Norwegian oil-services investment company, Akastor, has announced strong financial results for the first quarter of the year. The company reported an EBITDA (adjusted) of USD 33 million, a 75% increase compared to the same period last year. This growth was primarily driven by higher aftermarket activity. NES Fircroft, one of Akastor’s subsidiaries, also saw positive results with a 17% increase in EBITDA and 12% revenue growth year-on-year.
An important development for Akastor this quarter was the receipt of a DRU arbitration award, resulting in an accounting gain of NOK 599 million. This award included payment of termination fees and reimbursement of costs, contributing to a significant increase in net capital employed. The company plans to use these funds to refinance existing corporate facilities, marking a significant milestone for Akastor.
Furthermore, Akastor’s subsidiary, HMH, continued to deliver solid earnings driven by high aftermarket activity and a robust order intake. Revenues for the quarter were USD 193 million, with an EBITDA of USD 33 million, resulting in an EBITDA margin of 17%.
While revenues from Aftermarket Services showed a 19% increase compared to the first quarter of the previous year, there was a 7% decrease quarter-on-quarter due to lower spares output. Revenues from Projects, Products & Other also declined, down 24% year-on-year and 8% quarter-on-quarter.
Akastor’s offshore subsidiaries, AKOFS Offshore and DDW Offshore, reported mixed results for the quarter. AKOFS Offshore saw revenues of USD 32 million and EBITDA of USD 9 million, while DDW Offshore reported revenues of NOK 39 million and a negative EBITDA of NOK -8 million.
Overall, Akastor’s financial performance in the first quarter demonstrates strong growth and positive accounting effects, positioning the company for sustained growth in the future. With successful subsidiaries like HMH, NES Fircroft, and AKOFS Offshore, Akastor continues to create long-term value in the oil-services industry.
In addition to the information provided in the article, there are several current market trends and forecasts that can be discussed in relation to Akastor.
1. Market Trends: The oil-services industry is experiencing a recovery following the downturn caused by the COVID-19 pandemic and the decline in oil prices. As global economies reopen and demand for oil increases, companies like Akastor are well-positioned to benefit from the uptick in activity.
2. Forecast for Aftermarket Services: The strong growth in Akastor’s Aftermarket Services segment indicates potential for continued expansion in this area. With a 19% increase in revenues compared to the previous year, Akastor can capitalize on the demand for maintenance, repair, and operations (MRO) services in the oil and gas sector.
3. Challenges and Controversies: One key challenge for Akastor and other oil-services companies is the ongoing transition to renewable energy sources. As the world moves towards decarbonization, the demand for traditional oil and gas services may decrease in the long term. Akastor will need to adapt its business model to navigate this transition and explore opportunities in renewable energy.
Advantages and Disadvantages:
Advantages:
– Strong financial results and growth in the first quarter demonstrate Akastor’s ability to perform well in a challenging market.
– Diversification through subsidiaries like HMH, NES Fircroft, and AKOFS Offshore provides a broader revenue base and reduces risk.
– The receipt of a DRU arbitration award and the subsequent increase in net capital employed position Akastor for further growth and investment.
Disadvantages:
– Declines in revenues from Projects, Products & Other and lower spares output in the Aftermarket Services segment indicate some areas of weakness.
– The negative EBITDA reported by DDW Offshore highlights potential challenges faced by Akastor’s offshore subsidiaries.
Overall, while Akastor’s strong first-quarter growth and positive accounting effects are promising, the company will need to address challenges and stay ahead of market trends to ensure continued success in the future.
Suggested related links:
– Akastor Official Website
– NES Fircroft (Akastor’s subsidiary)
– HMH (Akastor’s subsidiary)
– AKOFS Offshore (Akastor’s subsidiary)
– DDW Offshore (Akastor’s subsidiary)