2Q 2023
Quarterly presentation - Akastor ASA
July 13, 2023
2Q 2023 Highlights
▪ Increased EBITDA year-over-year and quarter-over-quarter | |
following increased service order trend | |
▪ Continue to experience growth in order intake for the fifth | |
consecutive quarter | |
▪ AKOFS Seafarer successfully completed yard stay to mobilize | |
for coiled tubing in May, with excellent uptime delivered | |
through rest of quarter | |
▪ Aker Wayfarer off-hire since late April, preparing for its new | |
four-year contract expected to commence in 3Q 23 | |
▪ USD 20 million seller's credit fully settled in quarter, with | |
proceeds reducing bank debt | |
▪ Sale of AGR to ABL Group against a combination of ABL | |
shares and cash completed in quarter | |
Other | ▪ NES Fircroft delivering continued growth with revenue up |
16% year-on-year driven by improved performance across | |
numerous geographies and solution offerings | |
▪ DRU arbitration process on plan, with arbitration award | |
expected second half of 2023 | |
NET CAPITAL EMPLOYED 1)
NOK million, 30 June 2023
Book value per share
11.4 | 2.0 | 2.6 | 2.1 | 0.9 | -1.5 | 17.6 | -1.9 | 15.7 |
248 | (414) | |||||||
589 | (531) | |||||||
717 | ||||||||
545 | ||||||||
4 820 | ||||||||
4 289 | ||||||||
3 135 | ||||||||
DRU | Other | Net Capital | NIBD | Equity | ||||
contracts | Employed |
Akastor © 2023 | 1) | Net Capital Employed per holding reflected at book value | Slide 2 |
Agenda
HMH
Financial update
Ownership agenda
Q&A
Summary and outlook
- Continue to experience growth in order intake for the fifth consecutive quarter. Book-to-Bill >1x in the quarter.
- Secured strategic orders related to SPS activity within the quarter
- Increased EBITDA year-over-year and quarter-over- quarter following increased service order trend
- Continue to execute on synergy cost plan with wave two of ERP implementation targeted for 2H of 2023
- Cash flow expected to improve in second half of the year on the back of project deliveries
- Assessing a potential refinancing of the USD 150m bond
Akastor © 2023 | Slide 4 |
HMH highlights | 2Q 2023
Proforma financials, IFRS
▪ Revenues up 4% year-on-year and up 2% quarter- |
on-quarter driven by increase in spares and |
overhaul repair orders partially offset with |
decrease in projects due to prior year 20K Valaris |
project cancellation fee |
REVENUE1)
USD millions
181 | 196 | 186 | 189 |
157 |
EBITDA2)
USD millions
31 28 29
34
EBITDA MARGIN (Adj.)
%
17.1 | 17.8 | 17.9 |
14.8
▪ EBITDA up 8% year-on-year driven by spares |
output, partially offset by prior year Valaris 20K |
project cancellation and up 78% quarter-on- |
quarter driven by services increased order trend |
▪ Order intake up 30% year-on-year and up 11% |
2Q22 3Q22 4Q22 1Q23 2Q23
19
2Q22 3Q22 4Q22 1Q23 2Q23
10.2
2Q22 3Q22 4Q22 1Q23 2Q23
quarter-on-quarter driven by services |
overperforming following the increase in rig count |
trend and recertification activities |
▪ Free Cash Flow negative 1 million in quarter driven |
by increase in project related working capital |
partially offset by improved collections. USD 43 |
million cash & cash equivalent at end of 2Q 2023. |
ORDER INTAKE
USD millions
171 172 183
222
199
EQUIPMENT BACKLOG3)
USD millions
240 253 243 218 231
FREE CASH FLOW4)
USD millions 12
7
-2-1
2Q22 3Q22 4Q22 1Q23 2Q23
2Q22 3Q22 4Q22 1Q23 2Q23
-14
2Q22 3Q22 4Q22 1Q23 2Q23
- Historical figures excluding discontinued operations.
- EBITDA adjusted for non-recurring expenses or costs defined as outside of normal company operations (USD 6.5 million total adjustment in 2Q 2023)
- Equipment backlog defined as order backlog within Projects, Products and Other
- Free Cash Flow defined as cash generated from operating activities less taxes paid and net investments. Cash flow not normalized for non-recurring costs.
Akastor © 2023 | Slide 5 |
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Akastor ASA published this content on 13 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 July 2023 05:07:04 UTC.