Odfjell Technology Ltd

Good day and welcome to the Oddfield Technologies Q3 Report 2026. All participants are in listening only mode. After the speaker's presentation, there will be a question and answer session. To ask questions on the phone, you'll need to press star 11 on your telephone keypad and you should hear an automated message advising you that your hand is raised. To withdraw your questions, please press star 11 again. Alternatively, you may submit questions via the webcast. Please be advised that today's conference is being recorded, and I will now hand you over to Erik Knudsen. Please go ahead.

Thank you, and good morning, and welcome to Autofjell Technology's results for this third quarter of 2026. My name is Erik Knudsen, the CFO, and together with me, I have Simon Leung, CEO. The presentation is also on our website. Simon will cover the first part the market the backlog and also the dividend and then I will go through the financials and finally we close out with questions and then I'll leave the word to you Simon.

Thank you Erik and welcome to the call I'm going to go through the as usual through the top lines and the headlines and development of the quarter. Q3 confirms for us a step up in the earnings level. EBITDA was 241 million, NOC up 90% from the same quarter as last year, with a margin of 17.2%. We're quite pleased to see that we have been able to keep that 17 level and that has been a target for us to increase the margins and in this of course then the acquisition of Kaisman Racer played a role. They contributed by 34 million NOK in that quarter. We have said many times we have a strong cash flow focus operating cost cash flow was 200 million a free cash flow 108 million of the CAPEX and lease payments our cash balance increased by approximately a little less than 100 million in the quarter I'm happy to say that we have resumed the quarterly dividend payments we gave a warning or information about that some quarters ago that we would pause it and now we are back on track and we are distributing 1.52 NOK per share, being 60 million in total, the same level as it was before we posted the dividend. Well, of course, we were extremely happy that we finally won the O4K tax case that finally concluded in our favor. 6th of October, just after the Q3 cutoff, we received 149 million NOC, which is now on top of the cash we are actually presenting. The leverage ratio continues to be reduced, it's now 1.2 times, and the order backlog stands at 11.5 billion, including the options on platform drilling. I'll come a little back to that. Regarding market, there's no change in our view on the market since the last quarter. 26 is a stable market. We certainly see that the dynamics around us will give a stronger market in general within hydrocarbons, gas, oil in 27 and onwards. So our priorities have not changed. We never guide numbers, but we can say that we are quite optimistic about what we see around us. Of course, there's a lot of certainties. There are, as you all know, dynamics back and forth with the conflicts and ups and downs on the oil price and speculations east, west, east, left and center. But we feel that we have a steady course. we see significant ramp up in the deep water market in 27. That's confirmed by the main drillers. The deep water market is a very good indicator for how the oil companies are prioritizing their spend. So we see, I would guess overview at least is that we see which is an important KPI for us is the number of rigs active in the market. and we certainly see that coming up. North Sea is stable and strong. We see now, heard from the oil companies, the majors in the North Sea, they are working together on exploration activities and it's a very stable and trustful source of energy to Europe, which has been recognized by everybody. and the plans are clearly from those that operate in that segment to increase and maintain production. Middle East, we have knock wood. I always do that. So far, we have, of course, seen some slowdown in the region, meaning Kuwait, Saudi Arabia, because of the uncertainties and the conflicts. So far, we haven't seen the big impact. on over activity, but still there are some slowdowns and less, I would say, activity in some areas. So we have had some impact on what our expectations, but when this thing are hopefully in the future come down, we certainly see that the Middle East, including Saudi here, will be in a significant area for ramping up more activities within a type of will services intervention activities. Plug abandonment is something that will come. It's part of our structural story. We have clearly focusing on positioning ourselves by technologies, corporations with companies to position us also for plug abandonment. But at the same time, we see, as I said, a massive focus from clients to also increase and maintain production. So plug abandonment will be a part of it. We think it's going to be a much stronger element in the development of the oil and gas sector, especially on mature fields, due to several things. Requirements for closing down old fields, to do more environmental cleanup of wells that are leaking. So governments are now pushing quite clearly in that direction. but it will be a combination with plug abandonment, slot recoveries and production. So we kind of see that we balance our efforts into that picture and kind of not saying that we are going to do only plug abandonment, we're going to do plug abandonment also on top of the regular services. I said many times that we won't step into those new activities without knowing that we actually are earning money. We will not go for the volume. We will go for the margin and the healthy projects. So for the market future, I think I can say that we have finally now been able to establish a trustworthy organization in Houston to serve Gulf of Mexico and South America, meaning Ghana, Suriname and Brazil. So the organization there are established. We have moved equipment over to the Gulf and especially within the racer. We hope and believe that we'll pick up more activity late this year and of course into 27. We see that as a clearly growth area and the US market for those kind of tools are quite promising. So if you flip to the slide number six in the presentation, the order backlog is stable at 11.5 billion NOK. 6.4 is firm. It's nothing really more to say about that, only that we feel that that's a very comfortable element. The most of the backlog is within operations, platform, drilling and associates. I said last time, I think I said it every time, that within wealth services we take a very conservative number from the potential backlog we have, because that's very much activities that is run by call-offs and not that kind of a firm term contract, but are more linked to activity level. So there are more rigs in operation, more activity within Wales services, but now the rig count goes up. So we believe that the number you see here on the backlog from Wales services is relatively conservative. So we think that's okay because we don't want to say more than we can deliver. I'm quite confident that the level we are presenting here is absolute within the 80% accuracy. So the backlog is okay. The clients are stable. We feel that the market is responding to our tenders over wins. it's not everything we report into the market so there's a lot of small wins that we just build backlog on but we don't necessarily report them as contracts that's the nature of the business so within operations you see there there's these bars blue and green shows fixed contracts and options we have taken options into their backlog because very often these options are cleared and I'm saying that it's in a way I say sometimes it's ours to lose if we operate well if we do our job well we do the HSE performance well if we do okay and better performance efficiency very often clients are just calling the options and will be a part of the firm backlog that's why we kind of show this With the ConocoPhillips, we have not taken about the options in because there are five plus five years options. So it's actually a 15 year contract we want potentially, but the five plus five year options we have not taken in because that's in a way too far into the horizon. So let's see what happens when the options are, when you approach the time for calling the options. Again, I'm quite happy to say that we are now back in the dividend picture. We said we would resume it for good reasons. KSM Racer was good reasons. They have contributed very well. And maybe there was to be safe before. Sorry, we waited. We paused the dividend because there's always risk to buy companies, to integrate companies, to make sure that they are that we can deliver on the synergies we have estimated which is actually happening and that's why we we believe that we can know and the board approved that we could go back to the same level of dividend as we did before the pause so if you kind of just say that This so far this year KSM and Racer the reason for posting their dividend has actually contributed with close to 80 million of EBITDA with this very strong rate of conversion to free cash which is part of the story we want to tell it's very quite important to make sure that we are that we are generating free cash and by that we will be able to distribute to shareholders and to do future also investments like future M&As and other things we have planned for and we'll comment more on that. But that will come in due time before we do it. So that's the story, overall story from my side and then I switch over to Erik who's going to take the finance updates. Thank you.