Fjord Defence Group Asa · OSL:DFENS

Fjord Defence Group Asa — Carbon Transition — Q1 2023 Earnings Presentation

14 slides from Fjord Defence Group Asa's earnings presentation, May 10, 2023

  1. Slide 1: Carbon Transition Q1 2023

    09.05.2023 Carbon Transition Q1 2023 10 May 2023

  2. Slide 2: Disclaimer

    Disclaimer • The information in this presentation has been prepared by Carbon Transition ASA (the “Company”). By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations and provisions: • This presentation has be

  3. Slide 3: Quarterly highlights

    Quarterly highlights • Fair value of multi-client library USD 35.9 million • Fair value of investment portfolio USD 7.6 million o Net gain of USD 0.8 million • Revenue from reprocessing Utsira represented USD 2.4 million and from multi-client late sales Utsira USD 0.5 million • Available liquid fund

  4. Slide 4: New name announced – Aquila Holdings

    New name announced – Aquila Holdings Revised seismic and investment strategy • Attractive seismic multi-client business o Multi-client library and related seismic assets represent approximately three quarters of total assets o Will consider expansion opportunities • Investment arm o Select investmen

  5. Slide 5: Seismic business

    Seismic business World shifting towards energy security • Revised strategy with more emphasis on traditional energy assets • Optimize revenues from seismic assets • Evaluate new investments within seismic domain • Potential expansion opportunities • Low-cost operation 5

  6. Slide 6: Multi-client strategy

    Multi-client strategy OBN seismic data for near-field exploration • Multi-client library fair value of USD 35.9 million • Generating robust revenue • Expect additional late sales in 2023 from both Norway and Egypt • Seismic demand picking up and market is tightening o Seismic contracts being convert

  7. Slide 7: Multi-client portfolio

    Multi-client portfolio Norway and Egypt – prolific hydrocarbon basins Utsira • Reprocessing identifies new drillable prospects in mature areas • State of the art technology through collaboration with CGG • Delivering priority area in Q3 2023 • Reprocessing project is on schedule and at cost • New pr

  8. Slide 8: Investment arm

    Investment arm Select investments in securities • Select investments in listed and unlisted securities • Current focus on energy and industrial sectors • Fair value of investment portfolio USD 7.6 million o Capsol Technologies USD 5.1 million o Dolphin Drilling USD 2.3 million 8

  9. Slide 9: Net asset value

    Net asset value Summary NAV per share review USD NOK per millions share Observations • Seismic business represents largest share of NAV Multi-client library 35.9 1.67 Financial assets 3.0 0.14 o Multi-client investments Seismic business 38.9 1.81 o Node equipment earn-out agreement Investments 7.6 0

  10. Slide 10: Comprehensive income

    Comprehensive income USD millions Observations Comprehensive income Q1 2023 Q1 2022 • Revenue Utsira late sales USD 0.5 million, Utsira reprocessing Revenue 2.9 1.4 USD 2.4 million Changes in fair value of investments (loss) 0.8 (1.3) • COS Utsira reprocessing represents USD 2.0 million Other gains

  11. Slide 11: Financial position

    Financial position Observations USD millions • MCL Utsira USD 27.3 million, Gulf of Suez USD 8.6 million Assets 31.03.2023 31.12.2022 • Financial assets of USD 3.0 million - NPV node equipment earnout • Trade receivables related to late sales and reprocessing Multi-client library 35.9 37.5 Investmen

  12. Slide 12: Cash flow

    Cash flow USD millions Cash flow Q1 2023 Q1 2022 Profit (loss) before tax (0.4) 4.1 Observations Taxes (paid)/ received 0.0 0.3 • Amortization of Utsira and Gulf of Suez Depreciation and amortization 1.6 (4.5) USD 1.6 million Changes in fair value of investments (0.8) 1.3 Changes in other gains and

  13. Slide 13: Outlook

    Outlook • Volatility in the energy sector expected to continue given global market uncertainty • Current energy prices support capital investment by oil companies • Overhang of past underinvestment and growing need for energy security contribute to increased capital expenditures • Despite robust ind

  14. Slide 14: Investing in a sustainable future

    Investing in a Askekroken 11 carbn.no sustainable future. 0277 Oslo Copyright © 2021 Norway Carbon Transition

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