Akastor ASA ((NO:AKAST)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Akastor ASA’s recent earnings call revealed a mixed sentiment, reflecting both positive financial management and challenges in market conditions. The company showcased strong financial health and strategic achievements, yet faced headwinds in certain segments that tempered the overall positive impact.
Strong Cash Position and Shareholder Returns
Akastor maintained a robust net cash position, with no draw on its corporate revolving credit facility (RCF). This financial strength enabled the company to distribute NOK 0.4 per share to shareholders, supported by the realization of holdings in Odfjell Drilling.
HMH Resilience and Cash Flow
Despite challenging market conditions, HMH achieved an impressive adjusted EBITDA of USD 42 million, with a margin of 19%. The company also generated a strong cash flow of USD 35 million, highlighting its operational quality and resilience.
AKOFS Offshore Long-term Contract
AKOFS Offshore secured a significant 4-year MPSV contract for the AKOFS Santos vessel, expected to commence in January 2027. This contract is set to safeguard long-term earnings for AKOFS.
Successful Sale of Odfjell Drilling Shares
The strategic sale of Odfjell Drilling shares generated proceeds of NOK 222 million in 2025, achieving a total return of about NOK 750 million. This corresponds to a 2.2x multiple or an internal rate of return (IRR) of approximately 19%.
DDW Offshore 100% Revenue Utilization
DDW Offshore reported full revenue utilization across its vessels for the quarter, delivering an EBITDA of NOK 43 million, showcasing operational efficiency.
HMH Order Intake Decline
HMH experienced a decline in order intake, totaling USD 171 million, down 12% year-on-year and 1% quarter-on-quarter. This reflects reduced projects and spare parts due to the offshore market’s challenges.
AKOFS Offshore Earnings Impact
AKOFS’ earnings were impacted by a planned 45-day yard stay for the AKOFS Seafarer vessel’s 5-year classing, resulting in revenue utilization of 49% for the period.
Decline in Spares Revenue
Spares revenue decreased by 6% year-on-year to USD 58 million, attributed to softer global offshore activity. Order intake also fell by 18% year-on-year.
Carrying Value Reduction for AKOFS
The book value of AKOFS was reduced to nil due to negative earnings, although this does not reflect the underlying asset value.
Forward-looking Guidance
Akastor’s forward-looking guidance highlighted several key financial metrics and strategic developments. The company reported a positive net cash position and announced a cash distribution to shareholders. HMH’s robust financial performance, with an adjusted EBITDA of USD 42 million and a strong cash flow, underscores its resilience. DDW Offshore’s full revenue utilization and AKOFS Offshore’s new contract further bolster the company’s outlook. Akastor’s strategy includes expanding its portfolio through organic growth and strategic acquisitions, with potential IPOs on the horizon.
In summary, Akastor ASA’s earnings call presented a balanced view of its financial health and strategic direction. While the company demonstrated strong financial management and shareholder returns, challenges in market conditions impacted certain segments. Key takeaways include the company’s robust cash position, strategic asset sales, and forward-looking growth strategies.