1Q 2024
Quarterly presentation - Akastor ASA
April 25, 2024
1Q 2024 Highlights
- EBITDA (adj.) of USD 33 million in quarter, approx. 75% increase year-on-year driven by higher aftermarket activity
- USD 22 million draw on RCF paid down in quarter
- 17% increase in EBITDA and 12% revenue growth year-on-year
- NIBD / EBITDA ratio of 1.8x, 0.2 lower than a year ago
- All vessels in operation through quarter
- Mixed revenue utilization, with periods of downtime on AKOFS Santos and AKOFS Seafarer affecting financials
- Only one vessel in operation in quarter, affecting financials
- Solid market sentiment and attractive short-term contract secured for Skandi Atlantic to commence in 2Q
- About USD 108 million awarded as payment of termination
DRU | fees and reimbursement of costs. In addition, compensation |
for interest has been calculated to USD 65 million. | |
- Positive accounting effect of NOK 599 million in 1Q (interest compensation to be accounted for in 2Q)
NET CAPITAL EMPLOYED 1)
NOK million, 31 March 2024
Book value per share
11.8 | 4.1 | 2.8 | 1.2 | 1.2 | -1.0 | 20.2 | -3.0 | 17.2 |
316 | (263) | |||||||
340 | (811) | |||||||
758 | ||||||||
1 125 | ||||||||
5 523 | ||||||||
4 712 | ||||||||
3 247 | ||||||||
DRU | Other | Net Capital | NIBD | Equity | ||||
contracts | Employed |
Akastor © 2024 | 1) | Net Capital Employed per holding reflected at book value | Slide 2 |
DRU arbitration award
- DRU arbitration award received 17th April 2024
- Award issued by Singapore International Arbitration Centre
- Total gross amount awarded to MHW/AKAST of about USD 173 million, including interest calculation
- About USD 108 million awarded as payment of termination fees and reimbursement of legal and certain suspension costs
- MHW/AKAST calculation pursuant to the directions set out in the award shows about USD 65 million due as interest payment
- MHW/AKAST interest calculation shared with counterparty
Akastor © 2024 | Slide 3 |
Agenda
HMH
Financial update
Ownership agenda
Q&A
Summary and outlook
- Order intake of USD 209 million in the quarter, with a book-to-bill >1x
- EBITDA of USD 33 million in the quarter, up ~75% year- on-year
- USD 22 million draw on RCF paid down in quarter as planned
- Signed two new multi-year contractual service agreement supporting future growth of the aftermarket services segment
- Established a Joint Venture with Tanajib Holding Company in Saudi Arabia marking a significant HMH milestone in the journey of regional expansion
Akastor © 2024 | Slide 5 |
HMH highlights | 1Q 2024
Proforma financials, IFRS
- Revenues up 4% year-on-year driven by increase in DLS output offset by lower project activity and down 7% quarter-on-quarter driven by product volume and prior quarter service performance bonus non-repeat
- EBITDA up 75% year-on-year driven by aftermarket services volume and mix and down 28% quarter- on-quarter driven by prior quarter product volume and performance bonus non-repeat
- Order intake up 5% year-on-year and up 6% quarter-on-quarter driven by increase of product orders
- Free Cash Flow positive USD 8 million in the quarter, an improvement of USD 22 million vs. 1Q 23 but lower than 4Q 23 due to timing of customer collections. USD 49 million cash & cash equivalent at end of 1Q 2024.
REVENUE
USD millions
186 | 189 | 203 | 208 | 193 |
1Q23 2Q23 3Q23 4Q23 1Q24
ORDER INTAKE
USD millions
199 | 222 | 207 | 209 | |||
197 | ||||||
EBITDA1)
USD millions
46
34 | 35 | 33 |
19
1Q23 2Q23 3Q23 4Q23 1Q24
EQUIPMENT BACKLOG2)
USD millions
218 231 237 237 249
EBITDA MARGIN (Adj.)
%
21.0 | ||
17.9 | 17.3 | 17.2 |
10.2
1Q23 2Q23 3Q23 4Q23 1Q24
FREE CASH FLOW3)
USD millions
34
88
-1
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Akastor © 2024 | 1) | EBITDA adjusted for non-recurring expenses or costs defined as outside of normal company operations (USD 2 million adjustment in 1Q 24). 4Q 23 EBITDA updated with final adjustments. | Slide 6 |
2) | Equipment backlog defined as order backlog within Projects, Products and Other | ||
3) | Free Cash Flow defined as cash generated from operating activities less taxes paid and net investments. |
-14
1Q23 2Q23 3Q23 4Q23 1Q24
Segments highlights
Aftermarket Services
- Service revenue up 19% year-on-year driven by increased overhaul and repair activity and down 7% quarter-on-quarter driven by lower spares output
- Order intake down 8% year-on-year driven by timing of spare and repair orders related to reactivation projects and up 2% quarter- on-quarter
Projects, Products & Other
- Revenue down 24% year-on-year and down 8% quarter-on-quarter driven by progress on projects
AFTERMARKET SERVICES
Revenue, USD millions
123 | 138 | 147 | 157 | 146 | ||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | ||
Order intake1), USD millions | ||||||
162 | 158 | 145 | 147 | 149 | ||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | ||
PROJECTS, PRODUCTS & OTHER | ||||||
Revenue, USD millions | ||||||
62 | 51 | 56 | 51 | |||
47 | ||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Akastor © 2024 | 1) | Intake inclusive of all Services product lines (e.g. spare parts, overhaul and repair, field service, etc.) | Slide 7 |
Net interest-bearing debt
- Net debt of USD 151 million as per end of period
- LTM NIBD/EBITDA (adj.) at 1.1x per 1Q 2024
- USD 22 million RCF draw fully repaid in Q1 2024
IBD as per period end | Amount | Key terms |
Senior Secured Bond | 200 | Nordic Bond raised in 4Q 2023. |
Maturity November 2026. Fixed | ||
rate 9.875%. | ||
Super Senior Secured RCF | 0 | USD 50m facility, maturity May |
2026. Margin 350 - 425 bps. | ||
Gross Interest-Bearing Debt | 200 | |
Net shareholder loans 1) | 114 | Subordinated, 8% PIK interest |
NET INTEREST-BEARING DEBT
USD millions
265 | |
200 | 114 |
49 | |
151 |
Gross Debt | Cash & CE | NIBD | Net shareholder | NIBD (incl. SHL) |
loans |
Akastor © 2024 | 1) Gross shareholder loan of USD 122 million net of a USD 8 million interest bearing receivable towards shareholders | Slide 8 |
Agenda
HMH
Financial update
Ownership agenda
Q&A
Net Capital Employed
Net Capital Employed per 1Q 2024 1)
NOK million
316 | (263) | |||
340 | (811) | |||
758 | ||||
1 125 | ||||
5 523 | ||||
4 712 | ||||
3 247 | ||||
DRU | Other | Net | NIBD | Equity |
contracts | Capital | |||
Employed |
Development in 1Q 2024
NOK million
47 | (67) | 53 | (15) | ||
628 | |||||
233 | |||||
5 523 | |||||
4 645 | |||||
Net Capital | DRU | Other | Net Capital | ||
Employed | contracts | Employed | |||
per 4Q | per 1Q | ||||
2023 | 2024 |
Akastor © 2024 1) Net Capital Employed per holding reflected at book value | Slide 10 |
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Akastor ASA published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:52:06 UTC.