2Q 2023

Quarterly presentation - Akastor ASA

July 13, 2023

2Q 2023 Highlights

▪ Increased EBITDA year-over-year and quarter-over-quarter

following increased service order trend

▪ Continue to experience growth in order intake for the fifth

consecutive quarter

▪ AKOFS Seafarer successfully completed yard stay to mobilize

for coiled tubing in May, with excellent uptime delivered

through rest of quarter

▪ Aker Wayfarer off-hire since late April, preparing for its new

four-year contract expected to commence in 3Q 23

▪ USD 20 million seller's credit fully settled in quarter, with

proceeds reducing bank debt

▪ Sale of AGR to ABL Group against a combination of ABL

shares and cash completed in quarter

Other

▪ NES Fircroft delivering continued growth with revenue up

16% year-on-year driven by improved performance across

numerous geographies and solution offerings

▪ DRU arbitration process on plan, with arbitration award

expected second half of 2023

NET CAPITAL EMPLOYED 1)

NOK million, 30 June 2023

Book value per share

11.4

2.0

2.6

2.1

0.9

-1.5

17.6

-1.9

15.7

248

(414)

589

(531)

717

545

4 820

4 289

3 135

DRU

Other

Net Capital

NIBD

Equity

contracts

Employed

Akastor © 2023

1)

Net Capital Employed per holding reflected at book value

Slide 2

Agenda

HMH

Financial update

Ownership agenda

Q&A

Summary and outlook

  • Continue to experience growth in order intake for the fifth consecutive quarter. Book-to-Bill >1x in the quarter.
  • Secured strategic orders related to SPS activity within the quarter
  • Increased EBITDA year-over-year and quarter-over- quarter following increased service order trend
  • Continue to execute on synergy cost plan with wave two of ERP implementation targeted for 2H of 2023
  • Cash flow expected to improve in second half of the year on the back of project deliveries
  • Assessing a potential refinancing of the USD 150m bond

Akastor © 2023

Slide 4

HMH highlights | 2Q 2023

Proforma financials, IFRS

▪ Revenues up 4% year-on-year and up 2% quarter-

on-quarter driven by increase in spares and

overhaul repair orders partially offset with

decrease in projects due to prior year 20K Valaris

project cancellation fee

REVENUE1)

USD millions

181

196

186

189

157

EBITDA2)

USD millions

31 28 29

34

EBITDA MARGIN (Adj.)

%

17.1

17.8

17.9

14.8

▪ EBITDA up 8% year-on-year driven by spares

output, partially offset by prior year Valaris 20K

project cancellation and up 78% quarter-on-

quarter driven by services increased order trend

▪ Order intake up 30% year-on-year and up 11%

2Q22 3Q22 4Q22 1Q23 2Q23

19

2Q22 3Q22 4Q22 1Q23 2Q23

10.2

2Q22 3Q22 4Q22 1Q23 2Q23

quarter-on-quarter driven by services

overperforming following the increase in rig count

trend and recertification activities

▪ Free Cash Flow negative 1 million in quarter driven

by increase in project related working capital

partially offset by improved collections. USD 43

million cash & cash equivalent at end of 2Q 2023.

ORDER INTAKE

USD millions

171 172 183

222

199

EQUIPMENT BACKLOG3)

USD millions

240 253 243 218 231

FREE CASH FLOW4)

USD millions 12

7

-2-1

2Q22 3Q22 4Q22 1Q23 2Q23

2Q22 3Q22 4Q22 1Q23 2Q23

-14

2Q22 3Q22 4Q22 1Q23 2Q23

  1. Historical figures excluding discontinued operations.
  2. EBITDA adjusted for non-recurring expenses or costs defined as outside of normal company operations (USD 6.5 million total adjustment in 2Q 2023)
  3. Equipment backlog defined as order backlog within Projects, Products and Other
  4. Free Cash Flow defined as cash generated from operating activities less taxes paid and net investments. Cash flow not normalized for non-recurring costs.

Akastor © 2023

Slide 5

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Akastor ASA published this content on 13 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 July 2023 05:07:04 UTC.