#Norway #Fornebu #Akastor ASA #AKOFS Offshore #HMH

Akastor ASA Highlights Q1 2025

In its most recent report, Akastor ASA has unveiled its financial and operational performance for the first quarter of 2025, revealing a solid adjusted EBITDA of USD 33 million. This figure indicates robust revenue generation even in a challenging global economic landscape. The company generated free cash flow amounting to USD 15 million, a positive result reflecting well on its financial health.

Akastor's subsidiary, HMH, recorded revenue of USD 198 million with an adjusted EBITDA margin of 16.5%. However, revenue streams from Aftermarket Services have noted a 10% decline when compared to the previous year, largely due to reduced activity in overhaul and repair operations. Despite this dip, the order intake in this segment surged by 22%, underscoring market interest in HMH's services.

On the operational front, AKOFS Offshore has demonstrated commendable performance across its fleet of vessels. With the completion of the buy-out of Mitsui's stake alongside MOL, Akastor now holds a 66.7% ownership in AKOFS Offshore, positioning itself advantageously for future growth and profitability. The company’s commitment to securing its assets is evident as they successfully refinanced the AKOFS Seafarer, obtaining a USD 110 million non-recourse facility aimed at stabilizing their financial posture.

The recent agreement by DDW Offshore to sell its vessel, Skandi Peregrino, for USD 25 million is expected to yield significant dividends for shareholders, further enhancing Akastor's commitment to returning value to its investors. Upon closure of this transaction, which is anticipated in the second quarter, Akastor plans to distribute a considerable part of the net proceeds as dividends.

In the first quarter of 2025, Akastor witnessed promising operational highlights. The operational efficiency of its vessels was affirmed, particularly notable with the high utilization rates of the AKOFS Santos and Aker Wayfarer, which achieved revenue utilization rates of 98% and 94%, respectively.

Moving forward, the company aims at sustaining its momentum, with upcoming projects expected to bolster its performance further. Akastor's track record of maintaining profitability, alongside ever-advancing operational capabilities, lays a strong foundation for the forthcoming quarters. CEO Karl Erik Kjelstad emphasized the company's strategic direction, highlighting the significance of their operational achievements and ongoing initiatives.

In summary, Akastor ASA’s first quarter results for 2025 reveal positive indicators of growth and resilience, marking its ongoing commitment to strategic enhancements and shareholder returns amid the complexities of the current economic climate. With a focus on strengthening its subsidiaries and investing in vital areas, Akastor is well-positioned to navigate future challenges and capitalize on emerging opportunities.

Financial Details:

1. Adjusted EBITDA: USD 33 million
2. Free Cash Flow: USD 15 million
3. Revenue HMH: USD 198 million
4. Net capital employed: NOK 4.8 billion
5. Equity per share: NOK 20.2

Future Outlook:

The upcoming financial calendar features the second quarter and half-year results scheduled for July 10, 2025, providing further insights into Akastor's strategies and financial performance. Continuous monitoring and adept responses to market conditions will be crucial for Akastor as it seeks to strengthen its positioning in the oil services sector.