OSLO, Norway, Feb. 9, 2022 /PRNewswire/ -- Fourth Quarter
Highlights
- The combination of MHWirth and Baker Hughes' Subsea Drilling
Systems (SDS) into HMH closed on October 1,
2021, after which Akastor owns 50% of the shares in the new
company
- Completed refinancing of its existing corporate credit
facilities in Akastor
- Net capital employed of NOK 5.1
billion and equity of NOK 4.1
billion per year-end 2021, corresponding to NOK 15 per share
- HMH shows strong adjusted revenue of USD
168 million and adjusted EBITDA of USD 31 million in its initial quarter
- AKOFS Offshore awarded three-year contract with Petrobras for
Skandi Santos
- Net interest-bearing debt was NOK 984
million per end of the quarter, a reduction of NOK 831 million in the quarter
- Subsequent event: HMH bridge loan facility refinanced with
new Nordic bond of USD 150
million
Akastor CEO Karl Erik Kjelstad
comments:
"The most important event for Akastor in the quarter was the
closing of the combination of MHWirth and Baker Hughes SDS into
HMH, which enabled refinancing and a significant reduction of
Akastor's corporate debt. Given the market backdrop, we believe the
timing is excellent for creating a premier global drilling
solutions provider, and we are happy to see HMH delivering strong
earnings. HMH also secured an order intake that demonstrates the
revenue synergies."
"The quarter also brought an important milestone for AKOFS
Offshore, securing a new three-year contract with Petrobras",
Kjelstad added.
HMH
The combination of MHWirth and Baker Hughes' Subsea Drilling
Systems (SDS) business to create HMH was closed on October 1, 2021. The company reported adjusted
revenues of USD 168 million in the
quarter, with adjusted EBITDA of USD 31
million, corresponding to an EBITDA margin of approximately
18.5 percent.
Revenues from After Market Services were USD 108 million in the quarter, in line with the
previous quarter. Short term contracts for rigs continue to affect
order intake, although HMH is well positioned to benefit from an
expected pick-up in rig reactivation activity in 2022.
Revenues from Projects, Products & Other were
USD 58 million in the fourth quarter,
an increase of around 66 percent compared with the
previous quarter, driven by recent order intake of full package
projects. Recent order intake will further increase the activity
level within Projects going forward, including the USD 78 million contract for delivery of subsea
equipment package to GMGS entered in the fourth quarter. This
contract is the first joint commercial win in HMH and constitutes a
concrete example of revenue synergy potential. The rig newbuilding
market continues to be muted with relatively few projects expected
to materialize in the short to medium term.
AKOFS Offshore
AKOFS reported revenues of USD 37
million and EBITDA of USD 7
million in the quarter.
The company in the fourth quarter signed a firm three-year
contract with Petróleo Brasileiro S.A. (Petrobras) for Skandi
Santos which will perform a broad scope of subsea services in
Brazil. The services will commence
in Q4 2022 and the total contract value is about USD 107 million, of which USD 53 million is booked as order intake in AKOFS
Offshore in the quarter, while the remaining value will go through
separate contracts between end client and sub-suppliers of AKOFS
Offshore.
All vessels delivered high revenue utilization in the quarter,
with Aker Wayfarer recording 99% and Skandi Santos and AKOFS
Seafarer both delivering 91% revenue utilization. Skandi Santos
went off contract with Petrobras late December, while AKOFS
Seafarer was affected by challenging weather conditions in certain
periods.
Other industrial holdings
AGR delivered yet another solid quarter with NOK 190 million in revenues, driven by the
Norwegian consultancy business. EBITDA of NOK 4 million was however negatively affected by
a non-recurring effect of NOK 11
million related to the sale of its UK well management
business. Cool Sorption delivered revenues of NOK 24 million, in line with last quarter, but
with a higher EBITDA of NOK 5 million
driven by higher service contribution.
Financial holdings
Contributions from financial investments were negative
NOK 187 million in the quarter. NES
Fircroft contributed positively with NOK 21
million. The preferred equity in Odfjell Drilling
contributed with NOK 19 million,
negatively affected by non-cash valuation changes of NOK 6 million related to the warrant structure in
the period. The joint venture AKOFS Offshore contributed negatively
with NOK 229 million. This included
non-cash impairment effects of NOK 156
million.
Consolidated financial figures
Group revenue and EBITDA of Akastor was NOK 247 million and negative NOK 15 million respectively. Consolidated
financials do not include earnings of JV holdings and thus
represent a minor part of total Net Capital Employed. Net income
was NOK 1.2 billion in the fourth
quarter, including financial effects of the HMH transaction.
Financial calendar
Annual Report 2021: March 30,
2022
First Quarter Results 2022: April 28,
2022.
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.
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Akastor ASA 4Q21
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