Fjord Defence Group ASA

Earnings Release • May 26, 2021

Q1 2021 financial results: Platform for transformation and growth in place following financial restructuring

Q1 2021 financial results: Platform for transformation and growth in place following financial restructuring

Lysaker, 26 May 2021

Axxis Geo Solutions ASA (AGS, OSE:AXXIS) reported a negative EBITDA of USD 1.6 million in this year’s first quarter under IFRS, which was characterised by the major financial restructuring that provides the Company with a solid platform for organic growth and new business opportunities.

“We made significant progress in the quarter through the refinancing of the Company which has provided us with a sound financial position to build tomorrow’s AGS on. Our creditors have shown strong support by accepting the reconstruction proposal that involves significant debt reduction coupled with new equity. Post completion, we will have strong liquidity. This opens up a large window of opportunities for us,” says Ronny Bøhn, CEO of AGS.

In what was a transformational first quarter, AGS delivered revenues under IFRS of USD 0.8 million (45.1) with an EBITDA-result of USD -1.6 million (12.7). The EBIT ended at of USD -4.7 million, compared to USD 11.2 million in the corresponding period in 2020, as the Company conducted the major financial restructuring. AGS expects that the reconstruction and refinancing process will be completed by mid-June this year, following the reconstruction plan appeal period that ends on 1 June 2021.

Subsequent to the quarter, an extraordinary general meeting approved a private placement of NOK 144.5 million. The Company has also announced an intention to consider repair offering of up to NOK 20 million. AGS has also reached an agreement for the sale of the vessel Neptune Naiad and related seismic source equipment.

Going forward, the Company will continue to streamline its current activities to remain agile and continue its asset light / low fixed cost strategy. AGS’ upcoming project in the North Sea in late June remains a priority.

“With the refinancing in place, we are also confident that we will be able to extract the full value of our high-quality data libraries. Further, the equity backing from our new shareholders will also allow us to evaluate new opportunities,” adds Ronny Bøhn, and concludes:

“The seismic market continues to be sluggish. However, we see signs of improvement and expect increased activity as the adverse effects of the pandemic are reduced. The Company has active tenders under review for the second half of 2021 and expects an improved tender pipeline for 2022. Following the completion of the data processing of the Utsira OBN multi-client survey, AGS’ sales team is in cooperation with TGS following up on several late-sale opportunities for 2021.”

The first quarter 2021 report and presentation are enclosed and made available at Axxis Geo Solutions ASA’s website (www.axxisgeo.com) and Oslo Stock Exchange (www.newsweb.com).

A pre-recorded presentation of the results featuring CEO Ronny Bøhn and CFO Nils Haugestad will be released at https://www.axxisgeo.com/investor/quarterly-results at the same time.

Contacts

Ronny Bøhn, CEO

Ronny.Bohn@axxisgeo.com

+47 905 58 517

Nils Haugestad, CFO

Nils.Haugestad@axxisgeo.com

+47 977 04 439

About Axxis Geo Solutions

Axxis Geo Solutions (AGS) is a pure-play ocean bottom node seismic company uniquely positioned to pursue both contract and multi-client seismic. AGS specializes on delivering tailored seismic solutions and flexible project management and execution to oil and gas companies world-wide. Its operations are based on a scalable asset-light setup through chartering of vessels and nodes to complete seismic surveys. AGS is listed on EURONEXT EXPAND OSLO and traded under the ticker Axxis. More information on www.axxisgeo.com.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.