Akastor — Earnings Release 2021

Oct 29, 2021

Akastor ASA: Third Quarter Results 2021

Akastor ASA: Third Quarter Results 2021

Third Quarter Highlights

· Revenue from continuing operations of NOK 229 million in the quarter (excl.

MHWirth)

· EBITDA from continuing operations of negative NOK 10 million in the quarter

(excl. MHWirth)

· MHWirth revenue and EBITDA of NOK 757 million and NOK 49 million

respectively in the quarter

· Total order intake of NOK 1 576 million in the quarter (incl. MHWirth),

including one full drilling equipment package to Guangzhou Marine Geological

Survey (GMGS) secured by MHWirth

· Net interest-bearing debt was NOK 1 815 million per end of the quarter, an

increase of NOK 142 million in the quarter

· Subsequent event: The combination of MHWirth and Baker Hughes' Subsea

Drilling Systems (SDS) business closed on October 1[st] 2021. The closing of the

transaction will be reflected in the fourth quarter financials for 2021.

Simultaneously with the completion of the transaction, Akastor completed the

refinancing of its existing corporate credit facilities.

Akastor CEO Karl Erik Kjelstad comments:

"A strategic milestone for Akastor was reached on October 1[st] through the

closing of the combination between MHWirth and Baker Hughes SDS and the creation

of HMH. We strongly believe the formation of HMH will prove to be a powerful

combination and create value for all stakeholders, including Akastor

shareholders. We look very much forward to continuing the journey together with

the HMH management and will stay hands-on as owners in HMH together with our co

-shareholder Baker Hughes. Also, the formal award of the strategically important

contract with CMGS took place in the third quarter clearly demonstrating HMH's

solid market position within topside drilling equipment."

MHWirth

MHWirth reported revenues of NOK 757 million in the quarter. EBITDA for the

quarter was NOK 49 million, representing an EBITDA margin of 6.5 percent.

Drilling Lifecycle Services & Digital Technologies revenues were NOK 535 million

in the quarter, an increase of 5 percent compared to last year and in line with

last quarter. Number of active rigs remained stable during the quarter, expected

to increase over the short term based on current contract schedule of the fleet.

Digital Technologies continued to record high activity in the quarter including

the delivery of one full CADS system.

Revenues from Projects & Products decreased by one percent compared with last

year, with continued low activity level driven by few ongoing full package

projects. The activity level within Projects will increase going forward driven

by the contract for the delivery of a drilling equipment package to GMGS with a

total contract value of around USD 83 million included in MHWirth's order intake

in the third quarter. The rig newbuilding market continues to be muted with

relatively few projects expected to materialize in the short to medium term.

AKOFS Offshore

AKOFS reported revenues of NOK 333 million and EBITDA of NOK 98 million in the

quarter.

Aker Wayfarer and Skandi Santos both delivered 100% revenue utilization in the

quarter. AKOFS Seafarer also delivered solid uptime, with revenue utilization of

91%.

AKOFS Offshore is in final discussions with Petrobras regarding a new three-year

contract for Skandi Santos. The discussions are expected to be concluded in the

fourth quarter.

Other industrial holdings

AGR delivered yet another solid quarter, driven by the Norwegian consultancy

business. Cool Sorption delivered revenues in line with last quarter. Total

revenue and EBITDA for the two companies were NOK 200 million and NOK 10

million, respectively.

Financial holdings

Contributions from financial investments were negative NOK 20 million in the

quarter. NES Fircroft contributed positively with NOK 24 million. The preferred

equity in Odfjell Drilling contributed with NOK 1 million, negatively affected

by non-cash negative valuation changes of NOK 24 million related to the warrant

structure in the period. The joint venture, AKOFS Offshore, contributed

negatively with NOK 46 million.

Financial calendar

Fourth Quarter Results 2021: February 9[th] 2022.

Media Contact

Øyvind Paaske

Chief Financial Officer

Tel: +47 917 59 705

E-mail: oyvind.paaske@akastor.com

Akastor is a Norway-based oil-services investment company with a portfolio of

industrial holdings and other investments. The company has a flexible mandate

for active ownership and long-term value creation.

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

-12 of the Norwegian Securities Trading Act.