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

Akastor ASA Fourth Quarter Highlights 2024

On February 13, 2025, Akastor ASA unveiled its impressive financial results for the fourth quarter of 2024, showcasing substantial growth and operational success across various segments. Net capital employed rose by NOK 0.2 billion, achieving a total of NOK 5.0 billion. At the same time, equity increased to NOK 5.9 billion, equating to NOK 21.4 per share, a notable rise from NOK 20.4 per share in the previous quarter.

Strong Performance by HMH

A standout contributor to these results was HMH, which reported an adjusted EBITDA of USD 47 million for the quarter, bringing its total for 2024 to USD 168 million. This marks a commendable 27% increase compared to the previous year. HMH’s revenue reached USD 232 million, with an EBITDA margin of 20%. Significantly, the revenue from Aftermarket Services grew by 9% year-on-year, driven by increased contracts and digital technology adoption.

Not only did HMH maintain robust performance, but it also exhibited resilience in its cash flow and market position. The leadership remarked on its impressive year-on-year gains, which reflect the company’s adaptability in a competitive environment.

Heightened Activity at AKOFS Offshore

Akastor's subsidiary, AKOFS Offshore, also demonstrated strong operational performance, with a revenue of USD 34 million and an EBITDA of USD 8 million. The continuous operation of vessels under contract during the quarter indicates effective management and service delivery. A specific highlight was the delivery of a contract extension for the AKOFS Seafarer with Equinor, securing an additional USD 300 million worth of backlog. The extension is set to commence at the end of 2025 following the vessel's specialized maintenance.

Moreover, DDW Offshore solidified its foundation for 2025 by accumulating a significant contract backlog, showcasing the overall strategic growth across Akastor’s subsidiary base.

Strategic Acquisitions and Financial Holdings

Reflecting bold strategic decisions, Akastor announced its acquisition of Mitsui's 25% stake in AKOFS Offshore, and a portion (8.3%) of that was subsequently sold to MOL, enhancing its market positioning and ensuring flexibility in ownership dynamics.

In the financial realm, net financials turned positive at NOK 163 million, although factors such as a net foreign exchange gain and minor setbacks from other financial investments were at play. The consolidated figures showed Akastor’s revenue and EBITDA at NOK 90 million and NOK 23 million, respectively, with a net profit of NOK 150 million.

Future Outlook

CEO Karl Erik Kjelstad emphasized the firm’s satisfactory quarterly output and the role of sound operational strategies in delivering results. The firm is prepared to maintain this positive momentum into 2025, with expectations to report further growth in their first quarter results scheduled for April 30, 2025.

Akastor, based in Norway, not only reflects adaptability in changing market conditions but also aims for long-term value creation through its diverse industrial portfolio. The company is keen to leverage its strengths to navigate the oil services landscape ahead.

Akastor's future appears promising as it builds on its solid foundation and strategic initiatives. Stakeholders and investors are keenly looking forward to the potential developments that the year 2025 may bring, as Akastor ASA continues to strengthen its market presence within the oil-service sector.