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

Akastor ASA's First Quarter Results for 2025

Introduction

Akastor ASA, a prominent player in the oil-services investment sector, released its financial results for the first quarter of 2025, highlighting a strong performance amidst a challenging market backdrop. This report outlines the key financial metrics and strategic developments during the quarter.

Financial Highlights

In Q1, Akastor reported an adjusted EBITDA of USD 33 million and a free cash flow of USD 15 million. Notably, the company increased its ownership in AKOFS Offshore to 66.7 percent, following the successful acquisition of Mitsui's stake alongside MOL. These moves are positioned to enhance the company's value creation in the future.

The performance of HMH was particularly noteworthy, generating revenues of USD 198 million, accompanied by an adjusted EBITDA margin of 16.5 percent. Despite this, revenues from aftermarket services declined by 10 percent year-on-year due to reduced overhaul activities.

Detailed Operational Insights

Akastor’s operational segments demonstrated resilience, with AKOFS Offshore delivering robust results across all vessels. For the quarter, AKOFS Offshore saw revenues amounting to USD 34 million, and an EBITDA of USD 10 million. The operational stability of the fleet was highlighted by the Aker Wayfarer, which achieved a revenue utilization of 94 percent, and AKOFS Santos, with 98 percent. Meanwhile, the AKOFS Seafarer faced some weather-related challenges but maintained a technical uptime above 95 percent.

Strategically, the completion of the refinancing of the AKOFS Seafarer with a USD 110 million non-recourse facility in early April is expected to provide necessary funding for debt repayments, upcoming special periodic surveys, and general corporate needs. This financing marks a significant milestone in securing the operational sustainability of the fleet going forward.

In another major development, DDW Offshore entered into an agreement to sell the Skandi Peregrino for USD 25 million. Upon the closure of this agreement, Akastor aims to return a substantial portion of the net proceeds to its shareholders as dividends, further reinforcing its commitment to shareholder value.

Market Position and Future Outlook

The financial metrics for the quarter reflect both the resilience and the strategic direction of Akastor ASA. Net capital employed saw a slight decrease to NOK 4.8 billion, while equity at the end of the quarter stood at NOK 5.5 billion, translating to approximately NOK 20.2 per share. Akastor’s management acknowledges the challenging macroeconomic environment but emphasized the company’s solid operational performance across its portfolio.

CEO Karl Erik Kjelstad commented on the successful execution of key priorities, which include ongoing operational excellence and strategic progress within its subsidiary companies. The company is poised for future growth, particularly through continuous investment in its key sectors.

Conclusion

As Akastor ASA navigates through 2025, the company remains steadfast in delivering value through its operational efficiencies and strategic acquisitions. The reported Q1 results indicate a firm foundation for future company initiatives, with a distinct focus on shareholder returns, operational excellence, and proactive management of financial resources. The upcoming quarters will be pivotal as the company aims to further enhance its market standing and capitalize on growth opportunities.

Financial Calendar

Akastor ASA has scheduled its next financial report for the second quarter and half-year results on July 10, 2025. Investors and analysts are advised to stay tuned for updates on the company’s progress and strategic initiatives as the year unfolds.