Slide 1: Q4 2023 Quarterly Results
Odfjell Technology Investor Presentation Q4 2023 | Quarterly Results 16.02.2024
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: • Highlights of the quarter and key financials • Business Area Update • Achievements
• Highlights of the quarter and key financials • Business Area Update • Achievements and outlook • Financial information • Summary • Appendix 3
Slide 4: Highlights and key financials
Highlights and key financials Q4 marks the end of a very successful year with improvement in most key indicators Development key financials Revenue (NOKm) Available Liquidity (NOKm) 1342 913 29% 25% 1.5bn 1275 1 131 560 500 Annual revenue growth Annual EBITDA growth Backlog growth Q4 22 Q3 23 Q4 23
Slide 5: Business Area Update
*Sodfjell technology Business Area Update
Slide 6: Projects & Engineering – who we are
Projects & Engineering – who we are Our enabler for growth and energy transition What distinguishes us Key drivers and strategy • Complete Project & Engineering Partner with • E&P Companies' Expenditure on Platforms and Rigs operational engineering and specialists' competence • Diversify Product Off
Slide 7: Operations – who we are
Operations– who we are Strong position to upsell and bundle additional services from Engineering and Well Services What we do Business value • Extensive experience and competency in operating • Contract conditions which provide stable margins offshore drilling with low risk • Operations on the Norwe
Slide 8: Well Services – who we are
Well Services – who we are Specialist provider of mission-critical life of field services and equipment What sets us apart Strategy Key drivers and market sensitivity • Global technology & service provider with equipment • Drive expansion in our core markets, leveraging • Rig count pools in selected
Slide 9: Growth achievements and priorities
Growth achievements and priorities High order intake and contracts won in new markets Major Contracts won in Norway Well Services delivered TRS for • Projects & Engineering Exxon campaign • OSM – Heidrun-B • AkerBP ASA –Multi rig delivery of HVAC services • Operations • Repsol Norge AS – Yme Norway
Slide 10: Achievements and outlook
*Sodfjell technology ' ‘2 Achieve
Slide 11: Strategic performance
Strategic performance On track with our strategic priorities What we said we would deliver What we have achieved in 2023 • In 2023 we achieved (organic) revenue growth of 29% compared to 2022 Growth in established markets, expansion • Established operations in the new markets of Africa, Canada and A
Slide 12: Revenue growth of 29% from 2022 to 2023
Revenue growth of 29% from 2022 to 2023 Solid growth across all markets complemented by establishments in new markets Growth rate by region Revenue by region Norway 27% 22 % 5% UK 29% 8% Norway 1% UK Europe - Other countries 31% Europe - Other countries Asia Asia 24% Other - Africa & Americas Other
Slide 13: Order backlog of 12.3 billion NOK
Order backlog of 12.3 billion NOK Backlog growth is the result of recent contract wins and re-estimations Backlog by year Backlog by Business Segment 4 000 3 500 621 423 3 000 2 500 3 374 1 421 Operations 2 000 1 500 3 046 Well Services 1 154 1 000 905 P&E 1 400 693 8 350 500 734 845 443 313 508 410
Slide 14: Financial information
*Sodfjell technology Financial information 14
Slide 15: Group financials
Group financials Strong finish to year with revenue and EBITDA growth – significant free cash flow mainly due to working capital improvements Results current quarter vs same quarter previous year • Revenue growth of 211 million driven by growth in Well Services with new contracts in Asia and Africa.
Slide 16: Well Services
Well Services Growth continues with good activity across all regions Results current quarter vs same quarter previous year • Revenue up 107million driven by new contracts in Namibia, Netherlands and Malaysia – with all regions contributing to the growth • EBITDA increased 43 million primarily attrib
Slide 17: Operations
Operations Steady operational performance, but with lower margins Results current quarter vs same quarter previous year • Revenue up 22 million due to full quarter with rig management on Linus jack-up rig and an increased demand for construction and inspection services • EBITDA reduction of NOK 8 mi
Slide 18: Projects & Engineering
Projects & Engineering Strong quarter with normalised margin level Results current quarter vs same quarter previous year • Revenue up 60 million due to high activity throughout the quarter in all departments, with a particular emphasis on special purpose survey (SPS) activities within the Odfjell Dr
Slide 19: 2023 cash flow analysis
2023 cash flow analysis Strong finish to the year resulting in a free cash flow of 493 million and 353 million in improved liquidity Other includes Odfjell Ocean Wind funding (18m), currency effects, lease payments, Net change in cash of 99m (353m excl. proceed from sales RCF repayment 50 -5 129 51
Slide 20: Revenue and EBITDA trailing twelve months (LTM) figures
Revenue and EBITDA trailing twelve months (LTM) figures LTM figures demonstrate consistent growth trend 814 840 790 5021 748 4811 4531 673 4194 603 3885 3582 516 3339 2948 3116 2673 2800 423 2526 387 360 363 387 LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM
Slide 21: Summary
Summary 21
Slide 22: Summary
Summary Priorities - Future • Delivering on our strategy • Significant available liquidity and low net debt • Well positioned for growth in a strong market • 2023 financial performance supports potential dividend • Considerable cash flow supporting both investments and growth in 2024 returning cash
Slide 23: Appendix
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Slide 24: Summary income statement
Summary income statement P&L (NOKm) Q4 23 Q3 23 Q4 22 FY 23 FY 22 Operating revenue 1 341,6 1 275,1 1 131,0 5 021,4 3 885,0 Other gains and losses 14,7 9,4 4,4 26,9 13,6 Personnel expenses (811,9) (757,3) (702,2) (3 032,9) (2 381,6) Other operating expenses (320,9) (315,2) (236,1) (1 175,2) (844,5)
Slide 25: Summary Balance Sheet
Summary Balance Sheet NOK million 31.12.2023 30.09.2023 31.12.2022 NOK million 31.12.2023 30.09.2023 31.12.2022 Assets Equity and liabilities Property, plant and equipment 1 040,9 1 107,5 1 068,4 Paid-in capital 1 093,8 1 093,8 1 093,8 Intangible assets 257,3 258,9 252,1 Other equity (17,3) (22,1) (
Slide 26: Summary statement of cash flow
Summary statement of cash flow Cash flow (NOKm) Q4 23 Q4 22 FY 23 FY 22 Profit/(loss) before tax 139,3 108,7 361,5 226,2 Adjustment for provisions and other non-cash elements 77,7 97,7 463,9 438,9 Changes in working capital 333,6 89,7 53,1 10,6 Cash generated from operations 550,7 296,1 878,5 675,7
Slide 27: For further information, please contact
For further information, please contact Gert Haugland, SVP Finance and Investor Relations gjha@odfjelltechnology.com www.odfjelltechnology.com 27