Akastor (AKAST) Q2 2025 earnings summary

Executive summary

• Approved a cash dividend of NOK 0.35 per share, the first ever, enabled by strong cash flow and asset realizations, with payment scheduled for July.

• HMH and AKOFS Offshore delivered stable or robust financials, with HMH reporting adjusted EBITDA of $36 million and a 17.7%–18% margin, despite a softer rig market.

• Portfolio includes nine investments, with a 50% reduction in Odfjell Drilling ownership generating NOK 104 million, and increased AKOFS Offshore ownership to 66.7%.

• Productivity and cost-efficiency initiatives are underway, with order intake at USD 173 million and ongoing portfolio optimization.

• Skandi Peregrino commenced a new contract in Australia, and all DDW Offshore vessels are now on contract.

Financial highlights

• HMH revenue was $203 million, down 2% year-on-year but up 3% quarter-on-quarter; adjusted EBITDA down 14% year-on-year, up 10% sequentially.

• AKOFS Offshore reported $37 million in revenue and $10 million EBITDA, with high vessel utilization rates and new contract nominations.

• DDW Offshore EBITDA was NOK 28 million, up year-on-year, with all vessels on contract.

• Net capital employed decreased by $147 million in Q2, mainly due to FX effects; net cash position increased by $126 million to NOK 814 million.

• Liquidity reserve at period end was NOK 704 million, including cash and undrawn facilities.

Outlook and guidance

• Short-term caution in the drilling market, but optimism for 2026–2027 as offshore customers plan long-term investments.

• Focus on maximizing fleet utilization, operational efficiency, and preparing NES Fircroft for a potential exit or listing.

• AKOFS Offshore has strong backlog and earning visibility from 2026 onward, with new contracts supporting future results.

• Commitment to return significant net proceeds from future realizations to shareholders, with flexibility on method and timing.

• Productivity and cost-efficiency measures are expected to continue delivering benefits.