In This Article:
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Revenue: USD213 million, up 5% year-on-year and up 3% quarter-on-quarter.
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Adjusted EBITDA: USD46 million, up 32% year-on-year and up 11% quarter-on-quarter.
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Adjusted EBITDA Margin: 21.7% for the quarter.
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Orders: USD194 million, down 6% year-on-year, up 8% quarter-on-quarter.
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Free Cash Flow: Flat for the quarter.
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Cash and Cash Equivalents: USD33 million at the end of the quarter.
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Net Debt: USD197 million at the end of the quarter.
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Book Value of HMH Shareholding: NOK3.4 billion or NOK12.3 per Akastor share.
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Book Equity Value per Share: Approximately NOK20 per Akastor share.
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Net Cash Position: NOK123 million at the end of Q3.
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Total Net Interest-Bearing Debt: Net cash position of NOK752 million.
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DDW Offshore Revenue: NOK97 million for the third quarter.
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DDW Offshore EBITDA: NOK40 million for the third quarter.
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AKOFS Offshore Revenue Utilization: Aker Wayfarer 99%, AKOFS Seafarer 98%, AKOFS Santos 85%.
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AKOFS Offshore Revenue: USD38 million for the quarter.
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AKOFS Offshore EBITDA: USD11 million for the quarter.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Akastor ASA (AKKVF) reported a strong third quarter with a 32% year-on-year growth in EBITDA for HMH, reaching USD46 million.
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HMH's adjusted EBITDA for the last twelve months was USD167 million, significantly higher than the previous year.
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DDW Offshore had all three vessels in operation, securing new engagements and a firm contract backlog of around USD3 million.
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Akastor ASA (AKKVF) maintained a net cash position throughout the quarter, with no draw on corporate credit facilities.
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The company is prepared for potential IPOs for HMH and NES Fircroft, contingent on favorable market conditions.
Negative Points
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AKOFS Offshore experienced a reduction in book value due to negative profit, despite good operations.
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HMH's orders were down 6% year-on-year, with a decrease in aftermarket services impacting revenue.
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Free cash flow was flat due to timing of key milestone collections and working capital build.
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Service order intake for HMH fell significantly in Q3, with restrained spending by drillers affecting future revenue.
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The equity value of Akastor ASA (AKKVF)'s listed holdings decreased by NOK37 million in Q3.
Q & A Highlights
Q: HMH reports margin in Q3 higher than what we've seen previously. What were the drivers there? And is this a level that we should expect to see also going forward? A: The margin improvement was driven by cost efforts since integration and strong execution in the aftermarket segment, including a favorable mix shift towards higher margin parts. However, margins may fluctuate in the future, and the current level should not be extrapolated as a consistent trend.