SAB Finance A.S.

Quarterly Report • May 30, 2024

TWMA FINANCE AS.

FINANCE REPORT FOR QUARTER ENDED 31 MARCH 2024.

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TWMA. The world's drilling waste specialist.

TABLE OF CONTENTS.

CEO Statement.	1
CFO Statement.	2
CFO Statement Continued.	3
Financial Statements.	4
TWMA FINANCE AS Consolidated Income Statement.	4
TWMA FINANCE AS Consolidated Balance Sheet.	5
TWMA FINANCE AS Consolidated Cash Flow.	6

CEO STATEMENT.

I am pleased to present the CEO's Statement for the period ended 31 March 2024. During the 1st quarter we saw a strong demand for TWMA's services in particular offshore in the UK and the UAE. This has resulted in the utilisation of our TCC Rotomill® fleet of 73% during the quarter. As a result, the Group delivered above budgeted figures for the period with revenue of \$18.3m and an EBITDA for continuing operations of \$4.7m.

Review of the business.

In Offshore UK, five TCC Rotomills operated throughout the 1st Quarter.

Our UAE drilling operations were carried out on all four islands on the 'Upper Zakum' field. In May 2024, we received a 'Letter of Award' for a new 1+1 year contract. The scope of the award covers our existing operations on 'Upper Zakum', additional Jack Up operations and an onshore facility.

With regard to the Ghasha Mega Project, operations continued on the 1st island and the mobilisation to the next progressed in line with the plan. Here drilling commenced mid-May 2024 and we currently have fifteen (15) personnel deployed on the 2nd island. The TCC Rotomill (RX1) is expected to be operational from mid-June on island 2. The 3rd and 4th island start up is provisionally planned for early July and late Q3 broadly in line with expectations.

The Solid Control's business in the US performed satisfactorily in the quarter. During the period, the division supported an average of twenty five (25) Solid Control jobs per month.

In Egypt, the organisation has begun preparations for the start of a new contract with an international operator. It is expected that the TCC Rotomill will begin processing in late Q2/early Q3, in line with expectations.

People.

Safety of all our people is our number one priority. I am pleased that in the quarter we continued our good safety performance and recorded zero (0) Lost Time Incidents. The Group is very satisfied that it continues to operate at a high standard of safety and that our employees, have been free from injuries which would have resulted in them being unable to work.

Halle Aslaksen Chief Executive Officer May 2024

CFO STATEMENT.

Trading Performance.

The Group Consolidated Income Statement is shown on page 4 to these financial statements. Revenue in the period was \$18.3m and the underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) of the Group was \$4.7m. The operating profit was \$5.0m in the period.

A reconciliation between operating profit per these financial statements and EBITDA is set out below.

	Quarter ended
	31 March
	2024
	\$000
Operating profit before exceptional items, depreciation and amortisation	5,016
Loss on disposal	7
Fx	(366)
EBITDA	4,657

Capital Investment.

During the quarter a total of \$2.4m was invested in fixed assets, all of which related to plant and equipment including \$1.7m spent on the Ghasha Mega project.

Borrowings.

During the period, the Group completed the re-financing of its existing facilities through the issue of a new 3 year \$62.5m Sustainability Linked Nordic Bond (SNB). This process was completed on 8th February 2024. The proceeds from this were used to repay the existing Term Loan Facilities amounting to \$49.6m, the existing Revolving Credit Facility amounting to \$5.4m, existing debt fees of \$1.7m and fees associated with the bond process of \$3.4m. In addition, the Group has successfully agreed and entered into a new Super Senior Revolving Credit Facility (SSRCF) for \$10m, of which \$6m is available for Working Capital purposes and \$4m to be utilised for guarantee facilities.

Group Cashflow and Debt.

The Group's Consolidated statement of cash flows is shown on page 6 of these financial statements.

CFO STATEMENT CONTINUED.

An analysis of the Net debt of the Group at the end of the quarter was as follows:

	31 March
	2024
	\$000
Nordic Bonds	(62,500)
Asset Finance Liabilities	(1,044)
Right of Use Liabilities	(4,560)
Cash	9,938
Net Debt at 31 March	(58,166)

The leverage of the Group as at 31 March 2024 was 3.57x.

At 31 March 2024, the Group held unrestricted cash balances of \$9.9m plus unutilised available credit facilities of \$6m.

Mark Walker Chief Executive Officer May 2024

FINANCIAL STATEMENTS.

TWMA FINANCE AS CONSOLIDATED INCOME STATEMENT.

	Unaudited
	Quarter ended
	31 March
	2024
	\$000
Revenue	18,316
Cost of Sales	(11,516)
Gross profit	6,800
Administrative expenses	(1,784)
Operating profit before exceptional items, depreciation and amortisation	5,016
Exceptional items	(2,051)
Depreciation and amortisation	(2,906)
Operating profit	59
Finance costs	(2,950)
Loss before tax	(2,891)
Tax charge	(248)
Loss for the period	(3,139)

All financial statements are presented on an unaudited basis.

TWMA FINANCE AS CONSOLIDATED BALANCE SHEET.

	Unaudited
	As at
	31 March
	2024
	\$000
Non-current assets
Goodwill and other intangible assets	32,568
Financing fees	3,169
Right of Use Assets	3,787
Property, plant & equipment	42,194
Total non-current assets	81,718
Current assets
Inventories	3,653
Trade and other receivables	17,825
Cash and cash equivalents	9,938
Total current assets	31,416
Total assets	113,134
Current liabilities
Trade and other payables	14,280
Tax liabilities	236
Lease liabilities	1,687
Total current liabilities	16,203
Non-current liabilities
Borrowings	62,500
Owed to other Group Companies	20,258
Lease liabilities	3,917
Tax liabilities	1,091
Other liabilities	3,570
Total non-current liabilities	91,336
Total liabilities	107,539
NET ASSETS	5,595
Equity
Ordinary shares	68
Other reserves	71,149
Accumulated losses	(65,622)
TOTAL EQUITY	5,595

All financial statements are presented on an unaudited basis.

TWMA FINANCE AS CONSOLIDATED CASH FLOW.

	Quarter ended
	31 March
	2024*
	\$000
Operating profit before exceptional items	5,016
Adjustments for:
Exceptional costs	(2,051)
Operating cash flows before movements in working capital	2,965
Increase in stocks	(94)
Increase in debtors	(114)
Increase in creditors	1,979
Fx / Non-cash items	(1,467)
Net cash inflow from operating activities	3,269
Purchase of fixed assets	(2,395)
Net cash outflow from investing activities	(2,395)
Bank interest	(2,394)
Funding repayments	(51,338)
Nordic Bond	62,500
Financing fees	(3,355)
Net cash inflow from financing activities	5,413
Net increase in cash and cash equivalents	6,287
Cash and cash equivalents at beginning of quarter	3,651
Cash and cash equivalents at end of quarter	9,938

Analysis of cash and cash equivalent at end of quarter
Cash and bank balances	6,805
Deposits	3,133
Cash and cash equivalents at end of quarter	9,938

All financial statements are presented on an unaudited basis.

FURTHER INFORMATION.

Halle Aslaksen. Chief Executive Officer (CEO)

Mark J Walker. Chief Executive Officer (CFO)

For administrative queries, please contact:

Investor Relations. E: mark.walker@twma.com

TWMA's Global HQ Building 3 Aberdeen International Business Park Dyce AB21 0BR Aberdeen

*TWMA™ is a registered trademark and the brand name for the TWMA group of companies including Total Waste Management Alliance Limited.

*TCC™ Rotomill™ TCC is a registered trademark of Thermteck Holdings AS. Rotomill is a registered trademark of TWMA.

TWMA. The world's drilling waste specialist.