Akastor ASA

Good afternoon and welcome to the presentation of Akastor's third quarter results. My name is Eivind Polske, CFO, and I'm joined today by our CEO, Mr Karl-Erik Kjellstad. We are also pleased to have HMH with us from Houston, represented today by Eirik Bergsvik, CEO, and David Bratton, SVP Finance. As usual, Calle will begin with some key highlights, followed by Eirik and team who will present the HMH update. I will then take you through Akastor's consolidated financials before handing it back to Calle. Toward the end, we'll open for questions through the web-based Q&A solution where you can post questions at any time.

With that, I'll turn it over to Calle. Thank you, Eivind, and good afternoon and good morning to our US participants, and thank you so much for joining us for this earnings call. Let us start on slide two with the key highlights for the third quarter. Acosto continues to be in a solid financial state. We have a positive net cash position and no draw on our corporate RCF. With this, we are very pleased to announce another cash distribution to our shareholders, this time NOK 0.4 per share, supported by the realization of our holding in Oddfed Drilling. This is aligned with our strategy to return excess capital to shareholders while maintaining a sound capital structure. Turning to HMH, the company continues to deliver robust financial performance and demonstrate resilience, even in the challenging offshore drilling market. Despite headwinds affecting service activity and spare part sales, HMH achieved a adjusted EBITDA of US$42 million, a solid quarter with a margin of 19%. Importantly, the company also delivered a strong cash flow, underscoring the quality of its operation and its ability to generate value also in a demanding environment. The value of our shareholding in HMH now represents 77% of our total net capital employed, with a book value of NOK 3.4 billion at the end of the third quarter, or NOK 12.5 kroner per Acosto share, somewhat higher than last quarter due to positive earnings in the period. Then, Arcov's offshore. Arcov's Santos vessel was formally awarded the four-year MPSV contract in the quarter, expected to commence in January 2027, safeguarding long-term earnings for Arcov's. Arcov's earnings for the quarter were impacted by the planned 45-day yard stay required to complete the five-year classing of the Arcov seafarer vessel. Except for this scheduled yard stay, all vessels, including Seafarer, delivered strong operational performance. It is again worth noting that our current book value of ARCOVS, where the value related to our equity holding in the third quarter was reduced to nil, reflects a conservative measure driven by historic costs and the company's negative earnings to date. This does not in any way fully capture the underlying asset value of Akofs. We continue to see significant upside potential and remain focused on ensuring this value is increasingly recognized and understood. DDB Offshore, all vessels recorded 100% revenue utilization through the quarter, delivering an EBITDA of NOK 43 million. The book value for our investment in DDV Offshore stood at 1.2 NOK per Acosta share, based on an average book value per vessel of $11 million. Finally, the third quarter, we completed the sale of our remaining shares in Onfed Drilling, in line with the Acosta strategy of realizing assets to enable capital distribution to shareholders. This transaction generated proceeds of NOK 118 million in September, bringing the total proceeds from the sale of Oddfell shares during 2025 to NOK 222 million. Slide 2. I would like to have a few more comments on the Oddfell investment. Back in 2018, we in Acosto made initial investment of 75 million US dollars in Ordfeld Drilling through a preference shares and warrant agreement structure, supporting the acquisition of Stena Midmax that today is called Deep Sea Norcap. In November 2022, we sold the preference shares back to Ordfeld Drilling for 95 million dollars while we retained the warrants. In May 2024, we exercised these warrants and received just over 3 million ordinary shares. And during the second and third quarter of 2025, we realized these shares generating, as mentioned, 222 million Norwegian kroner. All in all, these investments have delivered a total return of about 750 million kroner, corresponding to 2.2 times multiple or an IRR of about 19% in Norwegian kroner terms. Needless to say, we are pleased with the outcome of this investment and also a bit sad to sell the shares as we have great belief in Ordfeld Drilling going forward, but we are pleased to be enabled to get another distribution to our shareholders following the realization. With that, I'm pleased to introduce HMH CEO, Erik Bergsvik, that will take us through HMH third quarter results. So Erik, the word is yours.

Thank you, Coleric. Good day, everyone, and thank you for joining us on the call. I'll begin by sharing a summary of our third quarter highlights and then provide some perspective on our current market conditions. After that, David will take us through the financials in greater detail. Starting with our results for the third quarter, we reported revenue of $217 million, which is up 3% year on year. Our EBITDA for the quarter came in at $42 million, representing an increase of 8% compared to the same period last year. but up 16% versus prior quarter. This resulted in an EBITDA margin of 19.3%. Our performance this quarter on cash was strong. We generated 35 million in unlevered free cash flow this quarter, primarily driven by improvements in working capital management and the collection of project milestone payments. Order intake for the quarter totaled $171 million, down versus last year, as expected, as offshore activity works through the current white space. I want to take a moment to thank the global HMH team. Our team continues to work hard to advance our strategic initiatives focused on strengthening margins and driving operational efficiency. This is positioning as well for the continued growth in the future. Now turning to current market conditions, we are seeing continued signs of stabilization and improvement in broader contracting and utilization trends with deepwater offshore markets, benefiting both our customers and HMH. Speaking with our customers, despite the pipeline for early 2026 jobs still being limited, they are seeing significant opportunities for contract activity in mid-2026 and early 2027. Provided oil prices remain reasonably stable, our customers are anticipating a gradual move toward a tighter market with improved backlog as we approach the inflection point sometime in 2026. With that, I'll hand it over to David to walk through the financials in more detail.