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Welcome to Oddfield Technologies Q3 presentation. My name is Gerd Saugland. I'm the SVT for Finance and Investor Relations in Oddfield Technologies. I'm joined by our CEO, Simon Leung, and our CFO, Jone Postensen. Today's presentation can be found on our website, and I ask you to please take notice of the disclaimer on page two. Simon will start by presenting the key highlights and talk about the market outlook, backlog, and the status of our improvement program. Jonas will thereafter go through the financial figures before we conclude with a Q&A session. You can submit your questions through the webcast portal or by using the dial-in numbers. I now hand it over to Simon for the first part.

Thank you, Gert. Thank you, everybody, for calling in. to our Q3 presentation. Let's start with the highlights for the quarter. First of all, we are set for mobilization of the rear wheel power pipe string. There has been some delays, unfortunately, not caused by any kind of us, but the rig that we are mobilizing the string has been delayed on the field because of delays in the drilling program. during somewhat late in November we are set for mobilization. Everything is ready. We also have good news from Kuwait. We have a contract extension or a very important contract within rail services in the region which strengthen our backlog and visibility and presence in a very important area in the Middle East. We have talked about M&A. We are quite active with a pipeline of very interesting bolt-on companies that could expand over capabilities and product portfolio and by also adding that into our market network we see that some of that could be quite interesting in the future. We have nothing, I would say, accurate or present or I would say exact to comment upon more details, but absolutely we have said that in several conferences earlier also that we are active on the M&A side. And that will build up our capabilities and product to fulfill what we believe is going to be an interesting portfolio in the future for achieving the strategic goals the company has established. We have talked a lot about our performance improvement program. We started that some time ago. I'll come somewhat more into that later in the presentation. But again, it's a very important program to adapt to whatever we see around us in the market to kind of be just ahead of events and be an adapt organization. into the shape we want to be able to continue to deliver as we do for today. Key financials. We have revenue of 1.4 billion, somewhat more NOC there. We have an EBITDA of 202, 204 adjusted. The good thing there is that we see the underlying operation has been improved since the last quarter and the quarters before that, since Q4 last year. This is what we have worked with to improve over performance, the underlying performance and the adjusted performance. Part of it is because of restructuring and back to the improvement program we have earlier commented upon. The order backlog is somewhat lower, but still very high. There has been some wins, but still we are in the 12, 13 billion backlog, which is quite important to have a visibility in the future for that. Just to remind you that we count within operations, which is very stable backlog, we count also in the options, but we take a very, very conservative intake for well services for good reasons. We are taking just part of the potential into what we call the firm backlog to be on the safe side by not over-reporting backlog before we kind of see it's actually realized. Just a reminder, real services is very much frame agreements and activity follows the market activity. So that's why we have always taken a quite conservative approach on that part. Dividend has been stable with an 11% direct yield so far in average. We continue to follow the plans also in Q3, and we find that quite strong for our shareholders. On the market side, we still talk about growth, but I need to share with you that we see also that we need to have quite disciplined operation and have a discipline regarding spending capital. Regarding the market, we probably are quite aware, we read all of the companies' view on the market. There has been some volatility. We see our operators, we have quite extensive reach against or talk against our clients' majors. We see that majors are actually being more careful by investments. So in the short term, we see some softening in the market. It's not general in the market because there are other markets which is quite good, but some markets we experience also some softening. It has to do with the global political games, I call that. OPEC is doing something, US is doing other things, and creating a volatility on the oil price is never good. And that's where we see now that the clients are kind of looking for more stability before they go spending what they want to spend. And there might be some delays in that kind of program. That's why we say short term, some softening. We see a quite strong demand later on, 2789 typical where we see demand coming up. The oil demand in the world is stable and growing. But again, short term, it could be some challenges. We see quite high tender activity globally where we operate. We operate in 30 countries or more. We see a very active tender market. We have quite a lot of them, but we are more uncertain about the timing for award. One thing is to win, another thing is to award. and when they start to execute the contract. Back to the little more certainly 26. So we are not that, I would say, firm on the timing. But the good thing is that these tenders are long-term. They go from late 26 and onwards. That's why we see quite much more strong market down the road, down in 2079. Our position has been that we are strong in Norway. Norway is one of the markets which is very strong regardless of the situation I just described of softening and so forth. Norway has been very stable. regarding drilling and production. The major clients here in Norway are quite active to secure capacity for increased drilling and production, especially within gas. Of course, linked to the position Norway has regarding serving gas to Europe because of the tragic war in Ukraine with Russia. So there are very, very heavy activities regarding increasing production, drilling, and so forth in Norway. And we are strong in Norway. We have probably a little more than 50% of our activity, revenue, and earnings in Norway, which is stable. Norway is one of the most active and one of the biggest offshore markets in the world. We talk about performance program. I do that always because this is how we always kind of monitor our organization and performance. and have measures to act on things where we don't see the expected outcome over business. This has to do with some sort of continuous improvement program. It's a word I use quite often, but these improvement programs we are running has important milestones where we act when things happen upwards or things go downwards. we have action plans to quite quickly act on those kind of fluctuations. We are positioning for P&A opportunities, strategic P&A opportunities. We have used that word meaning that we are not rushing after that part of the market because to get volume. We know P&A markets are quite often challenged by Margin levels, earnings, that market has always been challenging in a way to secure the right level of earnings. The market is becoming strong. I guess now the next few years will be much stronger in the UK, internationally within Brazil, go for Mexico. We also see things happening in Asia-Pacific and also in Norway. Norway has already several programs where clients must plug abandon, and in Norway they are both from platforms and from floating installations. Our relation with outfield drilling is strong regarding positioning integrated services for plug abandonment activities. We are not in a rush, but we are looking for the right opportunities that can be good references for establishing a sustainable business going forward. Growth and investment focus. We are, of course, focusing on growth, but not for any means. We have established ourselves in the Americas. So we see the first areas carefully being picked up in the Gulf of Mexico. We're not going to operate in Mexico, but with the U.S. Gulf, with well services, meaning that we will rent out equipment and run these kind of services. We have established a strategic partner called OSP, a small company in the Gulf, based in Houston. And so we are working together with them to kind of increase presence and operations in those areas. Both Gulf of Mexico and Brazil have been quite focused, and even though they are the same signals from clients that there might be some delays in spend, we are not there for the big money yet. We will gradually build up our presence and take quarter by quarter, year by year, to build up a sustainable business and be there for the long run. So we're not rushing there to do quick things, not necessarily smart things. We're there for the long run and the strategic presence to build the name and quality services, like we have done in other parts of the board. The power pipe means strategic priority. We are still looking for clients that are going to take it. We're quite optimistic that down the road, long term that technology will be absolutely top priority for clients, especially in mature fields. So this is also a kind of a long horizon on those investments. And we have in our view a fantastic access to that technology which is protected and there's no really competition on that part yet. But it remains to kind of be activated as we earlier talked about. The first offshore sting will come here in Norway, and we also have quite good traction on several opportunities in the Gulf of Mexico, both for advanced drilling and well, completion activities. CAPEX, we have had a relatively high level of CAPEX this year. much more disciplined going forward. We had to do some investments here because to replace equipment, to still be in the game, we don't see that going forward. And my CFO, Jono Torstensen, will come more into that somewhat later, how we will, in a way, be more disciplined and be more selective on what we're going to invest in. is also part of the source that could need capital. So as I said, we are certainly active on the M&A side. And those targets we have picked out are interesting, and we hopefully will land some of them. Backlog, I said again, no need to say too much more of that. As I said here within the rail services, just to remind again, there are much more potential in the rail services, but we are taking a conservative approach. Just to remind you, back in the days when also drilling were integrated before we split the company, we never reported rail services backlog. We only reported floaters and fixed installations, not within engineering and not within rail services, because there are more uncertainty there. But the approach for veg services is a conservative estimate to be on the right side. And that has shown to be quite useful as we don't kind of over promise anything and we deliver hopefully better than we indicate. Order intake is okay. We see, as I say, a lot of activity going forward. There are some interesting tenders that fill up the backlog. So we are not worried about somewhat drop from 13 to 12. It could even drop some more because we still believe that's a quite healthy and quite strong backlog. But of course, we are chasing all opportunities to build a strong backlog that gives us, in a way, predictability for the company in the future. Dividend. We have active shareholder and very attractive shareholder return. We get good feedback on that, that we actually are stable. We are promising what we are doing. I have said that the balance sheet that we have allows us to do so, but I always say a but. Our company must also look at future and growth opportunities, and if for very good reasons find to invest more than we kind of have estimated today. We have also indicated that there might be times we have to pause dividend. We have no plans for that now, but I'll say it so you are not kind of shocked if that happens. But I have said that in several conferences and I've answered as good as I can. If we ever pause a dividend program for some short period, it is for the good reasons. Not for any other reasons for the good reasons for the company performance improvement program again I am quite impressed I would say about how the Organization respond to that kind of program because you can you can exhaust people by this But as long as you kind of do it and motivate for it and see results of it in a positive way It's it's actually been taken. Well well when people are understanding the seriousness to be disciplined on capital, disciplined on performance, focused on quality and excellence. And that's where we as a relatively small company need to be to build our name and presence through efficiency, quality and predictability. So that's what we do. So already we have laid off significant people without any headlines, no nothing, but just adapting into the market position. We see some upsides, we might even increase the number of employees. We see something that could happen on the other side, means that we might decrease the organization, but all these plans are in place. So I feel that we are quite prepared for any ups and downs in the marketplace. Again, short term might be some challenges. Long term, we see a very, very strong market. For that, Jon, I think you can take over.

Thank you, Simon. I'll start with the group financials. Steady activity level with underlying margin improvement. The PDR level in Q3 is improved compared to the first two quarters in 2025. EBITDA in Q3 is 202 million compared to 193 million in Q2 and Q1-25. Adjusted EBITDA is 204 million, including restructuring cost of 2.4 million. The improvement program, as Simon said, is on track with restructuring cost of 18 million year-to-date. The improvements seen in the last quarter are expected to extend into Q4 2025. Cash flow was affected by high CAPEX and changes in working capital in Q3 2025. We said in the Q2 presentation that we expect an improvement in working capital in Q3 2025. Unfortunately, a large payment that we expected to be received in Q3 was delayed and received the 2nd of October. However, we expect an improvement in cash position, improved working capital and reduced CARPEX in Q4. Some words about the CARPEX level for 2026. We expect a reduction in CARPEX in 2026 to a more normalized level compared to high Carpex spend in 2025. However, we are always looking for good business opportunities going forward, which might influence our Carpex level going forward. Well, services, EBITDA margin improved in Q3 2025 compared to Q2 and Q1 2025, driven by improved product mix, increased product sales, and improved cost efficiency. EBITDA margin is 32% in Q3 and 35% if we exclude pass-through charges. High tender activity is ongoing globally with focus on high margin business opportunity. We expect that the CAPEX incurred in Q3 and market improvement in some regions outside Norway will lead to a stronger financial performance in Q4 2025. Next is operation. The activity level is steady and solid in the business area. The margin lift achieved in Q3 was driven by contribution from our performance improvement program and high bonus achievements. EBITDA margin in Q3 25 is 8.2%, up from 6.9% in Q2 25. Operations remain focused on optimizing operation structure, continuous improving efficiency, and optimizing cost level. Both Shell Drilling and Serica UK has extended their contract with operation. In addition, as Simon said, operations are continuously working with customers to develop effective solutions within P&A. The next one is project engineering. Q3 was seasonally lower due to vacation period. Main workload related to ODL SBS closeout, Heydrun bear modification and Mariner five years inspection. P&E has been affected by market changes shifting from fewer major project to smaller scale projects. P&E is actually working to build up its auto backlog with major oil companies and drilling companies. We expect an improvement in the epithelium margin in Q4 2025. This is development in revenue and epithelium since Q1 2022. I will focus on 2025, and revenue has increased each quarter in 2025. EBITDA remained stable in Q1 and Q2-25 and improved in Q3-25, as we predicted during our investor calls in Q1 and Q2-25. We expect this trend to continue into Q4-25. To summarize, still strong auto backlog, which is limited and affected by market fluctuations, still attractive yield, with dividend payments of 60 million, equal to direct yield of 11%. As Simon said, very high focus on our performance improvement program, which already has improved our financial performance. And I have to say, more to come. We will continue to work on growth opportunities with a disciplined approach to secure value for shareholders.

That concludes the presentation, and we now will start on the Q&A session.

Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 1 1 on your telephone keypad and wait for a name to be announced. Alternatively, you can submit your questions via the webcast. Please don't bother to compile the Q&A roster. This will take a few moments. Once again, if you would like to ask a question over the phone, please press star, one, one. Alternatively, you can submit your questions via the webcast. And now we're going to take our first question. And it comes from the land of Lucas Doll from Arctic Securities. Your line is open. Please ask your question.

Thank you. Good morning, gentlemen. Hey, man, just wondering on your comments regarding year-term sort of meekness or let's say reduced visibility. If we were to sort of quantify that in Outlook for 2026, I mean, year-to-date, your EBITDA is down 5% year-on-year. So in light of your comments, what's your best estimate at this point in time, 2026?

There's so much noise on your board, but I understood, Lukas, that your question was what do I think about EBITDA level in 2026 related to the commerce of a possible more soft market, is that right?

Yeah, yeah. If you could sort of quantify what you are saying in terms of the market dynamics, being maybe a bit softer in the near term, but still relatively strong in the long term.

Yeah, you know, as a principal, you know me, and I don't count any guidance on numbers, but all I'm saying is that we are looking at the market where we see that Some of the tenders that have been awarded and some of the activity that has been going to be awarded might slip in time. So it's difficult to say exactly how much and if it happens at all. I'm just saying that talking to clients, talking to competitors, talking to other service companies, we see the same market and we are preparing for that by having this improvement program to compensate for eventually any losses You see now that we have improved the underlying operation regarding performance, if you focus on the DA. I think we are, in a way, seeing that the slow improvement will continue. Whilst we also believe that some quarters might be hit by delays or uncertainty, which I know we have on the agenda, I can't comment more upon it, but I'm not concerned about the performance of the company, so don't take me wrong. I'm just saying that we are heading a market situation where things in some markets might be more volatile than, for example, what we see here back in Norway. So not necessarily a very clear answer, Lukas, but that's the best I can give you.

OK, fair enough. And then your comment, obviously, you have said that you are looking opportunistically at the possibilities of how to grow the business. Could you sort of specify or at least highlight what kind of product lines or potentially regions would be sort of where you would like to add scale?

Yeah, I can say it's more or less 100% within the rail services business we are running. That part of the company has quite good performance with good margins on some products. Where we are looking for more to expand the product portfolio is into more advanced down-haul equipment used for well completion. It could be used for plug abandonment and other things related to that part of the or the service sector. We see, we believe that program development will be a good market in the future. I don't think it's a market today, but I don't think it yield the necessary return that we expect and are looking for as per today. Some might disagree with me, but I think we are at least quite conservative in that respect. So what we are looking for to build a broader portfolio is that we would like to add on some special technologies, tools for different operations, especially for more advanced downhole operations. Same into rentals, same into the business area we have, same into the same type of providing equipment, but also be able to to take responsibility for more integrated operations together with other parts of our own business areas. For example, with operations including our engineering department and adding on our technologies and solutions within rail services could be an interesting cocktail for making a kind of a different approach to, for example, plug abandonment, rail completion and so forth. So we are kind of modeling ourselves. We also look at some strategic alliance type of opportunities. So we don't kind of just spend a lot of things on just buying things, but we also, we want to own and operate some type of equipment, but we don't do it that today, but we can also work together with others where we see a synergy and I would say a good cooperation in that respect, meaning that we can be more taking a bigger responsibility for a bigger operation. That's what we are looking for. So the M&A activities is to build up more, grow the portfolio of technology and equipment, whilst also focusing on executing those kind of programs in a different and more efficient way than we see, for example, many are doing today. So that's it.

Okay, that's a good call. And then just finally, I mean, your comment regarding potential pausing the dividend. I mean, you have a relatively low leverage. Your dividend is $240 million a year. So is there sort of a kind of a dynamic in terms of how big the acquisition needs to be so that you would consider this step, or what are your thoughts on that? Because now you have sort of built a decent track record with the dividend, and then closing it obviously will be a bit of a step back.

Yeah, it's always... I expected that question, that's why I also raised it in the presentation, because we want to pay dividends. The company is in place to pay dividends. Our balance sheets are good, but the technology is a company quite newborn, to use that word, And we are kind of also looking at how should we be perceived in the future market. Remember that the market, the service market are changing and we are changing with it. We have three business areas and how can we kind of combine those business areas to be one plus one plus one more than three. And we see very, very good opportunities with exactly what I just commented upon. That we can combine things and by doing smart acquisitions, adding up services, we can even improve our capacity of spending and pay dividend. But if we did an M&A with some significant investments, it is not necessary for us to exhaust the balance sheet just to pay dividend. Then we will ask for understanding of that. and people hopefully will understand because it's for the right reasons, it's for the growth and profitable growth. So we might not drop dividend, we might reduce dividend over time, but we still have the ambition to of course to have a strong balance sheet. I will never kind of rush the balance sheet with the running depth to a too high level. I've been through so much over the last 10 years within regarding difficult volatile market and debt situation. You know what I mean? So that's not going to happen. So it's going to be extremely disciplined. And it will be the board and us that decides what we're going to do. And they are very aware of what I'm saying here. But there's no plans exactly now. But I was just saying that if it becomes a great opportunity that that we feel will stretch the balance sheet for a period, we might pause dividend, or at least reduce it. But it will always be on the agenda, and we have done that for many, many quarters now, and we want to pay dividend. And the board supports dividend, and I know that many of our shareholders support that too. But there are also shareholders that don't like us to pay dividend, and to do what I'm saying here. So there are a mixed bag here. We are prepared to take anything there, but I'm just saying that we will decide what to do based on the good reasons. The good reasons is for ourselves and our shareholders or stakeholders. That's called responsibility.

Okay. Thank you very much and have a good weekend, guys.

Good. Thanks.

Thank you. Dear speakers, there are no further questions on audio lines. I would now like to hand the conference over to Gert for any written questions. Please go ahead.

Okay, we'll take a few written questions. We have one regarding operations and it goes like this. Can we assume the same level of revenue as in Q3 going forward the next quarters?

Yeah, I think that the operation has delivered great operation two three uh high bonus achievements uh yet to date and very good and efficient operation and we expect that the financial performance will continue into the next quarter uh and um and the margin level uh seems okay assume that we are able to achieve bonus going forward

And there's also one question then on the underlying profitability for operation. I guess if we extend on what you just said, you can say the improvements that we have achieved in this year, the underlying profitability should be slightly better than it was last year. We also have one question regarding well services, which saw improved probability now in Q3. The question is if this is a sustainable level into 26. And I think the well service margin level is very affected by the product mix in each quarter. Also, product sales tend to bring it up a little bit, but I think We are kind of taking the steps to hopefully improve it going forward and if 32% will be the level and every quarter ahead is difficult to predict just because there are and Changes quarter to quarter in the product line mix Yeah, and There is a question on normalized capex level in 26, if we can put a number on it. And I think it's something we don't want to go into detail on, but we have previously talked about a normalized level being 200, 250 million. And I think that's probably the best estimate for now. There is one question I think we can hand over to Simon, and you have talked a little bit about it already. It's the Q3 weakness in the project's engineering. And what do we see in the North Sea market short term?

Again, it's a good question, by the way, because it's – well, there has been a very active market for P&E, specialized for what they do regarding upgrades, SPSs, and so forth. That has – that part is over. But back to the – so the market for bigger P&E contracts the next few months are weaker, for sure. we expect that has to do with again if you those that follows the market both you know Equinor, RKBP, more others are talking about you know cost cutting exercises delays or investments and so forth. All those kind of projects will typically will be pushed in time and that push in time will hit the ability to win and execute these kind of projects. So So we see a weaker market within P&E next year, but forward we believe it's going to be more or less back to where it used to be. But absolutely there are things that P&E will meet a more difficult market next year. Not at all back to zero, not at all, but as I said again, We are following it. If we win projects, we execute them. If the market goes down, we also reduce costs. So it goes hand in hand.

That's what I can say there.

Dear participants, as a reminder, if you wish to ask a question over the phone, please press star 11 on your telephone keypad. Alternatively, you can submit your questions via the webcast. Dear speakers, we'll just give a moment to our participants to press star 11 or just write a question.

Good. There are no further questions on audio lines. Please proceed.

So I think we'll conclude the call now, and if you have additional questions, please reach out to me. Thank you.

Thank you.

This concludes this conference call. Thank you for participating, but now all disconnect. Have a nice day.