Akastor

Earnings Release • Oct 30, 2024

Akastor ASA: Third Quarter Results 2024

Akastor ASA: Third Quarter Results 2024

Third Quarter Highlights

· Net capital employed increased by NOK 0.1 billion during the quarter to NOK

4.8 billion. Equity stood at NOK 5.6 billion at the end of the quarter,

corresponding to NOK 20.4 per share, up from NOK 20.2 per share at the end of

the last quarter.

· Akastor remained in a net cash position through the quarter, with no draw on

corporate facilities.

· HMH delivered an adjusted EBITDA of USD 46 million for the quarter, up 32

percent year-on-year. The company completed the acquisition of Drillform, a

leader in automated drilling tools, in July.

· Post-quarter end, Mr. Daniel "Dan" W. Rabun was appointed as Chairman of the

Board of Directors of HMH.

· AKOFS Offshore achieved near-100 percent utilization on AKOFS Seafarer and

Aker Wayfarer during the period. AKOFS Santos saw improved performance,

recording a utilization of 85 percent, including 10 days of maintenance

downtime.

· DDW Offshore operated all three vessels throughout the quarter, with a

significant contract backlog secured post-quarter end, providing a solid

foundation for 2025.

Akastor CEO Karl Erik Kjelstad comments:

"Akastor maintained its strong financial position through the third quarter,

with net cash on account and no draw on corporate facilities, leaving us well

positioned for potential future distributions. Our portfolio companies delivered

another solid quarter, confirming their attractive positions within their

respective niches. Despite slightly lower activity in HMH's Service segment, the

company achieved impressive year-on-year EBITDA growth. We were also pleased to

see HMH complete the acquisition of Drillform, further advancing its growth

strategy by expanding onshore capabilities. Both AKOFS Offshore and DDW Offshore

delivered solid performances, with all vessels in operation throughout the

quarter and high utilization. Additionally, DDW Offshore secured a significant

contract backlog after the quarter ended, positioning the company well for the

future."

HMH

HMH reported revenues of USD 213 million in the quarter, with an adjusted EBITDA

of USD 46 million, corresponding to an EBITDA margin of almost 22 percent.

Revenues from Aftermarket Services were USD 141 million in the quarter, down 4

percent year-on-year and down 6 percent quarter-on-quarter driven by lower

service order intake in the quarter. Order intake within this segment was down

10 percent year-on-year and down 8 percent quarter-on-quarter driven by flat rig

activity and restrained spending by customers.

Revenues from Projects, Products & Other were USD 73 million in the quarter, up

30 percent year-on-year and up 25 percent quarter-on-quarter driven by increased

product shipments.

AKOFS Offshore

AKOFS Offshore reported revenues of USD 38 million and EBITDA of USD 11 million

in the quarter.

The three vessels AKOFS Seafarer, AKOFS Santos and Aker Wayfarer all operated

under their respective contracts through the full period. Aker Wayfarer

delivered a revenue utilization of 99 percent, while AKOFS Seafarer delivered 98

percent. AKOFS Santos reported a revenue utilization of 85 percent in period,

affected by a maintenance stop of 10 days.

DDW Offshore

DDW Offshore reported revenues of NOK 97 million and EBITDA of NOK 40 million in

the quarter, up from NOK 53 million and NOK 18 million respectively in the same

period last year. Revenue and EBITDA in period was affected by higher

utilization than previous periods, as all three vessels were in operation

through the full period. Skandi Emerald operated for Petrofac, while Skandi

Atlantic was on contract with Chevron, both recording 100 percent utilization in

the period. Skandi Peregrino operated in the spot market from Aberdeen through

the third quarter after being reactivated and classed earlier this year, with a

recorded utilization of 40 percent for the period.

Post quarter-end, the vessels Skandi Peregrino and Skandi Atlantic secured one

-year contracts with an international oil company in Australia, set to commence

in January and March 2025, respectively. These contracts provide solid

visibility into 2025 and strengthen DDW Offshore's presence in the Australian

market.

Financial holdings

Net financials were negative NOK 59 million in the quarter, which included a non

-cash net foreign exchange loss of NOK 27 million. Other financial investments

contributed negatively with NOK 42 million.

Share of net profit from equity-accounted investees contributed positively with

NOK 58 million. HMH contributed positively with NOK 100 million, whilst AKOFS

Offshore contributed negatively with NOK 42 million.

Consolidated financial figures

Akastor's consolidated revenue and EBTDA include earnings from subsidiaries

which represent a minor part of Akastor's total Net Capital Employed. The most

relevant proxy for value development of Akastor is therefore the financial

performance of each of the largest investments such as HMH, NES Fircroft and

AKOFS Offshore. With this in mind, consolidated revenue and EBITDA of Akastor in

the third quarter was NOK 99 million and NOK 25 million, respectively. Net

profit in the third quarter was NOK 6 million.

Financial calendar

Fourth Quarter Results 2024: February 13, 2025

Media Contact

Øyvind Paaske

Chief Financial Officer

Tel: +47 917 59 705

E-mail: oyvind.paaske@akastor.com

Akastor is a Norway-based oil-services investment company with a portfolio of

industrial holdings and other investments. The company has a flexible mandate

for active ownership and long-term value creation.

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.