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Introduction & Market Context
Akastor ASA (OB:AKAST) presented its second quarter 2025 results on July 10, revealing a mixed performance across its investment portfolio while announcing its first dividend to shareholders. The investment company, which closed at NOK 12.16 on July 9, approved a dividend of NOK 0.35 per share as it continues to execute its strategy of realizing value from its diverse holdings in the energy sector.
The quarter showed resilience in some portfolio companies while others faced headwinds, with consolidated revenue reaching NOK 79 million and EBITDA of NOK 9 million. This represents a year-over-year decline from NOK 91 million in revenue and NOK 28 million in EBITDA during Q2 2024, reflecting ongoing challenges in parts of the portfolio.
Quarterly Performance Highlights
Akastor’s portfolio showed varied performance across its holdings. The company’s net capital employed stood at NOK 4,652 million as of June 30, 2025, with HMH representing the largest portion at NOK 3,373 million (73% of the portfolio).
As shown in the following chart of Akastor’s net capital employed breakdown:
HMH, Akastor’s 50%-owned drilling equipment provider, reported stable revenues but declining profitability. The company generated revenue of USD 203 million, down 2% year-over-year, while EBITDA fell 14% to USD 36 million, resulting in an EBITDA margin of 17.7% compared to 20.0% in the same period last year.
The following chart illustrates HMH’s quarterly performance trends:
AKOFS Offshore, in which Akastor holds a 66.7% stake, showed improved revenue of USD 37 million, up 5.7% year-over-year, while maintaining stable EBITDA of USD 10 million. A significant development for AKOFS was the nomination for a four-year MPSV contract by Petrobras, expected to commence in Q3 2026.
DDW Offshore, Akastor’s wholly-owned vessel operator, demonstrated strong performance with all three vessels now deployed in Australia. Revenue increased 38.6% year-over-year to NOK 79 million, while EBITDA rose 86.7% to NOK 28 million.
Detailed Financial Analysis
Akastor’s net interest-bearing debt position improved during the quarter, with the company reporting a net cash position of NOK 145 million at quarter-end. This improvement was partly driven by the reduction of its holding in Odfjell Drilling by 50%, which generated total proceeds of NOK 104 million.
The following chart details Akastor’s debt position:
The company’s liquidity remains strong, with NOK 704 million available through cash, fund investments, and undrawn facilities as of June 30, 2025. External financing facilities include a USD 30 million Revolving Credit Facility maturing in June 2026, a NOK 70 million share financing facility, and a USD 26 million term loan for DDW Offshore maturing in September 2026.
Looking at segment performance, HMH’s aftermarket services revenue increased 6% year-over-year to USD 92 million, while spares revenue declined 26% to USD 52 million. Projects, products, and other revenue grew 17% to USD 59 million. HMH’s order intake for Q2 2025 was USD 173 million, down 4% year-over-year, while its equipment backlog decreased to USD 156 million from USD 229 million in Q2 2024.
Portfolio Overview and Strategy
Akastor maintains a diverse portfolio of energy sector investments, with varying ownership percentages and strategic approaches for each holding.
The following portfolio overview illustrates Akastor’s holdings:
HMH represents Akastor’s largest investment, with the following key metrics:
AKOFS Offshore operates three vessels on long-term contracts, with details shown below:
DDW Offshore’s vessel contract status shows solid utilization:
Strategic Initiatives
Akastor’s strategy focuses on three key priorities: enabling liquidity through separate listings, optimizing exit timing for certain investments, and developing other holdings with a longer-term horizon.
The following chart outlines Akastor’s strategic priorities:
The company is targeting to distribute proceeds from future realizations to shareholders, as evidenced by the recently approved dividend of NOK 0.35 per share. This marks a significant milestone in Akastor’s strategy of returning value to shareholders.
For HMH, management highlighted that productivity and cost-efficiency initiatives are yielding tangible results, while the company is taking strategic steps to mitigate the impact of tariffs. These efforts are crucial as HMH faces headwinds in its spares business, which saw a 26% year-over-year decline in revenue.
Forward-Looking Statements
Looking ahead, Akastor continues to focus on optimizing its portfolio and maximizing shareholder returns. The nomination of AKOFS Santos for a four-year MPSV contract by Petrobras represents a significant opportunity, with the contract expected to commence in Q3 2026.
For DDW Offshore, all three vessels are now deployed in Australia with contracts extending into 2025 and 2026, providing visibility on future cash flows. The Skandi Atlantic has contracts with Chevron (NYSE:CVX) running through November 2024, January 2025, and January 2026, while the Skandi Emerald is contracted to Petrofac (LON:PFC) until September 2025, and the Skandi Peregrino has secured contracts with an international oil company through June 2025 and March 2026.
HMH faces challenges with declining order intake and equipment backlog, but management expressed confidence that productivity initiatives and strategic measures to address tariff impacts will help maintain competitiveness. The company’s aftermarket services segment continues to show resilience with 6% year-over-year growth.
As Akastor continues to execute its strategy of enabling liquidity through separate listings and optimizing exit timing, shareholders can expect further distributions as the company realizes value from its investments.
Full presentation:
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