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ABL Group Investor Presentation 2023

Aug 31, 2023

3519_rns_2023-08-31_42f3d637-0d70-409b-830b-758045448d15.pdf

Investor Presentation

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2023 Q2 results

31 August 2023

abl-group.com

1. Highlights Reuben Segal, CEO

  1. Financial review Stuart Jackson, CFO

  2. Operations and outlook Reuben Segal, CEO

Disclaimer

  • This Presentation has been produced by ABL Group ASA (the "Company" or "ABL Group") solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential, has not been reviewed or registered with any public authority or stock exchange, and may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of the Company, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its importance. However, no representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary companies or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.
  • This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its parent or subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.
  • AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY'S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS.
  • SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.
  • By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.

Q2 2023 Highlights

  • Revenue of USD 67.9m, up 64% compared to Q2 2022 (USD 41.4m)
    • Growth primarily due to integration of Add Energy1 and AGR2
    • Organic growth primarily from renewables consultancy OWC (+47% YoY)
  • Adjusted EBIT of USD 5.3m (Q2 22: USD 4.4m)
    • Adjusted EBIT margin of 7.8% (Q2 22: 10.7%, Q2 22 pro-forma: 7.5%)
    • Improved margin in ABL segment offset by integration of Add Energy1 and AGR2 , and reduced margin in OWC
  • Net cash of USD 14.6m (Q1 23: USD 16.3m)
    • USD 3.5m cash flow from operations and investments offset by USD 5.5m negative cash flow from dividend, loan repayments and other financing
  • Acquisition of AGR completed in April
  • Semi-annual dividend of NOK 0.35 per share paid in June

  1. Highlights Reuben Segal, CEO

2. Financial review Stuart Jackson, CFO

  1. Operations and outlook Reuben Segal, CEO

New segment structure aligned with group main brands

(1) Add Energy's Well & Reservoir services joins AGR segment, while Add Energy's Asset Integrity Management services join ABL segment

(2) Note: As of Q2 2023, segment EBIT is presented before group cost allocation

(3) Corporate costs, post group EBIT adjustments, as % of group revenues

6

Abbreviated segment revenues and EBIT

USD million

7

Revenues Q2 Q1 Q2
22 23 23
ABL 32 32 36
0 4 0
OWC 7 8 11
6 8 2
Longitude 3 2 3
1 7 2
AGR - 3
3		 19
7
Eliminations (1 (1 (2
3) 9) 2)
Group
revenues		 41
4		 45
2		 67
9
EBIT Q2 Q1 Q2
22 23 23
ABL 6 6 8
1 3 3
OWC 1 1 1
3 5 1
Longitude 0 0 0
9 5 9
AGR - 0
1		 0
6
Corporate (4 (5 (6
4) 7) 5)
Group
EBIT		 3
9		 2
7		 4
4
EBIT
adjustments		 0
6		 0
9		 0
9
Group 4 3 5
Adjusted 4 6 3
EBIT
EBIT
margin		 Q2
22		 Q1
23		 Q2
23
ABL 19% 20% 23%
OWC 17% 17% 10%
Longitude 29% 18% 28%
AGR 3% 3%
Adjusted
margin
Group
EBIT		 10
7%		 8
0%		 7
8%
  • Revenue growth driven primarily by OWC (+47% YOY) and integration of Add Energy and AGR
  • Reduction in group Adjusted EBIT margin mainly from integration of low margin Add Energy and AGR business
    • On pro-forma combined basis, adjusted EBIT margin increased from 7.5% to 7.8%
  • Positive margin development in ABL segment and continued high margins in Longitude
  • Reduction in OWC margins primarily due to high recruitment to enable growth rate
  • Note: As of Q2 2023, segment EBIT is presented before group cost allocation. Historical segment EBIT has been restated for comparability.

Note: Add Energy consolidated from 3Q22, AGR from 2Q23

The AGR segment includes the AGR business acquired in Q2 2023, as well as certain Add Energy entities acquired in Q3 2022. Financials for the AGR segment prior to Q2 2023 relates solely to these Add Energy entities.

USD million

Abbreviated income statement Q2 22 Q2 23
Total revenue 41.4 67.9
Staff costs (20.6) (36.9)
Other operating costs (16.1) (25.3)
Depreciation and amortisation (0.8) (1.3)
EBIT 3.9 4.4
Net FX gain (loss) (0.8) (0.7)
Other financial items (0.2) (0.1)
Profit before tax 2.8 3.6
Taxation (0.7) (0.8)
Profit after tax 2.1 2.7
Adjusted EBIT 4.4 5.3
Adjusted EBIT margin 10.7% 7.8%

• Increase in revenue (+64% YoY), staff costs (+79%) and other operating costs (+57%) primarily from M&A

  • Sale of Loss Adjusting, acquisition of Add Energy and AGR
  • Pro-forma combined1 YoY revenue growth (+3%) driven mainly by high growth in OWC, offset by lower revenues in Add Energy and AGR, mainly due to NOK weakening vs USD
  • Staff costs growth higher than revenues mainly due to integration of structurally lower margin AGR
  • D&A increase mainly from IFRS16 treatment of new office leases (USD 0.5m vs 0.3m) and increased amortisation of PPA intangibles (USD 0.4m vs 0.1m)
  • Net FX loss is primarily unrealised revaluation of instruments denominated in nonfunctional currencies
  • Adjusted EBIT increased in nominal terms, but lower margin primarily due to integration of structurally lower margin AGR
  • EBIT adjustments relate to share-based compensation, amortisation of PPA intangible assets, M&A transaction costs and other extraordinary or non-cash items

USD million

9

Abbreviated cash flow Q2 22 Q2 23
Profit (loss) before taxes 2.8 3.6
Non-cash adjustments 0.9 1.8
Changes in working capital 0.6 (3.8)
Interest, tax, FX (1.4) (0.6)
Cash flow from operating activities 3.0 1.0
Cash flow from investing activities (0.7) 2.6
Cash flow from financing activities (4.1) (5.5)
Net cash flow (1.8) (2.0)
Cash, beginning of period 21.2 28.8
FX revaluation of cash (0.7) (0.4)
Cash, end of period 18.7 26.4
  • Non-cash adjustments consisting of depreciation, amortisation and share based compensation
  • Increased working capital across existing business partly offset by net cash acquired through AGR acquisition
  • Negative cash flow from financing activities of USD 5.5 includes USD 4.0 million dividend payment and USD 0.8 million debt repayment, the residual is debt and lease service
  • Net cash outflow of USD 2.0 million, combined with USD 0.4m reduced USD value of cash holdings, yields USD 26.4m closing cash balance
USD million
Abbreviated balance sheet Q1 23 Q2 23
Cash and cash equivalents 28.8 26.4
Other current assets 58.9 78.3
Non-current assets 41.1 69.2
Total assets 128.9 173.9
Short term borrowings 12.5 6.8
Other current liabilities 31.5 48.7
Long term borrowings - 5.0
Other non-current liabilities 14.4 16.7
Equity 70.4 96.7
Total equity and liabilities 128.9 173.9
Net Working Capital 29.1 31.8
Net cash 16.3 14.6

10

  • Net cash1 decreased to USD 14.6 million
  • Net working capital increased, but working capital ratio down to 56% due to low working capital intensity of AGR
    • Working capital ratio is based on average of last 2 quarters. Relative to Q2 only, working capital ratio would be 47%
  • USD 6.8 million term loan matures in December 2023, USD 5 million RCF extended to July 2024
    • Full refinancing planned for H2 2023

(1) Net cash is cash minus interest bearing debt excluding capitalised leases. Refer to full balance sheet and definition of APMs in Appendix

(2) Working capital ratio calculated as net working capital over quarterly revenues (average last two quarters). Refer to definition of APMs in Appendix

1. Highlights Reuben Segal, CEO

  1. Financial review Stuart Jackson, CFO

3. Operations and outlook Reuben Segal, CEO

High organic staff growth, accelerated by AGR acquisition

  • 1,552 average number of employees in quarter represents 38% growth from Q1 2023
    • 28% increase in permanent staff

  • Freelancer share of 34%, up from 25% in Q1

    • Increase mainly driven by integration of AGR's resource solutions business
    • Freelancer model provides a flexible cost base, to accommodate seasonal and cyclical variations

  • Organic staff growth primarily driven by OWC, adding 47% more tech staff over the last 12 months

    • High recruitment has negatively affected margin, as new staff is not fully utilised immediately
  • Acquisitions of Add Energy and AGR have significantly increased staff counts from 3Q22 and 2Q23 respectively
  • Group tech staff growth of 73% compared to Q2 2022

12 1 Average full-time equivalents in the quarter. Numbers include freelancers on FTE basis and excludes staff made temporary redundant. LOC consolidated from 1Q21. Freelancer share calculated in % of total technical staff 2 Average full-time equivalents in the quarter, own tech staff + freelancers. Excludes Loss Adjusting in 2Q22. Staff in Add Energy and AGR shown as "Acquisitions".

Diversified revenue base across sectors and regions

Market sector revenue LTM pro-forma combined1 Segment revenue LTM pro-forma combined1,2

13 Note: Market sector revenue based on management accounts

(1) Simplified pro-forma combined revenues of ABL Group, Add Energy and AGR

(2) OWC segment includes activities in OWC, Innosea and East Point Geo entities.

Acquisition of Delta Wind Partners supports further growth for OWC

Delta Wind Partners at a glance Strategic rationale

  • Delta Wind Partners is an offshore wind consultancy providing specialist solutions wind turbine generators (WTG)
  • Headquartered in Silkeborg, Denmark
  • Experience from projects in Denmark, UK, Ireland, Japan and South Korea
  • 14 consultants
  • FY23 financials: Revenue DKK 16.1m, EBIT DKK 2.3m

Transaction details

  • Transaction announced 26 June, completed 23 August
  • Total consideration of approximately DKK 11 million (USD 1.7 million), settled as follows:
    • Issuance of 413,838 ABL Group shares, at subscription price NOK 15.29 per share
    • DKK 7.3 million (USD 1.1 million) settled in cash on completion

  • The Consideration Shares are subject to a lock-up agreement and certain restrictions for 3-5 years

  • Significantly strengthens OWC's expertise and track record within wind turbine generators

  • Increases OWC's exposure to the operations & maintenance phase of offshore wind projects
  • Entry for OWC into Danish market, with opportunity to grow further organically
  • Opportunity for DWP to grow within a larger, international and multidisciplined team
  • Known cultural and professional fit from successful joint projects

RENEWABLES

Offshore wind market: 2023 on course for record European offshore wind FIDs

Comments

  • On course for a record year in European offshore wind FIDs
  • In July, BP and Total paid world record EUR 13bn for rights to develop 7GW offshore Germany
  • Investment activity also remains high in emerging markets
  • Some project postponements observed, specifically on projects with low fixed offtake prices from past auction rounds
  • ABL Group benefits from flexibility to work across value chain and in early origination

OIL & GAS

O&G investments on the rise, jackup activity highest level since 2015

Summary and outlook

  • All time high revenues, with solid profitability
    • OWC continues to grow rapidly, 47% compared to same quarter last year
    • Add Energy profitable in Q2, integrating into ABL and AGR
  • Completed acquisitions of AGR (April) and Delta Wind Partners (August)
    • Significant increase in group revenues
    • Acquisitions will accelerate renewables / energy transition growth through WTG expertise, resource solutions and CCUS
  • Strong market outlook across the energy sector
    • Renewables: Record investment commitments and auction results in offshore wind support continued growth expectations for market, with ABL Group benefitting from ability to work across value chain and in early origination
    • O&G: Brownfield market is active and continues to improve, greenfield activity to accelerate through 2023 into 2024
    • Maritime: Maintaining strong position in stable market
  • Improving capital efficiency and returning cash to shareholders on semi-annual schedule
    • Dividend of NOK 0.35 per share paid in June 2023, corresponding to USD 4.0 million
    • Additional dividend to be declared and paid during the second half of 2023
  • We will continue to be active in consolidation of the energy consultancy industry

Appendix

© 2012-2023 ABL Group

Pro-forma combined financials (simplified)

USD
millions
Revenue Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23		 Q/Q
growth		 Y/Y
growth
ABL
Group
, as reported		 39.6 41.4 44.1 42.8 167.9 45.2 67.9 50.4% 64.2%
(divested
2022)
Loss
Adjusting
May		 -1.9 -1.0 -2.9
Add
Energy
(consolidated
3Q22)		 5.2 5.6 10.8
AGR
(consolidated
2Q23)		 21.6 20.2 19.1 21.3 82.2 19.5
Pro-forma
combined
(simplified)		 64.6 66.2 63.2 64.0 258.0 64.7 67.9 5.0% 2.7%
Adjusted
EBIT		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23		 Q/Q
growth		 Y/Y
growth
ABL
Group
, as reported		 3.4 4.4 4.0 3.5 15.3 3.6 5.3 46.9% 19.6%
Loss
Adjusting
(divested
May
2022)		 n a n a n a
(consolidated
3Q22)
Add
Energy		 -0.4 -0.7 -1.1
AGR
(consolidated
2Q23)		 1.1 1.2 1.1 1.4 4.8 1.2
Pro-forma
combined
(simplified)		 4.0 4.9 5.0 4.9 18.9 4.8 5.3 10.2% 7.8%
Adjusted
EBIT
margin		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
ABL
Group
, as reported		 8.5% 10.7% 9.0% 8.2% 9.1% 8.0% 7.8%
Pro-forma
combined
(simplified)		 6.3% 7.4% 8.0% 7.7% 7.3% 7.4% 7.8%

Note: These pro-forma combined figures are a simple combination of stand-alone accounts – not adjusted for other hypothetical effects if transactions occurred earlier Loss Adjusting figures are from ABL Group management accounts. Not reported on EBIT level

Add Energy figures are management accounts, converted to USD using average exchange rate for 2022 AGR figures are management accounts, converted to USD using average exchange rate for 2022 and Q1 23

19

ABL Group Service Portfolio

CONSULTING & ENGINEERING

  • Owner's engineering
  • Technical due diligence
  • Site investigations
  • Geotechnical & geophysical
  • Marine operations
  • Construction supervision
  • Advance analysis & simulation
  • Client reps & secondments
  • Well engineering,
  • management & servicing • Reservoir management &
  • asset evaluation • Software & digital
  • Marine design, upgrade &
  • Cable engineering
  • Asset integrity management
  • HSEQ & risk engineering
  • Clean shipping

LOSS PREVENTION

Surveys, inspections & audits

  • Vessel and marine assurance
  • Rig inspections and assurance
  • Industrial standard audit
  • Vessel condition survey
  • Pre-purchase survey
  • Well risk management and blowout contingency

Marine warranty survey

  • Renewables
  • Oil & gas
  • Operations • Project cargo
  • Rig moving
  • Decommissioning

LOSS MANAGEMENT

Marine casualty support &

management • Salvage & wreck removal

  • Hull & machinery (H&M) claims
  • P&I claims

Well control

  • Well kill support
  • Relief Well Injection Spool (RWIS)
  • Expert witness & litigation
  • Energy expert witness & litigation
  • Marine expert witness & litigations
  • Marine casualty investigations

20

- conversion

Global partner, local expert

Global footprint provides clients with local expertise and swift response

Billing ratio development

Billing ratio1 – Technical staff

Comments

  • Freelancers are ~100% utilisation
  • Increased billing ratio including freelancers due to increased freelancer share after AGR integration
    • AGR consolidated from Q2 2023

22 1 Billing ratio excludes management, business development, administrative support staff and temporary redundancies. Figure calculated as billable hours over available hours. Available hours excludes paid absence (public holidays, time off in-lieu, compassionate leave, authorized annual leave) and unpaid absence (sabbatical and other unpaid leave).

General (1/2)

Basis of preparations

This presentation provides consolidated financial highlights for the quarter of the Company and its subsidiaries. The consolidated financial information is not reported according to requirements in IAS 34 (Interim Financial Reporting) and the figures are not audited.

The accounting policies adopted in the preparation of this presentation are consistent with those followed in the preparation of the last annual consolidated financial statements for the year ended 31 December 2022. A description of the major changes and the effects are included in note 2 (standards issued but not yet effective) of the ABL annual report 2022 available on www.abl-group.com.

The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Alternative Performance Measures (APMs)

ABL discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced insight into the operations, financing and future prospects of the company. Certain items may not be indicative of the ongoing operating result of the company and are excluded from the alternate profit measures. Profit measures excluding those adjustment items are presented as an alternative measures to improve comparability of the underlying business performance between the periods. The Company has defined and explained the purpose of the following APMs:

Adjusted EBITDA which excludes depreciation, amortization and impairments, share of net profit (loss) from associates, transaction costs related to acquisitions, restructuring and integration costs is a useful measure because it provides useful information regarding the Company's ability to fund capital expenditures and provides a helpful measure for comparing its operating performance with that of other companies. EBITDA may not be comparable to other similarly titled measures from other companies.

Adjusted EBIT which excludes amortisation and impairments, share of net profit (loss) from associates, transaction costs related to acquisitions, restructuring and integration costs is a useful measure because it provides an indication of the profitability of the Company's operating activities for the period without regard to significant events and/ or decisions in the period that are expected to occur less frequently.

Adjusted profit (loss) after taxes which excludes amortisation and impairments, share of net profit (loss) from associates, transaction costs related to acquisitions, restructuring and integration costs and certain finance income is a useful measure because it provides an indication of the profitability of the Company's operating activities for the period without regard to significant events and/or decisions in the period that are expected to occur less frequently.

Order backlog is defined as the aggregate value of future work on signed customer contracts or letters of award. ABL's services are shifting towards "call-out contracts" which are driven by day-to-day operational requirements. An estimate for backlog on "call-out contracts" are only included in the order backlog when reliable estimates are available. Management believes that the order backlog is a useful measure in that it provides an indication of the amount of customer backlog and committed activity in the coming periods.

Working capital is a measure of the current capital tied up in operations. The amount of working capital will normally be dependent on the revenues earned over the past quarters. Working capital includes trade and other receivables and contact assets, trade and other payables, current tax payable, and contract liabilities. Working capital may not be comparable to other similarly titled measures from other companies. Working capital ratio provides an indication of the working capital tied up relative to the average quarterly revenue over the past two quarters.

General (2/2)

Alternative Performance Measures (APMs) continued

Return on equity (ROE)

ROE is calculated as the adjusted profit (loss) for the period attributable to equity holders of the parent, divided by average total equity for the period. The adjusted profit (loss) is annualised for interim period reporting. This measure indicates the return generated by the management of the business based on the total equity.

Return on capital employed (ROCE)

ROCE is calculated as the adjusted EBIT for the period, divided by average capital employed for the period. Capital employed is defined as total assets less non-interest bearing current liabilities. The adjusted EBIT is annualised for interim period reporting. This measure indicates the return generated by the management of the business based on the capital employed.

Net cash

Net cash is calculated as the cash and cash equivalents minus interest-bearing debt excluding lease liabilities. This is a useful measure because it provides an indication of the company's liquidity, without being affected by drawdown and repayment of bank debt or the length of the group's office leases. ABL Group's lease liabilities predominantly relate to office leases of varying length, and depreciation of such leases is included in the Operating Profit (EBIT) and Adjusted EBIT measures.

Adjustment items

USD
thousands
Adjustment
items
(EBITDA)		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Restructuring
and
integration
costs		 3
6		 2
9		 1
4		 362 - - 1
9		 170 189 - -
Other
special
items
(incl
. share-based
expenses)		 353 531 485 1
475		 456 209 504 603 1
773		 393 404
Transaction
related
M&A
costs
to		 - - - 7
6		 - 262 - 9
4		 357 351 172
Total
adjustment
items
(EBITDA)		 389 560 500 1
914		 456 472 523 868 2
318		 744 577
(EBIT)
Adjustment
items		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Adjustment
items
(EBITDA)		 389 560 500 1
914		 456 472 523 868 2
318		 744 577
Amortisation
and
impairment		 8
9		 8
9		 8
9		 356 8
9		 8
9		 110 142 430 154 322
Total
adjustment
items
(EBIT)		 478 649 589 2
270		 545 561 633 1
009		 2
748		 898 899
Adjustment
items
(profit
(loss)
after
taxes)		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
(EBIT)
Adjustment
items		 478 649 589 2
270		 545 561 633 1
009		 2
748		 898 899
Gain
on bargain
purchase
/
disposal
of
subsidiaries		 - - (54) (54) - (84) (740) (1
064)		 (1
889)		 - -
(profit
(loss)
after
taxes)
Total
adjustment
items		 478 649 535 2
216		 545 477 (107) (54) 860 898 899

APMs and Key Figures

USD
thousands
Profitability
measures		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Operating
profit
(loss)
(EBIT)		 2
281		 1
319		 1
916		 7
375		 2
806		 3
868		 3
329		 2
512		 12
514		 2
708		 4
397
Depreciation
, amortisation
and
impairment		 899 820 998 3
790		 810 758 939 836 3
342		 863 1
347
EBITDA 3
180		 2
139		 2
914		 11
165		 3
615		 4
625		 4
268		 3
348		 15
856		 3
571		 5
745
Total
adjustment
items
(EBITDA)		 389 560 500 1
914		 456 472 523 868 2
318		 744 577
Adjusted
EBITDA		 3
568		 2
699		 3
414		 13
078		 4
071		 5
097		 4
791		 4
215		 18
175		 4
315		 6
321
(loss)
(EBIT)
Operating
profit		 2
281		 1
319		 1
916		 7
375		 2
806		 3
868		 3
329		 2
512		 12
514		 2
708		 4
397
Total
adjustment
items
(EBIT)		 478 649 589 2
270		 545 561 633 1
009		 2
748		 898 899
Adjusted
EBIT		 2
758		 1
968		 2
505		 9
645		 3
351		 4
428		 3
962		 3
521		 15
262		 3
606		 5
296
Profit
(loss)
after
taxes		 1
088		 (143) 145
1		 3
218		 2
974		 145
2		 2
301		 (1
166)		 253
6		 (99) 2
714
Total
adjustment
items
(profit
(loss)
after
taxes)		 478 649 535 2
216		 545 477 (107) (54) 860 898 899
Adjusted
profit
(loss)
after
taxes		 566
1		 507 1
680		 5
435		 519
3		 2
621		 2
193		 (1
221)		 7
113		 799 3
613
Basic 0.01 0.01 0.03 0.03 0.02 0.02 0.06 0.02
earnings
per share
(USD)		 (0.00) (0.01) (0.00)
Adjusted
basic
earnings
per share
(USD)		 0.02 0.01 0.02 0.06 0.04 0.03 0.02 (0.01) 0.07 0.01 0.03

APMs and Key Figures

USD
thousands
Cash
Net		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Cash
and
cash
equivalents		 24
532		 23
212		 19
815		 19
815		 21
212		 18
711		 29
267		 30
974		 30
974		 28
819		 26
390
Less:
Interest
bearing
bank
borrowings		 13
310		 12
504		 11
661		 11
661		 10
817		 9
997		 14
166		 13
337		 13
337		 12
503		 11
795
Net
Cash		 11
222		 10
708		 8
154		 8
154		 10
395		 8
714		 15
102		 17
637		 17
637		 16
316		 14
594
USD
thousands
Working
capital		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Trade
and
other
receivables		 51
977		 51
898		 43
235		 43
235		 44
920		 45
588		 45
110		 41
400		 41
400		 42
538		 53
484
Contract
assets		 14
905		 18
490		 18
101		 18
101		 18
302		 14
009		 17
160		 13
394		 13
394		 16
385		 24
832
Trade
and
other
payables		 (30
239)		 (33
594)		 (24
467)		 (24
467)		 (24
864)		 (22
032)		 (28
078)		 (25
890)		 (25
890)		 (27
443)		 (44
336)
Contract
liabilities		 (1
189)		 (934) (949) (949) (1
708)		 (1
638)		 (1
308)		 (1
535)		 (1
535)		 (1
864)		 (1
965)
Income
tax
payable		 (747) (673) (398) (398) (291) (77) (276) (439) (439) (514) (184)
Net
working
capital		 34
708		 35
188		 35
523		 35
523		 36
359		 35
851		 32
607		 26
931		 26
931		 29
101		 31
831
Working
capital
ratio		 93% 92% 94% 94% 94% 89% 76% 62% 62% 66% 56%
Return
on equity
(ROE)		 2.3% 0.7% 2.5% 8.2% 5.1% 3.8% 3.1% -1.7% 10.5% 1.2% 4.3%
Return
on capital
employed
(ROCE)		 3.0% 2.2% 2.8% 10.7% 3.7% 4.8% 4.1% 3.5% 16.2% 3.6% 4.7%
Operational
metrics		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Order
backlog
the
end
of
the
period
(USD
million)
at		 61.8 68.1 72.1 72.1 68.2 93.6
64.6 60.4 63.2 63.2 69.6
(1)
Average
number
of
full-time
equivalent
employees		 922 922 960 925 946 970 1
095		 1
098		 1
027		 1
125		 1
552

1) Full time equivalent numbers include freelancers on FTE basis

2) Billing ratio for technical staff includes freelancers on 100% basis

Consolidated Statement of Income

USD
thousands
Consolidated
income
statement		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Revenue 38
266		 37
986		 37
797		 150
748		 39
643		 41
367		 44
100		 42
788		 167
897		 45
177		 67
938
Total
revenue		 38
266		 37
986		 37
797		 150
748		 39
643		 41
367		 44
100		 42
788		 167
897		 45
177		 67
938
Staff
costs		 (20
868)		 (20
590)		 (20
225)		 (81
978)		 (21
143)		 (20
624)		 (22
740)		 (23
619)		 (88
126)		 (25
468)		 (36
900)
Other
operating
expenses		 (14
218)		 (15
257)		 (14
658)		 (57
605)		 (14
885)		 (16
117)		 (17
092)		 (15
821)		 (63
915)		 (16
138)		 (25
293)
Depreciation
, amortisation
and
impairment		 (899) (820) (998) (3
790)		 (810) (758) (939) (836) (3
342)		 (863) (1
347)
Operating
profit
(loss)
(EBIT)		 2
281		 1
319		 1
916		 7
375		 2
806		 3
868		 3
329		 2
512		 12
514		 2
708		 4
397
Gain
/
of
on bargain
purchase
disposal
subsidiaries		 - - 5
4		 5
4		 - 8
4		 740 1
064		 1
889		 - -
Finance
income		 4 2
3		 4
8		 112 4
2		 1
6		 6
6		 4
5		 169 5
2		 119
Finance
expenses		 (243) (164) (196) (765) (115) (278) (317) (701) (1
411)		 (384) (258)
Net
foreign
exchange
gain
(loss)		 (175) (683) 585 (592) 418 (843) (793) (1
290)		 (2
507)		 (2
050)		 (696)
Profit
(loss)
before
income
tax		 1
866		 495 2
408		 6
184		 3
151		 2
847		 3
026		 1
629		 10
654		 326 3
563
Income
tax
expenses		 (778) (638) (1
263)		 (2
965)		 (177) (703) (726) (2
796)		 (4
401)		 (424) (849)
Profit
(loss)
after
tax		 1
088		 (143) 1
145		 3
218		 2
974		 2
145		 2
301		 (1
166)		 6
253		 (99) 2
714
Other
comprehensive
income
Currency
translation
differences		 738 (328) (1
551)		 (475) (360) (1
503)		 (2
619)		 1
706		 (2
777)		 2
101		 (1
851)
Income
effect
tax		 - - (343) (343) - - - (729) (729) - -
Other
comprehensive
income
for
the
period		 738 (328) (1
894)		 (818) (360) (1
503)		 (2
619)		 976 (3
506)		 2
101		 (1
851)
Total
comprehensive
income
for
the
period		 1
826		 (470) (749) 2
400		 2
613		 641 (318) (190) 2
746		 2
002		 863
Total
comprehensive
income
for
the
period
is
attributable
to:
Equity
holders
of
the
parent
company		 1
772		 (504) (705) 2
325		 2
610		 634 (321) (235) 2
689		 1
926		 775
Non-controlling
interests		 5
4		 3
3		 (44) 7
5		 3 8 2 4
5		 5
8		 7
6		 8
8

Consolidated Statement of Cash Flow

USD
thousands
Consolidated
cashflow
statement		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
Profit
(loss)
before
taxes		 1
866		 495 2
408		 6
184		 3
151		 2
847		 3
026		 1
629		 10
654		 326 3
563
Non-cash
adjustment
reconcile
profit
before
cash
flow:
to
tax
to
Depreciation
, amortisation
and
impairment		 899 820 998 3
790		 810 758 939 836 3
342		 863 1
347
Non-cash
employee
benefits
expense – share-based
payments		 353 532 484 1
475		 456 209 360 371 1
396		 393 404
Gain
on bargain
purchase
/
disposal
of
subsidiaries		 - - (54) (54) - (84) (740) (1
064)		 (1
889)		 - -
Changes
in
working
capital:
Changes
in
trade
and
other
receivables		 (5
977)		 (3
506)		 9
052		 (6
923)		 (1
885)		 3
624		 3
344		 7
475		 12
558		 (4
128)		 (4
916)
Changes
in
trade
and
other
payables		 2
836		 3
100		 (9
112)		 (252) 1
277		 (2
993)		 766 (1
903)		 (2
853)		 2
208		 1
144
Interest
costs
- net		 213 118 110 488 1
5		 172 279 612 1
115		 384 123
Income
paid
taxes		 (299) (1
019)		 (1
270)		 (3
194)		 (288) (947) (725) (935) (2
894)		 (305) (382)
differences
Net
exchange		 (877) 4
4		 (896) (1
221)		 (153) (585) (1
302)		 (104) (2
144)		 249 (331)
Cash
flow
from
(used
in)
operating
activities		 (986) 585 1
721		 293 3
418		 3
002		 5
947		 6
917		 19
285		 (11) 952
Payments
for
plant
and
equipment
property,		 (143) (98) (184) (534) (425) (692) (285) (461) (1
862)		 (340) (542)
Interest
received		 8 1
5		 2
2		 5
4		 7 1
0		 1
7		 4
7		 8
1		 3
5		 3
5
Net
cash
acquired
(paid)
on acquisition
of
subsidiary		 0 - (556) (554) - - 236 (819) (583) - 3
085
Cash
flow
from
(used
in)
investing
activities		 (135) (83) (717) (1
035)		 (418) (682) (32) (1
233)		 (2
364)		 (305) 2
577
Dividends
paid
company's
shareholders
to		 (2
807)		 - (2
668)		 (5
476)		 - (2
917)		 - (3
019)		 (5
936)		 - (4
047)
Principal
elements
of
lease
payments		 (671) (561) (547) (2
601)		 (537) (302) (383) (543) (1
765)		 (569) (608)
Proceeds
from
loans
and
borrowings		 - - - - - - 5
000		 - 5
000		 - -
Repayment
of
borrowings		 (1
495)		 (806) (1
087)		 (3
422)		 (903) (762) (836) (833) (3
333)		 (833) (708)
Proceeds
from
issuance
of
shares
capital		 2
314		 - - 2
301		 - - 1
733		 1
3		 1
746		 - -
Interest
paid		 (202) (115) (110) (479) (56) (163) (221) (211) (650) (281) (162)
Cash
flow
from
(used
in)
financing
activities		 (2
860)		 (1
483)		 (4
412)		 (9
677)		 (1
496)		 (4
143)		 5
294		 (4
593)		 (4
939)		 (1
684)		 (5
525)
Net
change
in
cash
and
cash
equivalents		 (3
981)		 (981) (3
408)		 (10
419)		 1
505		 (1
823)		 11
208		 1
092		 11
982		 (2
000)		 (1
995)
Cash
and
cash
equivalents
at
the
beginning
of
the
period		 28
319		 24
532		 23
212		 30
642		 19
815		 21
212		 18
711		 29
267		 19
815		 30
974		 28
819
Effect
of
in
exchange
movements
rates		 194 (339) 1
1		 (407) (108) (678) (652) 615 (823) (155) (435)
Cash
and
cash
equivalents
the
end
of
the
period
at		 24
532		 23
212		 19
815		 19
815		 21
212		 18
711		 29
267		 30
974		 30
974		 28
819		 26
390

Consolidated Statement of Financial Position

USD
thousands
Consolidated
balance
sheet		 Q2
21		 Q3
21		 Q4
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 Q1
23		 Q2
23
Property
, plant
and
equipment		 1
284		 1
169		 1
137		 1
345		 1
787		 2
993		 2
101		 2
163		 2
329
Right-of-use
assets		 3
363		 2
938		 3
629		 3
619		 8
046		 954
7		 904
7		 639
7		 8
236
Goodwill
and
intangible
assets		 27
033		 26
779		 27
465		 27
313		 26
937		 27
663		 29
382		 29
386		 53
644
Investment
in
associates		 - - - - - 6 2
9		 2
7		 2
6
Deferred
tax
assets		 2
287		 2
180		 1
708		 1
780		 1
702		 1
784		 1
744		 1
925		 4
997
Trade
and
other
receivables		 51
977		 51
898		 43
235		 44
920		 45
588		 45
110		 41
400		 42
538		 53
484
Contract
assets		 14
905		 18
490		 18
101		 18
302		 14
009		 17
160		 13
394		 16
385		 24
832
Cash
and
cash
equivalents		 24
532		 23
212		 19
815		 21
212		 18
711		 29
267		 30
974		 28
819		 26
390
Total
assets		 125
382		 126
665		 115
090		 118
492		 116
779		 131
938		 126
928		 128
882		 173
937
EQUITY
AND
LIABILITIES
Equity 69
290		 68
526		 66
865		 69
934		 67
868		 72
147		 68
427		 70
429		 96
718
Deferred
tax
liabilities		 658 649 1
259		 1
237		 1
122		 1
102		 2
516		 1
588		 3
679
Long
borrowings
term		 6
386		 4
171		 3
328		 2
483		 1
664		 5
580		 - - 5
000
Lease
liabilities
(non-current)		 1
660		 1
409		 2
481		 2
463		 6
656		 006
7		 6
922		 6
544		 6
584
Provisions
and
other
payables
(non-current)		 5
247		 5
496		 5
661		 5
781		 5
692		 5
935		 5
993		 6
318		 6
465
Trade
and
other
payables		 30
239		 33
594		 24
467		 24
864		 22
032		 28
078		 25
890		 27
443		 44
336
Contract
liabilities		 1
189		 934 949 1
708		 1
638		 1
308		 1
535		 1
864		 1
965
Short
term
borrowings		 6
924		 8
333		 8
333		 8
333		 8
333		 8
585		 13
337		 12
503		 6
795
Lease
liabilities
(current)		 1
804		 1
673		 1
349		 1
397		 1
698		 1
920		 1
869		 1
678		 2
210
Income
payable
tax		 747 673 398 291 7
7		 276 439 514 184
Provisions
(current)		 1
238		 1
207		 - - - - - - -
Total
equity
and
liabilities		 125
382		 126
665		 115
090		 118
492		 116
779		 131
938		 126
928		 128
882		 173
937

Revenues and EBIT

- split per segments

USD
thousands
Revenues Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2
21 21 21 21 22 22 22 22 22 23 23
ABL 31 30 31 125 31 32 31 30 125 32 36
905 953 062 047 299 002 253 803 357 370 016
OWC 6 6 6 24 7 7 8 7 30 8 11
077 665 759 110 199 587 191 762 739 751 184
Longitude 2 2 2 8 2 3 2 2 11 2 3
201 212 113 381 356 083 826 926 191 663 191
AGR - - - - - - 3
617		 2
852		 6
469		 3
309		 19
730
Eliminations (1 (1 (2 (6 (1 (1 (1 (1 (5 (1 (2
917) 844) 137) 790) 210) 305) 788) 556) 859) 916) 183)
Total 38 37 37 150 39 41 44 42 167 45 67
revenues 266 986 797 748 643 367 099 788 897 177 938
Operating
profit
(loss)
(EBIT)		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
ABL 5 4 4 19 5 6 5 7 24 6 8
179 796 591 011 789 122 779 217 908 347 284
OWC 867 1
015		 536 3
089		 1
086		 1
299		 1
205		 772 4
362		 1
484		 1
092
Longitude 271 341 213 1
395		 317 893 926 393 2
530		 475 904
AGR - - - - - - (89) (756) (845) 8
4		 613
Corporate (4 (4 (3 (16 (4 (4 (4 (5 (18 (5 (6
group 036) 833) 424) 120) 387) 447) 492) 114) 439) 682) 495)
Total 2 1 1 375 2 3 3 2 12 2 4
EBIT 281 319 916 7 806 868 329 512 514 708 397

As of 1st July 2023, the ABL Group is managed by four distinct business lines under the brands ABL ("The Energy and Marine Consultants"), OWC ("The Renewable Energy Consultants"), Longitude ("The Engineering Consultants") and AGR ("The Energy and Software Consultants"). The internal restructuring was carried out to simplify the group structure and to improve clarity around service offerings. These business lines will also form the basis for the four reportable segments of the Group. The internal management reports provided by management to the Group's Board of Directors, which is the group's decision maker, is in accordance with this structure.

The former regional segments Middle East, Asia Pacific, Americas and Europe, together with Add Energy's asset integrity management business, now form the ABL segment. The AGR segment includes the AGR business acquired in Q2 2023, as well as certain Add Energy entities acquired in Q3 2022, which now form part of the AGR segment. Financials for the AGR segment prior to Q2 2023 relates solely to these Add Energy entities.

Trade receivable & Cash and cash equivalents

- split per segments

USD
thousands
Trade
receivables		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
ABL 30
500		 28
785		 28
742		 28
742		 30
462		 30
730		 24
880		 24
902		 24
902		 25
564		 27
560
OWC 3
445		 2
779		 3
004		 3
004		 3
234		 3
896		 3
512		 3
192		 3
192		 4
255		 4
672
Longitude 1
805		 1
479		 1
884		 1
884		 1
680		 2
118		 1
861		 894 894 1
606		 1
737
AGR - - - - - - 4
189		 3
455		 3
455		 3
252		 10
125
Total
trade
receivables		 35
750		 33
043		 33
631		 33
631		 35
376		 36
743		 34
442		 32
443		 32
443		 34
677		 44
095
Cash
and
cash
equivalents		 Q2
21		 Q3
21		 Q4
21		 FY
21		 Q1
22		 Q2
22		 Q3
22		 Q4
22		 FY
22		 Q1
23		 Q2
23
ABL 14
324		 13
649		 13
288		 13
288		 14
960		 13
702		 18
955		 19
485		 19
485		 15
205		 12
478
OWC 3
485		 3
548		 3
356		 3
356		 3
448		 2
262		 3
255		 4
626		 4
626		 5
369		 4
261
Longitude 1
209		 1
053		 1
139		 1
139		 811 527 747 803 803 610 874
AGR - - - - - - 848 1
710		 1
710		 872 6
582
Corporate
group		 5
515		 4
962		 2
032		 2
032		 1
994		 2
220		 5
462		 4
350		 4
350		 6
763		 2
194
Total
cash
and
cash
equivalents		 24
532		 23
212		 19
815		 19
815		 21
212		 18
711		 29
267		 30
974		 30
974		 28
819		 26
390

As of 1st July 2023, the ABL Group is managed by four distinct business lines under the brands ABL ("The Energy and Marine Consultants"), OWC ("The Renewable Energy Consultants"), Longitude ("The Engineering Consultants") and AGR ("The Energy and Software Consultants"). The internal restructuring was carried out to simplify the group structure and to improve clarity around service offerings. These business lines will also form the basis for the four reportable segments of the Group. The internal management reports provided by management to the Group's Board of Directors, which is the group's decision maker, is in accordance with this structure.

The former regional segments Middle East, Asia Pacific, Americas and Europe, together with Add Energy's asset integrity management business, now form the ABL segment. The AGR segment includes the AGR business acquired in Q2 2023, as well as certain Add Energy entities acquired in Q3 2022, which now form part of the AGR segment. Financials for the AGR segment prior to Q2 2023 relates solely to these Add Energy entities.

Top 20 shareholders

# of
Name
shareholder		 . of
No
shares		 ownership
%
1 GROSS 14 12
MANAGEMENT 890 1%
AS 351
2 HOLMEN
SPESIALFOND		 10
450
000		 8
5%
3 DNB 7 6
BANK 637 2%
ASA 835
4 BJØRN
STRAY		 6
217
743		 0%
5
5 RGA
ENERGY
HOLDINGS
AS		 6
055
556		 4
9%
6 NORDEA
BANK
ABP
FIL
,		 6
055
555		 4
9%
7 MELESIO 4 3
INVEST 811 9%
AS 016
8 SOBER
AS		 3
500
000		 2
8%
9 SAXO 3 2
BANK 459 8%
A/S 413
10 HAUSTA 2 2
INVESTOR 709 2%
AS 211
11 KRB 2 2
CAPITAL 539 1%
AS 065
12 VALOREM
AS		 2
360
000		 1
9%
13 PENSJON 2 1
MP 251 8%
PK 128
14 TRAPESA
AS		 1
955
437		 1
6%
15 CATILINA 1 1
INVEST 685 4%
AS 339
16 MUSTANG 1 1
CAPITAL 675 4%
AS 000
17 BADREDDIN
DIAB		 1
652
695		 1
3%
18 AMPHYTRON 1 1
INVEST 600 3%
AS 339
19 GINKO
AS		 1
428
480		 1
2%
20 CARNEGIE
INVESTMENT
BANK
AB		 1
399
149		 1
1%
Top 84 68
20 333 4%
shareholders 312
Other
shareholders		 39
017
055		 31
6%
outstanding 123 100
Total 350 0%
shares 367

The ABL Group family

ABL Group ASA – a global brand family combining the deepest pool of expertise across energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans throughout the life-cycle of a project of asset.

The Energy & Marine Consultants.

Global, independent energy, marine and engineering consultant working to derisk and drive sustainability across projects and assets in renewables, maritime and oil & gas.

The Energy & Software Consultants.

Multi-disciplinary engineering consultancy and software provider specialising in wells and reservoirs. We have the experience, agility and creativity to deliver a compelling solution that solves today and tomorrow's energy challenges.

The Renewable Energy Consultants.

Dedicated engineering, technical advisory and consultant for the commercial development of offshore and onshore renewable energy.

The Engineering Consultants.

Independent engineering, design and analysis consultants working across marine markets: renewables, oil & gas, maritime, small craft and defence, and infrastructure.

© ABL Group, 2023 abl-group.com

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Declaration of Voting Results & Voting Rights Announcements 2026
May 27
Declaration of Voting Results & Voting Rights Announcements 2026
May 27
Director's Dealing 2026
May 20
Transaction in Own Shares 2026
May 20
M&A Activity 2026
May 13
Interim / Quarterly Report 2026
May 7
Earnings Release 2026
May 7
AGM Information 2026
May 6
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