Third Quarter Highlights
- Revenue of NOK 926 million, down 35 percent compared with the same quarter previous year
- Total EBITDA of NOK 66 million
- Net interest-bearing debt was NOK 1.5 billion
- Order backlog was NOK 2.5 billion
- NES Global Talent combined with Fircroft Group to create leading technical workforce provider
- Subsequent event: Restructuring of DDW Offshore completed in October, with Akastor assuming 100% ownership of the company
Akastor CEO Karl Erik Kjelstad comments:
“Despite a challenging market, all our industrial holding companies continued to deliver positive contribution also in the third quarter. We are happy to see that MHWirth maintained its EBITDA margin at around 10 percent, despite a drop in revenues following lower activity within Projects and Products, demonstrating again the importance and robustness of the service business. Going forward, focus for MHWirth is on aligning its cost base with market activity level. Further, we are excited by the merger between NES Global Talent and Fircroft, creating a leading company within engineering staffing and forming a solid basis for growth as the market improves.”
MHWirth
MHWirth reported revenues of NOK 735 million in the quarter, a decrease of 37 percent year-on-year. EBITDA for the quarter was NOK 71 million, giving an EBITDA margin of 9.7 percent.
Revenues from Projects & Products decreased 59 percent compared with last year, driven by lower revenue recognition from ongoing projects as these are in the last phase with lower progress. Uncertainty related to the market outlook and continued rig overcapacity is still a concern regarding future order intake potential for this segment.
Drilling Lifecycle Services & Digital Technologies revenues were NOK 510 million in the quarter, a decrease of 18 percent compared to last year. Number of active rigs decreased by three units during the quarter, but is expected to stabilize going forward based on current contract schedule of the fleet. The DLS business continues to create a solid basis for MHWirth with good medium to long term growth opportunities subjected to an increased utilization of fleet. Digital Technologies continues to receive good traction in the market for its digital solutions, focusing on automating and increasing efficiency of rig operations.
AKOFS Offshore
AKOFS reported revenues of NOK 209 million in the quarter. The EBITDA was NOK 90 million, giving an EBITDA margin of 43 percent. Both vessels in Brazil delivered high revenue utilization in the quarter.
AKOFS Seafarer commenced its five-year contract with Equinor on October 16, 2020. The commencement was delayed due to COVID-19 situation and more comprehensive final testing program than anticipated.
Other industrial holdings
AGR and Cool Sorption continue to deliver positive results with a total revenue and EBITDA of NOK 179 million and NOK 7 million, respectively.
Financial holdings
Contributions from financial investments were negative NOK 9 million in the quarter. NES Global Talent and the preferred equity in Odfjell Drilling contributed positively with NOK 20 million and NOK 24 million, respectively. AKOFS Offshore contributed negatively with NOK 46 million which represented 50% of the company’s net loss.
NES Global Talent during the quarter entered into an agreement to combine its business with the Fircroft Group. The combined entity is rebranded to NES Fircroft. Akastor’s economic ownership in the combined entity is around 15%.
Restructuring of DDW Offshore (previously DOF Deepwater AS) was completed in October. DDW Offshore will be consolidated into Akastor Group as a subsidiary from 4Q 2020.
Financial calendar
Fourth Quarter Results 2020: February 11, 2021
Media Contact
Øyvind Paaske
Chief Financial Officer
Tel: +47 917 59 705
E-mail: oyvind.paaske@akastor.com
Akastor is a Norway-based oil-services investment company with a portfolio of industrial holdings and other investments. The company has a flexible mandate for active ownership and long-term value creation.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.