Akastor

Earnings Release • Apr 25, 2024

Akastor ASA: First Quarter Results 2024

Akastor ASA: First Quarter Results 2024

First Quarter Highlights

· HMH delivered an EBITDA (adj.) of USD 33 million in quarter, about 75%

increase year-over-year driven by higher aftermarket activity

· NES Fircroft delivered 17% increase in EBITDA and 12% revenue growth year-on

-year

· DRU arbitration award received in April, with about USD 108 million awarded

as payment of termination fees and reimbursement of costs, resulting in a

positive accounting effect of NOK 599 million in 1Q. In addition, compensation

for interest has been calculated to about USD 65 million, which will be

accounted for in 2Q.

· Net capital employed increased with 0.9 billion in quarter to NOK 5.5

billion. Equity of NOK 4.7 billion per end of quarter, corresponding to NOK 17.2

per share, up from NOK 14.6 per share per end of last quarter.

Akastor CEO Karl Erik Kjelstad comments:

"First and foremost, we are pleased to have received the DRU award, resulting in

positive accounting effects and a substantial increase in net capital employed

this quarter. The award marks a significant milestone for Akastor and is

advancing our efforts towards refinancing our existing corporate facilities.

Also, HMH continues to deliver solid earnings driven by high aftermarket

activity which, together with a robust order intake, positions the company for

sustained growth moving ahead."

HMH

HMH reported revenues of USD 193 million in the quarter, with an adjusted EBITDA

of USD 33 million, corresponding to an EBITDA margin of 17 percent.

Revenues from Aftermarket Services were USD 146 million in the quarter, a 19%

increase compared to first quarter last year and down 7% quarter-on-quarter

driven by lower spares output. Order intake within this segment was down 8% year

-on-year driven by timing of spare and repair orders related to reactivation

projects and up 2% quarter-on-quarter.

Revenues from Projects, Products & Other were USD 47 million in the quarter,

down 24% year-on-year and down 8% quarter-on-quarter driven by progress on

projects.

AKOFS Offshore

AKOFS Offshore reported revenues of USD 32 million and EBITDA of USD 9 million

in the quarter.

Through the first quarter, the three vessels AKOFS Seafarer, AKOFS Santos and

Aker Wayfarer all operated under their respective contracts through the full

period. AKOFS Seafarer delivered a technical uptime of 82%, affected by around

15 days of downtime in connection with damage on a wire. Aker Wayfarer delivered

revenue utilization of 96%, while AKOFS Santos delivered revenue utilization of

59% in period, affected by certain incidents.

DDW Offshore

DDW Offshore reported revenues of NOK 39 million and EBITDA of NOK -8 million in

the quarter, down from NOK 46 million and NOK 13 million respectively in the

same period last year. Revenue and EBITDA in period was affected by lower

utilization than previous periods, with only one vessel on contract through the

period.

During the first quarter, Skandi Emerald ended its contract with Beach Energy in

January, after which it replaced Skandi Atlantic on the Petrofac contract in

March, as Skandi Atlantic went to yard in Singapore to undergo its 5-year

Special Periodic Survey. Skandi Atlantic was on contract with Petrofac until

March and is currently at yard. The vessel was awarded a 70-day contract to

commence June 1, 2024 to support drilling operations in Australia for a major

oil and gas operator. This contract includes options for additional 110 days.

Skandi Peregrino remained at yard in Denmark through the full quarter for its 5

-year Special Periodic Survey and re-activation after close to 4 years in lay

-up. The vessel is expected to be ready for market in 2Q.

Financial holdings

Net financials were positive NOK 48 million in the quarter, which included a non

-cash net foreign exchange gain of NOK 96 million. Other financial investments

contributed negatively with NOK 14 million while net interest expenses on

borrowings was NOK 33 million.

Share of net profit from equity-accounted investees contributed negatively with

NOK 21 million. AKOFS Offshore contributed negatively with NOK 76 million,

whilst HMH contributed positively with NOK 57 million including certain positive

adjustments related to previous periods.

Consolidated financial figures

Please note that Akastor's consolidated revenue and EBTDA include earnings from

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

Employed. The most relevant proxy for value development of Akastor is therefore

the financial performance of each of the largest investments such as HMH, NES

Fircroft and AKOFS Offshore.

The accounting gain of NOK 599 million related to the DRU arbitration award of

termination fees and cost reimbursement is recognized as "Other Income" in the

quarter. With this, consolidated revenue and EBITDA of Akastor in the first

quarter was NOK 642 million and NOK 573 million, respectively. Net profit in the

first quarter was NOK 593 million.

Financial calendar

Second Quarter and Half-Yearly Results 2024: July 11, 2024

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.