Abl Group Asa · OSL:ABL
Abl Group Asa — AqualisBraemar — Q3 2019 Earnings Presentation
37 slides from Abl Group Asa's earnings presentation, Nov 28, 2019
Slide 1: AqualisBraemar ASA 2019 Q3 results
AqualisBraemar ASA 2019 Q3 results November 28, 2019 aqualisbraemar.com
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by AqualisBraemar 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 confidentia
Slide 3: 1. Highlights 2. Financial review 3. Outlook
1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 3
Slide 4: Q3 2019 Highlights
Q3 2019 Highlights • Revenues of USD 18.0 million – Q3 2018: USD 18.0 million pro-forma combined, USD 8.6 million Aqualis stand-alone • Adjusted EBIT of USD 0.3 million – Q3 2018: Adj. EBIT of USD -0.1 million pro-forma combined • Operating loss (EBIT) of USD 0.2 million – Q3 2018: Operating profit
Slide 5: Integration and Synergies
Integration and Synergies • Integration is proceeding to plan • Co-location of main offices completed in London, Dubai, Abu Dhabi, Singapore, Shanghai and Houston during Q3 2019 • Essential IT investments are proceeding to realize information system efficiencies • Streamlining of legal structure com
Slide 6: AqualisBraemar service offering
AqualisBraemar service offering Offshore Renewables Offshore Oil & Gas Marine Adjusting • Specialized and globally • Specialist offshore • Worldwide emergency • Loss adjusting, risk focused engineering engineering and casualty, accident or assessment, legal/expert consultancy providing consultancy s
Slide 7: AqualisBraemar global footprint
AqualisBraemar global footprint 421 Employees1 48 Locations 33 Countries Global footprint provides clients with local expertise and swift response (1) Includes subcontractors on 100% utilisation basis. Calculated as an average during Q3 2019 7
Slide 8: AqualisBraemar – diversified across regions and services
AqualisBraemar – diversified across regions and services Business stream revenue 9M 2019 Regional revenue 9M 2019 14% 14% 33% 13% 54.6 49% 54.6 USDm 25% USDm 24% 28% Offshore oil & gas Marine Offshore Renewables Adjusting Middle East Far East Europe Americas Note: Proforma combined figures for YTD 2
Slide 9: Rig activity: Jackup market improving, floaters stabilized
Rig activity: Jackup market improving, floaters stabilized Jackup rigs under contract Floater rigs under contract 450 300 250 400 200 350 # Units # Units 150 300 100 250 50 200 - 01-15 01-16 01-17 01-18 01-19 01-15 01-16 01-17 01-18 01-19 Jackups Floaters Source: IHS Markit, SB1 Markets 9
Slide 10: Offshore wind market continues growing at rapid pace
Offshore wind market continues growing at rapid pace Project pipeline (GW) – Ex China1 Market share, Top 5 developers2 14 90% 12 71% 69% 10 8 54% 54% 51% 6 4 2 0 2013 2015 2017 2019 2021 2023 2025 2013 2014 2015 2016 2017 2018 Europe Asia ex. China North America Top 5 developers • Record volume of o
Slide 11: OWC expands global reach
OWC expands global reach Perth and Melbourne Edinburgh • OWC presence in Perth with a satellite office in • New office in Edinburgh to support the Melbourne flourishing Scottish offshore wind sector • The IEA has identified more than 2,000GW of • Scotland is home to many offshore wind capacity in wa
Slide 12: OWC supports developers for new UK leases
OWC supports developers for new UK leases • OWC is supporting a number of developers select as they evaluate sites and prepare bids for applying for leases in the UK’s new leasing rounds. • The leasing rounds are highly competitive. • OWC is delivering the following scopes: – Developing site selecti
Slide 13: AqualisBraemar and HOSE International
AqualisBraemar and HOSE International • AqualisBraemar Rig Inspection Service have entered a strategic partnership with HOSE International Well Control Equipment Service Provider. Hose is a leading provider of both Well control Inspection services and Equipment Servicing • The strategic partnership
Slide 14: RoRo “Golden Ray” Capsize
RoRo “Golden Ray” Capsize • Attended following the capsizing of the car carrier ship Golden Ray off the coast of Georgia, USA • AqualisBraemar attended to investigate the cause and monitor salvage operations on behalf of the Hull and Machinery underwriters 14
Slide 15: Order backlog development
Order backlog development Order backlog1 Highlights Q3 2019 14 • Order backlog at USD 12.7 million Aqualis • Pipeline of extra work expected from call 12 AqualisBraemar out contracts is positive and increasing. The majority of work is call out contracts 10 • Current focus is on supporting clients on
Slide 16: Staff level development
Staff level development Staff level development1 Highlights Q3 2019 500 • Average staff levels in Q3 2019 Aqualis decreased due to seasonal variations 450 AqualisBraemar 400 • The group will aim to increase its use of subcontractors to allow for a more 350 flexible cost base 300 • New recruitment un
Slide 17: Billing ratio development
Billing ratio development - Total technical staff (including subcontractors), billing ratio1 % Billing ratio 100% Aqualis Gliding 3m average billing ratio AqualisBraemar 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1) Billing ratio for technical staff including subcontractors. For offshore oil & gas and o
Slide 18: 1. Highlights 2. Financial review 3. Outlook
1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 18
Slide 19: Revenue and adjusted EBIT
Revenue and adjusted EBIT Revenue, pro-forma combined (USDm) Adj EBIT1, as reported (USDm) 20.0 1.0 10% 19.6 20 19.2 0.8 8% 18.7 18.3 18.0 18.0 17.5 17.4 0.6 6% 0.4 4% 16 0.2 2% 0.0 0% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 12 Adjusted EBIT (left axis) Adjusted EBIT margin (%) 8 Adj EBIT1, pro
Slide 20: Regional split
Regional split Revenue split (USDm) Adjusted EBIT1 split (USDm) 8.0 0.8 7.0 0.6 6.0 5.0 0.4 4.0 0.2 3.0 0.0 2.0 1.0 -0.2 0.0 -0.4 -1.0 -2.0 -0.6 -3.0 -0.8 2) Middle Far East Europe Americas Other Middle Far East Europe Americas Other 3) East East Q3 18 Q3 19 Q3 18 Q3 19 • Revenue from OWC entities i
Slide 21: Income Statement
Income Statement USD thousands Consolidated income statement Q3 19 Q3 18 YTD 19 YTD 18 FY 18 • Revenues for Q3 2019 up 108% Revenues 17,957 8,603 36,008 26,357 36,185 from Q3 2018 with growth Total revenues 17,957 8,603 36,008 26,357 36,185 related fully to the acquisition of Payroll and payroll rel
Slide 22: Cash flow and financial position
Cash flow and financial position Highlights Q3 2019 Working capital1 (%) 146% • Solid financial position with USD 10.7 150% 142% million in cash 125% • Capitalized lease of USD 2.2 million • Working capital of USD 26.3 million, 100% 88% down from USD 26.8 million in Q2 2019 79% 81% 77% 75% 77% • Ope
Slide 23: AqualisBraemar Group targets
AqualisBraemar Group targets • Financial targets over a business cycle – Organic revenue growth of 5 percent – EBITA margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparability) – Dividend policy where the dividend corresponds to approximately 50-70 percent of conso
Slide 24: 1. Highlights 2. Financial review 3. Outlook
1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 24
Slide 25: Outlook
Outlook • AqualisBraemar integration is on track and progressing well – The combination has been well received by clients, employees and the insurance markets – Cost and revenue synergies already being realised and we will continue to develop opportunities • Positive market outlook – Rapid growth an
Slide 26: Appendix
Appendix 26
Slide 27: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Transaction costs related to acquisition - - - - - - - - 384 715 30 Restructuring and integration costs - - - - - - - - - 48 475 Share of net profit (loss) from associates 113 3
Slide 28: General
General Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated AqualisBraemar discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced financial highlights for the quarter of the insight into the operations, f
Slide 29: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Operating profit (loss) (EBIT) 130 (6,383) (5,628) 197 1,032 594 859 2,684 (248) (284) (245) Depreciation, amortisation and impairment 34 3,963 4,061 33 34 30 32 129 38 38 362
Slide 30: APMs and Key Figures
APMs and Key Figures USD thousands Working capital Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Trade receivables 5,839 7,886 7,886 7,080 7,663 7,663 8,289 8,289 6,901 20,814 18,848 Contract assets 2,177 1,402 1,402 2,201 1,800 2,013 2,297 2,297 1,910 12,288 13,518 Other current
Slide 31: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Revenues 7,312 8,948 31,134 8,159 9,595 8,603 9,828 36,185 8,182 9,869 17,957 Total revenues 7,312 8,948 31,134 8,159 9,595 8,603 9,828 36,185 8,182 9,869 17
Slide 32: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 ASSETS Property, plant and equipment 191 160 153 180 167 141 223 2,936 2,675 Intangible assets 17,022 13,063 13,234 12,908 12,867 12,864 12,921 12,901 12,733 In
Slide 33: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Profit (loss) before taxes (322) (6,234) (6,333) (182) 1,427 560 1,073 2,878 (368) 11,116 144 Non-cash adjustment to reconcile profit before tax to cash
Slide 34: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q3 17 Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Middle East 2,585 3,702 12,505 3,984 5,029 3,855 4,928 17,796 4,164 4,483 5,221 Far East 1,947 2,262 7,764 1,595 1,858 2,155 3,002 8,610 2,135 2,662 6,634 Therein: OWC enti
Slide 35: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Middle East 2,139 3,400 3,413 4,099 3,865 4,824 4,069 5,450 5,102 Far East 1,241 1,897 1,271 1,456 1,845 1,992 1,016 6,255 5,705 Therein: OWC entiti
Slide 36: Historical revenues and adjusted EBIT, pro-forma combined
Historical revenues and adjusted EBIT, pro-forma combined USD millions Aqualis Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Revenue 7.3 8.9 8.2 9.6 8.6 9.8 8.2 9.9 Adjusted EBIT 0.2 0.6 0.2 0.7 0.6 0.9 0.1 0.5 BTS Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Revenue 10.2 9.8 10.2 10.4 9.4 9.8
Slide 37: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 Braemar Shipping Services Plc 19,240,621 27.3 2 Gross Management AS 9,367,996 13.3 3 Bjørn Stray 3,000,000 4.3 4 Holmen Spesialfond 2,193,431 3.1 5 MP Pensjon Pk 1,801,128 2.6 6 Oma Invest AS 1,694,000 2.4 7 Lgt Bank Ag 1,502,923