markets and regions Customer overview Key highlights Stable customer base provides resiliency and consistent sales Significant degree of repeat business through long-term contracts Revenue 200+ Revenue per per customers ge
Slide 18: Order backlog of NOK 13.4 bn
Order backlog of NOK 13.4 bn Robust order backlog Backlog development (NOKbn) Operations contract overview ptions irm ptions irm Backlog by segment (NOKbn) P ell Services perations 18
Slide 19: Financial highlights
Financial highlights Improved earnings converted to strengthened cash and debt position Cash from Operations LTM (NOKm) Free cash flow LTM (NOKm) Available liquidity (NOKm) Net interest-bearing debt1 (NOKm) & Leverage Ratio2 1. NIBD is defined as Non-current interest-bearing borrowings plus current
Slide 20: Equipment capital expenditures
Equipment capital expenditures Capex level is highly correlated with growth Capex (NOKm) Comments Capex overview: ▪ All capex is related to Well Services. ▪ Rental tools represent most of both capex and net book value 2024 capex estimate: ▪ 2024 capex estimate is approximately NOK 250-300m, includin
Slide 21: Capital allocation strategy and targets
Capital allocation strategy and targets Prioritize maximum return and profitable growth while balancing risk Strong balance Capex investment M&A investments Dividends sheet ➢ Optimize investment ➢ Clear strategy ➢ Dividends distribution to allocation to sustain established with priority be balanced
Slide 22: Our strategy
Our strategy Combining 50 years of industry experience with the technology of tomorrow, we develop solutions for the changing energy market Goals Enablers ▪ Deliver Safe and Efficient Operations ▪ Safety and Compliance ▪ Ensure Financial Predictability and Robustness ▪ Commitment to Excellence ▪ Exp
Slide 23: Our energy transition strategy
Our energy transition strategy 1 Vision 2 Strategic framework ✓ Using our heritage and expertise to support ✓ Support our customer`s energy the energy transition transition ambition and evaluate new opportunities Energy Transition in OTL 3 Rationale & Plan 4 Market attractiveness Currently we believ
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