ABL Group ASA: Q3 2022 financial results

3 November 2022 – ABL Group’s 2022 third-quarter results

HIGHLIGHTS Q3 2022

• Revenues of USD 44.1 million (Q3 21: USD 38.0 million)
• Operating profit of USD 3.3 million (Q3 21: USD 1.3 million)
• Adjusted EBIT of USD 4.0 million (Q3 21: USD 2.0 million)
• Net cash of USD 15.1 million (Q2 22: USD 8.7 million)
• Acquisition of Add Energy completed in July
• Semi-annual dividend of NOK 0.3 per share declared – to be paid in November

Reuben Segal, CEO of ABL Group ASA (“ABL Group” or the “Company”), commented:

“We are very pleased to report all-time high quarterly revenues for ABL Group in the third quarter. Due to the holiday season in key markets and the southwest monsoon season in India, the third quarter typically represents a significant drop in activity and profitability compared to the second quarter. This year, however, we can report revenue growth compared to the previous quarter, 16% annual growth, and a year-on-year doubling of EBIT. More than half of the annual revenue growth is organic.

Organic revenue growth in the quarter was primarily driven by our renewables consultancy OWC and specialist engineering consultancy Longitude, growing 23% and 33%, respectively compared to the same quarter last year. Profitability was solid across most regions, enabling the best third-quarter operating margin in the Company’s history.

It has been a pleasure to welcome Add Energy to the ABL family, and we are encouraged by the company’s improved performance during the early integration stage. Add Energy provides several new service lines for us, most notably asset integrity and well services. It represents a significant strengthening of our capabilities in the operating phase of renewables and oil and gas projects, and their high-quality staff provides added capacity to service the anticipated growth within all market segments.

Our market outlook remains upbeat, as increased focus on energy security and supply is expected to lead to increased demand for our services across renewables and oil and gas. This increased activity is likely to result in rate and cost inflation, and we remain focused on staying ahead of the curve as the market develops.”

A presentation of the quarterly results will be held today at 08:30 CET at SpareBank 1 Markets’ office at Olav Vs gate 5, 0161 Oslo. The event will be webcast live and available for replay shortly after. To watch the webcast, please visit ABL Group’s website, www.abl-group.com.

The quarterly presentation is available on www.newsweb.no and on ABL Group’s website.

ABL Group ASA: Key information relating to the cash dividend to be paid

Dividend Amount: NOK 0.3 per share

Declared currency: NOK

Last day including right: 4 November 2022

Ex-date: 7 November 2022

Record date: 8 November 2022

Payment date: On or about 11 November 2022

Date of approval: 2 November 2022

This information is published in accordance with the requirements of the Continuing Obligations.

ABL Group ASA: Invitation to presentation of Q3 2022 results

ABL Group ASA (“ABL Group”) will release its third-quarter results tomorrow, Thursday, 3 November 2022, at approximately 06:00 Central European Time (CET).

A presentation of the quarterly results will be held the same day at 08:30 CET at SpareBank 1 Markets’ office at Olav Vs gate 5, 0161 Oslo. The event will be webcast live and available for replay shortly after. To watch the webcast, please visit ABL Group’s website.

If you would like to attend the event in person, please notify SpareBank 1 Markets at corporateaccess@sb1markets.no.

The earnings release concerning the quarterly results and a corresponding slide presentation will be posted on www.newsweb.no and on ABL Group’s website.

ABL Group ASA acquires well control specialist HOSE International

Energy and marine consultancy ABL Group (ABL) has acquired the operations of well control equipment specialists HOSE International.

The two companies have cooperated since 2019 to jointly provide rig and well control inspection services for the offshore industry. Going forward, HOSE International’s UK business will become part of ABL’s global operations.

The two companies have agreed to not disclose the financial details of the transaction.

“We know the HOSE International team very well and are thrilled to be combining their expertise with that of our own on a continuous basis. This will allow us to further serve clients with the full scope of well control equipment assessment and rigs operations requirements,” says Steven Lee, director of offshore technical services at ABL.

HOSE International was established in 1994 and has built a 30-year reputation as independent third-party well control equipment subject matter and assurance service providers. The company’s services include well control equipment inspection, verification, assurance and project support during rig selection, intake and major maintenance periods.

During the past three decades, HOSE International has completed approximately 2,300 inspections on more than 700 drilling rigs. This includes numerous high-profile drilling well control equipment events front-line reactivations, overhauls and re-certification, end-of-well and between-well maintenance periods, drilling failure, modifications and upgrades.

“I am delighted to be formally joining ABL Group, having collaborated on many projects for a number of years now. HOSE International brings a wealth of specialist experience to the ABL team, and I’m excited to expand our scope even further”, says managing director of HOSE International, Richard Brennan, who now joins ABL as the group’s well control equipment manager.

ABL has extensive rigs inspection expertise including, rig selection, reactivation assurance, new-build delivery and preservation inspection. The company’s dedicated rig inspection team consists of multi-disciplined engineers with decades of practical rig inspection experience that helps to provide regulatory compliance and equipment operability assurance to rig owners and operators.

ABL Group ASA: Invitation to presentation of Q3 2022 results

ABL Group ASA (“ABL Group”) will release its third-quarter results on Thursday, 3 November 2022, at approximately 06:00 Central European Time (CET).

A presentation of the quarterly results will be held the same day at 08:30 CET at SpareBank 1 Markets’ office at Olav Vs gate 5, 0161 Oslo. The event will be webcasted live and available for replay shortly after. To watch the webcast, please visit our Reports and Presentations page.

If you would like to attend the event in person, please notify SpareBank 1 Markets at corporateaccess@sb1markets.no.

The earnings release concerning the quarterly results and a corresponding slide presentation will be posted on www.newsweb.no and on our Reports and Presentations page.

ABL Group ASA to present at Pareto Securities’ 29th Annual Energy Conference

ABL Group ASA (“ABL Group” or the “Company”) will present at the Pareto Securities’ 29th Annual Energy Conference today at 09:25 CEST.

The presentation will be held by Reuben Segal, CEO of the Company, and can be found on our Reports and Presentations page.

ABL Group ASA: Share capital increase

Oslo, Norway, 5 September 2022: Reference is made to the stock exchange release by ABL Group (“ABL Group” or the “Company”) published on 31 August 2022 regarding a share capital increase following the exercise of share options.

The issuance of 5,265,000 new shares has been registered with the Norwegian Register of Business Enterprises. Following registration, the share capital of ABL Group is NOK 10,476,986.20 divided into 104,769,862 shares, each share having a par value of NOK 0.1 and carrying one vote in the Company’s general meeting.

Financial calendar

Financial calendar for ABL Group ASA

FINANCIAL YEAR 2022

03.11.2022 – Quarterly Report – Q3

Change of date for Q3 2022 quarterly report from October 28th to November 3rd 2022.

This information is published pursuant to the requirements set out in the Continuing obligations.

ABL Group ASA: Exercise of employee share options and share capital increase

Oslo, Norway, 31 August 2022: Participants in ABL Group ASA’s (“ABL Group” or the “Company”) share option program have on 31 August 2022 exercised a total of 5,265,000 options according to the option program for 2019 at a strike price of NOK 3.32.

Each option gives a right to receive one share in the Company. The share options are described in note 16 in ABL Group’s annual financial statements for 2021.

Following the exercise, the Board of Directors, pursuant to authorisation granted by the Company’s Annual General Meeting, has decided to increase the Company’s share capital by NOK 526,500 by issuing 5,265,000 new shares, of par value NOK 0.1. Subsequent to the transaction, ABL Group’s share capital will be NOK 10,476,986.20 divided into 104,769,862 shares, each share having a par value of NOK 0.1 and carrying one vote in the Company’s general meeting.

The following options are exercised by primary insiders:

• 135,000 options are exercised by primary insider of the Company Reuben Segal, CEO. Following the transaction, Segal and his close associates will own 1,933,003 shares in the Company.
• 135,000 options are exercised by primary insider of the Company Bader Diab, COO. Following the transaction, Diab will own 1,652,695 shares in the Company.
• 135,000 options are exercised by primary insider of the Company Will Cleverly, Managing Director Renewables. Following the transaction, Cleverly will own 178,931 shares and 100,000 share options in the Company.
• 135,000 options are exercised by primary insider of the Company Haakon Brandrud, Director of Strategy and Corporate Development. Following the transaction, Brandrud will own 413,084 shares in the Company.

Primary insider notifications pursuant to the market abuse regulation article 19 are attached below.

A total of 630,000 vested options were not exercised and will be extended by 1 year.

ABL Group ASA: Q2 2022 financial results

Highlights Q2 2022

• Revenues of USD 41.4 million (Q2 21: USD 38.3 million)
• Operating profit of USD 3.9 million (Q2 21: USD 2.3 million)
• Adjusted EBIT of USD 4.7 million (Q2 21: USD 2.8 million)
• Net cash of USD 8.7 million (Q1 22: USD 10.4 million)
• Sale of Adjusting business unit completed end of May
• Acquisition of Add Energy completed post quarter end in July

Reuben Segal, CEO of ABL Group ASA (“ABL Group” or the “Company”), commented:
“The second quarter of 2022 represents the highest revenues, EBIT and EBIT margin in the company’s history. In combination with what was a record-breaking first quarter, the first half of 2022 as a whole represents a step change in activity for ABL Group. These results are testament to the relentless efforts of our staff around the globe, and I am continuously impressed by the quality and commitment delivered across our organisation every day.

Revenues grew 8% year-on-year, primarily driven by our renewables consultancy OWC and specialist engineering consultancy Longitude, growing 25% and 35%, respectively, compared to the same quarter last year. Profitability was solid across most regions, enabling our all-time high operating margin in the quarter.

Our market outlook remains upbeat, as increased focus on energy security is expected to lead to increased demand for our services across renewables and oil and gas. This increased activity is likely to result in rate and cost inflation, and we remain focused on staying ahead of the curve as the market develops.

Finally, we are excited by our acquisition of Add Energy just after the conclusion of the quarter. The acquisition adds several strings to our bow, notably with new service lines within asset integrity and well engineering, management and servicing. It represents a significant strengthening of our capabilities in the operating phase of renewables and oil and gas projects. The addition of approximately 140 top quality staff is also key to provide capacity to service the anticipated growth within all market segments.”

A presentation of the quarterly results will be held today at 08:30 CET at SpareBank 1 Markets’ office at Olav Vs gate 5, 0161 Oslo. The event will be webcast live and available for replay shortly after. To watch the webcast, please visit our Reports and Presentations page.

Katherine Phillips, Managing Director of OWC, will also hold a technical presentation on opportunities and risks in the floating offshore wind market. The presentation is expected to start at 09:30 CET and will be webcast live on the same feed as the quarterly presentation.

The quarterly report and a slide deck for the quarterly presentation are available on www.newsweb.no and on our Reports and Presentations page.