3Q 2023
Quarterly presentation - Akastor ASA
October 26, 2023
3Q 2023 Highlights
- EBITDA (adj.) of USD 35 million in quarter, a 25% increase year-over-year driven by higher aftermarket activity
- Cash flow improving as expected driven by progress on key projects
- Delivered strong results with a 23% underlying increase in organic EBITDA year-over-year
- Aker Wayfarer commenced its new contract with Petrobras in July
- AKOFS Seafarer completed a short yard stay to mobilize for deepwater operations in August, affecting utilization
- Completed sale of Skandi Saigon and Skandi Pacific to OceanPact
- Company refinanced with new USD 31 million facility to settle existing loan and profit split arrangement
NET CAPITAL EMPLOYED 1)
NOK million, 30 September 2023
Book value per share
11.4 | 2.7 | 1.9 | 1.8 | 0.9 | -1.2 | 17.4 | -2.3 | 15.1 |
256 | (340) | |||||||
488 | (631) | |||||||
517 | ||||||||
730 | ||||||||
4 764 | ||||||||
4 132 | ||||||||
3 112 | ||||||||
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
- Strong order intake with Book-to-Bill >1x in the quarter
- Increased EBITDA year-over-year and quarter-over- quarter driven by increased aftermarket services
- Cash flow improving as expected driven by progress on key projects
- Completed wave two of ERP implementation
- Completed amendment process towards banks, including deferral of term loan instalments until maturity and option to extend term loan and RCF maturity
Akastor © 2023 | Slide 4 |
HMH highlights | 3Q 2023
Proforma financials, IFRS
- Revenues up 29% year-on-year and up 8% quarter- on-quarter driven by increased aftermarket services activity and GMGS project progress
- EBITDA up 25% year-on-year and up 5% quarter- on-quarter driven by increase aftermarket services output and higher service margin
- Order intake up 20% year-on-year and down 7% quarter-on-quarter driven by aftermarket services intake increasing 39% year-on-year and but down 8% quarter-on-quarter
- Free Cash Flow positive 8 million in quarter driven by milestone collections and past due reduction. USD 44 million cash & cash equivalent at end of 3Q 2023.
REVENUE1)
USD millions
196 | 186 | 189 | 203 |
157
3Q22 4Q22 1Q23 2Q23 3Q23
ORDER INTAKE
USD millions
199 | 222 | 207 | ||||
183 | ||||||
172 | ||||||
EBITDA2)
USD millions
34 35
28 29
19
3Q22 4Q22 1Q23 2Q23 3Q23
EQUIPMENT BACKLOG3)
USD millions | ||||||
253 | 243 | 231 | 237 | |||
218 | ||||||
EBITDA MARGIN (Adj.)
%
17.8 | 17.9 | 17.3 | ||
14.8 | ||||
10.2 | ||||
3Q22 4Q22 1Q23 2Q23 3Q23
FREE CASH FLOW4)
USD millions
7 | 8 | |
-2-1
3Q22 4Q22 1Q23 2Q23 3Q23
3Q22 4Q22 1Q23 2Q23 3Q23
-14
3Q22 4Q22 1Q23 2Q23 3Q23
- Historical figures excluding discontinued operations.
- EBITDA adjusted for non-recurring expenses or costs defined as outside of normal company operations (USD 1 million total adjustment in 3Q 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 |
Segments highlights
Aftermarket Services
- Service revenue up 38% year-on-year and up 7% quarter-on- quarter driven by increase in spares output and overhaul and repair activity
- Order intake up 39% year-on-year driven by spares and SPS orders and down 8% quarter-on-quarter driven by prior quarter recertification spares orders not reoccurring
Projects, Products & Other
- Revenue up 10% year-on-year and up 10% quarter-on-quarter driven by progress on GMGS
- Intake inclusive of all Services product lines (e.g. spare parts, overhaul and repair, field service, etc.)
AFTERMARKET SERVICES
Revenue, USD millions
106 | 140 | 123 | 138 | 147 | |||
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | |||
Order intake1, USD millions | |||||||
136 | 162 | 158 | 145 | ||||
104 | |||||||
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | |||
PROJECTS, PRODUCTS & OTHER | |||||||
Revenue, USD millions | |||||||
51 | 55 | 62 | 51 | 56 | |||
3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
Akastor © 2023 | Slide 6 |
Net interest-bearing debt
- Net debt of USD 174 million as per end of period
- Leverage of 1.6x per 3Q 2023 (LTM NIBD/EBITDA adj.)
- Amendment to bank agreements in place, including deferral of term loan instalments until maturity and option to extend maturities of term loan and RCF to December 31st, 2024
IBD as per period end | Amount | Key terms |
Senior Secured Term Loan | 23 | Quarterly amortization, maturity |
Feb. 2024 / Dec. 241). Margin: | ||
Tranche A 350 - 400 bps. | ||
Tranche B 450 - 500 bps. | ||
Senior Secured Bond | 150 | Maturity February 2025. Margin |
700 bps. | ||
RCF | 45 | USD 80m facility, Feb. 2024 / Dec. |
241). Margin 375 - 425 bps. | ||
Gross Interest-Bearing Debt | 218 | |
Net shareholder loans 2) | 109 | Subordinated, 8% PIK interest |
NET INTEREST-BEARING DEBT
USD millions
283 | |
218 | 109 |
44 | |
174 |
Gross Debt | Cash & CE | NIBD | Net shareholder | NIBD (incl. SHL) |
loans |
Akastor © 2023 1) | HMH may at its discretion extend maturity from February 2024 to December 31st, 2024. Option is to be declared no later than February 15th, 2024. | Slide 7 |
2) | Gross shareholder loan of USD 117 million net of a USD 8 million interest bearing receivable towards shareholders |
Agenda
HMH
Financial update
Ownership agenda
Q&A
Net Capital Employed
Net Capital Employed per 3Q 2023 1)
NOK million
256 | (340) | |||
488 | (631) | |||
517 | ||||
730 | ||||
4 764 | ||||
4 132 | ||||
3 112 | ||||
DRU | Other | Net | NIBD | Equity |
contracts | Capital | |||
Employed |
Development in 3Q 2023
NOK million
(23) | 13 | |||
(72) | ||||
74 | ||||
(57) | ||||
4 820 | 8 | |||
4 764 | ||||
Net Capital | DRU | Other | Net Capital | |
Employed | contracts | Employed | ||
per 2Q | per 3Q | |||
2023 | 2023 |
Akastor © 2023 | 1) | Net Capital Employed per holding reflected at book value | Slide 9 |
Net interest-bearing debt development
Net debt bridge | 3Q 2023 highlights |
NOK million | ▪ Net debt increased by NOK 107 million in the quarter, to NOK 1 176 | |||||||||
1 176 | ||||||||||
million | ||||||||||
1 069 | 78 | ▪ Cash proceeds for sale of two DDW vessel to OceanPact received in period | ||||||||
(18) | (252) | |||||||||
▪ Negative effect from DDW profit split settlement related to four vessels, of | ||||||||||
(188) | 235 | |||||||||
which two sold to OceanPact. The remaining two remains with DDW | ||||||||||
(249) | Offshore. | |||||||||
631 | ▪ "Other" (as shown in graph) includes positive non-cash foreign exchange | |||||||||
(43) | effects of NOK 13 million and equity funding of AKOFS Offshore in period | |||||||||
▪ DDW Offshore net debt of NOK 178 million per end of quarter | ||||||||||
Net debt 2Q23 | Operating CF | OCP forward sale | profit split settlement | Other | Net debt 3Q23 | AKOFS receivable | HMH receivable | Other receivables | NIBD 3Q23 | |
DDW | ||||||||||
Akastor © 2023 | Slide 10 |
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Akastor ASA published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 05:03:00 UTC.