Q2 2026 Akastor ASA Earnings Call
Speaker #1: Good morning, and welcome to the presentation of Akastor's second quarter results. My name is Eivind Påske, CFO, and I'm joined today by our CEO, Carl-Erik Kjelstad.
Øyvind Paaske: Good morning, and welcome to the presentation of Akastor's Q2 results. My name is Øyvind Paaske, CFO, and I am joined today by our CEO, Karl Erik Kjelstad. As in the previous quarter, our presentation now includes less detailed coverage of HMH, as that now is a listed company reporting independently. Their Q2 webcast replay and transcript are available on their website. We will take questions at the end of the session, and you may submit them at any time through the online Q&A function. To start, Karl Erik will take you through the key developments of the quarter. Karl Erik, over to you.
Øyvind Paaske: Good morning, and welcome to the presentation of Akastor's Q2 results. My name is Øyvind Paaske, CFO, and I am joined today by our CEO, Karl Erik Kjelstad. As in the previous quarter, our presentation now includes less detailed coverage of HMH, as that now is a listed company reporting independently. Their Q2 webcast replay and transcript are available on their website. We will take questions at the end of the session, and you may submit them at any time through the online Q&A function. To start, Karl Erik will take you through the key developments of the quarter. Karl Erik, over to you.
Speaker #1: As in the previous quarter, our presentation now includes less detailed coverage of HMH, as that is now a listed company reporting independently. Their Q2 webcast replay and transcript are available on their website.
Speaker #1: We will take questions at the end of the session, and you may submit them at any time through the online Q&A function. To start, Calle will take you through the key developments of the quarter.
Speaker #1: Calle, over to you.
Speaker #2: Thank you, Eivind, and good morning. Thank you all for joining us this morning. I will start with the key highlights, as mentioned by Eivind, before I briefly take you through the portfolio and also our ownership agenda.
Karl Erik Kjelstad: Thank you, Øyvind. Good morning, and thank you all for joining us this morning. I will start with the key highlights as mentioned for Øyvind, before briefly taking you through our portfolio and our ownership agenda. Let's move to slide 2. Q2 marks another important step in Akastor's transition from value creation to value realization and shareholder distribution. We are pleased to announce that the board has approved a cash dividend of NOK 0.50 per share, supported by proceeds from the sale of Skandi Emerald. In fact, this represents over fifth consecutive quarterly distribution to shareholders. The HMH IPO was completed in April, reducing Akastor ownership to 36% and contributing significant cash proceeds to Akastor during the quarter.
Karl Erik Kjelstad: Thank you, Øyvind. Good morning, and thank you all for joining us this morning. I will start with the key highlights as mentioned for Øyvind, before briefly taking you through our portfolio and our ownership agenda. Let's move to slide 2. Q2 marks another important step in Akastor's transition from value creation to value realization and shareholder distribution. We are pleased to announce that the board has approved a cash dividend of NOK 0.50 per share, supported by proceeds from the sale of Skandi Emerald. In fact, this represents over fifth consecutive quarterly distribution to shareholders. The HMH IPO was completed in April, reducing Akastor ownership to 36% and contributing significant cash proceeds to Akastor during the quarter.
Speaker #2: Let's move to slide 2. The second quarter marks another important step in Akastor's transition from value creation to value realization, and shareholder distribution. We are pleased to announce that the Board has approved a cash dividend of NOK 0.50 per share, supported by proceeds from the sale of Scandia Emerald.
Speaker #2: In fact, this represents our fifth consecutive quarterly distribution to shareholders. The HMH IPO was completed in April, reducing Akastor's ownership to 36% and contributing significant cash proceeds to Akastor during the quarter.
Speaker #2: HMH also delivered a solid operational and financial performance, with adjusted EBITDA of $34 million, corresponding to a 20% margin, and a strong order intake representing a book-to-bill ratio of 1.2, supporting management's increased activity and expectations for the second half of 2026.
Karl Erik Kjelstad: HMH also delivered a solid operational and financial performance with adjusted EBITDA of US$34 million, corresponding to 20% margin and a strong order intake, representing a book-to-bill ratio of 1.2, supporting management's increased activity and expectations for H2 2026. AKOFS Offshore continued to deliver stable operations across the fleet, supported by strong utilization and operational performance. For NES Fircroft, an important milestone was reached after quarter end with the successful placement of the new US$650 million senior secured bond. The transaction supports refinancing and a planned shareholder recapitalization of up to US$350 million. Akastor expects to receive its share of cash proceeds available to shareholders through that recapitalization, but subject to remaining conditions and approvals. DDW Offshore also continued its realization process, completing the mentioned sale of Skandi Emerald in June for US$23 million.
Karl Erik Kjelstad: HMH also delivered a solid operational and financial performance with adjusted EBITDA of US$34 million, corresponding to 20% margin and a strong order intake, representing a book-to-bill ratio of 1.2, supporting management's increased activity and expectations for H2 2026. AKOFS Offshore continued to deliver stable operations across the fleet, supported by strong utilization and operational performance. For NES Fircroft, an important milestone was reached after quarter end with the successful placement of the new US$650 million senior secured bond. The transaction supports refinancing and a planned shareholder recapitalization of up to US$350 million. Akastor expects to receive its share of cash proceeds available to shareholders through that recapitalization, but subject to remaining conditions and approvals. DDW Offshore also continued its realization process, completing the mentioned sale of Skandi Emerald in June for US$23 million.
Speaker #2: Arkov's offshore continued to deliver stable operations across the fleet, supported by strong utilization and operational performance. For Next Aircraft, an important milestone was reached after quarter-end with the successful placement of the new $650 million senior secured bond.
Speaker #2: The transaction supports refinancing and a planned shareholder recapitalization of up to $350 million. Akastor expects to receive its share of cash proceeds available to shareholders through that recapitalization, but this is subject to remaining conditions and approvals.
Speaker #2: DDV Offshore also continued its realization process, completing the mentioned sale of Scandia Emerald in June for $23 million. Finally, this is also the first quarter where we present a fair value-adjusted NAV.
Karl Erik Kjelstad: Finally, this is also the first quarter where we present a fair value adjusted NAV. The key change is HMH, which is now listed and can be valued based on the closing share price at the end of the quarter. All other investments continue to be reflected at book value. As HMH represents around 60% of gross asset value, the listed share price provides a clear market reference for a significant part of the portfolio, making a NAV a more relevant measure going forward. Net asset value amounted to NOK 4.7 billion at the end of June, and that corresponds to NOK 17.3 per share. Øyvind will take you through more details later regarding this in the presentation. Let's move to slide 4, the portfolio overview. The portfolio is largely unchanged from the previous quarter, with HMH as a listed investment following the IPO completed in April.
Karl Erik Kjelstad: Finally, this is also the first quarter where we present a fair value adjusted NAV. The key change is HMH, which is now listed and can be valued based on the closing share price at the end of the quarter. All other investments continue to be reflected at book value. As HMH represents around 60% of gross asset value, the listed share price provides a clear market reference for a significant part of the portfolio, making a NAV a more relevant measure going forward. Net asset value amounted to NOK 4.7 billion at the end of June, and that corresponds to NOK 17.3 per share. Øyvind will take you through more details later regarding this in the presentation. Let's move to slide 4, the portfolio overview. The portfolio is largely unchanged from the previous quarter, with HMH as a listed investment following the IPO completed in April.
Speaker #2: The key change is HMH, which is now listed and can be valued based on the closing share price at the end of the quarter.
Speaker #2: All ordered investments continue to be reflected at book value, as HMH represents around 60% of gross asset value. The listed share price provides a clear market reference for a significant part of the portfolio.
Speaker #2: Making NAV a more relevant measure going forward. Net asset value amounted to NOK 4.7 billion at the end of June, and that corresponds to NOK 17.3 per share.
Speaker #2: Eivind will take you through more details later regarding this in the presentation. Let's move to slide 4, the portfolio overview. The portfolio is largely unchanged from the previous quarter, with HMH as a listed investment following the IPO completed in April.
Speaker #2: HMH remains our largest investment, with Akastor holding an economic interest of 36.3%—a slight adjustment from the 36.2% used in the second quarter—based on the actual share count as of June.
Karl Erik Kjelstad: HMH remains our largest investment, with Akastor holding an economic interest of 36.3%, a slight adjustment to the 36.2% used in Q2 based on the actual share count per due. NES Fircroft remains an important financial investment, and Akastor here continues to hold an estimated economic interest of around 15%. AKOFS Offshore remains at 66.7% on investment, while DDW Offshore is now down to only one remaining vessel following the sale of Skandi Atlantic earlier this year and Skandi Emerald in June. In addition, we continue to hold some smaller investments in Aqualis, Føn Energy Services, and ECO MM Løfteteknikk which provide further optionality but represent a smaller share of our total values. Let's take a look at some of the portfolio companies starting out with HMH at slide 5.
Karl Erik Kjelstad: HMH remains our largest investment, with Akastor holding an economic interest of 36.3%, a slight adjustment to the 36.2% used in Q2 based on the actual share count per due. NES Fircroft remains an important financial investment, and Akastor here continues to hold an estimated economic interest of around 15%. AKOFS Offshore remains at 66.7% on investment, while DDW Offshore is now down to only one remaining vessel following the sale of Skandi Atlantic earlier this year and Skandi Emerald in June. In addition, we continue to hold some smaller investments in Aqualis, Føn Energy Services, and ECO MM Løfteteknikk which provide further optionality but represent a smaller share of our total values. Let's take a look at some of the portfolio companies starting out with HMH at slide 5.
Speaker #2: Next, Aircraft remains an important financial investment, and Akastor continues to hold an estimated economic interest of around 15%. Arkov Offshore remains at 66.7% investment, while DDV Offshore is now down to only one remaining vessel following the sale of Scandia Atlantic earlier this year, and Scandia Emerald in June.
Speaker #2: In addition, we continue to hold some smaller investments in Aqualis, Fern Energy Service, and Eco Amulette Technique, which provide further optionality but represent a smaller share of our total value.
Speaker #2: Let's take a look at some of the portfolio companies, starting out with HMH at slide 5. For the second quarter, HMH reported revenues of $171 million and an adjusted EBITDA of $34 million.
Karl Erik Kjelstad: For Q2, HMH reported revenues of US$171 and an adjusted EBITDA of US$34 million, corresponding to 20% margin. The margin performance demonstrates resilience despite the dynamic market environment. Order intake was strong and the H1 book-to-bill ratio of 1.2 supports increased activity and expectations that we have for H2 2026. Following the IPO, HMH is now listed and provides a direct market reference for Akastor's largest investment. From an Akastor perspective, HMH's listing is important for two reasons. First, it's established a public market valuation for the investment, and secondly, it improved liquidity and further optionality for Akastor ownership position. Our ownership again remains unchanged. We will continue to support HMH strategy to drive profitable growth and value creation, both organically and through selective M&A. We also want HMH to maintain a strong market position through technology leadership and customer focus in innovation.
Karl Erik Kjelstad: For Q2, HMH reported revenues of US$171 and an adjusted EBITDA of US$34 million, corresponding to 20% margin. The margin performance demonstrates resilience despite the dynamic market environment. Order intake was strong and the H1 book-to-bill ratio of 1.2 supports increased activity and expectations that we have for H2 2026. Following the IPO, HMH is now listed and provides a direct market reference for Akastor's largest investment. From an Akastor perspective, HMH's listing is important for 2 reasons. First, it's established a public market valuation for the investment, and secondly, it improved liquidity and further optionality for Akastor ownership position. Our ownership again remains unchanged. We will continue to support HMH strategy to drive profitable growth and value creation, both organically and through selective M&A. We also want HMH to maintain a strong market position through technology leadership and customer focus in innovation.
Speaker #2: Corresponding to a 20% margin. The margin performance demonstrates resilience despite the dynamic market environment. Order intake was strong, and the first-half book-to-bill ratio of 1.2 supports increased activity and the expectations that we have for the second half of 2026.
Speaker #2: Following the IPO, HMH is now listed and provides a direct market reference for Akastor's largest investment. From an Akastor perspective, HMH's listing is important for two reasons.
Speaker #2: First, it has established a public market valuation for the investment, and secondly, it has improved liquidity and further optionality for Akastor's ownership position. Our ownership agenda remains, however, unchanged.
Speaker #2: We will continue to support HMH’s strategy to drive profitable growth and value creation, both organically and through selective M&A. We also want HMH to maintain its strong market position through technology leadership and customer-focused innovation.
Speaker #2: At the same time, we will actively manage our ownership over time, with a clear focus on value realization. We are not in a rush, and any further decision will be based on market conditions, liquidity, and an overview of the underlying values in HMH.
Karl Erik Kjelstad: At the same time, we will actively manage our ownership over time with a clear focus on value realization. We are not in a rush, and any further decision will be based on market condition, liquidity, and overview of the underlying values in HMH. Let's move to slide 6 and NES Fircroft. During the quarter, NES completed acquisition of Halian, establishing a platform for diversification into technology services. This is an important strategic development and broadens the company exposure beyond its traditional engineering workforce business. Operationally, the company continued to deliver solid performance and underlying EBITDA increased 7% year on year, while performance for the last 12 months EBITDA reached US$164, reflecting Halian pre-acquisition performance and annualized synergies. Cash generation was also strong, driven by effective working capital management.
Karl Erik Kjelstad: At the same time, we will actively manage our ownership over time with a clear focus on value realization. We are not in a rush, and any further decision will be based on market condition, liquidity, and overview of the underlying values in HMH. Let's move to slide 6 and NES Fircroft. During the quarter, NES completed acquisition of Halian, establishing a platform for diversification into technology services. This is an important strategic development and broadens the company exposure beyond its traditional engineering workforce business. Operationally, the company continued to deliver solid performance and underlying EBITDA increased 7% year on year, while performance for the last 12 months EBITDA reached US$164, reflecting Halian pre-acquisition performance and annualized synergies. Cash generation was also strong, driven by effective working capital management.
Speaker #2: Let's move to slide 6 and the next aircraft. During the quarter, Next completed the acquisition of Halyon, establishing a platform for diversification into technology services. This is an important strategic development that broadens the company's exposure beyond its traditional engineering workforce business.
Speaker #2: Operationally, the company continued to deliver solid performance, and underlying EBITDA increased 7% year-on-year, while performance for the last 12 months’ EBITDA reached $164 million, reflecting Halyon pre-acquisition performance and annualized synergies.
Speaker #2: Cash generation was also strong, driven by effective working capital management. Post-quarter end, Next, as mentioned, successfully placed a new $650 million bond, supporting refinancing and a planned shareholder recapitalization.
Karl Erik Kjelstad: Post-quarter end, NES, as mentioned, successfully placed a new US$650 million bond supporting refinancing and a planned shareholder recapitalization. While a substantial portion of the proceeds will be used to refinance existing debt, the bond terms also allow for dividend recapitalization of up to 350 million, subject to, as mentioned, leverage and other conditions. This is an important step both for NES and for Akastor, giving an important long-term capital structure while creating the potential for cash proceeds to shareholders subject to remaining conditions and approvals. From an ownership perspective, our agenda remains to support the growth in NES Fircroft by organic initiatives and also selective M&A in order to optimize value at exit. The planned recapitalization process represents an important building block in this strategy. Slide 7, AKOFS Offshore.
Karl Erik Kjelstad: Post-quarter end, NES, as mentioned, successfully placed a new US$650 million bond supporting refinancing and a planned shareholder recapitalization. While a substantial portion of the proceeds will be used to refinance existing debt, the bond terms also allow for dividend recapitalization of up to 350 million, subject to, as mentioned, leverage and other conditions. This is an important step both for NES and for Akastor, giving an important long-term capital structure while creating the potential for cash proceeds to shareholders subject to remaining conditions and approvals. From an ownership perspective, our agenda remains to support the growth in NES Fircroft by organic initiatives and also selective M&A in order to optimize value at exit. The planned recapitalization process represents an important building block in this strategy. Slide 7, AKOFS Offshore.
Speaker #2: While a substantial portion of the subsidies’ proceeds will be used to refinance existing debt, the bond terms also allow for dividend recapitalization of up to $350 million, subject to, as mentioned, leverage and other conditions.
Speaker #2: This is an important step both for NEXT and for Akastor, giving an important long-term capital structure while creating the potential for cash proceeds to shareholders, subject to remaining conditions and approvals.
Speaker #2: From an ownership perspective, our agenda remains to support the growth in Next Aircraft by organic initiatives and also selective M&A, while in order to optimize value at exit.
Speaker #2: The planned recapitalization process represents an important building block in this strategy. Slide 7, Arkov's Offshore. Arkov delivered a strong quarter, with revenue of $44 million and EBITDA of $16 million.
Karl Erik Kjelstad: AKOFS delivered a strong quarter with a revenue of US$44 and an EBITDA of US$16 million. Operational performance was solid across the fleet. AKOFS Fair delivered a revenue utilization of 98% in the quarter, supported by stable operation following completion of the class renewal survey in Q1. AKOFS Seafarer delivered a revenue utilization of 93% with a strong operational performance. AKOFS Santos delivered some lower revenue utilization this quarter at 86%, impacted by the temporary thruster motor failure in May, but returned to near full utilization following the repair of this mentioned thruster. Commercially, AKOFS is in a strong position with a good contract coverage and a long-term visibility across the fleet. The contract awards and renewals secured over the past year have strengthened the backlog and earnings predictability, providing a solid foundation for the ongoing refinancing process and supporting further value creation.
Karl Erik Kjelstad: AKOFS delivered a strong quarter with a revenue of US$44 and an EBITDA of US$16 million. Operational performance was solid across the fleet. AKOFS Fair delivered a revenue utilization of 98% in the quarter, supported by stable operation following completion of the class renewal survey in Q1. AKOFS Seafarer delivered a revenue utilization of 93% with a strong operational performance. AKOFS Santos delivered some lower revenue utilization this quarter at 86%, impacted by the temporary thruster motor failure in May, but returned to near full utilization following the repair of this mentioned thruster. Commercially, AKOFS is in a strong position with a good contract coverage and a long-term visibility across the fleet. The contract awards and renewals secured over the past year have strengthened the backlog and earnings predictability, providing a solid foundation for the ongoing refinancing process and supporting further value creation.
Speaker #2: Operational performance was solid across the fleet. Arkov AFR delivered a revenue utilization of 98% in the quarter, supported by stable operations following completion of the class renewal survey in the first quarter.
Speaker #2: Arkov's seafare delivered a revenue utilization of 93%, with strong operational performance. Arkov Santos delivered somewhat lower revenue utilization this quarter at 86%, impacted by the temporary thruster motor failure in May, but returned to near full utilization in June following the repair of the mentioned thruster.
Speaker #2: Commercially, Arkov is in a strong position, with good contract coverage and long-term visibility across the fleet. The contract awards and renewals secured over the past year have strengthened the backlog and earnings predictability, providing a solid foundation for the ongoing refinance process and supporting further value creation.
Karl Erik Kjelstad: Our ownership agenda also remains focused on securing delivery on the order backlog and exploring strategic initiatives over time. Slide 8, DDW Offshore. DDW now owns only one remaining anchor handling vessel, Skandi Peregrino, following the sale of Skandi Emerald in June. Skandi Peregrino remained on contract in Australia throughout the quarter and delivered a solid 98% utilization. During the quarter, the firm contract period was extended to November 2026 to an exercise option providing continued visibility for the remaining vessel. The sale of Skandi Emerald was completed in June for the mentioned $23 million. The transaction generated a positive impact on revenue and EBITDA in the quarter and contributed to Akastor's strength and liquidity position. The DDW transactions are fully aligned with our strategy of value realization. We have reduced exposure to maturing investment, realized cash proceeds, and created a basis for further shareholder distributions.
Karl Erik Kjelstad: Our ownership agenda also remains focused on securing delivery on the order backlog and exploring strategic initiatives over time. Slide 8, DDW Offshore. DDW now owns only one remaining anchor handling vessel, Skandi Peregrino, following the sale of Skandi Emerald in June. Skandi Peregrino remained on contract in Australia throughout the quarter and delivered a solid 98% utilization. During the quarter, the firm contract period was extended to November 2026 to an exercise option providing continued visibility for the remaining vessel. The sale of Skandi Emerald was completed in June for the mentioned $23 million. The transaction generated a positive impact on revenue and EBITDA in the quarter and contributed to Akastor's strength and liquidity position. The DDW transactions are fully aligned with our strategy of value realization. We have reduced exposure to maturing investment, realized cash proceeds, and created a basis for further shareholder distributions.
Speaker #2: Our ownership agenda also remains focused on securing delivery on the order backlog and exploring strategic initiatives over time. Slide 8, DDV Offshore. DDV now owns only one remaining anchor handling vessel, Scandia Peregrino, following the sale of Scandia Emerald in June.
Speaker #2: Scandia Peregrino remained on contract in Australia throughout the quarter, and delivered a solid 98% utilization. During the quarter, the firm contract period was extended to November 2026 through an exercised option, providing continued visibility for the remaining vessel.
Speaker #2: The sale of Scandia Emerald was completed in June. For the mentioned €23 million, the transaction generated a positive impact on revenue and EBITDA in the quarter, and contributed to Akastor's strengthened liquidity position.
Speaker #2: The DDV transactions are fully aligned with our strategy of value realization. We have reduced exposure to maturing investments, realized cash proceeds, and created a basis for further shareholder distributions.
Speaker #2: Going forward, the focus for DDV is to safeguard operations, secure high utilization for Scandia Peregrino, and optimize value at exit. Then, finally, let's look at slide 9, with the key priorities for Akastor going forward.
Karl Erik Kjelstad: Going forward, the focus for DDW is to safeguard operations, secure high utilization for Skandi Peregrino, and optimize value at the exit. Then finally, let's look at slide 9 with the key priorities for Akastor going forward. Akastor's strategy remains focused on value creation, enabling liquidity, and returning capital to shareholders. We continue to work actively with our portfolio companies to maximize value through strategic, operational, and financial initiatives. That remains the foundation for our ownership model. At the same time, we are increasingly moving from value creation into value realization. The HMH IPO, the DDW vessel sales, and refinancing and recapitalization of NES Fircroft are all examples of this. Our objective is to create portfolio liquidity and optimize the timing of exits either through cash realization or listed shares.
Karl Erik Kjelstad: Going forward, the focus for DDW is to safeguard operations, secure high utilization for Skandi Peregrino, and optimize value at the exit. Then finally, let's look at slide 9 with the key priorities for Akastor going forward. Akastor's strategy remains focused on value creation, enabling liquidity, and returning capital to shareholders. We continue to work actively with our portfolio companies to maximize value through strategic, operational, and financial initiatives. That remains the foundation for our ownership model. At the same time, we are increasingly moving from value creation into value realization. The HMH IPO, the DDW vessel sales, and refinancing and recapitalization of NES Fircroft are all examples of this. Our objective is to create portfolio liquidity and optimize the timing of exits either through cash realization or listed shares.
Speaker #2: Akastor's strategy remains focused on value creation, enabling liquidity, and returning capital to shareholders. We continue to work actively with our portfolio companies to maximize value through strategic, operational, and financial initiatives.
Speaker #2: That remains the foundation for our ownership model. At the same time, we are increasingly moving from value creation into value realization. The HMH IPO, the DDV vessel sales, and the refinancing and recapitalization of next aircraft are all examples of this.
Speaker #2: Our objective is to create portfolio liquidity and optimize the timing of exits, either through cash realization or listed shares. When proceeds are realized, we will continue to assess distributions to shareholders while at the same time maintaining a sound capital structure.
Karl Erik Kjelstad: When proceeds are realized, we will continue to assess distribution to shareholders while at the same time maintaining a sound capital structure. The fifth consecutive dividend approved in connection with Q2 is a clear example of this strategy put into action. With that, I will hand over to Øyvind, who will take you through the financial update in more detail. Øyvind, over to you.
Karl Erik Kjelstad: When proceeds are realized, we will continue to assess distribution to shareholders while at the same time maintaining a sound capital structure. The fifth consecutive dividend approved in connection with Q2 is a clear example of this strategy put into action. With that, I will hand over to Øyvind, who will take you through the financial update in more detail. Øyvind, over to you.
Speaker #2: The fifth consecutive dividend approved in connection with the second quarter is a clear example of this strategy put into action. With that, I will hand over to Owen, who will take you through the financial update in more detail.
Speaker #2: Owen, over to you.
Speaker #1: Thank you, Colin. I will now take you through our financials, starting on slide 11 with our balance sheet and the fair value adjustments.
Øyvind Paaske: Thank you, Kalle. I will then take you through our financials, starting on slide 11 with our balance sheet and the fair value adjustments. As Kalle mentioned, following the listing of HMH, we are shifting focus from book values towards fair value adjusted net asset value. The key reason is, of course, that HMH is now listed, which gives us a clear market reference for this investment, which represents around 60% of our gross asset values. As shown in the table to the left on this slide, the only fair value adjustment is related to HMH, while all the other investments continue to be reflected at book value. Starting with HMH, the carrying value in our books was NOK 3.01 billion at quarter end, reflecting Akastor's 36.3% post-IPO ownership share under the equity method.
Øyvind Paaske: Thank you, Kalle. I will then take you through our financials, starting on slide 11 with our balance sheet and the fair value adjustments. As Kalle mentioned, following the listing of HMH, we are shifting focus from book values towards fair value adjusted net asset value. The key reason is, of course, that HMH is now listed, which gives us a clear market reference for this investment, which represents around 60% of our gross asset values. As shown in the table to the left on this slide, the only fair value adjustment is related to HMH, while all the other investments continue to be reflected at book value. Starting with HMH, the carrying value in our books was NOK 3.01 billion at quarter end, reflecting Akastor's 36.3% post-IPO ownership share under the equity method.
Speaker #1: As Colin mentioned, following the listing of HMH, we are shifting focus from book values towards fair value–adjusted net asset value. The key reason is, of course, that HMH is now listed, which gives us a clear market reference for this investment, which represents around 60% of our gross asset values.
Speaker #1: As shown in the table to the left on this slide, the only fair value adjustment is related to HMH, while all the other investments continue to be reflected at book value.
Speaker #1: So, starting with HMH, the carrying value in our books was NOK 3.01 billion at quarter-end, reflecting then Akastor's 36.3% post-IPO ownership share under the equity method.
Speaker #1: The fair value adjusted value was NOK 2.966 billion, based on the closing share price of USD 18.74 per share at the end of June.
Øyvind Paaske: The fair value adjusted value was NOK 2.966 billion, based on the closing share price of US$18.74 per share at the end of June. This gave a negative fair value adjustment of NOK 44 million. Since quarter end, the share price of HMH has increased, implying a higher fair value of Akastor's HMH investment today than reflected in the net asset value as per Q2. The book value of HMH decreased by NOK 433 million during the quarter, mainly reflecting the reduced ownership following the IPO, as well as IPO-related accounting effects recognized during the period. Going forward, HMH's book value will reflect Akastor's share of HMH reported equity under the equity method, while the net asset value view will separately reflect the market value of our listed holding. For DDW, book values decreased during the period following the realization of Skandi Emerald.
Øyvind Paaske: The fair value adjusted value was NOK 2.966 billion, based on the closing share price of US$18.74 per share at the end of June. This gave a negative fair value adjustment of NOK 44 million. Since quarter end, the share price of HMH has increased, implying a higher fair value of Akastor's HMH investment today than reflected in the net asset value as per Q2. The book value of HMH decreased by NOK 433 million during the quarter, mainly reflecting the reduced ownership following the IPO, as well as IPO-related accounting effects recognized during the period. Going forward, HMH's book value will reflect Akastor's share of HMH reported equity under the equity method, while the net asset value view will separately reflect the market value of our listed holding. For DDW, book values decreased during the period following the realization of Skandi Emerald.
Speaker #1: This gave a negative fair value adjustment of NOK 44 million. Since quarter end, the share price of HMH has increased, implying a higher fair value of Akastor's HMH investment today than reflected in the net asset value as per Q2.
Speaker #1: The book value of HMH decreased by NOK 433 million during the quarter, mainly reflecting the reduced ownership following the IPO, as well as IPO-related accounting effects recognized during the period.
Speaker #1: Going forward, HMH's book value will reflect Akastor's share of HMH's reported equity under the equity method, while the net asset value view will separately reflect the market value of our listed holding.
Speaker #1: For DDV, book values decreased during the period following the realization of Scandia Emerald. The sale was completed for $23 million, as mentioned, with the value then effectively transferred into cash.
Øyvind Paaske: The sale was completed for 23 million, as mentioned, with value then effectively transferred into cash. AKOFS Offshore remains carried at zero in our books, reflecting the prior reduction of the equity investment. We do, however, continue to carry the shareholder receivable provided to AKOFS at full value, included here under shareholder receivables. Other assets and other liabilities remained relatively stable through the period. Shareholder receivables were reduced following the cash settlements of the HMH shareholder loan in connection with the IPO, while cash and fund investments increased to NOK 560 million at quarter end. Debt was reduced during the quarter following the DDW realization. In total, book equity value decreased by 472 million during the quarter, primarily reflecting the dividend payment of NOK 1.5 per share paid in May and accounting effects recognized in the period.
Øyvind Paaske: The sale was completed for 23 million, as mentioned, with value then effectively transferred into cash. AKOFS Offshore remains carried at zero in our books, reflecting the prior reduction of the equity investment. We do, however, continue to carry the shareholder receivable provided to AKOFS at full value, included here under shareholder receivables. Other assets and other liabilities remained relatively stable through the period. Shareholder receivables were reduced following the cash settlements of the HMH shareholder loan in connection with the IPO, while cash and fund investments increased to NOK 560 million at quarter end. Debt was reduced during the quarter following the DDW realization. In total, book equity value decreased by 472 million during the quarter, primarily reflecting the dividend payment of NOK 1.5 per share paid in May and accounting effects recognized in the period.
Speaker #1: Akastor's offshore remains carried at zero in our books, reflecting the prior reduction of the equity investment. We do, however, continue to carry the shareholder receivable provided to Akastor at full value, included here under shareholder receivables.
Speaker #1: Other assets and other liabilities remained relatively stable throughout the period. Shareholder receivables were reduced following the cash settlement of the HMH shareholder loan in connection with the IPO.
Speaker #1: While cash and fund investments increased to NOK 560 million at quarter end, debt was reduced during the quarter following the DDV realization. In total, book equity value decreased by NOK 472 million during the quarter, primarily reflecting the dividend payment of NOK 1.50 per share paid in May, and accounting effects recognized in the period.
Speaker #1: At the same time, value realizations in HMH and DDV transferred value into cash, strengthening the balance sheet liquidity position. Our total fair value adjusted NAV was NOK 4.735 billion at the end of June, corresponding to NOK 17.3 per share, which was then broadly in line with the book equity value per share as per June 30th.
Øyvind Paaske: At the same time, value realizations in HMH and DDW transferred value into cash, strengthening the balance sheet liquidity position. Our total fair value adjusted NAV was NOK 4.735 billion at the end of June, corresponding to NOK 17.3 per share, which was then broadly in line with the book equity value per share as per 30 June. Let's then turn to the next slide for the overview of cash movements. In Q2, our net cash position increased by 321 million to 540 million at period end. This was then driven by proceeds from the HMH IPO, as well as the sale of Skandi Emerald, partly offset by the dividend payment in May. The Q2 consolidated net cash position includes a net cash position of NOK 24 million in DDW Offshore compared to a net debt position of 68 million in DDW in the previous quarter.
Øyvind Paaske: At the same time, value realizations in HMH and DDW transferred value into cash, strengthening the balance sheet liquidity position. Our total fair value adjusted NAV was NOK 4.735 billion at the end of June, corresponding to NOK 17.3 per share, which was then broadly in line with the book equity value per share as per 30 June. Let's then turn to the next slide for the overview of cash movements. In Q2, our net cash position increased by 321 million to 540 million at period end. This was then driven by proceeds from the HMH IPO, as well as the sale of Skandi Emerald, partly offset by the dividend payment in May. The Q2 consolidated net cash position includes a net cash position of NOK 24 million in DDW Offshore compared to a net debt position of 68 million in DDW in the previous quarter.
Speaker #1: Let's then turn to the next slide for the overview of cash movements. In Q2, our net cash position increased by NOK 321 million, to NOK 540 million at period end.
Speaker #1: This was then driven by proceeds from the HMH IPO, as well as the sale of Scandia Emerald, partly offset by the dividend payment in May.
Speaker #1: The Q2 consolidated net cash position includes a net cash position of NOK 24 million in DDV Offshore, compared to a net debt position of NOK 68 million in DDV in the previous quarter.
Speaker #1: This reflects the completion of the Scandia Emerald transaction, where part of the proceeds was used to reduce the draw under the DDV RCF. It can be noted that the DDV cash position at quarter-end was supported by a favorable working capital position, which is expected to normalize during the second half of the year.
Øyvind Paaske: This reflects the completion of the Skandi Emerald transaction, where part of the proceeds was used to reduce the draw under the DDW RCF. It can be noted that the DDW cash position at quarter end was supported by a favorable working capital position, which is expected to normalize during the H2 of the year. At quarter end, net interest-bearing items amounted to approximately NOK 1.0 billion, including cash and fund investments, as well as interest-bearing exposure towards AKOFS Offshore. Interest-bearing receivables then decreased during the quarter, mainly reflecting the repayment of the HMH shareholder loan of US$27 million. Looking ahead, the net cash position will be affected by the approved dividend scheduled for later this quarter. Then the overview of our external financing facilities. The corporate US$30 million RCF was canceled in May.
Øyvind Paaske: This reflects the completion of the Skandi Emerald transaction, where part of the proceeds was used to reduce the draw under the DDW RCF. It can be noted that the DDW cash position at quarter end was supported by a favorable working capital position, which is expected to normalize during the H2 of the year. At quarter end, net interest-bearing items amounted to approximately NOK 1.0 billion, including cash and fund investments, as well as interest-bearing exposure towards AKOFS Offshore. Interest-bearing receivables then decreased during the quarter, mainly reflecting the repayment of the HMH shareholder loan of US$27 million. Looking ahead, the net cash position will be affected by the approved dividend scheduled for later this quarter. Then the overview of our external financing facilities. The corporate US$30 million RCF was canceled in May.
Speaker #1: At quarter end, net interest-bearing items amounted to approximately NOK 1.0 billion, including cash and fund investments, as well as interest-bearing exposure towards Akastor's offshore.
Speaker #1: Interest-bearing receivables then decreased during the quarter, mainly reflecting the repayment of the HMH shareholder loan of $27 million. Looking ahead, the net cash position will be affected by the approved dividend scheduled for later this quarter.
Speaker #1: Then the overview of our external financing facilities. The corporate USD 30 million RCF was canceled in May. The facility had been suspended following the HMH IPO due to the release of the legacy share pledge over HMH shares.
Øyvind Paaske: The facility had been suspended following the HMH IPO due to the release of legacy share pledge over HMH shares. Given Akastor's strong liquidity position and ongoing work towards a better-suited financing solution, the facility was canceled to avoid ongoing commitment cost and remove structural constraints related to the HMH shareholding. As mentioned also last time, we are evaluating a new corporate backup facility potentially linked directly to listed HMH shares following expiry of the lock-up period. This would provide a more flexible and cost-efficient alternative to the last facility. For DDW Offshore, their revolving credit facility was reduced to US$7 million, following the sale of Skandi Emerald, with 2 million drawn as per end of June. At quarter end, total available liquidity amounted to 560 million, including 44 million of cash held within DDW Offshore.
Øyvind Paaske: The facility had been suspended following the HMH IPO due to the release of legacy share pledge over HMH shares. Given Akastor's strong liquidity position and ongoing work towards a better-suited financing solution, the facility was canceled to avoid ongoing commitment cost and remove structural constraints related to the HMH shareholding. As mentioned also last time, we are evaluating a new corporate backup facility potentially linked directly to listed HMH shares following expiry of the lock-up period. This would provide a more flexible and cost-efficient alternative to the last facility. For DDW Offshore, their revolving credit facility was reduced to US$7 million, following the sale of Skandi Emerald, with 2 million drawn as per end of June. At quarter end, total available liquidity amounted to 560 million, including 44 million of cash held within DDW Offshore.
Speaker #1: Given Akastor's strong liquidity position and ongoing work towards a better-suited financing solution, the facility was canceled to avoid ongoing commitment costs and to remove structural constraints related to the HMH shareholding.
Speaker #1: As mentioned also last time, we are evaluating a new corporate backup facility, potentially linked directly to listed HMH shares, following expiry of the lock-up period.
Speaker #1: This would provide a more flexible and cost-efficient alternative to the last facility. For DDV Offshore, their revolving credit facility was reduced to $7 million, following the sale of Scandia Emerald, with $2 million drawn as per end of June.
Speaker #1: At quarter-end, total available liquidity amounted to €560 million, including €44 million of cash held within DDV Offshore. This represents cash and fund investments only, as Akastor no longer has a corporate RCF in place, and the undrawn portion of the DDV facility is not included in this liquidity metric.
Øyvind Paaske: This then represents cash and fund investments only as Akastor then no longer has a corporate RCF in place, and the undrawn portion of the DDW facility is not included in this liquidity metric. Then over to our consolidated P&L. Again, as a reminder, most of our holdings are not consolidated in our group financials, and as a result, consolidated revenue and EBITDA represent only a limited portion of underlying values. DDW Offshore delivered total revenues of 156 million in the quarter, including 101 million related to the gain on the sale of Skandi Emerald. Operationally, Skandi Emerald reported limited utilization, reflecting the sale completed in May, while Peregrino remained on contract throughout the quarter. EBITDA amounted to 113 million, driven by the gain related to the sale.
Øyvind Paaske: This then represents cash and fund investments only as Akastor then no longer has a corporate RCF in place, and the undrawn portion of the DDW facility is not included in this liquidity metric. Then over to our consolidated P&L. Again, as a reminder, most of our holdings are not consolidated in our group financials, and as a result, consolidated revenue and EBITDA represent only a limited portion of underlying values. DDW Offshore delivered total revenues of 156 million in the quarter, including 101 million related to the gain on the sale of Skandi Emerald. Operationally, Skandi Emerald reported limited utilization, reflecting the sale completed in May, while Peregrino remained on contract throughout the quarter. EBITDA amounted to 113 million, driven by the gain related to the sale.
Speaker #1: Then over to our consolidated P&L. Again, as a reminder, most of our holdings are not consolidated in our group financials, and as a result, consolidated revenue and EBITDA represent only a limited portion of underlying values.
Speaker #1: DDV Offshore delivered total revenues of $156 million in the quarter, including $101 million related to the gain on the sale of Scandia Emerald.
Speaker #1: Operationally, Scandia Emerald reported limited utilization, reflecting the sale completed in May, while Peregrino remained on contract throughout the quarter. EBITDA amounted to $113 million, driven by the gain related to the sale.
Speaker #1: Other EBITDA was negative by NOK 19 million, and in total, consolidated revenue and EBITDA for the quarter amounted to NOK 156 million and NOK 94 million, respectively.
Øyvind Paaske: Other EBITDA was -19 million, and in total, consolidated revenue and EBITDA for the quarter amounted to NOK 156 million and NOK 94 million respectively. Then some details on our net financial items. Financial investments contributed -1 million, primarily driven by the share price decline in Aqualis during the quarter, partly offset by positive valuation effects related to our investment in NES. FX accounting effects contributed +30 million and combined with net interest income of 5 million and other financial income of 6 million, total net financial items contributed +NOK 41 million in the quarter. Total net negative contribution from equity accounted investments was NOK 137 million in the period. HMH contributed a net negative of 120 million, primarily reflecting IPO-related effects.
Øyvind Paaske: Other EBITDA was -19 million, and in total, consolidated revenue and EBITDA for the quarter amounted to NOK 156 million and NOK 94 million respectively. Then some details on our net financial items. Financial investments contributed -1 million, primarily driven by the share price decline in Aqualis during the quarter, partly offset by positive valuation effects related to our investment in NES. FX accounting effects contributed +30 million and combined with net interest income of 5 million and other financial income of 6 million, total net financial items contributed +NOK 41 million in the quarter. Total net negative contribution from equity accounted investments was NOK 137 million in the period. HMH contributed a net negative of 120 million, primarily reflecting IPO-related effects.
Speaker #1: Then some details on our net financial items. Financial investments contributed negatively by $1 million, primarily driven by the share price decline in Aqualis during the quarter, partly offset by positive valuation effects related to our investment in NAS.
Speaker #1: FX accounting effects contributed positively by NOK 30 million, and combined with net interest income of NOK 5 million and other financial income of NOK 6 million, total net financial items contributed positively by NOK 41 million in the quarter.
Speaker #1: Total net negative contribution from equity-accounted investments was NOK 137 million in the period. HMH contributed a net negative of NOK 120 million, primarily reflecting IPO-related effects.
Speaker #1: The negative contribution relates to the reduction in Akastor's ownership through the IPO, at a valuation below the carrying value of our investments, resulting in a dilution loss recognized in the P&L.
Øyvind Paaske: The negative contribution relates to the reduction in Akastor's ownership through the IPO at the valuation below carrying value of our investments, resulting in a dilution loss recognized in the P&L. The result was further impacted by IPO-related costs recognized by HMH during the period. As mentioned earlier, following the IPO, HMH is accounted for using the equity method, meaning that our carrying value now represents 36% share of HMH reported equity and is independent of subsequent movements in the listed share price. Other investments contributed negatively by NOK 17 million. With that, we are through the presentation and we will move over to the Q&A session. We will take a short pause in order for the listeners to provide their questions. We will be back soon. Okay, then we are back. We have a few questions regarding the HMH ownership and our strategy for realizing that ownership.
Øyvind Paaske: The negative contribution relates to the reduction in Akastor's ownership through the IPO at the valuation below carrying value of our investments, resulting in a dilution loss recognized in the P&L. The result was further impacted by IPO-related costs recognized by HMH during the period. As mentioned earlier, following the IPO, HMH is accounted for using the equity method, meaning that our carrying value now represents 36% share of HMH reported equity and is independent of subsequent movements in the listed share price. Other investments contributed negatively by NOK 17 million. With that, we are through the presentation and we will move over to the Q&A session. We will take a short pause in order for the listeners to provide their questions. We will be back soon. Okay, then we are back. We have a few questions regarding the HMH ownership and our strategy for realizing that ownership.
Speaker #1: The result was further impacted by IPO-related costs recognized by HMH during the period. As mentioned earlier, following the IPO, HMH is accounted for using the equity method, meaning that our carrying value now represents a 36% share of HMH reported equity, and is independent of subsequent movements in the listed share price.
Speaker #1: Other investments contributed negatively by $17 million. With that, we are through the presentation, and we'll move over to the Q&A session. We will take a short pause in order for the listeners to provide their questions.
Speaker #1: We'll be back soon. Okay, then we're back. We have a few questions regarding the HMH ownership and our strategy for realizing that ownership. So, Carla, I'll start with this for you.
Øyvind Paaske: Karl Erik Kjelstad, I will start with this for you.
Øyvind Paaske: Karl Erik Kjelstad, I will start with this for you.
Speaker #1: How should we think about Akastor's ownership in HMH following the IPO?
Karl Erik Kjelstad: How should we think about Akastor's ownership in HMH following the IPO?
Karl Erik Kjelstad: How should we think about Akastor's ownership in HMH following the IPO?
Karl Erik Kjelstad: As mentioned, the IPO was an important milestone for us, both establishing a public market valuation for HMH and also generating liquidity for Akastor. After the IPO and the greenshoe exercise, we received approximately US$53 million in cash proceeds and repayment of the shareholder loans we had to HMH. The current lock-up arrangement expires towards the end of Q3. While Akastor's strategy remains to realize value over time, we are under no pressure to sell shares at a specific point in time. Our focus will remain focused on maximizing shareholder value, and we will continue to assess potential future sales based on market conditions, liquidity, and also our view on underlying values in HMH.
Karl Erik Kjelstad: As mentioned, the IPO was an important milestone for us, both establishing a public market valuation for HMH and also generating liquidity for Akastor. After the IPO and the greenshoe exercise, we received approximately US$53 million in cash proceeds and repayment of the shareholder loans we had to HMH. The current lock-up arrangement expires towards the end of Q3. While Akastor's strategy remains to realize value over time, we are under no pressure to sell shares at a specific point in time. Our focus will remain focused on maximizing shareholder value, and we will continue to assess potential future sales based on market conditions, liquidity, and also our view on underlying values in HMH.
Speaker #2: As mentioned, the IPO was an important milestone for us, both in establishing a public market valuation for HMH and in generating liquidity for Akastor. Also, after the IPO and the greenshoe exercise, we received approximately $53 million in cash proceeds and repayment of the shareholder loans.
Speaker #2: With regard to HMH, the current lock-up arrangement expires towards the end of the third quarter. While Akastor's strategy remains to realize value over time, we are under no pressure to sell shares at a specific point in time.
Speaker #2: Our focus will remain on maximizing shareholder value, and we will continue to assess potential future sales based on market conditions, liquidity, and also our view on the underlying values in HMH.
Speaker #2: At the same time, HMH remains our largest investment, and we continue to see attractive value creation potential through operational execution, margin improvements, and continued growth in the HMH business going forward.
Karl Erik Kjelstad: At the same time, HMH remains our largest investment, and we continue to see attractive value creation potential through operational execution, margin improvements, and also continued growth in the HMH business going forward.
Karl Erik Kjelstad: At the same time, HMH remains our largest investment, and we continue to see attractive value creation potential through operational execution, margin improvements, and also continued growth in the HMH business going forward.
Speaker #1: Thank you, Carla. Then, partly related question: how should we think about future shareholder distributions going forward?
Øyvind Paaske: Thank you, Kalle. A partly related question. How should we think about future shareholder distributions going forward?
Øyvind Paaske: Thank you, Kalle. A partly related question. How should we think about future shareholder distributions going forward?
Speaker #2: Well, our approach here will remain unchanged. We seek to return excess capital to shareholders when realizations occur. At the same time, we're maintaining a strong balance sheet.
Karl Erik Kjelstad: Well, our approach here will remain unchanged. We seek to return excess capital to shareholders when realizations occur, but at the same time, maintaining a strong balance sheet. During H1 2026, we have returned NOK 1.90 to our shareholders. And with this last announcement today, additional dividend of NOK 0.50 per share. Further distribution will continue to be assessed in light of realized liquidity and capital requirements.
Karl Erik Kjelstad: Well, our approach here will remain unchanged. We seek to return excess capital to shareholders when realizations occur, but at the same time, maintaining a strong balance sheet. During H1 2026, we have returned NOK 1.90 to our shareholders. And with this last announcement today, additional dividend of NOK 0.50 per share. Further distribution will continue to be assessed in light of realized liquidity and capital requirements.
Speaker #2: During the first half of 2026, we have returned NOK 1.90 to our shareholders, and with this last announcement today, an additional dividend of NOK 0.50 per share.
Speaker #2: Further distribution will continue to be assessed in light of realized liquidity and capital requirements.
Speaker #1: Thank you. We've received some questions regarding the recapitalization of NAS, so I'll take one of those. Can you elaborate a bit around the potential recap of NAS Faircroft following their refinancing?
Øyvind Paaske: Thank you. We have received some questions regarding the recapitalization of NES. I will take one of those. Can you elaborate a bit around the potential recap of NES Fircroft following their refi?
Øyvind Paaske: Thank you. We have received some questions regarding the recapitalization of NES. I will take one of those. Can you elaborate a bit around the potential recap of NES Fircroft following their refi?
Speaker #2: Yeah, so NAS did this, I would say, successfully. The refi was this $650 million secured bond, and it primarily serves to refinance the company's existing debt and also establish a more flexible, long-term capital structure for the company.
Karl Erik Kjelstad: Yeah. NES did this, I would say, successfully refi with this $650 million secured bond. Primarily it serves to refinance the company's existing debt and also establish a more flexible long-term capital structure for the company. As disclosed in the bond documentation, the financing structure allows for shareholder recapitalization subject to leverage and other conditions has to be satisfied. The documentation includes capacity for dividend recapitalization of up to $350 million, although the eventual amount, timing, and structure remains subject to funding conditions and approvals. From a customer perspective, the refinancing is an important step as it improves our financial flexibility for NES Fircroft, while also creating the potential for cash proceeds to shareholders.
Karl Erik Kjelstad: Yeah. NES did this, I would say, successfully refi with this $650 million secured bond. Primarily it serves to refinance the company's existing debt and also establish a more flexible long-term capital structure for the company. As disclosed in the bond documentation, the financing structure allows for shareholder recapitalization subject to leverage and other conditions has to be satisfied. The documentation includes capacity for dividend recapitalization of up to $350 million, although the eventual amount, timing, and structure remains subject to funding conditions and approvals. From a customer perspective, the refinancing is an important step as it improves our financial flexibility for NES Fircroft, while also creating the potential for cash proceeds to shareholders.
Speaker #2: And as disclosed in the bond documentation, the financing structure allows for shareholder recapitalization, subject to leverage and other conditions having to be satisfied. The documentation includes capacity for dividend recapitalization of up to $350 million, although the eventual amount, timing, and structure remain subject to final conditions and approvals.
Speaker #2: From a customer perspective, the refinance is an important step as it improves our financial flexibility for NAS Faircroft, while also creating the potential for cash proceeds to shareholders.
Speaker #2: Currently, we are not providing guidance on the fund size or timing of the shareholder distribution, but we can confirm that Akastor expects to receive its proportional share of proceeds and ultimately distribute this to our shareholders, given approval from our board of directors.
Karl Erik Kjelstad: Currently, we are not providing guidance on the fund size or timing of the shareholder distribution, but we can confirm that the customer expect to receive its proportional share of proceeds and ultimately distribute this to our shareholders, given approval from our board of directors. Overall, we view the refinance as a positive development for both NES Fircroft and Akastor, supporting a strong capital structure, which also create additional avenue for further value creation for the company.
Karl Erik Kjelstad: Currently, we are not providing guidance on the fund size or timing of the shareholder distribution, but we can confirm that the customer expect to receive its proportional share of proceeds and ultimately distribute this to our shareholders, given approval from our board of directors. Overall, we view the refinance as a positive development for both NES Fircroft and Akastor, supporting a strong capital structure, which also create additional avenue for further value creation for the company.
Speaker #2: Overall, we view the refinance as a positive development for both NAS Faircroft and Akastor, supporting a strong capital structure, which also creates additional avenues for further value creation for the company.
Speaker #1: Okay, thank you, Carla. Then we have received a question on the ACOS refi, which I can comment on. Regarding the ACOS refi, could you expect to see a realization of the shareholder loan in favor of external financing, and what is the timeline there?
Øyvind Paaske: Okay. Thank you, Kalle. Then we have received a question on the AKOFS refi, which I can comment on. AKOFS refi, could you expect to see a realization of the shareholder loan in favor of the external financing, and what is the timeline there? As we have mentioned in the presentation, the refinancing process in AKOFS is progressing, and we do it in terms of timeline. We target the completion during the H2 of this year, subject then, of course, to final documentation approvals, et cetera. We do see good engagement from financing providers, supported of course, by AKOFS' strong contract coverage and their backlog, and also of course, their stable operational performance.
Øyvind Paaske: Okay. Thank you, Kalle. Then we have received a question on the AKOFS refi, which I can comment on. AKOFS refi, could you expect to see a realization of the shareholder loan in favor of the external financing, and what is the timeline there? As we have mentioned in the presentation, the refinancing process in AKOFS is progressing, and we do it in terms of timeline. We target the completion during the H2 of this year, subject then, of course, to final documentation approvals, et cetera. We do see good engagement from financing providers, supported of course, by AKOFS' strong contract coverage and their backlog, and also of course, their stable operational performance.
Speaker #1: So, as we have mentioned in the presentation, the refinancing process in ACOS is progressing, and in terms of timeline, we are targeting completion during the second half of this year.
Speaker #1: Subject, then, of course, to final documentation approvals, etc. And we do see good engagement from financing providers, supported, of course, by AKO's strong contract coverage and their backlog, and also, of course, their stable operational performance.
Speaker #1: When it comes to the intention, the proposed financing that we seek is primarily to refinance the company's existing debt facilities and establish a long-term financing platform, aligned with the new and prolonged contract portfolio, aligning that with the debt maturity profile.
Øyvind Paaske: When it comes to the intention, the proposed financing that we seek is primarily to refinance the company's existing debt facilities and establish a long-term financing platform aligned with the new and prolonged then contract portfolio, aligning that with debt maturity profile. Also we do aim to secure funding for the exercise of the purchase option for Aker Wayfarer, which is then expected to be called later this year with settlement in 2027. The proceeds from a refi are intended to refinancing existing debt plus then the acquisition of Wayfarer, in addition to, of course, general corporate purposes. But we do not see at this point, a realization of any shareholder loan in connection with this refi. Then we have one other question on NES, which goes to the recap. Is this a substitute to a sale or an IPO?
Øyvind Paaske: When it comes to the intention, the proposed financing that we seek is primarily to refinance the company's existing debt facilities and establish a long-term financing platform aligned with the new and prolonged then contract portfolio, aligning that with debt maturity profile. Also we do aim to secure funding for the exercise of the purchase option for Aker Wayfarer, which is then expected to be called later this year with settlement in 2027. The proceeds from a refi are intended to refinancing existing debt plus then the acquisition of Wayfarer, in addition to, of course, general corporate purposes. But we do not see at this point, a realization of any shareholder loan in connection with this refi. Then we have one other question on NES, which goes to the recap. Is this a substitute to a sale or an IPO?
Speaker #1: And also, we do aim to secure funding for the exercise of the purchase option for ACOS Wayfarer, which is then expected to be called later this year.
Speaker #1: We'd have settlement in 2027. So, the proceeds from a refi are intended to refinance existing debt, plus the acquisition of Wayfarer—in addition to, of course, general corporate purposes. But we do not see, at this point, a realization of any shareholder loan in connection with this refi.
Speaker #1: Yeah. So, we have one other question on NAS, which goes back to the recap. Is this a substitute for a sale or an IPO?
Speaker #1: Any updated view on the exit optionality? I can comment briefly on that, since Carla, you have already sort of mentioned most of it there, but I think this is viewed as two separate matters: the refi and the potential recap.
Øyvind Paaske: The updated view on the exit optionality. I can comment briefly on that since Karl Erik Kjelstad already mentioned the most there. I think this is viewed as two separate matters in the refi and potential recap. That primarily reflects the company's operational performance and cash generation, which is strong, and the desire to optimize capital structure. The new bond, as Karl Erik Kjelstad said, provides a long-term financing platform, and also then creates a potential to take out some cash for shareholders. From our perspective, I think it's fair to say that our ownership agenda then remains unchanged from what we have said previously. We see this potential realization of the full value in NES as a separate matter to the recapitalization and refinancing of the company. Then one last question received regarding the Peregrino vessel.
Øyvind Paaske: The updated view on the exit optionality. I can comment briefly on that since Karl Erik Kjelstad already mentioned the most there. I think this is viewed as two separate matters in the refi and potential recap. That primarily reflects the company's operational performance and cash generation, which is strong, and the desire to optimize capital structure. The new bond, as Karl Erik Kjelstad said, provides a long-term financing platform, and also then creates a potential to take out some cash for shareholders. From our perspective, I think it's fair to say that our ownership agenda then remains unchanged from what we have said previously. We see this potential realization of the full value in NES as a separate matter to the recapitalization and refinancing of the company. Then one last question received regarding the Peregrino vessel.
Speaker #1: That primarily reflects the company's operational performance and cash generation, which is strong, and a desire to optimize the capital structure. So the new bond, as Carla said, provides a long-term financing platform and also then creates a potential to take out some cash for shareholders.
Speaker #1: From our perspective, I think it's fair to say that our ownership agenda remains unchanged from what we have said previously. We see this potential realization of the full value in NAS as a separate matter from the recapitalization and refinancing of the company.
Speaker #1: Then, one last question received regarding the Peregrino vessel—do you have a view on potential contractor renewal of their options for Scandic Peregrino after November?
Øyvind Paaske: Do you have a view on potential contract renewal of their options for Skandi Peregrino after November? I can take that as well. The current contract, as you've seen on the slide, includes a series of priced options that can extend the firm period for up to, I believe, 16 months after November 2026. So there is as such a mechanism already in place that could provide continued utilization on that vessel. Of course, we maintain a dialogue with the customer regarding those options. At the same time, we assess opportunities in the broader market to ensure continued utilization and to maximize the value of the vessel. The market as we view it, remains active in several regions and also in the regions where Peregrino is situated.
Øyvind Paaske: Do you have a view on potential contract renewal of their options for Skandi Peregrino after November? I can take that as well. The current contract, as you've seen on the slide, includes a series of priced options that can extend the firm period for up to, I believe, 16 months after November 2026. So there is as such a mechanism already in place that could provide continued utilization on that vessel. Of course, we maintain a dialogue with the customer regarding those options. At the same time, we assess opportunities in the broader market to ensure continued utilization and to maximize the value of the vessel. The market as we view it, remains active in several regions and also in the regions where Peregrino is situated.
Speaker #1: And I can take that as well. The current contract, as you've seen on the slide, includes a series of priced options that can extend the firm period for up to, I believe, 16 months after November 2026.
Speaker #1: So, there is, as such, a mechanism already in place that could provide continued utilization on that vessel. And, of course, we maintain a dialogue with the customer regarding those options.
Speaker #1: But at the same time, we assess opportunities in the broader market to ensure continued utilization and to maximize the value of the vessel. The market, as we view it, remains active in several regions, including the regions where Peregrino is situated.
Speaker #1: And we do believe the vessel is well positioned based on its operational performance and contract track record, also beyond November and even if the options should not be declared.
Øyvind Paaske: We do believe the vessel is well-positioned based on its operational performance and contract track record also beyond November, even if the option should not be declared. With that, I think that concludes our session. I would just like to thank you all for your attention, and we look forward to welcoming you back for the presentation of our Q3 results in November. Thank you very much.
Øyvind Paaske: We do believe the vessel is well-positioned based on its operational performance and contract track record also beyond November, even if the option should not be declared. With that, I think that concludes our session. I would just like to thank you all for your attention, and we look forward to welcoming you back for the presentation of our Q3 results in November. Thank you very much.
Speaker #1: So with that, I think that concludes our session. I would just like to thank you all for your attention, and we look forward to welcoming you back for the presentation of our third quarter results in November.
