1Q 2022

Quarterly presentation

April 28, 2022

1Q 2022 Highlights

  • ▪ Bank bridge loan refinanced with new USD 150 million Nordic bond

  • ▪ Lower earnings in quarter compared to Q4 last year driven by seasonality, however strong service order intake and positive outlook

  • ▪ Executing on project backlog from recent order wins

  • ▪ Good revenue utilization for all vessels in the quarter

  • ▪ Seafarer arrived at yard in March for mobilization for coiled tubing operations

  • ▪ Continued strong momentum in business and good growth in number of contractors through period

  • ▪ Split of Odfjell Drilling completed in 1Q, with Akastor exposure after split towards rig company (ODL)

    Other

  • ▪ All four contracts now terminated by client. Dispute overtermination fee referred to arbitration with final award expected H1 2023.

NET CAPITAL EMPLOYED 1)

NOK million, 31 March 2022

Book value per share

9.5

2.7

3.1

2.3

1.7

0.8

-1.5

18.6

-3.9

14.7

472

221

(400)

2 600

DRU contractsOther

Net Capital Employed

NIBDEquity (excl. derivatives instruments)

1) Net Capital Employed per investment / holding reflected at book value

Slide 2

HMH highlights | 1Q 2022

  • ▪ Revenues up 10% year-on-year, driven by Projects. Down 13% quarter-on-quarter driven by Q4 seasonality.

  • ▪ Strong service orders in the quarter, up 16% quarter-on-quarter and 6% year-on-year, leading to an increased backlog with a book to bill of 1.1x in Q1

  • ▪ EBITDA margin (adj.) of ~9% in the quarter driven by volume and Services mix

  • ▪ Free Cash Flow of negative USD 12 million in the quarter, impacted by supplier payments for Projects

Proforma financials, IFRS

168

31

18,5

133

142

143

146

13,0

13,3

12,5

19

17

18

8,9

13

1Q21 2Q21 3Q21 4Q21 1Q22

1Q21 2Q21 3Q21 4Q21 1Q22

1Q21 2Q21 3Q21 4Q21 1Q21

ORDER INTAKE

EQUIPMENT BACKLOG2)

FREE CASH FLOW3)

USD millions

USD millions

USD millions

296

337

26

300

305

207

233

153

164

166

202

Historical pro forma figures not available

1Q21 2Q21 3Q21 4Q21 1Q22

1Q21 2Q21 3Q21 4Q21 1Q22

-12

1Q21 2Q21 3Q21 4Q21 1Q22

REVENUE

EBITDA1)

EBITDA MARGIN

USD millions

USD millions

%

  • 1) EBITDA adjusted for expenses that are not a part of normal company operations inc. ~USD 6 million of merger related cost in 1Q 2022

  • 2) Equipment backlog defined as Project and Product orders

  • 3) Free Cash Flow defined as cash generated from operating activities less taxes paid and net investments in PP&E and intangible assets

Slide 4

Segments highlights

Aftermarket Services

  • ▪ Won two major reactivations orders in Brazil driving strong intake in 1Q22. HMH remains well positioned to take advantage of further reactivations in 2022 thru its install base

  • ▪ Lower output in 1Q 2022 driven by seasonality of orders in 3Q 2021 and global supply chain disruptions

Projects, Products & Other

  • ▪ Executing on project backlog from recent order wins

  • ▪ Reduction in slurry order related revenue quarter-on-quarter, but order intake up ~USD 5 million with significant single equipment order opportunities in MENAT in second half of 2022

  • ▪ Digital Technology order intake expected to pick up in Q2 / Q3

1)DLS intake inclusive of all Services product lines (e.g. spare parts, overhaul and repair, field service, etc.)

Slide 5

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Akastor ASA published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 05:23:07 UTC.