Akastor ASA: Fourth Quarter Results 2020
Drilling Lifecycle Services & Digital Technologies revenues were NOK 549 million in the quarter, a decrease of 21 percent compared to last year, however increased by 8 percent compared to last quarter. Number of active rigs increased by one unit during the quarter, with potential for further increase over the next quarters based on current contract schedule of the fleet. The DLS business continues to create a solid basis for MHWirth with good medium to long Akastor term growth opportunities through increased utilization of fleet. Digital Technologies received good traction also in the fourth quarter, with several leads for full DEAL upgrades.“We are pleased with our fourth quarter financial results which included a strong operational cash flow and solid EBITDA margin in MHWirth, despite continued challenges brought on by the global pandemic. 2020 has been strongly affected by COVID-19 and following turmoil in the oil markets, Akastor however our portfolio companies have demonstrated robust business models through the year. We expect the markets to remain challenging over the near future but remain cautiously optimistic that the gradual recovery of the global economy and the oil service sector will increase demand for our portfolio companies’ products and services over the next 12 to 18 months.”
Revenues from Projects & Products decreased 49 percent compared with last year, driven by lower revenue recognition from ongoing projects as these are in the last phase with lower progress, as well as Akastor lower activity within single equipment. Relatively low order backlog within this segment per end of quarter still causes uncertainty related to performance in the near to medium term.
AKOFS Offshore
AKOFS reported revenues of NOK 286 million and EBITDA of NOK 66 million in the quarter. Utilization in the period was lower than normal due to certain specific events during the quarter, affecting margins.
Revenue utilization for Aker Wayfarer was affected by COVID-19 outbreak onboard vessel, resulting in 8 days of downtime. Skandi Santos was affected by an engine break-down, resulting in 14 days of unpaid downtime. AKOFS Seafarer commenced its five-year contract with Equinor in October and delivered its first quarter of revenues. Utilization was affected by certain start-up effects, however with very strong uptime in December.
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