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Introduction & Market Context
Akastor ASA (OB:AKAST), the Oslo-based investment company focused on the energy sector, presented its first quarter 2025 results on April 30, 2025. The company reported stable order intake across its portfolio companies despite market headwinds, while implementing strategic initiatives to optimize its investment portfolio.
Akastor’s share price closed at NOK 11.40 on April 29, 2025, down 1.55% ahead of the earnings release. The stock has traded between NOK 10.40 and NOK 17.00 over the past 52 weeks, reflecting the volatility in the energy services sector.
Quarterly Performance Highlights
Akastor reported adjusted EBITDA of USD 33 million for Q1 2025, with an order intake of USD 198 million, achieving a book-to-bill ratio of 1x. The company generated free cash flow of USD 15 million during the quarter, demonstrating solid operational performance despite challenging market conditions.
As shown in the following quarterly highlights and capital structure:
The company’s net capital employed stood at NOK 4,799 million at the end of Q1 2025, with HMH representing the largest portion at NOK 3,408 million. Akastor maintained a solid equity position of NOK 5,528 million, translating to a book value per share of NOK 20.2.
Karl Erik Kjelstad, CEO of Akastor, commented on the results: "Despite a challenging environment with restrained customer spending, our portfolio companies delivered stable operational performance during the quarter, with strong vessel utilization rates and continued free cash flow generation."
Portfolio Company Performance
HMH, Akastor’s 50%-owned drilling equipment provider, reported mixed results with revenues up 3% year-on-year to USD 198 million, driven by project milestones, but down 14% quarter-on-quarter due to lower service volume. EBITDA declined 2% year-on-year and 31% quarter-on-quarter to USD 33 million, with margins compressing to 16.5% from 17.2% in Q1 2024.
The detailed performance metrics for HMH are illustrated in the following chart:
HMH maintained stable order intake at USD 198 million despite customers showing restrained spending due to concerns about lower utilization. The company signed a new riser multi-year service agreement during the quarter, supporting long-term visibility on service activity.
NES Fircroft, the engineering staffing provider in which Akastor holds approximately 15% ownership, delivered a 7% increase in EBITDA year-over-year to USD 34 million, with improved gross margins of 12.3%. The company reduced its net debt by USD 7 million compared to Q4 2024, improving its NIBD/EBITDA ratio to 1.5x.
As shown in the business overview for HMH:
AKOFS Offshore, where Akastor increased its ownership to 66.7% during the quarter, reported strong operational performance with revenue utilization of 94% and 98% for Aker Wayfarer and AKOFS Santos, respectively. AKOFS Seafarer delivered technical uptime above 95%, with revenue utilization of 85% due to weather conditions. The company completed refinancing of AKOFS Seafarer in early April through a non-recourse USD 110 million revolving bank facility.
The following slide provides a comprehensive overview of AKOFS Offshore’s performance and contract status:
DDW Offshore, Akastor’s wholly-owned vessel operator, signed an agreement to sell Skandi Peregrino for USD 25 million, with completion expected in Q2 2025. Net proceeds after debt repayment are estimated at approximately USD 15 million. Skandi Emerald operated at 100% utilization under its contract with Petrofac (LON:PFC), while Skandi Atlantic achieved 88% utilization during the period under its new one-year contract that began in January.
The business overview for DDW Offshore shows the current contract status and financial performance:
Strategic Initiatives
During the quarter, Akastor increased its ownership in AKOFS Offshore to 66.7%, strengthening its position in the subsea well construction and intervention services segment. Additionally, AKOFS Santos ranked first in Petrobras’ tender for a four-year MPSV contract starting July 2026, pending final negotiations.
The company continued to execute its portfolio optimization strategy, categorizing its investments into three distinct groups: "Enable liquidity" for assets targeting separate listings (NES Fircroft and HMH), "Optimize exit" for investments with planned divestments (including Odfjell Drilling and DDW Offshore), and "Develop and divest" for longer-term holdings like AKOFS Offshore and FØN Services.
This strategic roadmap is clearly outlined in the following slide:
Akastor’s net capital employed decreased from NOK 5,020 million in Q4 2024 to NOK 4,799 million in Q1 2025, primarily due to reductions in the value of HMH (NOK -168 million) and NES Fircroft Offshore (NOK -70 million), partially offset by an increase in listed holdings (NOK 78 million).
The detailed breakdown of net capital employed and its quarterly development is shown here:
Forward-Looking Statements
Looking ahead, Akastor plans to distribute a significant portion of the net proceeds from the sale of Skandi Peregrino as dividends to shareholders, reinforcing its commitment to delivering shareholder value.
The company highlighted that HMH is adapting to market trends through productivity and cost measures while actively assessing the potential impact of increased macroeconomic uncertainty and new tariffs. Despite these challenges, the signing of a new riser multi-year service agreement supports long-term visibility on service activity.
For AKOFS Offshore, the successful refinancing of AKOFS Seafarer and the potential new contract for AKOFS Santos with Petrobras provide a solid foundation for future operations and cash flow generation.
Akastor maintains its strategic focus on enabling liquidity through separate listings of key assets, optimizing exits for mature investments, and developing remaining holdings with a view toward eventual realization, either through cash or shares.
Full presentation:
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