3Q 2023

Quarterly presentation - Akastor ASA

October 26, 2023

3Q 2023 Highlights

  • EBITDA (adj.) of USD 35 million in quarter, a 25% increase year-over-year driven by higher aftermarket activity
  • Cash flow improving as expected driven by progress on key projects
  • Delivered strong results with a 23% underlying increase in organic EBITDA year-over-year
  • Aker Wayfarer commenced its new contract with Petrobras in July
  • AKOFS Seafarer completed a short yard stay to mobilize for deepwater operations in August, affecting utilization
  • Completed sale of Skandi Saigon and Skandi Pacific to OceanPact
  • Company refinanced with new USD 31 million facility to settle existing loan and profit split arrangement

NET CAPITAL EMPLOYED 1)

NOK million, 30 September 2023

Book value per share

11.4

2.7

1.9

1.8

0.9

-1.2

17.4

-2.3

15.1

256

(340)

488

(631)

517

730

4 764

4 132

3 112

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

  • Strong order intake with Book-to-Bill >1x in the quarter
  • Increased EBITDA year-over-year and quarter-over- quarter driven by increased aftermarket services
  • Cash flow improving as expected driven by progress on key projects
  • Completed wave two of ERP implementation
  • Completed amendment process towards banks, including deferral of term loan instalments until maturity and option to extend term loan and RCF maturity

Akastor © 2023

Slide 4

HMH highlights | 3Q 2023

Proforma financials, IFRS

  • Revenues up 29% year-on-year and up 8% quarter- on-quarter driven by increased aftermarket services activity and GMGS project progress
  • EBITDA up 25% year-on-year and up 5% quarter- on-quarter driven by increase aftermarket services output and higher service margin
  • Order intake up 20% year-on-year and down 7% quarter-on-quarter driven by aftermarket services intake increasing 39% year-on-year and but down 8% quarter-on-quarter
  • Free Cash Flow positive 8 million in quarter driven by milestone collections and past due reduction. USD 44 million cash & cash equivalent at end of 3Q 2023.

REVENUE1)

USD millions

196

186

189

203

157

3Q22 4Q22 1Q23 2Q23 3Q23

ORDER INTAKE

USD millions

199

222

207

183

172

EBITDA2)

USD millions

34 35

28 29

19

3Q22 4Q22 1Q23 2Q23 3Q23

EQUIPMENT BACKLOG3)

USD millions

253

243

231

237

218

EBITDA MARGIN (Adj.)

%

17.8

17.9

17.3

14.8

10.2

3Q22 4Q22 1Q23 2Q23 3Q23

FREE CASH FLOW4)

USD millions

7

8

-2-1

3Q22 4Q22 1Q23 2Q23 3Q23

3Q22 4Q22 1Q23 2Q23 3Q23

-14

3Q22 4Q22 1Q23 2Q23 3Q23

  1. Historical figures excluding discontinued operations.
  2. EBITDA adjusted for non-recurring expenses or costs defined as outside of normal company operations (USD 1 million total adjustment in 3Q 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

Segments highlights

Aftermarket Services

  • Service revenue up 38% year-on-year and up 7% quarter-on- quarter driven by increase in spares output and overhaul and repair activity
  • Order intake up 39% year-on-year driven by spares and SPS orders and down 8% quarter-on-quarter driven by prior quarter recertification spares orders not reoccurring

Projects, Products & Other

  • Revenue up 10% year-on-year and up 10% quarter-on-quarter driven by progress on GMGS
  1. Intake inclusive of all Services product lines (e.g. spare parts, overhaul and repair, field service, etc.)

AFTERMARKET SERVICES

Revenue, USD millions

106

140

123

138

147

3Q22

4Q22

1Q23

2Q23

3Q23

Order intake1, USD millions

136

162

158

145

104

3Q22

4Q22

1Q23

2Q23

3Q23

PROJECTS, PRODUCTS & OTHER

Revenue, USD millions

51

55

62

51

56

3Q22

4Q22

1Q23

2Q23

3Q23

Akastor © 2023

Slide 6

Net interest-bearing debt

  • Net debt of USD 174 million as per end of period
  • Leverage of 1.6x per 3Q 2023 (LTM NIBD/EBITDA adj.)
  • Amendment to bank agreements in place, including deferral of term loan instalments until maturity and option to extend maturities of term loan and RCF to December 31st, 2024

IBD as per period end

Amount

Key terms

Senior Secured Term Loan

23

Quarterly amortization, maturity

Feb. 2024 / Dec. 241). Margin:

Tranche A 350 - 400 bps.

Tranche B 450 - 500 bps.

Senior Secured Bond

150

Maturity February 2025. Margin

700 bps.

RCF

45

USD 80m facility, Feb. 2024 / Dec.

241). Margin 375 - 425 bps.

Gross Interest-Bearing Debt

218

Net shareholder loans 2)

109

Subordinated, 8% PIK interest

NET INTEREST-BEARING DEBT

USD millions

283

218

109

44

174

Gross Debt

Cash & CE

NIBD

Net shareholder

NIBD (incl. SHL)

loans

Akastor © 2023 1)

HMH may at its discretion extend maturity from February 2024 to December 31st, 2024. Option is to be declared no later than February 15th, 2024.

Slide 7

2)

Gross shareholder loan of USD 117 million net of a USD 8 million interest bearing receivable towards shareholders

Agenda

HMH

Financial update

Ownership agenda

Q&A

Net Capital Employed

Net Capital Employed per 3Q 2023 1)

NOK million

256

(340)

488

(631)

517

730

4 764

4 132

3 112

DRU

Other

Net

NIBD

Equity

contracts

Capital

Employed

Development in 3Q 2023

NOK million

(23)

13

(72)

74

(57)

4 820

8

4 764

Net Capital

DRU

Other

Net Capital

Employed

contracts

Employed

per 2Q

per 3Q

2023

2023

Akastor © 2023

1)

Net Capital Employed per holding reflected at book value

Slide 9

Net interest-bearing debt development

Net debt bridge

3Q 2023 highlights

NOK million

▪ Net debt increased by NOK 107 million in the quarter, to NOK 1 176

1 176

million

1 069

78

▪ Cash proceeds for sale of two DDW vessel to OceanPact received in period

(18)

(252)

▪ Negative effect from DDW profit split settlement related to four vessels, of

(188)

235

which two sold to OceanPact. The remaining two remains with DDW

(249)

Offshore.

631

▪ "Other" (as shown in graph) includes positive non-cash foreign exchange

(43)

effects of NOK 13 million and equity funding of AKOFS Offshore in period

▪ DDW Offshore net debt of NOK 178 million per end of quarter

Net debt 2Q23

Operating CF

OCP forward sale

profit split settlement

Other

Net debt 3Q23

AKOFS receivable

HMH receivable

Other receivables

NIBD 3Q23

DDW

Akastor © 2023

Slide 10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Akastor ASA published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 05:03:00 UTC.