Abl Group Asa · OSL:ABL

Abl Group Asa — Q1 2023 Earnings Presentation

36 slides from Abl Group Asa's earnings presentation, Apr 27, 2023

  1. Slide 1: 2023 Q1 results

    2023 Q1 results 27 April 2023 abl-group.com

  2. Slide 2: Highlights, Financial review, Operations and outlook

    1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group

  3. Slide 3: Disclaimer

    Disclaimer ▪ This Presentation has been produced by ABL Group ASA (the “Company” or “ABL Group”) 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 confidential, h

  4. Slide 4: Q1 2023 Highlights

    Q1 2023 Highlights • Revenue of USD 45.2m, up 14% compared to Q1 2022 (USD 39.6m) 45.2 42.8 • Growth driven by renewables consultancy OWC (+22% YoY) and Add Energy Revenue 39.6 integration (USDm) • Adjusted EBIT of USD 3.6m (Q1 22: USD 3.4m) Q1'22 Q4'22 Q1'23 • Adjusted EBIT margin of 8.0% (Q1 22: 8

  5. Slide 5: Highlights, Financial review, Operations and outlook

    1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group

  6. Slide 6: Revenue and adjusted EBIT

    Revenue and adjusted EBIT Revenue (USDm) Adj EBIT (USDm) +14% +8% 44.1 45.2 42.8 41.4 4.4 39.6 38.3 38.0 37.8 36.7 4.0 3.5 3.6 3.4 2.8 2.4 2.5 2.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Revenue (reported) Adjusted EBIT 6 Note: Add Energy consolidate

  7. Slide 7: Segment revenues and EBIT

    Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 12.0 2.0 12% 11% 12% 11% 8% 9% -11% 10.0 8.0 1.5 6.0 1.0 4.0 2.0 0.5 0.0 0.0 -2.0 -4.0 -0.5 -6.0 -1.0 1Q22 4Q22 1Q23 1Q22 4Q22 1Q23 Margin • Revenue growth driven by renewables consultancy OWC (+22% YoY) and integration

  8. Slide 8: Abbreviated Financials: Income Statement

    Abbreviated Financials : Income Statement USD million • Staff costs increased by 21% driven by business volume Abbreviated income statement Q1 22 Q1 23 changes (recruitment, Add Energy) and inflationary salary increase Total revenue 39.6 45.2 • D&A of USD 0.9 million includes approximately USD 0.4 S

  9. Slide 9: Abbreviated Financials: Cash Flow

    Abbreviated Financials : Cash Flow USD million • Non-cash adjustments consist of depreciation, amortisation Abbreviated cash flow Q1 22 Q1 23 and share based compensation • Anticipated increase in working capital reflects increase in Profit (loss) before taxes 3.2 0.3 activity following large reduct

  10. Slide 10: Abbreviated Financials: Balance Sheet

    Abbreviated Financials : Balance Sheet USD million • Net cash decreased to USD 16.3 million Abbreviated balance sheet Q4 22 Q1 23 • Current assets increase reflects an increase in receivable and WIP coming from higher activity Cash and cash equivalents 31.0 28.8 • Working Capital ratio has increased

  11. Slide 11: Proposed semi-annual dividend of NOK 0.35 per share upheld

    Proposed semi-annual dividend of NOK 0.35 per share upheld Paid and proposed dividends (NOK/share) • Proposed dividend of NOK 0.35 per share upheld, corresponding to USD 4.1 million 0.35 • The distribution will for tax purposes be considered a repayment of paid-in capital 0.30 0.30 • The dividend is

  12. Slide 12: Acquisition of AGR completed on 18 April

    Acquisition of AGR completed on 18 April Purchase price and settlement (NOKm) • ABL Group acquired 100% of shares in AGR AS from a Enterprise value 262.5 Share consideration 272.5 subsidiary of Akastor ASA at EV NOK 262.5 million, Net cash and excess NWC 15.3 Cash consideration 5.3 representing 5.7x

  13. Slide 13: Highlights, Financial review, Operations and outlook

    1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group

  14. Slide 14: AGR positioned for growth within the ABL Group

    Revenue split AGR positioned for growth within the ABL Group EBITDA split Overview Main business streams and revenue & EBITDA split3 • AGR is a multi-disciplinary engineering consultancy and software provider focused on: Resource Solutions Well & Reservoir4 Software • Well management and engineering

  15. Slide 15: ABL Group to acquire AGR

    ABL Group to acquire AGR 1 Consolidates our well & reservoir services creating better scale, CONSOLIDATION a broader offering, and a stronger leading position in key markets 2 NEW SERVICE Adds a leading resource solutions offering servicing O&G, and positioned for growth in talent tight offshore win

  16. Slide 16: Staff growth continues, to be accelerated by AGR acquisition

    Staff growth continues, to be accelerated by AGR acquisition Highlights Q1 2023 Staff level development1 • 1,125 average number of employees in quarter 1,600 60% represents 3% growth from Q4 2022 1,400 AGR • 4% increase in permanent staff 50% • Acquisition of AGR to increase number of employees to 1

  17. Slide 17: Diversified revenue base across sectors and regions

    Diversified revenue base across sectors and regions Market sector revenue LTM1 Segment revenue LTM1,2 Longitude Maritime 6% Add Energy Europe 18% 8% 21% Americas 13% 173.4 173.4 USDm Oil&Gas USDm 54% Asia Pacific Renewables 19% 28% Middle East 16% OWC 17% 17 Note: Market sector revenue based on mana

  18. Slide 18: Offshore wind outlook strong – and improving

    RENEWABLES Offshore wind outlook strong – and improving Comparison of offshore wind installations outlook from the GWEC Global Wind Report 2022 vs 2023 2022-2026 installations (GW) from 2022 GWEC report 2023-2027 installations (GW) from 2023 GWEC report • The expected deployment of offshore wind inc

  19. Slide 19: O&G investments on the rise, greenfield ramping up after brownfield focus in 2022

    OIL & GAS O&G investments on the rise, greenfield ramping up after brownfield focus in 2022 E&P capex growth Rigs under contract 40% 360 140 30% 340 130 20% 17% 320 120 10% # Jackups # Floaters 0% 300 110 -10% 280 100 -20% 260 90 -30% -40% 240 80 2023e 2003 2004 2005 2006 2007 2008 2009 2010 2011 20

  20. Slide 20: Summary and outlook

    Summary and outlook • All time high revenues, with solid profitability across most of the business • Add Energy loss making in quarter, break-even in March. Still targeting profitability in 2023. • Inflationary pay rise taking effect from Q1, while contract rates adjust throughout year. • Completed

  21. Slide 21: Appendix

    Appendix © 2012-2023 ABL Group

  22. Slide 22: ABL Group Service Portfolio

    ABL Group Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Owner’s engineering • Marine design, upgrade Surveys, inspections & Marine warranty survey Marine casualty support & Expert witness & litigation • Technical due diligence & conversion audits • Renewables managemen

  23. Slide 23: Global partner, local expert

    Global partner, local expert 1,125 Employees1 63 Offices 39 Countries Global footprint provides clients with local expertise and swift response 23 1 Includes freelancers on FTE basis. Calculated as average during 1Q 2023.

  24. Slide 24: Billing ratio development

    Billing ratio development Billing ratio1 – Total technical staff (including freelancers) 80.0% 78.0% 76.0% 74.0% 72.0% 70.0% 68.0% 66.0% 64.0% 62.0% 60.0% Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Billing ratio Gliding 3m average 1 Billing ratio excludes management, business dev

  25. Slide 25: General (1/2)

    General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated ABL discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced insight into financial highlights for the quarter of the the operations, financ

  26. Slide 26: General (2/2)

    General (2/2) Alternative Performance Measures (APMs) continued Return on equity (ROE) ROE is calculated as the adjusted profit (loss) for the period attributable to equity holders of the parent, divided by average total equity for the period. The adjusted profit (loss) is annualised for interim per

  27. Slide 27: Adjustment items

    Adjustment items USD thousands Adjustment items (EBITDA) FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Restructuring and integration costs 185 283 36 29 14 362 - - 19 170 189 - Other special items (incl. share-based expenses) 318 106 353 531 485 1 475 456 209 504 603 1 773

  28. Slide 28: APMs and Key Figures

    APMs and Key Figures USD thousands Profitability measures FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Operating profit (loss) (EBIT) 2 946 1 859 2 281 1 319 1 916 7 375 2 806 3 868 3 329 2 512 12 514 2 708 Depreciation, amortisation and impairment 1 477 1 072 899 820 998

  29. Slide 29: APMs and Key Figures

    APMs and Key Figures USD thousands Net Cash FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Cash and cash equivalents 30 642 28 319 24 532 23 212 19 815 19 815 21 212 18 711 29 267 30 974 30 974 28 819 Less: Interest bearing bank borrowings 15 083 15 096 13 310 12 504 11 661

  30. Slide 30: Consolidated Statement of Income

    Consolidated Statement of Income USD thousands Consolidated income statement FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Revenue 77 015 36 698 38 266 37 986 37 797 150 748 39 643 41 367 44 100 42 788 167 897 45 177 Total revenue 77 015 36 698 38 266 37 986 37 797 150 748

  31. Slide 31: Consolidated Statement of Cash Flow

    Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Profit (loss) before taxes 2 507 1 414 1 866 495 2 408 6 184 3 151 2 847 3 026 1 629 10 654 326 Non-cash adjustment to reconcile profit before tax

  32. Slide 32: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Property, plant and equipment 1 213 1 350 1 284 1 169 1 137 1 345 1 787 2 993 2 101 2 163 Right-of-use assets 4 707 4 046 3 363 2 938 3 629 3 619 8 046 7

  33. Slide 33: Revenues and EBIT - split per segments

    Revenues and EBIT - split per segments USD thousands Revenues FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Middle East 22 365 7 230 7 775 6 282 7 186 28 473 7 789 7 929 6 661 7 835 30 214 7 994 Asia Pacific 22 249 8 959 9 129 9 950 11 237 39 275 9 598 8 646 10 263 9 211 37

  34. Slide 34: Trade receivable & Cash and cash equivalents - split per segments

    Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Middle East 6 338 6 316 6 997 6 251 6 363 6 363 6 190 6 477 5 295 5 226 5 226 5 461 Asia Pacific 8 091 8 243 9 327 7 631 7 611 7 6

  35. Slide 35: Top 20 shareholders

    Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 12.1% 2 HOLMEN SPESIALFOND 10 450 000 8.5% 3 DNB BANK ASA 7 637 835 6.2% 4 BJØRN STRAY 6 217 743 5.1% 5 RGA ENERGY HOLDINGS AS 6 055 556 4.9% 6 NORDEA BANK ABP, FIL 6 055 555 4.9% 7 MELESIO INVEST AS

  36. Slide 36: abl-group.com

    © ABL Group, 2023 abl-group.com

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