Akastor — Earnings Release 2022

Oct 27, 2022

Akastor ASA: Third Quarter Results 2022

Akastor ASA: Third Quarter Results 2022

Third Quarter Highlights

· Net capital employed of NOK 5.9 billion and equity of NOK 4.4 billion per

quarter-end, corresponding to NOK 16.1 per share

· HMH delivered a strong growth in both revenues and EBITDA year-on-year

driven by increased activity across most segments. Longer-term outlook remains

solid driven by increased rig activity

· AKOFS Offshore delivered good operational performance in period. A new four

-year contract for Aker Wayfarer was signed in the quarter, with expected

commencement during first half of 2023

· Net interest-bearing debt was NOK 1 452 million per end of the quarter

Akastor CEO Karl Erik Kjelstad comments:

"Despite the uncertain market fundamentals, all of Akastor's portfolio companies

delivered a solid quarter and continue to trend positively. We continue to

expect activity to increase going forward, driven by the positive market trends

seen within oil service in general. In the quarter, we were particularly pleased

with the new four-year contract secured by AKOFS Offshore with Petrobras for the

Aker Wayfarer vessel, demonstrating the unique capabilities of both the vessel

and the AKOFS team. Also, HMH continues to deliver solid results and is well

positioned for further growth going forward through its strong market position."

HMH

The company reported revenues of USD 160 million in the quarter, with adjusted

EBITDA of USD 28 million, corresponding to an EBITDA margin of approximately 18

percent.

Revenues from Aftermarket Services were USD 106 million in the quarter, a slight

increase compared to previous quarter. The order intake within this segment in

the period was however lower than previous quarter, as both intake and revenues

were affected by the first wave of ERP implementation pushing bookings into next

quarter.

Revenues from Projects, Products & Other were USD 54 million in the third

quarter, decreased compared to previous quarter as a result of the termination

of the Valaris 20k project booked in the second quarter, however with strong

growth year-on-year driven by execution of backlog secured last year. Order

intake within this segment was driven by single equipment orders, and HMH

continues to see significant single equipment order opportunities in MENAT going

forward. The rig newbuilding market continues to be muted with few projects

expected to materialize in the short to medium term.

During the quarter, HMH closed the acquisition of Electrical Subsea & Drilling

AS ("ESD"). ESD holds patents and technology for electronic blowout preventers

and rotating control devices for riserless drilling and managed pressure

operations. The acquisition is expected to significantly strengthen HMH's

position within this field.

AKOFS Offshore

AKOFS Offshore reported revenues of USD 37 million and EBITDA of USD 12 million

in the quarter.

All vessels delivered good revenue utilization in the quarter. Aker Wayfarer

delivered strong operations, without any significant incidents. AKOFS Santos

went to yard in July, in order to prepare for the new three-year contract

expected to commence in December 2022. AKOFS Seafarer delivered a successful

coiled tubing campaign for Equinor during the summer and returned to normal well

intervention operations after demobilization of coiled tubing equipment in

August.

Other industrial holdings

AGR delivered yet another solid quarter with NOK 184 million in revenues and

EBITDA of NOK 14 million. The activity continues to be driven by the Norwegian

consultancy business. Cool Sorption delivered revenues of NOK 23 million, in

line with last year, and EBITDA of NOK 2 million.

Financial holdings

Contributions from financial investments were negative NOK 13 million in the

quarter. NES Fircroft contributed positively with NOK 28 million. The preferred

equity in Odfjell Drilling contributed with NOK 27 million. The joint venture

AKOFS Offshore contributed negatively with NOK 65 million, whilst HMH

contributed negatively with NOK 2 million. Share of net loss from HMH in the

quarter included positive true-up effects from previous periods of approximately

USD 3 million.

Consolidated financial figures

Group revenue and EBITDA of Akastor was NOK 251 million and negative NOK 3

million, respectively. Consolidated revenue and EBTDA only include earnings from

subsidiaries which represent a minor part of Akastor's total Net Capital

Employed.

Financial calendar

Fourth Quarter Results 2022: February 15, 2023

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.