Akastor (AKAST) Q4 2023 earnings summary

Executive summary

• FY 2023 portfolio adjusted EBITDA reached USD 132 million, up 30% YoY; Q4 adjusted EBITDA was USD 44 million, up 49% YoY.

• HMH recorded FY revenue of USD 786 million, up 16% YoY, and adjusted EBITDA margin of 17%, versus 15% in 2022.

• Improved market fundamentals continued through 2023, with resilient offshore conditions expected to persist into 2024.

Financial highlights

• FY portfolio revenue was USD 786 million, up 16% YoY; Q4 revenue was USD 208 million.

• FY adjusted EBITDA was USD 132 million, up 30% YoY; Q4 set a record at USD 44 million.

• Q4 orders booked were USD 197 million; FY order intake was USD 826 million, with Aftermarket Services up 21% versus 2022.

• Consolidated NOK revenue was NOK 87 million and EBITDA NOK 23 million in Q4; FY revenue was NOK 282 million and EBITDA was NOK -2 million.

• Consolidated net loss was NOK 150 million in Q4 and NOK 262 million for FY 2023; continuing-operations losses were NOK 159 million and NOK 384 million, respectively.

Outlook and guidance

• Resilient offshore market conditions were expected to continue into 2024.

• Priorities include concluding the DRU arbitration, monetizing investments, pursuing an HMH liquidity event, repaying debt and distributing value to shareholders.

• DDW’s Skandi Peregrino was expected to return to market in Q1 2024 after its special survey; Skandi Emerald was set to replace Skandi Atlantic on the Petrofac contract in March 2024.