Akastor (AKAST) Q1 2025 earnings summary

Executive summary

• HMH achieved adjusted EBITDA of USD 33 million and free cash flow of USD 15 million in Q1 2025, maintaining solid profitability despite a challenging macro environment.

• Order intake reached USD 198 million, book-to-bill ratio at 1x, and HMH remains Akastor's largest investment.

• Akastor increased its ownership in AKOFS Offshore to 66.7% after the Mitsui buy-out, with AKOFS Santos ranked #1 in Petrobras' tender for a four-year contract.

• DDW Offshore agreed to sell Skandi Peregrino for USD 25 million, with proceeds to be distributed as dividends upon closing.

• AKOFS Offshore maintained all vessels on contract, completed refinancing of AKOFS Seafarer, and delivered strong operational performance.

Financial highlights

• HMH reported revenues of USD 198 million, up 3% year-over-year but down 14% sequentially; adjusted EBITDA margin was 16.5%.

• AKOFS Offshore posted revenues of USD 34 million and EBITDA of USD 10 million, with high vessel utilization.

• DDW Offshore reported revenues of NOK 75 million and EBITDA of NOK 28 million, both significantly up year-over-year.

• Akastor's consolidated revenue and EBITDA were NOK 76 million and NOK 3 million, respectively, with a net loss of NOK 197 million in Q1, mainly due to non-cash FX losses.

• Net capital employed decreased by NOK 221 million to NOK 4.8 billion; equity at NOK 5.5 billion (NOK 20.2 per share).

Outlook and guidance

• HMH continues to update its S-1 filing for a potential liquidity event, with timing dependent on market conditions.

• Management remains focused on organic growth, value-adding acquisitions, and preparing for value-enhancing exits when market conditions are favorable.

• Proceeds from the Skandi Peregrino sale are expected to be distributed as dividends in Q2 2025.

• AKOFS Offshore ranked #1 in Petrobras' tender for a four-year MPSV contract starting July 2026, pending negotiations.

• DDW Offshore's new contracts in Australia are expected to drive revenue and EBITDA growth.