2Q 2024

Quarterly presentation - Akastor ASA

July 11, 2024

2Q 2024 Highlights

▪ USD 176 million received in cash in quarter as payment of

DRU

termination fees and reimbursement of costs and interest

▪

Accounting gain of NOK 748 million in period, with no

outstanding position per end of 2Q

▪ EBITDA (adj.) of USD 42 million in quarter, up 23% year-on-

year driven by higher aftermarket activity and improved

revenue mix

▪ Filed confidential draft registration for potential US IPO

▪ Strong utilization on AKOFS Seafarer and Aker Wayfarer

▪ All three vessels in operation, after completion of

reactivation of Skandi Peregrino in the quarter

▪ 3,023,886 shares received in period pursuant to warrant

agreement

▪ Net cash position per end of quarter following receipt of DRU

Financing

proceeds, with no draw on corporate facilities

▪ Corporate bank RCF facility extended to 2Q 2026

NET CAPITAL EMPLOYED 1)

NOK million, 30 June 2024

Book value per share (NOK)

11.9

2.9

1.2

1.1

1.0

-0.9

17.2

3.0

20.2

5 546

831

285

(247)

4 714

296

338

794

3 248

Listed

Other

Net Capital

NIBD

Equity

holdings2)

Employed

Akastor © 2024

1)

Net Capital Employed per holding reflected at book value

Slide 2

2)

Includes listed investments in Odfjell Drilling, ABL Group, Maha Energy and Awilco Drilling

Agenda

HMH

Financial update

Ownership agenda

Q&A

Summary and outlook

  • HMH announced confidential submission of first draft registration statement for proposed initial public offering
  • Revenue of USD 208 million in the quarter, up 10% year- on-year
  • EBITDA of USD 42 million in the quarter, up 23% year- on-year
  • EBITDA margin of 20% driven by product mix compared to prior quarter
  • Orders of USD 179 million, down versus prior year due to a non-repeat of large 2023 product orders and reactivation service orders in prior period

Akastor © 2024

Slide 4

HMH highlights | 2Q 2024

Proforma financials, IFRS

▪ Revenues up 10% year-on-year and up 7% quarter-

on-quarter driven by increased aftermarket service

volume and increased product shipments

▪ EBITDA up 23% year-on-year driven by increased

aftermarket service volume and improved revenue

mix

▪ Order intake down 19% year-on-year and down

14% quarter-on-quarter driven by non-repeat of

large product orders and service reactivations in

the prior periods

▪ Free Cash Flow negative USD 12 million in the

REVENUE

USD millions

189 203 208 193 208

2Q23 3Q23 4Q23 1Q24 2Q24

ORDER INTAKE

USD millions

EBITDA1)

USD millions

46

42

34

35

33

2Q23 3Q23 4Q23 1Q24 2Q24

EQUIPMENT BACKLOG2)

USD millions

EBITDA MARGIN (Adj.)

%

21.0

20.0

17.9

17.3

17.2

2Q23 3Q23 4Q23 1Q24 2Q24

FREE CASH FLOW3)

USD millions

quarter, driven by timing of key milestone

collections and working capital build for key rig

upgrades. USD 40 million cash & cash equivalents

at end of 2Q 2024.

222

207 197 209

179

231

237

237

249

229

34

88

-1

2Q23 3Q23 4Q23 1Q24 2Q24

2Q23 3Q23 4Q23 1Q24 2Q24

-12

2Q23 3Q23 4Q23 1Q24 2Q24

Akastor © 2024

1)

EBITDA adjusted for non-recurring expenses or costs defined as outside of normal company operations (USD 2 million adjustment in 2Q 24).

Slide 5

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.

Segments highlights

Aftermarket Services

  • Service revenue up 9% year-on-year and up 3% quarter-on-quarter driven by spare part output partially offset by lower overhaul and repair volume
  • Order intake down 11% year-on-year driven by high rig reactivation service activities prior year and down 5% quarter-on-quarter

Projects, Products & Other

  • Revenue up 14% year-on-year and up 22% quarter-on-quarter driven by increased product shipments, partially offset by lower project volume

AFTERMARKET SERVICES

Revenue, USD millions

138

147

157

146

150

2Q23

3Q23

4Q23

1Q24

2Q24

Order intake1), USD millions

158

145

147

149

141

2Q23

3Q23

4Q23

1Q24

2Q24

PROJECTS, PRODUCTS & OTHER

Revenue, USD millions

51

56

51

47

58

2Q23

3Q23

4Q23

1Q24

2Q24

Akastor © 2024

1)

Intake inclusive of all Services product lines (e.g. spare parts, overhaul and repair, field service, etc.)

Slide 6

Net interest-bearing debt

  • Net debt of USD 173 million as per end of period
  • Leverage, NIBD/LTM EBITDA (adj.), at 1.1x per 2Q 2024
  • USD 13 million drawn on the RCF in Q2 2024

IBD as per end of period

Amount

Key terms

Senior Secured Bond

200

Nordic Bond raised in 4Q 2023.

Maturity November 2026. Fixed

rate 9.875%.

Super Senior Secured RCF

13

USD 50m facility, maturity May

2026. Margin 350 - 425 bps.

Gross Interest-Bearing Debt

213

Net shareholder loans 1)

116

Subordinated, 8% PIK interest

NET INTEREST-BEARING DEBT

USD millions

289

116

213

40

173

Gross Debt

Cash & CE

NIBD

Net shareholder

NIBD (incl. SHL)

loans

Akastor © 2024

1) Gross shareholder loan of USD 124 million net of a USD 8 million interest bearing receivable towards shareholders

Slide 7

Agenda

HMH

Financial update

Ownership agenda

Q&A

Net Capital Employed

Net Capital Employed per 2Q 2024 1)

NOK million

831

285

(247)

296

338

794

5 546

4 714

3 248

Listed

Other

Net

NIBD

Equity

holdings2)

Capital

Employed

Development in 2Q 2024

NOK million

(1 136)

196

128

(56)

5 523

2

36

22

4 714

Net

DRU

Listed

Other

Net

Capital

contracts

holdings2)

Capital

Employed

Employed

per 1Q

per 2Q

2024

2024

Akastor © 2024

1)

Net Capital Employed per holding reflected at book value

Slide 9

2)

Includes listed holdings in Odfjell Drilling, ABL Group, Maha Energy and Awilco Drilling

Net interest-bearing debt

Net debt development

NOK million

1 373

43

(1 912)

202

-240

53

(591)

-831

Net bank

Operating

DRU cash Capex

Other

Net bank

Interest-

NIBD

debt 1Q24

CF

proceeds

debt 2Q24

bearing

2Q24

receivables

2Q 2024 highlights

  • Net bank debt decreased by NOK 1 613 million in the quarter, to a net cash position of NOK 240 million, driven by DRU proceeds totalling NOK 1.9 billion received in the period
  • "Other" (as shown in graph) includes a total payment of NOK 163 million related to the guaranteed preferred return to Mitsui and MOL entered into in connection with AKOFS Offshore divestment in 2018
  • DDW Offshore net debt of NOK 261 million per end of quarter

Akastor © 2024

1) Gross shareholder loan net of a USD 4 million interest bearing payable to HMH

Slide 10

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Akastor ASA published this content on 11 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2024 05:06:06 UTC.