Akastor - Earnings Release 2015 | FinancialReports.eu

Akastor ASA : Q1 Earnings update

Akastor ASA (Akastor) announced on February 10 2015 that its fully owned

portfolio company MHWirth had to undertake a necessary reduction of its global

work force of approximately 500 - 750 people due to the very challenging rig

market, affecting both MHWirth and its customers. The reduction in workforce

will be 750 people, and a restructuring cost of NOK 40 million will be charged

to MHWirths' first quarter result.

Productivity in MHWirth has suffered through the restructuring process, and has

to some extent impacted the first quarter results negatively. Further, there is

uncertainty and delays related to some of MHWirths' projects. The combination of

these factors together with the current market environment has resulted in an

expected EBITDA result for MHWirth in Q1 2015 of NOK 43 million, excluding the

restructuring costs of NOK 40 million.

MHWirth has seen a further increase in working capital of approximately NOK 600

million during the first quarter, mainly as a result of delays on projects.

A further strengthening of the USD relative to NOK has impacted the reported net

interest bearing debt of the Akastor group in several ways. Financial lease in

USD, funding of subsidiaries in USD, and liquidity effects on contract hedges

that are rolled forward, have a total effect on the debt of around NOK 500

million, but none of these have profit and loss effect.

Further, a new loan financing the acquisition of the vessel AKOFS Seafarer for a

price of USD 122.5 million was established in the quarter. The net interest

bearing debt for the Akastor group increased with around NOK 2.3 billion during

the quarter, mainly explained by the items above.

Akastor ASA will present its Q1 2015 results on April 28(th), 2015.

For further information, please contact:

Tore D. Langballe

Head of Communications and Investor Relations

Mob: +47 907 77 841

Akastor ASA is an oilfield services investment company with a flexible mandate

for long-term value creation. The company exercises active ownership combining a

range of strategic, operational and financial measures to develop and unlock the

full value potential of its portfolio of companies. Akastor ASA employs

approximately 7,400 people (as of December 2014).

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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