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SAB Finance A.S.
Earnings Release • May 30, 2024
1048_rns_2024-05-30_026310fa-4561-43ad-8898-d20be7bcf3c6.pdf
Earnings Release
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BP INV3 TOPCO LIMITED.
FINANCE REPORT FOR QUARTER ENDED 31 MARCH 2024.
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TWMA. The world's drilling waste specialist.
TABLE OF CONTENTS.
| CEO Statement. | |
|---|---|
| CFO Statement. | 2 |
| Financial Statements. | 4 |
| BP INV3 TOPCO Limited Consolidated Income Statement. | 4 |
| BP INV3 TOPCO Limited Consolidated Balance Sheet. | 5 |
| BP INV3 TOPCO Limited Consolidated Cash Flow. | 6 |
CEO STATEMENT.
I am pleased to present the CEO's Statement for the period ended 31 March 2024. During the 1st quarter we saw a strong demand for TWMA's services in particular offshore in the UK and the UAE. This has resulted in the utilisation of our TCC Rotomill® fleet of 73% during the quarter. As a result, the Group delivered above budgeted figures for the period with revenue of \$18.3m and an EBITDA for continuing operations of \$4.7m.
Review of the business.
In Offshore UK, five TCC Rotomills operated throughout the 1st Quarter.
Our UAE drilling operations were carried out on all four islands on the 'Upper Zakum' field. In May 2024, we received a 'Letter of Award' for a new 1+1 year contract. The scope of the award covers our existing operations on 'Upper Zakum', additional Jack Up operations and an onshore facility.
With regard to the Ghasha Mega Project, operations continued on the 1st island and the mobilisation to the next progressed in line with the plan. Here drilling commenced mid-May 2024 and we currently have fifteen (15) personnel deployed on the 2nd island. The TCC Rotomill (RX1) is expected to be operational from mid-June on island 2. The 3rd and 4th island start up is provisionally planned for early July and late Q3 broadly in line with expectations.
The Solid Control's business in the US performed satisfactorily in the quarter. During the period, the division supported an average of twenty five (25) Solid Control jobs per month.
In Egypt, the organisation has begun preparations for the start of a new contract with an international operator. It is expected that the TCC Rotomill will begin processing in late Q2/early Q3, in line with expectations.
People.
Safety of all our people is our number one priority. I am pleased that in the quarter we continued our good safety performance and recorded zero (0) Lost Time Incidents. The Group is very satisfied that it continues to operate at a high standard of safety and that our employees, have been free from injuries which would have resulted in them being unable to work.
Halle Aslaksen Chief Executive Officer May 2024
CFO STATEMENT.
Trading Performance.
The Group Consolidated Income Statement is shown on page 4 to these financial statements. Revenue in the period was \$18.3m and the underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) of the Group was \$4.7m. The operating profit was \$5.0m in the period.
A reconciliation between operating profit per these financial statements and EBITDA is set out below.
| 31 March 2024 \$000 |
Quarter ended Quarter ended 31 March 2023 \$000 |
|
|---|---|---|
| Operating profit before exceptional items, depreciation and amortisation | 5,016 | 3,771 |
| Loss on disposal | 7 | 312 |
| Fx | (366) | (644) |
| EBITDA | 4,657 | 3,439 |
Capital Investment.
During the quarter a total of \$2.4m was invested in fixed assets, all of which related to plant and equipment including \$1.7m spent on the Ghasha Mega project.
Borrowings.
During the period, the Group completed the re-financing of its existing facilities through the issue of a new 3 year \$62.5m Sustainability Linked Nordic Bond (SNB). This process was completed on 8th February 2024. The proceeds from this were used to repay the existing Term Loan Facilities amounting to \$49.6m, the existing Revolving Credit Facility amounting to \$5.4m, existing debt fees of \$1.7m and fees associated with the bond process of \$3.4m. In addition, the Group has successfully agreed and entered into a new Super Senior Revolving Credit Facility (SSRCF) for \$10m, of which \$6m is available for Working Capital purposes and \$4m to be utilised for guarantee facilities.
Group Cashflow and Debt.
The Group's Consolidated statement of cash flows is shown on page 6 of these financial statements.
CFO STATEMENT CONTINUED.
An analysis of the Net debt of the Group at the end of the quarter was as follows:
| 31 March | ||
|---|---|---|
| 2024 | ||
| \$000 | ||
| Nordic Bonds | (62,500) | |
| Asset Finance Liabilities | (1,044) | |
| Right of Use Liabilities | (4,560) | |
| Cash | 9,938 | |
| Net Debt at 31 March | (58,166) |
The leverage of the Group as at 31 March 2024 was 3.57x.
At 31 March 2024, the Group held unrestricted cash balances of \$9.9m plus unutilised available credit facilities of \$6m.
Mark Walker Chief Executive Officer May 2024
FINANCIAL STATEMENTS.
BP INV3 TOPCO LIMITED CONSOLIDATED INCOME STATEMENT.
| Unaudited | Audited | |
|---|---|---|
| Quarter ended | Quarter ended | |
| 31 March | 31 March | |
| 2024 | 2023 | |
| \$000 | \$000 | |
| Revenue | 18,316 | 17,861 |
| Cost of Sales | (11,516) | (12,570) |
| Gross profit | 6,800 | 5,291 |
| Administrative expenses | (1,784) | (1,520) |
| Operating profit before exceptional items, depreciation and amortisation | 5,016 | 3,771 |
| Exceptional items | (2,051) | (202) |
| Depreciation and amortisation | (2,906) | (2,747) |
| Operating profit | 59 | 822 |
| Finance costs | (2,311) | (1,537) |
| Loss before tax | (2,252) | (715) |
| Tax charge | (248) | (12) |
| Loss for the period | (2,500) | (727) |
All financial statements are presented on an unaudited basis, with the exception of 2023 which has been extracted from the audited financial statements.
BP INV3 TOPCO LIMITED CONSOLIDATED BALANCE SHEET.
| Unaudited | Audited | |
|---|---|---|
| As at | As at | |
| 31 March | 31 Dec | |
| 2024 | 2023 | |
| \$000 | \$000 | |
| Non-current assets | ||
| Goodwill and other intangible assets | 32,568 | 32,846 |
| Financing fees | 3,169 | 0 |
| Right of Use Assets | 3,787 | 3,989 |
| Property, plant & equipment | 42,194 | 42,701 |
| Total non-current assets | 81,718 | 79,536 |
| Current assets | ||
| Inventories | 3,653 | 3,559 |
| Trade and other receivables | 17,825 | 18,034 |
| Cash and cash equivalents | 9,938 | 3,651 |
| Total current assets | 31,416 | 25,244 |
| Total assets | 113,134 | 104,780 |
| Current liabilities | ||
| Trade and other payables | 14,280 | 14,067 |
| Tax liabilities | 236 | 0 |
| Lease liabilities | 1,687 | 913 |
| Total current liabilities | 16,203 | 14,980 |
| Non-current liabilities | ||
| Borrowings | 62,500 | 51,091 |
| Lease liabilities | 3,917 | 4,949 |
| Tax liabilities | 1,091 | 1,079 |
| Other liabilities | 3,570 | 3,602 |
| Total non-current liabilities | 71,078 | 60,721 |
| Total liabilities | 87,281 | 75,701 |
| NET ASSETS | 25,853 | 29,079 |
| Equity | ||
| Ordinary shares | 10 | 10 |
| Share premium account | 77,381 | 77,381 |
| Other reserves | 4,059 | 4,785 |
| Accumulated losses | (55,597) | (53,097) |
| TOTAL EQUITY | 25,853 | 29,079 |
All financial statements are presented on an unaudited basis, with the exception of 2023 which has been extracted from the audited financial statements.
BP INV3 TOPCO LIMITED CONSOLIDATED CASH FLOW.
| Unaudited Quarter ended |
||
|---|---|---|
| 31 March | ||
| 2024* | ||
| \$000 | ||
| Operating profit before exceptional items | 5,016 | |
| Adjustments for: | ||
| Exceptional costs | (2,051) | |
| Operating cash flows before movements in working capital | 2,965 | |
| Increase in stocks | (94) | |
| Increase in debtors | (114) | |
| Increase in creditors | 1,979 | |
| Fx / Non-cash items | (1,467) | |
| Net cash inflow from operating activities | 3,269 | |
| Purchase of fixed assets | (2,395) | |
| Net cash outflow from investing activities | (2,395) | |
| Bank interest | (2,394) | |
| Funding repayments | (51,338) | |
| Nordic Bond | 62,500 | |
| Financing fees | (3,355) | |
| Net cash inflow from financing activities | 5,413 | |
| Net increase in cash and cash equivalents | 6,287 | |
| Cash and cash equivalents at beginning of quarter | 3,651 | |
| Cash and cash equivalents at end of quarter | 9,938 |
| Analysis of cash and cash equivalent at end of quarter | |
|---|---|
| Cash and bank balances | 6,805 |
| Deposits | 3,133 |
| Cash and cash equivalents at end of quarter | 9,938 |
All financial statements are presented on an unaudited basis.
FURTHER INFORMATION.
Halle Aslaksen. Chief Executive Officer (CEO)
Mark J Walker. Chief Executive Officer (CFO)
For administrative queries, please contact:
Investor Relations. E: [email protected]
TWMA's Global HQ Building 3 Aberdeen International Business Park Dyce AB21 0BR Aberdeen
*TWMA™ is a registered trademark and the brand name for the TWMA group of companies including Total Waste Management Alliance Limited.
*TCC™ Rotomill™ TCC is a registered trademark of Thermteck Holdings AS. Rotomill is a registered trademark of TWMA.
TWMA. The world's drilling waste specialist.