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.