Akastor Asa · OSL:AKAST
Akastor Asa — Q3 2015 Earnings Presentation
26 slides from Akastor Asa's earnings presentation, Nov 2, 2015
Slide 1: Third Quarter Results 2015
THIRD QUARTER RESULTS 2015 Kristian Røkke and Leif Borge Oslo | November 2, 2015 © 2015 Akastor
Slide 2: Agenda
Agenda THIRD QUARTER HIGHLIGHTS Kristian Røkke CEO FINANCIALS Leif Borge CFO Q&A Kristian Røkke and Leif Borge © 2015 Akastor Third Quarter Results 2015 November 2, 2015 Slide 2
Slide 3: Highlights
Highlights Mixed financials: weak MHWirth, impairments, EBITDA NOK -169 million satisfactory other results -184 MHWirth Challenging market conditions with further Frontica 74 weakening expected AKOFS 51 Taking action – cost base adjustments and Fjords 17 fundamental business improvements KOP 6
Slide 4: Business environment
Business environment • Relentless cost cutting throughout the Rig Utilization oil and gas industry • Prolonged headwinds in offshore drilling • More focus on second-hand assets Active Supply and Demand than newbuilds for foreseeable future #Floaters 300 250 250 Active Supply • Pockets of opportunity
Slide 5: MHWirth
MHWirth • Weak financial results; restructuring charges / MPO loss Q3 • Robust lifecycle services performance Status • Brazil situation: signals indicate completion of backlog, but timing uncertain • MPO: EBITDA of NOK -102 million; evaluating strategic alternatives • Execute backlog (and get paid)
Slide 6: Portfolio highlights
Portfolio highlights • EBITDA margin improved, driven by effects of capacity adjustment • Improved NCOA by NOK 128 million mainly due to factoring agreement in the UK • Lower activity level among clients affecting revenues, especially within staffing • Skandi Santos close to full utilization and Ake
Slide 7: Akastor as an investment company
Akastor as an investment company Portfolio Company Akastor Empowered management Allocates capital, sets goals and incentives, monitors performance, Stand-alone BoDs and operating supports strategic initiatives management organizations Continuously explores M&A Intense focus on operational
Slide 8: Agenda
Agenda THIRD QUARTER HIGHLIGHTS Kristian Røkke CEO FINANCIALS Leif Borge CFO Q&A Kristian Røkke and Leif Borge © 2015 Akastor Third Quarter Results 2015 November 2, 2015 Slide 8
Slide 9: Condensed consolidated income statement
Condensed consolidated income statement Third Quarter First Three Quarters Full year NOK million 2015 2014 2015 2014 2014 Operating revenues and other income 3 678 5 095 11 917 16 106 21 432 Operating expenses (3 847) (4 243) (11 768) (14 989) (20 052) Operating profit before depreciation, amortizat
Slide 10: Financials - Special Items
Financials - Special Items 3Q normal Onerous Restructuring Impairments Impairments Impairment 3Q including NOK million Hedging Sum one-offs business leases costs AKOFS MHWirth Ezra all one-offs EBITDA 177 (20) (173) (153) - - - (346) (169) Depreciation & amortization (284) - (284) Impairment - - (23
Slide 11: The Akastor portfolio
The Akastor portfolio Real Estate and Other Holdings NET CAPITAL EMPLOYED OF NOK 14.3 BILLION 1 393 NOK million KOP Surface Products 744 Fjords Processing Other 151 614 NCOA NIBD Frontica 189 2 955 MHWirth 6 427 6 398 Intangible assets 3 702 AKOFS 4 966 NET CAPITAL EMPLOYED REDUCED WITH NOK 0.6 BN F
Slide 12: Capital structure
Capital structure NIBD OF NOK 6.4 BILLION PER 3Q 2015 FUNDING NOK billion SIZE MATURITY MARGIN 7,6 TERM LOAN NOK 2.5 billion September 1.4%-2.3% Other 0,1 2017 1,1 REVOLVING NOK 2.0 billion September 1.3%-2.2% 6,4 Revolving credit 2,0 0,1 2019 facility AKOFS SEAFARER USD 125 February 1.6%-2.0% FACIL
Slide 13: MHWirth
MHWirth BUSINESS SPLIT YTD BASED ON REVENUE • Revenues down 35 percent YTD 2015 compared with 2014, revenues from life cycle services stable Single Projects 38% Service 41% equipment/ other 21% • Underlying EBITDA of NOK 60 million in the quarter • Restructuring cost of NOK 142 million from third ph
Slide 14: AKOFS Offshore
AKOFS Offshore • Skandi Santos with close to full utilization VESSEL PROGRAM • AKOFS Wayfarer with full utilization Vessel unit Contract Status • AKOFS Seafarer idle in Q3, cold stacked in Q4, 2013 2014 2015 2016 2017 2018 2019 Skandi reducing opex to below USD 10 000 per day Santos AKOFS • AKOFS Se
Slide 15: Frontica Business Solutions and Fjords Processing
Frontica Business Solutions Fjords Processing • Revenue of NOK 1 145 million in the quarter, down • Revenues of NOK 487 million in 3Q, down from NOK 16% compared with 2014 due to lower activity level 530 million in 2014, impacted by phasing of projects of key clients • EBITDA of NOK 17 million in 3Q
Slide 16: KOP Surface Products and Real Estate and other holdings
KOP Surface Products Real Estate and other holdings • Revenues in NOK increased by 16.1% compared with • Real Estate and Other Holdings EBITDA of NOK -194 corresponding quarter last year (12.2% down in USD) million • EBITDA of NOK 67 million gave a margin of 20% in the • Step Oiltools and First Geo:
Slide 17: Akastor is set up to create value through active ownership
Akastor is set up to create value through active ownership Oilfield services investment Our mandate company with a flexible mandate for long-term value creation Portfolio companies with Our portfolio multiple levers for growth and improvements Value creation through active ownership combining a rang
Slide 18: Agenda
Agenda THIRD QUARTER HIGHLIGHTS Kristian Røkke CEO FINANCIALS Leif Borge CFO Q&A Kristian Røkke and Leif Borge © 2015 Akastor Third Quarter Results 2015 November 2, 2015 Slide 18
Slide 19: Additional information
Additional information © 2015 Akastor Third Quarter Results 2015 November 2, 2015 Slide 19
Slide 20: Consolidated balanced sheet
Consolidated balanced sheet September 30 December 31 NOK million 2015 2014 Deferred tax assets 453 214 Intangible assets 3 249 3 122 Property, plant and equipment 6 887 6 469 Investment property 637 707 Other non-current operating assets 603 691 Investments 500 610 Non-current interest-bearing recei
Slide 21: Condensed consolidated income statement
Condensed consolidated income statement Third Quarter First Three Quarters Full year NOK million 2015 2014 2015 2014 2014 Operating revenues and other income 3 678 5 095 11 917 16 106 21 432 Operating expenses (3 847) (4 243) (11 768) (14 989) (20 052) Operating profit before depreciation, amortizat
Slide 22: Key figures
Key figures AKASTOR GROUP Amounts in NOK million 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 Operating revenue and other income 5 095 5 326 4 546 3 693 3 678 EBITDA 853 262 177 141 (169) EBIT 579 (103) (98) (143) (1 576) CAPEX and R&D capitalization 257 359 1 127 280 107 NCOA 2 678 2 422 3 078 3 146 2 955 Net cap
Slide 23: Split per company
Split per company MHWIRTH Amounts in NOK million 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 Operating revenue and other income 2 432 2 711 2 174 1 619 1 422 EBITDA 207 241 3 3 (184) EBIT 80 102 (107) (103) (351) CAPEX and R&D capitalization 206 253 107 152 69 NCOA 2 852 2 573 3 153 3 183 3 260 Net capital employ
Slide 24: Split per company
Split per company AKOFS OFFSHORE Amounts in NOK million 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 Operating revenue and other income 279 256 168 186 229 EBITDA 564 51 (24) 31 51 EBIT 500 (21) (109) (56) (1 082) CAPEX and R&D capitalization (8) 3 967 61 13 NCOA (86) (73) (145) (54) (160) Net capital employed 4 0
Slide 25: Split per company
Split per company KOP SURFACE PRODUCTS Amounts in NOK million 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 Operating revenue and other income 291 335 324 255 338 EBITDA 37 46 65 59 67 EBIT 28 24 51 45 53 CAPEX and R&D capitalization 12 5 4 3 8 NCOA 356 375 420 410 442 Net capital employed 649 674 718 700 744 Order
Slide 26: 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