Akastor ASA: Third Quarter Results 2019
- Revenue NOK 1 430 million
- EBITDA NOK 133 million
- EBITDA margin 9.3 percent
- Order intake NOK 1 149 million
- Order backlog NOK 3.3 billion
- Net interest-bearing debt NOK 1.1 billion
Akastor CEO Karl Erik Kjelstad comments:
“In an offshore rig market that is still struggling with overcapacity, MHWirth delivered strong revenue growth of 50 percent in the third quarter. A solid EBITDA margin of 11.9 percent in MHWirth reflects that the restructuring measures in the company have been successful. Additionally, AKOFS Offshore experienced high operational utilization for both vessels in Brazil.”
Akastor reported revenues of NOK 1.4 billion in the third quarter, an increase of 50 percent year-on-year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were NOK 133 million, compared to NOK 87 million a year earlier. EBITDA for 3Q 2019 includes positive effects of NOK 31 million from IFRS 16 (the new lease accounting standard), while comparative figures have not been re-stated. EBITDA margin in 3Q was 9.3 percent.
Net interest-bearing debt (NIBD) was NOK 1.1 billion, increased by NOK 224 million in the quarter.
MHWirth reported revenues of NOK 1 113 million in the quarter, an increase of 48 percent year-on-year. The EBITDA for the third quarter was NOK 133 million, giving an EBITDA margin of 11.9 percent.
The Projects business area continues to grow as several projects are in a delivery phase. The market outlook for newbuilds remains challenging with current oversupply of rigs, although there are some niche projects in the market.
The Products business area has more than doubled their revenue year-to-date compared to one year ago. The business segment has experienced particularly strong demand from onshore and non-oil market segments.
Revenue for the aftermarket business area (DLS) increased sequentially driven by high activity on overhaul and SPS in the third quarter. We expect the high activity level to continue into the fourth quarter.
Lastly, Digital Technologies, a new business area within MHWirth, has seen rapidly increased demand for the DEAL digital platform and is scaling up to meet the demand from clients. Three new DEAL automation systems were installed in the third quarter, increasing the installed base to five rigs in operation.
AKOFS reported revenues of NOK 295 million in the third quarter. The EBITDA for the third quarter was NOK 175 million, giving an EBITDA margin of 59 percent. Both vessels in Brazil had a high revenue utilization.
The non-recourse financing required for the AKOFS Seafarer upgrade program has recently been completed and, in turn, NOK 440 million of loans from Akastor were repaid in October.
Other industrial holdings
AGR, Step Oiltools and Cool Sorption continue to deliver steady performance in the third quarter with a total revenue and EBITDA of NOK 295 million and NOK 7 million, respectively.
Contributions from financial investments were negative with NOK 10 million in the quarter. The preferred equity in Odfjell Drilling, NES Global Talent and AKOFS Offshore contributed positively with NOK 30 million, NOK 26 million and NOK 2 million, respectively. Awilco Drilling and DOF Deepwater contributed negatively with NOK 37 million and NOK 31 million, respectively.
Fourth quarter results 2019: February 13, 2020
Media and investor contact
Chief Financial Officer
Tel: +47 917 86 291
This press release may include forward-looking information or statements and is subject to our disclaimer, see https://akastor.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.