AI Terminal
Fjord Defence Group ASA
Quarterly Report • Nov 7, 2024
3569_rns_2024-11-07_f0303d74-091e-4f0f-9c32-e3f2f04fe590.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
0
| 1. | CEO Statement 2 | ||
|---|---|---|---|
| 2. | Key events in the quarter 3 | ||
| 3. | Subsequent events aNjer the quarter 3 | ||
| 4. | Key LJnancial indicators 4 | ||
| 5. | Business overview 4 | ||
| 5.1 | Multi-client 4 | ||
| 5.2 | Investments 6 | ||
| 6. | Outlook 6 | ||
| 7. | Board of directors' LJnancial review 7 | ||
| 8. | Financial statements 9 | ||
| 8.1 | Interim consolidated statement of comprehensive income 9 | ||
| 8.2 | Interim consolidated statement of LJnancial position 10 | ||
| 8.3 | Interim consolidated statement of changes in equity 11 | ||
| 8.4 | Interim consolidated statement of cash NJow 11 | ||
| 9. | Notes to the interim consolidated LJnancial statements 12 |
1. CEO Statement
Continued market uncertainty resulted in significant oil price fluctuations during the past quarter. In spite of major volatility, oil prices have remained at historically high levels which continue to support exploration. That being said, oil companies have so far been cautious with discretionary capital spending and this is resulting in a slower growth trajectory for seismic late sales.
The Utsira reprocessing project was completed this quarter, on track and on budget. The data processing was completed in August and deliverables are accepted by the pre-funding clients. We see significant uplift in image quality and believe our reprocessed data product will be an attractive addition to the underlying Utsira seismic survey. We expect that licenses in the Utsira area will elect to utilize the reprocessed data set and that this will trigger sales of both the reprocessed data as well as the underlying data.
With respect to Utsira license sales, activity for this year has been slower than expected. We do expect that the reprocessed data will trigger sales in the fourth quarter and/or the first quarter of next year. Utsira data sales will largely be driven by new drilling activity and development of licenses. There is significant interest in the area, but we expect sales to be lumpy and less predictable.
Exploration activity in the Gulf of Suez has been below expectations, largely as a result of the difficult local financial situation. There are specific opportunities we are tracking. However, we need to assume that the execution of additional license sales in the Gulf of Suez may take time.
We continue to explore strategic alternatives to create shareholder value. In addition, in October of this year, we completed the share repurchase program we announced in June. We will continue to evaluate share repurchases to the extent this is the most attractive use of capital.
Kristian Zahl Interim CEO
Multi-client revenues USD 0.9 million
- Fair value of multi-client library USD 26.3 million
- Fair value of investment portfolio USD 5.2 million
- Available liquid funds of USD 6.6 million*
- Cash earnings (loss) for the quarter USD (1.0) million**
- Net asset value NOK 1.47 per share
- * Bank deposits, net trade receivable and marketable securities ** Revenue, cost of sales, SG&A
3. Subsequent events aNjer the quarter
Reference is made to the annual general meeting in Aquila Holdings ASA (the "Company") held on 23 May 2024 announcing a share buyback program for the Company. The program consists of share purchases up to NOK 5 million and may be ended at the Company's discretion prior to fulLJlment. The program was ended 11 October 2024.
As of 11 October 2024, the Company held a total of 18,906,861 own shares, equal to 8.06% of the Company's share capital.
On 4 November 2024, Kristian Zahl assumed the position of interim CEO. Mr Zahl has been Senior Vice President at Aquila Holdings ASA since 2018. He brings with him extensive experience and expertise in the seismic market and the company's multi-client segment.
4. Key LJnancial indicators
| USD thousands | ||||
|---|---|---|---|---|
| Profit and loss | Q3 2024 | Q3 2023 | YTD Q3 2024 |
YTD Q3 2023 |
| Revenue | 871 | 2 068 | 3 914 | 6 512 |
| Changes in fair value of investments (loss) | (985) | 586 | (889) | (261) |
| Operating profit (loss) (EBIT) | (4 045) | (637) | (7 439) | (4 562) |
| Cash earnings * | (958) | 379 | (1 243) | 506 |
| Net profit (loss) | (4 005) | (726) | (7 545) | (4 805) |
| Basic earnings (loss) per weighted average shares (in USD) | (0.02) | (0.00) | (0.03) | (0.02) |
| Financial position | 30.09.2024 | 31.12.2023 | ||
| Bank deposits | 1 683 | 2 038 | ||
| Available liquid funds ** | 6 613 | 8 457 | ||
| Total assets | 36 312 | 43 882 | ||
| Total equity | 30 247 | 38 120 | ||
| Ratio analysis | 30.09.2024 | 31.12.2023 | ||
| Equity ratio | 83.3 % | 86.9 % | ||
| Net asset value per share (NOK) *** | 1.47 | 1.76 |
** Bank deposits, net trade receivable, marketable securities
*** Net asset value per share; total assets – total liabilities divided by number of shares
5. Business overview
5.1 Multi-client
The supportive macro environment is leading E&P operators to make long-cycle investments oDžshore, where advances in eǒciency have signiLJcantly improved project economics for exploration and development activity. Looking at drilling activity, the trend is clearly pointing towards longer duration projects. Seismic data plays a key role in determining drilling locations and plan for new frontier exploration activity, and we anticipate that the seismic data demand follows similar trendlines as the drillers for the years to come. We also expect exploration for new play-types which result in additional drillable prospects and commercial discoveries. This will oNjen include new partners that need to acquire ownership in the original dataset.
The seismic multi-client data business model is frequently the preferred way to access seismic data for petroleum exploration and production (E&P) companies. The seismic data is licensed by E&P companies to assist in the discovery and development of petroleum resources. The Group's return on investment from its multi-client library is seen through the life span of the data; from its early stage with revenues coming from the pre-funding by E&P companies during the execution of the program, through subsequent late sales aNjer the seismic images are processed and available.
The Group's multi-client data is targeting near-LJeld exploration, where production infrastructure is in place and where E&P companies need high-quality seismic data to unlock existing and new resources. In these production LJelds, oil and gas can be developed with lower cost, environmental impact, and emissions. Timely use of existing infrastructure is an important goal.
Norwegian North Sea – Utsira
The Utsira ocean boǘom node multi-client survey is located to the west of the Utsira high in the Norwegian North Sea and covers an area of approximately 2,000 square kilometers of highly prospective acreage with high-deLJnition 3D seismic ocean boǘom node data.
The survey was acquired during 2018 and 2019 with support from Aker BP, Equinor and TGS. The Utsira area holds several important LJelds, including Edvard Grieg, Ivar Aasen, Balder, Gina Krog, Gudrun, and Johan Sverdrup, along with a number of undeveloped discoveries and exploration targets. The OBN data has extremely high sampling density. This helps our clients obtain new information and aids in making new discoveries previously unavailable with legacy broadband streamer data.
Norwegian North Sea – Utsira reprocessing
In the area to the west of the Utsira high, where the Utsira OBN survey is located, exploration activity has for decades been impeded by irregularly shaped intrusive bodies at shallow depths over large areas above the reservoirs and generate a signal-to-noise problems that masks deeper reNJection signals and inhibits the ability to de-risk prospects. The presence of a thick layer of chalk just above the main reservoir level adds to the complexity. The geophysical response to this type of geological challenge oNjen needs time to be understood and addressed, and it is common to work with seismic data sets over time and improve the seismic image through an iterative process.
Viridien completed the reprocessing of the Utsira survey during the third quarter of 2024. The project was completed at cost and on time. The parties involved in the project are now working on a road show to promote the data towards relevant clients and expect to see additional sales from the reprocessed data in the coming months and quarters. The reprocessed products show signiLJcant improvement in image quality, and our key clients are satisLJed with the deliverables. The OBN data helps to develop new drillable prospects with an acceptable exploration risk.
Egypt – Gulf of Suez
The Gulf of Suez is a mature petroleum basin which has been in production since the 1980s. The Western Desert and the Gulf of Suez are the two main oil producing areas in Egypt and has received considerable aǘention by Egyptian authorities in the context of energy security for the nation. SigniLJcant investments will be required for Egypt to obtain a net balance in energy export vs imports, and we are seeing increased license round activity along with increasing investment commitments by operators in the area.
Exploration in the Gulf of Suez has traditionally been impeded by complex geology and the presence of salt bodies that complicate seismic imaging. The Gulf of Suez multi-client data was acquired during 2019 with support from Neptune Energy and Schlumberger (Western Geco) and covers an area of approximately 300 square kilometers. The multi-client survey was acquired in a hybrid survey conLJguration, combining high-density ocean boǘom nodes with short 3D streamers for near-surface imaging. The multi-client area is near the Ramadan oil LJelds and several drilling campaigns are planned during the coming years.
There is ongoing drilling activity in the survey area and the areas surrounding the survey which demonstrates the willingness by the Egyptian E&P players to invest and explore. Egypt has active license rounds that will provide dynamics in the area and new clients for the seismic library. The merger of Neptune Energy and ENI has led to a relinquishment of West Amal concession, which will leave the area available for licensing by other operators in upcoming license rounds.
5.2 Investments
Capsol Technologies
The closing share price on 30 September 2024 was NOK 12.75, which values the Group's total investment at USD 4.9 million (NOK 51.4 million).
Dolphin Drilling
On August 30, Aquila sold 1,156,234 shares of Dolphin Drilling AS at a price of NOK 4 per share. ANjer the sale, Aquila has zero shares in Dolphin Drilling.
ArbaNJame
The estimated fair value of the Group's investment in ArbaNJame was USD 0.3 million (NOK 3.3 million) on 30 September 2024.
Summary
The Group classiLJes its investments as non-current assets. The fair value of the total investments was USD 5.2 million (NOK 54.7 million) on 30 September 2024:
| Capsol Technologies | USD 4.9 million |
|---|---|
| ArbaNJame | USD 0.3 million |
| Total | USD 5.2 million |
The change in fair value in the third quarter of 2024 was a non-cash loss of USD 1.0 million.
6. Outlook
Global demand for oil and gas is forecasted to continue to grow. This will support additional exploration activity, both as it relates to near-LJeld optimization, but also with respect to new prospects. We do see a resistance to discretionary exploration spending and this may impact late sales in the near term. Moreover, multi-client sales will continue to be lumpy and less predictable.
We continue to review potential strategic transactions both within the seismic industry and other segments, to create further shareholder value.
Distributions to shareholders or share repurchases will continue to be evaluated to the extent this is considered to be the best allocation of capital.
7. Board of directors' LJnancial review
Revenue
The revenue for the third quarter of 2024 was USD 0.9 million compared to USD 2.1 million for the third quarter of 2023. The revenue in Q3 2024 is related to Utsira reprocessing from Utsira multi-client survey. The revenue in Q3 2023 was related to sales from the Utsira reprocessing.
The revenue for the LJrst nine months of 2024 was USD 3.9 million compared to USD 6.5 million for the same period 2023. The revenue for the LJrst nine months of 2024 was related to sales from Utsira reprocessing with USD 2.8 million and with USD 1.1 million Utsira multi-client late sale, whereas the revenue for the LJrst nine months of 2023 was related to sales from Utsira reprocessing with USD 5.7 million and with USD 0.8 million Utsira multi-client late sales.
Changes in fair value of investments
Changes in fair value of investments in third quarter 2024 was a non-cash loss of USD 1.0 million compared to a non-cash gain of USD 0.6 million in the third quarter of 2023.
The changes in fair value for the LJrst nine months of 2024 was a non-cash loss of USD 0.9 million and a non-cash loss of USD 0.3 million for the same period in 2023.
Other gains or losses
A USD 0.5 million reduction in fair value of LJnancial assets was recognized under other gains and losses in the third quarter 2024 compared to zero for the same period in 2023.
Cost of sales
Cost of sales (COS) in the third quarter of 2024 was USD 1.5 million compared to a cost of USD 1.2 million in the third quarter of 2023, both mainly representing the Utsira reprocessing cost.
COS for the LJrst nine months of 2024 was USD 4.0 million compared to USD 4.4 million for the LJrst nine months of 2023. The LJrst nine months of both 2024 and 2023 was mainly related to Utsira reprocessing cost.
Selling, general and administrative expenses
SG&A in the third quarter of 2024 amounted to USD 0.3 million compared to USD 0.5 million in the third quarter of 2023.
SG&A for the LJrst nine months of 2024 was USD 1.2 million compared to USD 1.6 million for the LJrst nine months of 2023. Personnel and related costs have decreased due to downscaling and cost reduction compared to last year.
Amortization of intangible assets
Amortization in the third quarter of 2024 was USD 1.6 million compared to USD 1.6 million in the third quarter of 2023.
- o The Utsira multi-client amortization was USD 0.9 million which was the same as the third quarter of 2023.
- o Amortization related to the Group's multi-client data in the Gulf of Suez was USD 0.7 million in the third quarter which was the same as the third quarter of 2023.
The Utsira multi-client amortization for the LJrst nine months of 2024 and 2023 was USD 2.8 million, and the amortization related to the Group's multi-client data in the Gulf of Suez for the LJrst nine months of 2024 and 2023 was USD 2.0 million.
Impairment
No impairment charges have been made in the LJrst nine months of 2024 of the Utsira multiclient survey or the Gulf of Suez multi-client survey in Egypt.
Financial items
Net LJnancial expenses was a gain of USD 40 thousand for the third quarter of 2024, compared to net LJnancial expenses of USD 90 thousand in the third quarter of 2023 both related to interest expenses and currency exchange gains/losses.
Net LJnancial expense was USD 107 thousand for the LJrst nine months of 2024, compared to net LJnancial expenses of USD 249 thousand in the LJrst nine months of 2023.
Income taxes
Income tax for the LJrst nine months of 2024 and 2023 was zero.
The Company has no deferred tax assets booked as of 30 September 2024.
Result for the period
The Company had a loss of USD 4.0 million for the third quarter of 2024 compared to a loss of USD 0.7 million for the third quarter of 2023.
The Company has a loss of USD 7.5 million for the LJrst nine months of 2024 compared to a loss of USD 4.8 million for the LJrst nine months of 2023.
Financial position and cash NJow
As of 30 September 2024, the Company had total assets of USD 36.3 million, compared to total assets of USD 43.9 million as of 31 December 2023.
Total non-current assets was USD 33.0 million as of 30 September 2024 compared to USD 39.7 million as of 31 December 2023. This is aǘributed to multi-client library of USD 26.3 million compared to USD 31.1 million as of 31 December 2023 where the change is entirely related to amortization for the LJrst nine months of 2024. The fair value of the investments as of 30 September 2024 was USD 5.2 million, which compares to the fair value of USD 6.6 million as of 31 December 2023.
Total current assets decreased from USD 4.2 million as of 31 December 2023 to USD 3.3 million as of 30 September 2024. The decrease is mainly driven by a decrease in other current assets. The Company's cash balance on 30 September 2024 was USD 1.7 million.
The Group's equity of USD 30.2 million at the end of September 2024 represents a net decrease of USD 7.9 million compared to 31 December 2023. Reduction of the equity is related to the loss for the period of USD 7.5 million and a change in share capital and own shares of USD 0.4 million. The equity ratio is 83.3% as of 30 September 2024 compared to 86.9% as of 31 December 2023.
Total current liabilities increased from USD 5.8 million as of 31 December 2023 to USD 6.1 million as of 30 September 2024. Trade payables decreased by USD 0.5 million compared to December 2023. Taxes payable remain at the same level as of 31 December 2023 whereas other current liabilities have increased by USD 0.8 million. The tax payable is relating to corporate tax in Egypt of USD 2.3. Total tax exposure in Egypt is USD 4.3 million including corporate tax of USD 2.3 million.
Cash NJow from operating activities in the third quarter of 2024 was negative with USD 0.5 million compared to negative USD 0.4 million in the same period in 2023.
Cash NJow from investing activities in the third quarter of 2024 was positive due to the sale of shares in Dolphin Drilling. Cash NJow from LJnancing activities in the third quarter of 2024 was negative USD 0.2 million due to investment in own shares compared to USD 0.2 million in the same period in 2023.
8. Financial statements
8.1 Interim consolidated statement of comprehensive income
| Financial statements 8. |
||||||
|---|---|---|---|---|---|---|
| 8.1 Interim consolidated statement of comprehensive income |
||||||
| USD thousands | Note | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 | |
| Revenue | 1 | 871 | 2 068 | 3 914 | 6 512 | |
| Changes in fair value of investments (loss) | 2 | (985) | 586 | (889) | (261) | |
| Other gains (losses) | (500) | - | (500) | - | ||
| Cost of sales | 1 | (1 487) | (1 156) | (3 966) | (4 418) | |
| Selling, general and administrative expenses | 1 | (343) | (533) | (1 191) | (1 588) | |
| Amortization multi-client | 3 | (1 602) | (1 602) | (4 807) | (4 807) | |
| Operating profit (loss) (EBIT) | (4 045) | (637) | (7 439) | (4 562) | ||
| Financial income | - | - | 2 | - | ||
| Financial expenses | (11) | (14) | (80) | (152) | ||
| Currency exchange gain (loss) | 51 | (75) | (29) | (97) | ||
| Profit (loss) before tax | (4 005) | (726) | (7 545) | (4 811) | ||
| Income tax (expense) | - | - | 0 | 7 | ||
| Profit (loss) for the period | (4 005) | (726) | (7 545) | (4 805) | ||
| Currency translation adjustments | - | - | - | - | ||
| Other comprehensive income (loss) for the period | - | - | - | - | ||
| Total comprehensive income (loss) for the period | (4 005) | (726) | (7 545) | (4 805) | ||
| Earnings (loss) per share | ||||||
| Basic earnings per average share | (0.02) | (0.00) | (0.03) | (0.02) | ||
| Diluted earnings per average share | (0.02) | (0.00) | (0.03) | (0.02) | ||
8.2 Interim consolidated statement of LJnancial position
8.3 Interim consolidated statement of changes in equity
| 8.3 Interim consolidated statement of changes in equity |
|||||||
|---|---|---|---|---|---|---|---|
| USD thousands | Share capital |
Additional paid-in capital |
Own shares | Accumulated earnings |
Other equity/ Share based program |
Total equity | |
| Balance as of 01.01.2024 | 28 739 | 51 170 | (1 799) | (40 415) | 425 | 38 120 | |
| Profit (loss) for the period | (7 545) | (7 545) | |||||
| Other comprehensive income (loss) | - | - | |||||
| Purchase own shares | (398) | 70 | (328) | ||||
| Delete own shares | (477) | 477 | |||||
| Share based payment | - | - | |||||
| Balance as of 30.09.2024 | 28 263 | 51 170 | (1 720) | (47 890) | 425 | 30 247 | |
| USD thousands | Share capital |
Additional paid-in capital |
Own shares | Accumulated earnings |
Other equity/ Share based program |
Total equity | |
| Balance as of 01.01.2023 | 28 739 | 51 170 | (489) | (32 191) | 422 | 47 652 | |
| Profit (loss) for the period | (4 805) | (4 805) | |||||
| Other comprehensive income (loss) | - | - |
| Share | Additional | Accumulated | Other equity/ Share based |
|||
|---|---|---|---|---|---|---|
| USD thousands | capital | paid-in capital | Own shares | earnings | program | Total equity |
| Balance as of 01.01.2023 | 28 739 | 51 170 | (489) | (32 191) | 422 | 47 652 |
| Profit (loss) for the period | (4 805) | (4 805) | ||||
| Other comprehensive income (loss) | - | - | ||||
| Purchase own shares | (1 122) | (145) | (1 267) | |||
| Share based payment | 3 | 3 | ||||
| Balance as of 30.09.2023 | 28 739 | 51 170 | (1 611) | (37 140) | 425 | 41 583 |
8.4 Interim consolidated statement of cash NJow
| 8.4 Interim consolidated statement of cash NJow |
|||||
|---|---|---|---|---|---|
| USD thousands | Note | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
| Cash flow from operating activities | |||||
| Profit (loss) before tax | (4 005) | (726) | (7 545) | (4 811) | |
| Taxes refund (paid) | - | - | 0 | 7 | |
| Depreciation, amortization and net impairment | 3 | 1 602 | 1 602 | 4 807 | 4 807 |
| Changes in fair value of investments | 2 | 985 | (586) | 889 | 261 |
| Changes in other gains (losses) | 500 | - | 500 | - | |
| Other working capital changes | 412 | (734) | 1 095 | 1 205 | |
| Net cash from operating activities | (507) | (445) | (255) | 1 468 | |
| Cash flow from investing activities | |||||
| Cash received/paid from investments | 438 | - | 485 | - | |
| Net cash flow from investment activities | 438 | - | 485 | - | |
| Cash flow from financing activities | |||||
| Investment in own shares | (164) | (179) | (328) | (1 267) | |
| Interest paid | - | - | (258) | (0) | |
| Net cash flow from financial activities | (164) | (179) | (586) | (1 267) | |
| Net change in cash and cash equivalents | (232) | (623) | (356) | 201 | |
| Cash and cash equivalents balance 01.07/01.01 | 1 915 | 3 022 | 2 038 | 2 197 | |
| Cash and cash equivalents balance 30.09 | 1 683 | 2 398 | 1 683 | 2 398 |
9. Notes to the interim consolidated LJnancial statements
Note 1 Segment
| Notes to the interim consolidated LJnancial 9. statements |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Note 1 Segment | |||||||||
| USD thousands | Segment reporting | Unallocated | Total | ||||||
| Q3 2024/2023 | Axxis | Investment | |||||||
| Income statement | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | |
| Revenue | 871 | 2 068 | - | - | - | - | 871 | 2 068 | |
| Changes in fair value of investments (loss) | - | - | (985) | 586 | - | - | (985) | 586 | |
| Other gains (losses) | (500) | - | - | - | - | - | (500) | - | |
| Cost of sales | (1 487) | (1 156) | - | - | - | - | (1 487) | (1 156) | |
| Selling, general and administrative expenses | (31) | (244) | - | - | (312) | (289) | (343) | (533) | |
| Amortization multi-client | (1 602) | (1 602) | - | - | - | - | (1 602) | (1 602) | |
| Operating profit (loss) (EBIT) | (2 749) | (934) | (985) | 586 | (312) | (289) | (4 045) | (637) | |
| USD thousands | Segment reporting | Unallocated | Total | ||||||
| YTD Q3 2024/2023 | Axxis | Investment | |||||||
| USD thousands | Segment reporting | Unallocated | Total | |||||
|---|---|---|---|---|---|---|---|---|
| YTD Q3 2024/2023 | Axxis | Investment | ||||||
| Income statement | YTD Q3 2024 | YTD Q3 2023 | YTD Q3 2024 | YTD Q3 2023 | YTD Q3 2024 | YTD Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
| Revenue | 3 914 | 6 512 | - | - | - | - | 3 914 | 6 512 |
| - | - | (889) | (261) | - | - | (889) | (261) | |
| Changes in fair value of investments (loss) | ||||||||
| Other gains (losses) | (500) | - | - | - | - | - | (500) | - |
| Cost of sales | (3 966) | (4 418) | - | - | - | - | (3 966) | (4 418) |
| Selling, general and administrative expenses | (84) | (522) | (3) | (6) | (1 104) | (1 060) | (1 191) | (1 588) |
| Amortization multi-client | (4 807) | (4 807) | - | - | - | - | (4 807) | (4 807) |
Note 2 Investment
| Note 2 Investment | ||||
|---|---|---|---|---|
| USD thousands | ||||
| Investments | 30.09.2024 | 30.06.2024 | ||
| Listed securities | ||||
| Capsol Tehnologies ASA | 4 887 | 5 852 | ||
| Dolphin Drilling AS | - | 462 | ||
| Listed securities | 4 887 | 6 315 | ||
| Unlisted securities | ||||
| Arbaflame AS | 309 | 305 | ||
| Unlisted securities | 309 | 305 | ||
| Total investments | 5 197 | 6 619 |
| USD thousands | ||
|---|---|---|
| Investments | 30.09.2024 | 31.12.2023 |
| Listed securities | ||
| Capsol Tehnologies ASA | 4 887 | 4 824 |
| Dolphin Drilling AS | - | 1 427 |
| Listed securities | 4 887 | 6 250 |
| Unlisted securities | ||
| Arbaflame AS | 309 | 320 |
| Unlisted securities | 309 | 320 |
| Total investments | 5 197 | 6 570 |
Capsol Technologies ASA
The investment in Capsol Technologies is valued based on Level 1 inputs, quoted prices in active markets. Closing price on 30 September 2024 was NOK 12.75 per share.
Dolphin Drilling AS
The investment in Dolphin Drilling has been valued based on Level 1 inputs, quoted prices in active markets. The shares in Dolphin Drilling AS was sold 30 August 2024.
ArbaNJame AS
The investment in ArbaNJame is measured based on Level 3 inputs. The estimated fair value of the Group's investment in ArbaNJame was USD 0.3 million (NOK 3.3 million) on 30 September 2024.
Note 3 Multi-client library
Norwegian North Sea – Utsira
The Group's net book value as of 30 September 2024 is USD 21.6 million. The Group's amortization of Utsira was USD 0.9 million during the third quarter.
Egypt – Gulf of Suez
The Group's net book value as of 30 September 2024 is USD 4.6 million. The Group's amortization of the Gulf of Suez was USD 0.7 million during the third quarter.
Note 4 General information
Aquila Holdings ASA ("AQUIL" or the "Company") is a public company listed on Euronext Expand Oslo and traded under the ticker AQUIL. The address of its registered oǒce is Askekroken 11, 0277 Oslo, Norway. For more information, please see www.aquilaholdings.no.
Note 5 Basis of presentation
The Company is a Norwegian public limited company which prepares its annual LJnancial statements in accordance with IFRS® Accounting Standards as adopted by the EU as well as additional requirements of the Norwegian Securities Trading Act. These consolidated condensed interim LJnancial statements have been prepared in accordance with International Accounting Standards (''IAS'') number 34 'Interim Financial Reporting'. The consolidated condensed interim LJnancial statements are presented in thousands of US Dollars (''\$'' or ''dollars''), unless otherwise indicated. The interim LJnancial information has not been subject to audit or review.
ProLJt and loss for the interim period are not necessarily indicative of the results that may be expected for any subsequent interim period or year. The condensed interim consolidated LJnancial statements should be read in conjunction with the Group's annual report for the year ended 31 December 2023, which is available at www.aquilaholdings.no.
The accounting policies adopted in the preparation of the condensed interim consolidated LJnancial statements are consistent with those followed in the preparation of the Company's consolidated LJnancial statements for the year ended 31 December 2023.
Oslo, 7 November 2024
The Board of Directors and Interim CEO of Aquila Holdings ASA
Chair Director Director
Nina Skage Ketil Skorstad Torstein Sanness
Kristian Zahl Interim CEO
About Aquila Holdings ASA
Aquila Holdings ASA ("AQUIL") is a Norwegian seismic multi-client and investment company listed on Euronext Expand. Aquila Holdings specializes in 3D ocean boǘom node seismic multiclient data for near-LJeld exploration. The company holds two key seismic multi-client assets, one in Norway and one in Egypt. Aquila Holdings also has an investment arm, with focus on investments in listed companies as well as companies expected to be listed.
More information on www.aquilaholdings.no
The information included herein contains certain forward-looking statements that address activities, events, or developments that the Company expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to many risk factors including, but not limited to, the demand for data from our multi-client data library, the aǘractiveness of our technology, unpredictable changes in governmental regulations aDžecting our markets. For a further description of other relevant risk factors, we refer to our Annual Report for 2023. As a result of these and other risk factors, actual events and our actual results may diDžer materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about the status of the Company or its business. Any reliance on the information above is at risk of the reader and the Company disclaims all liability in this respect.
15
Oslo, Norway Askekroken 11 0277 OSLO Norway