Akastor Asa · OSL:AKAST
Akastor Asa — Q3 2024 Earnings Presentation
36 slides from Akastor Asa's earnings presentation, Oct 30, 2024
Slide 1: Quarterly presentation – Akastor ASA
3Q 2024 Quarterly presentation – Akastor ASA October 30, 2024 Akastor © 2024
Slide 2: 3Q 2024 Highlights
3Q 2024 Highlights NET CAPITAL EMPLOYED 1) NOK million, 30 September 2024 Book value per share (NOK) ▪ EBITDA (adj.) of USD 46 million in quarter, up 32% year- 12.3 2.8 1.4 0.9 0.9 -0.7 17.6 2.7 20.4 on-year ▪ Acquisition of Drillform, a leader in automated drilling 5 584 tools completed in July 752
Slide 3: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 3
Slide 4: Summary and outlook
Summary and outlook ▪ HMH acquired Drillform, a Calgary-based leader in automated drilling tools ▪ Revenue of USD 213 million in the quarter, up 5% year- on-year ▪ EBITDA of USD 46 million in the quarter, up 32% year- on-year ▪ EBITDA margin of 22%, with increase compared to prior quarters driven by
Slide 5: Transaction
Transaction 100% of the equity interests in Drillform Technical Services Ltd. acquired in July for a total consideration of approx. USD 21 million in cash1 Drillform Technical Services Ltd. Based in Calgary, with facilities in Tulsa, USA, and Abu Dhabi, UAE, Drillform holds a robust Eirik Bergsvik p
Slide 6: HMH highlights | 3Q 2024
HMH highlights | 3Q 2024 Proforma financials, IFRS ▪ Revenues up 5% year-on-year and up 3% quarter- REVENUE EBITDA 1) EBITDA MARGIN (Adj.) on-quarter driven by increased product shipments USD millions USD millions % 203 208 208 213 46 46 21.0 21.7 193 42 20.0 ▪ EBITDA up 32% year-on-year and up 11%
Slide 7: Segments highlights
Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Service revenue down 4% year-on-year and down 6% quarter-on- 157 147 146 150 141 quarter driven by lower service order intake in the quarter ▪ Order intake down 10% year-on-year and down 8% quarter-on- 3Q23 4Q23 1Q
Slide 8: Net interest-bearing debt
Net interest-bearing debt ▪ Net debt of USD 197 million as per end of period (excl. NET INTEREST-BEARING DEBT shareholder loans) USD millions 316 ▪ Leverage, NIBD/LTM EBITDA (adj.), at 1.2x per 3Q 2024 ▪ USD 30 million drawn on the RCF as of Q3 2024 119 230 33 197 IBD as per end of period Amount Key
Slide 9: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 9
Slide 10: Net Capital Employed
Net Capital Employed Net Capital Employed per 3Q 2024 1) Development in 3Q 2024 NOK million NOK million 5 584 752 (37) 50 243 (205) 4 832 (16) 259 (41) 42 388 778 120 4 832 3 368 4 714 Listed Other Net NIBD Equity Net Capital Listed Other Net Capital holdings2) Capital Employed holdings2) Employed E
Slide 11: Net interest-bearing debt
Net interest-bearing debt Net debt development 3Q 2024 highlights NOK million ▪ Net cash position reduced by NOK 117 million in the quarter, to a net cash position of NOK 123 million ▪ “Other” (as shown in graph) includes positive non-cash foreign exchange effects of NOK 6 million and funding of AKO
Slide 12: External financing facilities and liquidity
External financing facilities and liquidity Overview of financing facilities Liquidity as of 30 September 2024 NOK million 754 Facility Size Maturity Margin 315 Revolving Credit Facility USD 30 million June 2026 4.0% (Akastor corporate) 404 36 Share financing facility NOK 70 million [1] Uncommitted
Slide 13: Income statement 3Q 2024
Income statement 3Q 2024 COMMENTS ▪ JV holdings, including HMH and AKOFS, are not consolidated in the Akastor group financials. Consolidated revenue and EBITDA thus only represent a minor part of Akastor’s investments. Akastor © 2024 Slide 13
Slide 14: Income statement 3Q 2024 (cont.)
Income statement 3Q 2024 (cont.) COMMENTS ▪ Net financial items include non- cash items from financial investments and a non-cash net foreign exchange loss of NOK 27 million ▪ Equity-accounted investees contributed positively with NOK 58 million (non-cash for Akastor) Akastor © 2024 Slide 14
Slide 15: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 15
Slide 16: Portfolio overview
Portfolio overview Private holdings Listed investments Company Service offering Ownership Full-service drilling equipment and service provider 50% Engineering staffing and solution provider for technical industries ~15%1) Subsea well construction and intervention services 50% Owner of 3 mid-sized AH
Slide 17: HMH
HMH Business model ▪ Global full-service offshore and onshore drilling REVENUE equipment provider with a broad portfolio of products USD millions Capital Employed and services 213 69% 203 208 193 208 NOK 3 368 million ▪ Large installed base providing firm foundation for strong customer relationship
Slide 18: NES Fircroft
NES Fircroft Business model REVENUE 1) ▪ World’s leading engineering staffing and solution USD millions provider for highly technical industries spanning a Capital Employed 776 16% range of staffing services: Contract, Permanent 699 707 697 750 NOK 778 million Hire & Managed Solutions ▪ Diversified
Slide 19: AKOFS Offshore
AKOFS Offshore Business model REVENUE ▪ Vessel-based subsea well construction and USD millions intervention services covering all phases from Capital Employed 38 5% conceptual development to project execution 37 35 NOK 243 million 32 and offshore operations 30 ▪ Operates two SESV vessels in Brazil o
Slide 20: DDW Offshore
DDW Offshore Business model REVENUE ▪ Owns three Anchor Handling Tug Supply (AHTS) NOK millions vessels with capability to operate and support Capital Employed 97 8% clients on a world-wide basis NOK 388 million 80 ▪ The vessels are specially designed to perform anchor-handling, towing, and supply s
Slide 21: Key priorities for Akastor going forward
Key priorities for Akastor going forward Enable liquidity Optimize exit Develop and divest Targeting liquidity through Longer term horizon, with end Targeting to optimize timing of separate listings, enabling goal of realizing investments exit gradual realization (through cash or shares) TARGETING T
Slide 22: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 22
Slide 23: Appendix
Appendix Akastor © 2024 Akastor © | 2024 Slide 23
Slide 24: Selected transactions since inception in 2014
Selected transactions since inception in 2014 May 2024 May 2024 July 2023 April 2023 February 2023 November 2022 February 2022 Acquisition of Sale of two DDW Shares received 100% sale, against cash 100% sale to Offshore vessels to Establish JV pursuant to Warrant and shares in Agreement Sale of pref
Slide 25: Consolidated Income Statement
Consolidated Income Statement Akastor © 2024 Note: Presentation of quarterly results is not audited and may deviate from statutory reporting. Slide 25
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Akastor © 2024 Note: Presentation of quarterly results is not audited and may deviate from statutory reporting. Slide 26
Slide 27: Consolidated Statement of Cash flows
Consolidated Statement of Cash flows The statement includes cash flows from discontinued operations prior to the disposal. Akastor © 2024 Slide 27
Slide 28: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to the consolidated ▪ Gross debt - sum of current and non-current borrowings, which do not include lease liabilities financial statements. Such performance measures are used to provide an enh
Slide 29: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) September 30 December 31 September 30 December 31 NOK million 2024 2023 2024 2023 NOK million Non-current borrowings 285 236 Current operating assets 103 606 Current borrowings 76 1 133 Less: Gross debt 361 1 369 Current operating liabilities 187 339 Less: C
Slide 30: Key figures | Group
Key figures | Group AKASTOR GROUP Akastor © 2024 Slide 30
Slide 31: Key figures | Split per company (1/4)
Key figures | Split per company (1/4) HMH Akastor © 2024 Note: HMH figures presented on 100% basis Slide 31 1) EBITDA (adj.) excludes non-recurring expenses or costs defined as outside of normal company operations 2) Equipment backlog defined as order backlog within Projects, Products and Other
Slide 32: Key figures | Split per company (2/4)
Key figures | Split per company (2/4) AKOFS OFFSHORE Akastor © 2024 Note: AKOFS Offshore figures presented on 100% basis. Slide 32 1) Net capital employed in previous quarters restated due to reclassifications
Slide 33: Key figures | Split per company (3/4)
Key figures | Split per company (3/4) DDW Offshore Akastor © 2024 Slide 33
Slide 34: Key figures | Split per company (4/4)
Key figures | Split per company (4/4) OTHER HOLDINGS Akastor © 2024 Slide 34
Slide 35: 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
Slide 36: AKASTOR ASA
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 Akastor © 2024 www.akastor.com