Akastor (AKAST) Q3 2025 earnings summary

Executive summary

• Announced a NOK 0.40 per share cash dividend, enabled by the full realization of the Odfjell Drilling holding as part of a strategy to return excess capital to shareholders.

• HMH delivered robust financial performance with Q3 revenue of USD 217 million, adjusted EBITDA of USD 42 million, and a 19.3% margin, despite offshore market headwinds.

• Portfolio reduced to 8 investments after Odfjell Drilling exit; focus remains on value-enhancing exits and shareholder distributions.

• AKOFS Offshore maintained high revenue utilization on key vessels, completed a major class renewal survey, and secured a four-year Petrobras contract starting January 2027.

• DDW Offshore achieved 100% vessel utilization in Australia, with EBITDA of NOK 43 million, and continues to focus on maximizing fleet utilization and potential vessel sales.

Financial highlights

• HMH reported Q3 revenue of USD 217 million, up 3% year-on-year and 7% quarter-on-quarter; adjusted EBITDA was USD 42 million (19.3% margin).

• Group revenue and other income for Q3 was NOK 130 million, up from NOK 99 million in Q3 2024; group EBITDA was NOK 27 million.

• AKOFS Offshore Q3 revenue was USD 28 million, EBITDA USD 3 million, impacted by a 45-day vessel yard stay.

• DDW Offshore achieved revenues of NOK 128 million and EBITDA of NOK 43 million, both up year-over-year.

• Net capital employed decreased by NOK 0.2 billion to NOK 4.4 billion, mainly due to Odfjell Drilling sale and AKOFS losses.

Outlook and guidance

• Cautious short-term outlook for offshore drilling, but signs of a new upcycle in 2026–2027; HMH expects market tightening and improved backlog approaching 2026.

• Strategic focus remains on strengthening margins, operational efficiency, and enabling liquidity through potential listings and divestments.

• NES Fircroft continues solid performance and is IPO-ready, with all exit options considered.

• Future shareholder distributions will be tied to asset realizations to maintain financial flexibility.

• AKOFS Santos' new Petrobras contract provides long-term revenue visibility starting 2027.