Akastor — Earnings Release 2019

Feb 13, 2020

Akastor ASA: Fourth Quarter Results 2019

Akastor ASA: Fourth Quarter Results 2019

Highlights

· Revenue NOK 1 557 million

· EBITDA NOK 153 million

· EBITDA margin 9.8 percent

· Order intake NOK 1 168 million

· Order backlog NOK 3.2 billion

· Net interest-bearing debt NOK 0.7 billion

Akastor CEO Karl Erik Kjelstad comments:

"I am pleased to see the positive development in our portfolio companies.

MHWirth continues the positive trend of delivering strong revenue and EBITDA

growth. This confirms MHWirth's robust business model, as well as the strong

market position that the company holds within offshore drilling services and

advanced drilling technology. I would also like to give credit to the AKOFS

Offshore team, that is continuing the trend with high operational revenue on

both vessels in Brazil."

Akastor reported revenues of NOK 1 557 million in the fourth quarter, an

increase of 43 percent year-on-year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were NOK

153 million, compared with NOK 63 million a year earlier. EBITDA for 4Q 2019

includes positive effects of NOK 29 million from IFRS 16 (the new lease

accounting standard), while comparative figures have not been re-stated. EBITDA

margin in 4Q was 9.8 percent.

Net interest-bearing debt (NIBD) was NOK 0.7 billion, decreased by NOK 430

million in the quarter mainly driven by working capital release in MHWirth.

MHWirth

MHWirth reported revenues of NOK 1 158 million in the quarter, an increase of 30

percent year-on-year. EBITDA for the fourth quarter was NOK 146 million, giving

an EBITDA margin of 12.6 percent.

Revenues from Projects grew 40 percent in 2019, receiving order for one new

drilling package in 2Q 2019. The market outlook for newbuilds remains

challenging with current oversupply of rigs, although there are some niche

projects in the market.

Revenues from Products almost doubled from 2018 to 2019. The business segment

has experienced particularly strong demand from onshore and non-oil markets.

Revenues from Drilling Lifecycle Services (DLS) increased sequentially driven by

high activity on rig overhauls and SPS in the fourth quarter.

Lastly, Digital Technologies, has seen rapidly increased demand for the DEAL

digital platform. One new DEAL automation system was installed in the fourth

quarter, increasing the installed base to eight rigs in operation.

AKOFS Offshore

AKOFS reported revenues of NOK 306 million in the fourth quarter. The EBITDA for

the fourth quarter was NOK 145 million, giving an EBITDA margin of 47 percent.

Both vessels in Brazil had a high revenue utilization.

The AKOFS Seafarer non-recourse financing was completed and NOK 438 million of

loans from Akastor was repaid in October 2019.

Other industrial holdings

AGR, Step Oiltools and Cool Sorption continue to deliver steady performance in

the fourth quarter with a total revenue and EBITDA of NOK 357 million and NOK 17

million, respectively.

Financial holdings

Contributions from financial investments were NOK 2 million in the quarter. The

preferred equity in Odfjell Drilling and NES Global Talent contributed

positively with NOK 43 million and NOK 20 million, respectively. DOF Deepwater

contributed negatively with NOK 59 million.

Financial calendar

Annual Report 2019: March 25, 2020

First Quarter Results 2020: April 28, 2020

Media and investor contact

Leif Borge

Chief Financial Officer

Tel: +47 917 86 291

E-mail: leif.borge@akastor.com

This press release may include forward-looking information or statements and is

subject to our disclaimer, see https://akastor.com

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

-12 of the Norwegian Securities Trading Act.