ANNUAL
REPORT
2024
2024 in brief
Akastor’s financial position improved significantly, primarily
due to the successful DRU arbitration award, which
resulted in total cash proceeds of USD 176 million in 2024.
NES Fircroft delivered robust growth across all key
financial metrics, resulting in a full year EBITDA of
USD 142 million1, 12% ahead of their prior year.
Total equity increased by NOK 1.9 billion, reaching
NOK 5.9 billion at the end of 2024.
Net capital employed1)
NOK million, 31 December 2024
Value per share NOK
Net Capital
Employed
Listed
Holdings2
Other
NIBD
Equity
2023: 4.6bn
5.0
NOK BILLION
2023: (675m)
2023: (262m)
2023: 66%
PAGE 2
839
NOK MILLION
1 653
NOK MILLION
87
PERCENT
2023: 26%
+11
PERCENT
13.1
3.0
1.5
1.0
0.5
(0.7)
18.3
3.1
21.4
3 576
821
415
271
138
(202)
5 020
839
5 859
Net Capital
Employed
Net interest
bearing items
Net Profit
Equity Share
Total Shareholder
return
1) Net Capital Employed per holding reflected at book value
2) Includes listed investments in Odfjell Drilling, ABL Group, Maha Energy and Awilco Drilling
HMH, Akastor’s largest asset (50% ownership), delivered
a record-high EBITDA and announced its intention to
pursue a U.S. listing.
Net interest-bearing debt decreased from a net debt
position of NOK 0.7 billion at year-end 2023 to a net cash
position of NOK 0.8 billion by year-end 2024.
Akastor entered into agreements with Mitsui and MOL
to increase its ownership in AKOFS Offshore from 50%
to 66.7% on attractive terms.
DDW Offshore secured new agreements with an
international oil company, significantly enhancing
revenue visibility of its fleet.
AKOFS Offshore secured a three-year contract
extension with Equinor for AKOFS Seafarer, adding
approximately USD 300 million to its backlog.
1) Fiscal year ending October 31st
ANNUAL REPORT 2024
Contents
Message from the CEO
4
Board of Directors’ Report
5
Declaration by the Board of Directors and CEO
20
Corporate Governance Statement
21
Financials and Notes
33
a) Akastor Group
33
b) Akastor ASA
80
Independent Auditor’s Report
92
Alternative Performance Measures
94
Board of Directors
96
Management
98
Company Information
99
ANNUAL REPORT 2024
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 4
ANNUAL REPORT 2024
PAGE 4
Message from the CEO
2024 has been a transformative year for
Akastor, marked by key developments
that have strengthened our financial and
operational flexibility. A major milestone
was securing USD 176 million in cash
proceeds from the DRU arbitration
award, which reinforced our financial
position. On the back of these proceeds,
we successfully settled all corporate
credit facilities, transitioning Akastor to a
net cash position with solid liquidity.
Our largest investment, HMH, continued
to deliver strong growth throughout the
year. In line with our strategy, we initiated
preparations for a U.S. listing of HMH,
submitting a registration statement
to the U.S. Securities and Exchange
Commission—an important first step
toward a potential initial public offering.
We also took significant steps to
optimize our portfolio. In 2024, we
reached agreements with Mitsui and
MOL to restructure AKOFS Offshore,
transitioning to joint ownership between
MOL (1/3) and Akastor (2/3). This
restructuring strengthens the business
case and enhances long-term growth
and liquidity prospects. Additionally,
Equinor’s exercise of its three-year
contract extension for AKOFS Seafarer,
valued at approximately USD 300
million, will significantly contribute to
AKOFS Offshore’s financial results from
2026 onward.
Important progress was also achieved
in DDW Offshore, securing either
extensions or new contracts for all
three vessels which increase visibility
for 2025. Additionally, the groundwork
laid during the year helped pave the
way for the recently announced sale of
Skandi Peregrino. While the transaction
is not yet closed, our intention to
distribute net proceeds as dividends
reaffirms our commitment to returning
value to shareholders.
Through all these efforts, we have
made substantial progress in executing
our realization strategy, bringing us
closer to delivering tangible value
to our shareholders through future
dividend distributions. As a cash-
positive investment holding entity, we
remain committed to disciplined asset
management, seeking creative and
flexible ways to identify value creators
and realize our positions at optimal levels.
I am also pleased with the progress and
results from our two industrial holdings,
HMH and AKOFS Offshore, in 2024. Our
close cooperation with Baker Hughes
and HMH’s management has positioned
HMH well for a potential U.S. listing
and further growth. The restructuring
of AKOFS Offshore was the result of
an open and constructive dialogue
with our co-owners, and I fully respect
Mitsui’s decision to exit after nine years
of collaboration. I sincerely appreciate
the professional partnership we have
shared. At the same time, I am pleased
that MOL shares our long-term vision
for AKOFS Offshore, and I look forward
to strengthening our partnership as we
move forward.
In an environment of global uncertainty
and rapidly evolving markets, robustness
is key. This means not only maintaining
a strong financial foundation and
ensuring the delivery of first-class
services through our portfolio
companies but also establishing
and maintaining trust with key
stakeholders. Trust is fundamental
in our relationships with employees,
management teams, shareholders,
customers, co-owners, partners, and
the societies in which we operate.
Lastly, I would like to express my
sincere gratitude to the employee-
elected members of our Board who
are stepping down after many years
of valued service. Their dedication,
insights, and contributions have been
invaluable, and we deeply appreciate
their commitment to Akastor.
Karl Erik Kjelstad,
CEO
ANNUAL REPORT 2024
PAGE 5
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 5
Akastor is an investment company based in
Norway with a portfolio of companies operating
primarily within the oilfield services sector, with
a flexible mandate for active ownership and
long‑term value creation.
Akastor aims to maximize value through strategic
initiatives, with the key objective of returning capital
to shareholders following asset divestments.
Board of Directors’
Report
ANNUAL REPORT 2024
PAGE 6
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 6
ANNUAL REPORT 2024
Key Events 2024
During 2024, Akastor made significant
progress in executing its strategic
initiatives, focusing on optimizing its
portfolio and enhancing shareholder
value. Highlights of the year include:
DRU arbitration award: In April 2024,
Akastor received the arbitration award
regarding the DRU contracts, resulting in
total cash proceeds of USD 176 million and
a total recognized income of NOK 1 347
million, comprising NOK 630 million in other
income and NOK 717 million in financial
income. The award strengthened Akastor’s
financial position and transitioned the
company to a net cash position.
HMH’s pursuit of U.S. listing: HMH, the
50/50 joint venture between Akastor and
Baker Hughes, announced its intention
to pursue a U.S. listing. An initial draft
registration statement was submitted to the
U.S. Securities and Exchange Commission,
marking the first step toward a potential
initial public offering (IPO), with timing being
subject to market conditions.
New Chairman of HMH: HMH appointed
Dan Rabun as Chairman of the Board of
Directors, effective October 21, 2024. Mr.
Rabun’s extensive industry experience
is expected to support HMH in its future
growth initiatives.
Increased exposure towards AKOFS
Offshore: Akastor announced an
agreement to increase its ownership
in AKOFS Offshore through a buy-out
of Mitsui’s ownership interests. The
transaction closed in the first quarter of
2025, and increased Akastor’s equity
holding in AKOFS Offshore from 50 to 66.7
percent. This strategic move underscores
Akastor’s confidence in the subsea well
intervention and installation market in
general and in AKOFS Offshore specifically.
Contract extension for AKOFS Seafarer:
Equinor exercised an option to extend
the contract for AKOFS Seafarer for an
additional period of three years, adding
a backlog of approximately USD 300
million and ensuring continued utilization
of the vessel for subsea well intervention
services. This extension underscores the
strong operational performance of AKOFS
Offshore for a key client and secures
increased financial predictability.
Backlog improvement for DDW Offshore:
Akastor’s subsidiary, DDW Offshore,
secured multiple contracts, including both
contract extensions and new agreements,
enhancing the company’s revenue visibility
and operational stability.
Odfjell Drilling warrants settlement: In May
2024, Akastor received 3,023,886 shares
in Odfjell Drilling Ltd., pursuant to a warrant
agreement established in 2018.
Føn Energy Services and C-Ventus joining
forces: Føn Energy Services, Akastor’s joint
venture with IKM, announced a merger with
C-Ventus, combining expertise in offshore
wind project management and operations.
This transaction strengthens Føn Energy
Services’ market presence in the growing
offshore wind sector.
Akastor’s total net capital employed per
end of 2024 was NOK 5.0 billion, increased
by approximately NOK 0.4 billion compared
to year end of 2023. Net interest-bearing
debt for Akastor decreased from a net
debt position of NOK 0.7 billion per year
end 2023 to a net cash position of NOK 0.8
billion per 2024. Total equity of Akastor was
NOK 5.9 billion per year end 2024, up from
NOK 4.0 billion per year end 2023.
ANNUAL REPORT 2024
PAGE 7
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
NES Fircroft, a technical
and engineering staffing
company.
Economic interest
c. 15%
Ownership interest
50%
HMH, a global provider
of drilling solutions,
engineering, projects,
equipment and services.
Ownership interest
100%
DDW Offshore, owns and
operates three offshore
vessels.
Ownership interest
4.7%
ABL Group, offers
independent energy and
marine consultancy to the
global renewables, maritime
and oil and gas sectors.
Ownership interest
1.7%
Maha Energy, an interna-
tional upstream oil and gas
company within explora-
tion, development and
production of oil and gas.
Ownership interest
36%
Føn Energy Services,
an independent service
provider to the offshore and
onshore wind industry and
traditional energy sectors.
Ownership interest
6.8%
Awilco Drilling, a legacy
drilling contractor.
Ownership interest
1.3%
Odfjell Drilling, owns and
operates mobile harsh
environment drilling rig
units.
Company Overview
Akastor is an investment company with a flexible mandate for value
creation, holding a portfolio of companies primarily within the oilfield
services sector.
As per end of 2024, the portfolio includes two holdings classified as
industrial investments, HMH and AKOFS Offshore. Akastor actively
engages with these companies through their Boards of Directors, where
the Akastor investment team is represented.
Both HMH and AKOFS Offshore are joint ventures and accounted for
using the equity method. Akastor also holds interest bearing positions
towards HMH and AKOFS Offshore.
In addition to its industrial investments, Akastor holds several financial
investments. These represent holdings with a shorter investment horizon
or where Akastor has limited influence due to smaller ownership stakes.
The Akastor corporate organization is based at Fornebu, just outside of
Oslo in Norway, with a team of 10 employees, working closely with the
boards and management of its portfolio companies.
Aker Holding AS, wholly owned by Aker ASA, is the largest shareholder
of Akastor ASA with a shareholding of 36.7 percent.
The shares of Akastor ASA are traded on the Oslo Stock Exchange
under the ticker AKAST.
Investments
PAGE 7
AKOFS Offshore, a
subsea well installation
and intervention services
provider.
Ownership interest1)
50%
1) Ownership interest per year end 2024 was 50 percent, which was increased to 66.7 percent in the first quarter of 2025 (see Subsequent Events).
Financial
Industrial
ANNUAL REPORT 2024
PAGE 8
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Strategy
Akastor’s strategy remains
consistent, focusing on creating
long-term value for shareholders
through active ownership and an
independent, flexible investment
approach.
operational activities, business
development, acquisitions, and
divestments, targeting to maximize
value creation. Akastor also engages
with co-owners through Boards and
governing structures, fostering strong
cooperation and governance.
For financial investments, where
Akastor typically holds minority
stakes, involvement is more limited
but includes engagement through
Boards or direct collaboration
with management to influence
development. Akastor emphasizes
a deep understanding of each
portfolio company’s market dynamics
and challenges to evaluate current
valuation against future potential.
Akastor aims to maximize value
through strategic, operational,
and financial initiatives, including
reinvestments in portfolio companies
to strengthen them for future exits.
The ultimate objective is to return
capital to shareholders following
asset divestments while maintaining
a sound capital structure.
Akastor’s strategy remains
consistent, focusing on
creating long-term value
for shareholders through
active ownership and
an independent, flexible
investment approach.
The ultimate objective
is to return capital to
shareholders following
asset divestments while
maintaining a sound
capital structure.
Each portfolio company operates as
a decentralized, self-sufficient entity
with its own management team and
Board of Directors. For its industrial
investments, Akastor collaborates
closely with these teams to guide
ANNUAL REPORT 2024
PAGE 9
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Outlook
Throughout 2024, Akastor significantly
improved its financial standing,
increasing its flexibility and making
strides toward its goal of distributing
proceeds to shareholders.
Akastor’s portfolio companies remain
primarily focused on the oilfield
services industry, which closely
follows developments in the oil and
gas market. While global oil demand
continues to grow, the rate of increase
is projected to decelerate into 2025.
Concurrently, global exploration and
production (E&P) spending is expected
to remain steady or experience a slight
moderation. Despite a more cautious
approach to capital expenditures
among E&P companies, Akastor’s
portfolio companies may still benefit
from sustained offshore upstream
investments.
Through its holding in HMH, Akastor
has significant exposure to the drilling
sector. In 2024, the offshore drilling
market became more challenging
as cautious oil companies deferred
tenders into 2025 and 2026, leading
to longer gaps between contracts
and delayed reactivations. While
floater day rates have remained
relatively resilient, lowered floater
demand visibility is adding uncertainty
for 2025. These dynamics may, in
the short to medium term, influence
companies within the sector through
reduced growth rates and constraints
on executing value-enhancing
transactions. However, despite
concerns regarding the delay of larger
drilling opportunities, the total number
of longer-term prospects remains
solid, supporting continued growth
potential.
Geopolitical tensions, including
ongoing conflicts in Ukraine and the
Middle East, combined with persistent
global inflation and elevated interest
rates, contribute to uncertainty in
global markets. Additionally, the
potential introduction of increased
import tariffs and other trade barriers
may create further challenges for
industrial activity and supply chains.
These factors could impact energy
prices, transaction dynamics, and
overall business conditions, posing
risks to Akastor and its portfolio.
Despite macroeconomic and
geopolitical uncertainties, Akastor
remains cautiously optimistic about
sustaining activity levels across its
portfolio. Akastor remains focused
on executing targeted transactions,
however recognizing that favorable
market conditions will be essential for
success.
ANNUAL REPORT 2024
PAGE 10
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 10
The Akastor Portfolio
HMH
HMH was established in October
2021 following the merger between
MHWirth (previously 100 percent
owned by Akastor) and Baker
Hughes’ Subsea Drilling Systems
(SDS) business. Akastor owns 50
percent of the shares in HMH, with
the remaining shares owned by
Baker Hughes. HMH is classified
as a joint venture and accounted
for using the equity method in the
consolidated financial statements.
Key Figures1)
Amounts in USD million
2024
2023
Revenue
843 786
EBITDA (adj) 2)
168
132
EBITDA
162 120
Order intake
793 826
Equipment backlog 3)
205
237
NIBD (incl. shareholder loans)
289
271
1. The figures are presented on 100% basis
2. EBITDA (adj) excludes non-recurring expenses or costs defined as
outside of normal company operations
3. Equipment backlog defined as order backlog within Projects,
Products and Other
HMH is a global provider of drilling
solutions, engineering, projects,
equipment and services. HMH has a
track record of product and service
delivery in more than 120 countries
worldwide. At year-end 2024, the
company had approximately 2 300
employees inclusive contractors. In
2024, HMH refined its product line
definitions to align with S-1 filings,
ensuring clear segment reporting.
Historical figures referenced below
have been adjusted accordingly. The
three product lines are:
• Aftermarket Services covers
services for installed drilling
equipment, including integrated
digital solutions.
• Spares comprises replacement
parts for installed equipment.
• Projects, Products & Other
encompasses drilling equipment
packages for new or reactivated
rigs, standalone drilling products,
and equipment for mining and
other industries.
Revenue for 2024 totalled USD
843 million, a 7 percent increase
from USD 786 million in 2023. This
growth was driven by higher activity
across all segments, with the
strongest contribution from Projects,
Products, and Other. Adjusted
EBITDA, excluding non-recurring
items defined as outside of normal
company operations, increased from
USD 132 million in 2023 to USD 168
million in 2024. The adjusted EBITDA
margin improved to 20.0 percent, up
from 16.8 percent in 2023, primarily
ANNUAL REPORT 2024
PAGE 11
due to higher gross margins within
Projects, Products, and Other, as
certain legacy projects were phased
out.
Revenues from Projects, Products
and Other increased with around 22
percent to USD 229 million in 2024,
driven by higher revenues from
sale of single equipment. Full-year
revenues from Aftermarket Services
totalled USD 366 million in 2024, up
from USD 329 million in 2023, driven
by an increase in contract service
agreements and higher digital
technology volumes. Revenues from
Spares declined by approximately 7
percent from USD 268 million in 2023
to USD 248 million in 2024, due to lower
volume attributed to flat rig activity
and restrained customer spending.
Total order intake for HMH was
USD 793 million in 2024, down from
USD 826 million in 2023, primarily
driven by lower intake within
Aftermarket Services and Spares as
rig activity flattened. Order intake
within Projects, Products and Other
increased by 6 percent in 2024
compared to last year.
The increased focus on energy
security and higher global E&P
capex in recent years have boosted
offshore drilling activity, driving up
utilization rates, dayrates, and HMH’s
aftermarket services revenue due
to more rigs with HMH equipment in
operation. However, in 2024, market
conditions became more challenging
as oil companies deferred tenders,
leading to contract gaps and delayed
reactivations, which impacted HMH
and may continue to do so into
2025. Despite these short-term
challenges, the long-term market
outlook remains positive, with
growth expected to continue. The rig
newbuilding market continues to be
muted and is expected to remain so
in the near future.
In June 2024, HMH announced that
it had submitted a draft registration
statement with the U.S. Securities
and Exchange Commission (“SEC”)
relating to a proposed initial public
offering. This filing represents the
first step of a possible US listing of
HMH. The size and price range for
the proposed offering have not yet
been determined. The initial public
offering is subject to market and
other conditions.
In July, HMH announced the
acquisition of Drillform Technical
Services Ltd (“Drillform”), a
company holding patents and
intellectual property related to
equipment used in the handling of
drill pipe during drilling operations.
The company has a significant
installed base of automated floor
wrenches and catwalks, and the
transaction marked an important
step in HMH’s growth strategy,
expanding onshore capabilities
and improving drilling safety and
performance.
In October, Mr. Daniel “Dan” W.
Rabun was appointed Chairman of
the Board of Directors of HMH. Mr.
Rabun is a seasoned executive with
extensive leadership experience
across multiple industries which
will be valuable to guide HMH
through its potential public listing
and future growth.
In 2025, HMH will continue to
focus on growth through organic
initiatives as well as M&A. HMH will
continuously assess a potential
U.S. initial public offering, which is
a key target for Akastor in order to
make its investment in HMH liquid
and enable a potential realization.
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 12
AKOFS Offshore
AKOFS Offshore is a provider of vessel-
based subsea well installation and
intervention services to the oil and gas
industry. The company operates three
specialized offshore vessels, AKOFS
Santos, Aker Wayfarer and AKOFS
Seafarer, and employed 360 people as
per the end of 2024.
Per year end 2024, Akastor owned 50
percent of the shares in AKOFS Offshore,
with the remaining shares owned by
Mitsui & Co and Mitsui O.S.K. Lines, each
with 25 percent. Akastor’s holding was
increased to 66.7 percent in the first
quarter of 2025 (see Subsequent Events).
AKOFS Offshore remains classified as
a joint venture and accounted for using
the equity method in the consolidated
financial statements.
The company’s revenue was USD 139
million in 2024, around 7 percent higher
than the previous year, driven by higher
utilization for the fleet. EBITDA increased
from USD 33 million in 2023 to USD 39
million in 2024.
Through 2024, both AKOFS Santos and
Aker Wayfarer continued to operate
on its contracts with Petrobras in Brazil
for subsea equipment installation
work after both vessels commenced
new contracts in 2023. Total revenue
utilization for Aker Wayfarer ended the
year at 96 percent, while AKOFS Santos
reported 78 percent. The utilization on
AKOFS Santos was affected by certain
operational challenges, especially
affecting operations in the first half of
the year. Utilization in the latter half was
89 percent, and as such showed clear
signs of improvement.
AKOFS Seafarer continued to operate
on its five-year contract with Equinor
for Light Well Intervention services
in the North Sea. Through 2024, she
continued to deliver solid operational
performance and recorded a technical
uptime of around 94 percent in the
year. Adjusted for periods on yard
and waiting on weather, total revenue
Key Figures1)
Amounts in USD million
2024
2023
Revenue and other income
139
130
EBITDA
39
33
EBIT
(2)
(7)
CAPEX and R&D capitalization
6
12
NCOA
10
16
Net capital employed
271
334
Order intake
296
-
Order backlog
506
363
1. The figures are presented at 100 percent basis.
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 13
utilization ended at around 91 percent.
As last year, utilization was affected
specifically by a period of mobilization
of coiled tubing equipment to prepare
the vessel for coiled tubing operations
during the summer season as well
as a period of demobilization of
the same equipment. In December
2024, Equinor exercised its option
to extend the contract for AKOFS
Seafarer for an additional period
of three years, adding a backlog
of approximately USD 300 million.
This extension ensures continued
utilization of the vessel in subsea well
intervention services, and improves
financial results. The option period is
estimated to commence in late Q4
2025, after the vessel has completed
its customary Special Periodic Survey
(SPS) and in direct continuation of the
current contract period.
AKOFS Offshore was for a period
affected by relatively low investment
levels among oil companies which
resulted in limited prospects available
for the company which again has had
a concrete effect on current contract
terms for the various vessels. AKOFS
Offshore’s earnings are currently
affected by the historic day rates
on the various contracts. Based
on current market conditions, both
AKOFS Offshore and Akastor believe
that there is potential to increase
revenues and earnings through
improved contract terms after expiry
of the current backlog, demonstrated
most concretely by the AKOFS
Seafarer option period which will
increase earnings in the company.
In 2025 and forward, AKOFS Offshore
will continue to focus on delivering
high uptime on its existing contracts.
The company will assess future
opportunities for AKOFS Santos
which is under contract with its client
to Q2 2026. AKOFS Offshore is also
continuously evaluating opportunities
to grow through further leveraging
its competencies within subsea well
construction and intervention services.
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 14
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 14
DDW Offshore
DDW Offshore owns three mid-sized
Anchor Handling Tug Supply (AHTS)
vessels, Skandi Peregrino, Skandi
Atlantic and Skandi Emerald. Akastor
holds 100 percent of the shares in the
company.
DDW Offshore delivered total
revenues of NOK 278 million in 2024,
compared to NOK 231 million in 2023.
EBITDA in 2024 ended at NOK 91
million, up from 84 million in 2023,
driven by increased charter rates and
higher average utilization of the fleet.
In 2024, Skandi Emerald operated in
Australia for most of the year, achieving
a total revenue utilization rate of 81
percent. The vessel concluded the
year under contract with Petrofac
in Australia, following an extension
secured earlier in 2024, with the
contract now set to expire in July 2025.
Skandi Atlantic completed its five-
year Special Periodic Survey (SPS) in
April before starting a contract with
Chevron, which lasted until November.
Subsequently, the vessel undertook
shorter contracts in Australia before
commencing a new one-year contract
in January 2025 with an international
oil company. This contract, secured
in 2024, includes a 24-month priced
option structure. Total utilization
for the year ended at 79 percent,
reflecting the impact of its SPS.
Skandi Peregrino was in 2024
reactivated and completed its Special
Periodic Survey in the spring, after
several years in lay-up in Norway. From
July, the vessel operated in the UK spot
market out of Aberdeen, achieving a
total utilization rate of 25 percent for
2024, influenced then by its reactivation
period. As with Skandi Atlantic, DDW
Offshore secured a new one-year
fixed contract for Skandi Peregrino in
Australia, also featuring a 24-month
priced option structure, which is
expected to commence in March
2025. In March 2025, DDW Offshore
entered into a binding agreement
to sell Skandi Peregrino for USD 25
million. The transaction is expected to
be completed in Q2 2025, subject to
charterer’s consent.
Looking ahead, DDW Offshore will
focus on maximizing the utilization of its
remaining vessels. At the end of 2024,
the total contract backlog for the fleet,
including Skandi Peregrino, stood at
approximately USD 38 million, providing
operational and financial visibility, with
around 80 percent revenue coverage
for 2025. Akastor remains flexible
regarding its investment in DDW
Offshore and will continue evaluating
further asset sales versus operational
cash flow from holding the investment.
Key Figures
Amounts in NOK million
2024
2023
Revenue and other income
278
231
EBITDA
91
84
EBIT
68
67
NCOA
25
32
Net capital employed
415
263
ANNUAL REPORT 2024
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 15
Other Holdings
Other Holdings per end of 2024
include around 15 percent economic
interest of NES Fircroft, 1.3 percent
shareholding in Odfjell Drilling,
4.7 percent shareholding in ABL
Group, 36 percent shareholding in
Føn Energy Services, 1.7 percent
shareholding in Maha Energy and
6.8 percent shareholding in Awilco
Drilling. In addition, Other Holdings
through 2024 also included the
financial interest in four drilling
equipment contracts with Jurong
Shipyard (the DRU contracts), as
well as corporate functions and
certain office lease commitments.
During 2024, the DRU contracts
was finally settled and concluded
through the arbitration process.
Total EBITDA for Other Holdings
for the year was positive NOK 558
million, driven by the arbitration
Key Figures
Amounts in NOK million
2024
2023
Revenue and other income
644
51
EBITDA
558
(87)
EBIT
553
(98)
NCOA
(109)
236
Net capital employed
891
960
Group Financial Performance
Akastor presents its consolidated
financial statements in accordance
with the International Financial
Reporting Standards (IFRS) as
adopted by the European Union.
All amounts below refer to the
consolidated financial statements
for the group, unless otherwise
stated. Please note that consolidated
revenue and operating profit in
Akastor only include financial
performance of subsidiaries, which
represents a minor part of Akastor’s
total net capital employed in the
portfolio companies.
Income Statement
Revenue and other income for 2024
was NOK 922 million, compared
to NOK 282 million in 2023. The
Revenue and other income in 2024
were positively affected by other
income of NOK 630 million related
to DRU arbitration award received.
Operating profit before interest,
tax, depreciation and amortization
(EBITDA) was positive NOK 648
million, compared to negative NOK
2 million in 2023.
Depreciation and impairment were
NOK 27 million in 2024, compared to
NOK 28 million in the previous year.
Net financial income was NOK 1 006
million in 2024, which included interest
compensation of NOK 717 million
related to the DRU arbitration award.
The net financial income was NOK 10
million in the previous year. In addition,
finance income and costs include
interest income and expenses from
receivables and borrowings, fair value
changes in financial assets measured
award related to the DRU contracts
which was received and accounted for
in the first half of the year. Net capital
employed decreased from NOK 960
million per year end 2023 to NOK 891
million per December 2024, driven by
the transfer of the value related to the
DRU contract to cash, partly mitigated
by increasing value related to NES
Fircroft and Odfjell Drilling.
ANNUAL REPORT 2024
PAGE 16
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
at fair value and net foreign exchange
gain. Akastor’s share of net loss from
the equity-accounted investments is
NOK 1 million, compared to net loss
of NOK 363 million in 2023, mainly
related to net profit in HMH, offset by
net loss in AKOFS Offshore.
Net profit from continuing operations
was NOK 1 623 million, compared
to net loss of NOK 384 million in
2023. Net profit from discontinued
operations was NOK 30 million
compared to NOK 122 million in 2023,
mainly related to re-assessment of
deferred consideration on divestments
from prior years. The group had net
profit of NOK 1 653 million for the year,
compared to net loss of NOK 262
million in 2023.
Financial Position
Total assets of Akastor amounted to
NOK 6.7 billion as of December 31,
2024, compared with NOK 6.0 billion
at year-end 2023.
As of December 31, 2024, Akastor had
a net cash position (excluding lease
liabilities) of NOK 49 million, while net
interest-bearing items were positive
NOK 839 million. Net interest-bearing
items decreased by NOK 1 514 million
over the year. This reduction was due
to the cash proceeds received from
the arbitration award related to the
DRU contracts, which facilitated full
repayment of corporate loan facilities.
Total equity amounted to NOK 5.9
billion at year-end 2024. The equity
ratio was 87 percent as of December
31, 2024, compared to 66 percent as of
December 31, 2023.
Cash Flow
As of December 31, 2024, Akastor had
cash of NOK 47 million, compared to
NOK 144 million as of December 31,
2023. The net cash flow from operating
activities was positive NOK 1 779 million
in 2024, compared to negative NOK
296 million in the previous year. The
net cash flow from operating activities
in 2024 was positively affected by the
total cash proceeds of USD 176 million
as a result of the DRU arbitration award.
Net cash flow from investing activities
was negative NOK 761 million,
compared to positive NOK 236 million
in 2023. The cash flow from investing
activities included net investment in
liquidity fund of NOK 366 million, which
is highly liquid and convertible to cash
on short notice.
Net cash flow from financing activities
amounted to negative NOK 1 132
million which included net repayment
of borrowings of NOK 1 101 million,
compared to positive NOK 85 million
in 2023. In 2024, Akastor repaid its
corporate loan facilities upon receiving
proceeds related to the DRU award
and had no outstanding draw on these
facilities by the end of the year.
Subsequent Events
In the first quarter of 2025, Akastor
and Mitsui O.S.K. Lines, Ltd. (MOL)
completed the acquisition of Mitsui
& Co., Ltd.’s (Mitsui) entire interest
in AKOFS Offshore, including both
equity and shareholder loans.
As a result, Akastor increased its
ownership stake in AKOFS Offshore
from 50% to 66.7%, while MOL now
holds the remaining 33.3%. AKOFS
Offshore remains classified as a
joint venture and will continue to
be accounted for using the equity
method in Akastor’s consolidated
financial statements.
In March 2025, DDW Offshore, a
subsidiary of Akastor ASA, entered
into a binding agreement to sell
Skandi Peregrino for USD 25 million.
The transaction is expected to be
completed in Q2 2025, subject
to charterer’s consent. Upon
completion, Akastor intends to
distribute a substantial portion of the
net proceeds, around USD 15 million,
as a cash dividend to shareholders.
Going Concern
The board of directors confirms that
the going concern assumption, on
which the financial statements have
been prepared, is appropriate.
ANNUAL REPORT 2024
PAGE 17
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Parent Company and
Allocation of Net Profit
The parent company Akastor ASA
is the ultimate parent company in
the Akastor group. Akastor ASA has
outsourced all management functions
to other companies within the group,
mainly Akastor AS. However, assets
and liabilities related to the Akastor
Treasury function are held by Akastor
ASA. Akastor ASA has a net profit of
NOK 1 254 million in 2024 (net loss of
NOK 285 million in 2023).
The parent company’s dividend policy
states that Akastor’s shareholders
shall receive a competitive return
on their investment either through
cash dividends or increases in the
share price, or both. The company
does not intend to distribute
regular or annual dividends, but will
consider dividends on a continuous
basis taking into consideration the
company’s M&A activities, expected
cash flow, capital expenditure
plans, financing requirements and
appropriate financial flexibility. The
board thereby proposes no dividend
for 2024 and the net profit for the
year of NOK 1 254 million be allocated
to retained earnings.
Risk Management
Akastor and its portfolio companies
are exposed to various forms of
market, operational and financial risks
that may affect their performance,
strategic goals and reputation.
Akastor’s risk management model is
designed on the basis that Akastor
is an investment company with
an overall objective of securing
its shareholders’ investments and
developing the group’s assets in
order to provide the shareholders
with a solid return. Details on the Risk
management model is described in
the Corporate Governance statement,
which is included as a separate
section in this annual report.
Market Risks
Akastor’s portfolio of holdings is
primarily focused on the oilfield
services industry, leveraging the
company’s experience and expertise.
While Akastor has a flexible mandate,
its investments have traditionally
remained within this sector,
managing associated risks through
sound management systems rather
than broad industry diversification.
Prolonged geopolitical conflicts,
persistent inflation, and elevated
interest rates continue to introduce
macroeconomic volatility, which
we expect will continue to impact
markets in 2025. This volatility may
lead to reduced industrial activity as
well as delays or shifts in transaction
plans. As an investment company,
Akastor is inherently exposed to
risks related to mergers, acquisitions,
and divestments, which become
more pronounced in volatile markets.
Uncertainty in valuations, reduced
capital flows, and shifting investor
sentiment can make transactions
more challenging to execute.
Operational risks are primarily
mitigated at the portfolio company
level through securing new orders
and securing sound project
execution. Akastor monitors these
efforts in line with its corporate
governance principles, mainly
through board participation in each
portfolio company. Risks associated
with divestments, mergers,
acquisitions, and other transactions
are managed and overseen by
Akastor’s investment team.
Financial Risks
Akastor faces various financial
market risks including currency,
interest rate, tax, price, credit,
counterparty, liquidity, and capital
risks, along with risks related to
financing access and terms. A
detailed discussion of these risks
can be found in Note 23 Financial
risk management in the group’s
consolidated financial statements.
PAGE 18
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
Environmental, Social and
Governance
Akastor ASA is subject to annual
sustainability reporting requirements
pursuant to section 2-4 (6) of the
Norwegian Accounting Act. The
reporting is covered by the Akastor
2024 Sustainability report , which is
issued separately and published on
Akastor’s website www.akastor.com.
The Akastor Sustainability report also
includes Akastor’s reporting adhering
to the Transparency Act, a Norwegian
legislation, which requires companies
to promote respect for human rights
and decent working conditions.
Research, Innovation and
Technology Development
All research, innovation and
development initiatives are
performed by the Akastor portfolio
companies. Akastor ASA and its
consolidated entities performed no
such activity in 2024.
The goal of financial risk
management is to minimize adverse
effects on Akastor’s financial position.
In 2024, Akastor’s financial standing
improved significantly, resulting in a
cash-positive status and reduced
reliance on external financing.
Consequently, financing and credit
risks have been reduced, with
primary remaining credit exposure
linked to financing arrangements
within its holdings, such as DDW
Offshore’s guarantee exposure and
AKOFS Santos financing.
Integrity Risks
All Akastor portfolio companies use
education and training to manage
integrity risks. Employees must
complete annual Code of Conduct
training. Managers and office-
based staff must conduct integrity
e-learning training and classroom
courses. Specific roles with higher
integrity risks receive tailored training.
High-risk hired-in personnel and
third-party representatives also
receive integrity training. Training
must be completed and reported
within six months of employment or
new session publication.
Akastor has a whistleblowing system
for reporting breaches of the Code of
Conduct or other guidelines, open to all
stakeholders. Employees are required
to report breaches and encouraged to
report compliance concerns.
Climate Risks
The primary climate-related risks
that Akastor faces stem from the
oil service industry’s exposure to
the risks linked with a transition to a
lower-carbon intensive industry. For
a more detailed description of these
risks and how they are monitored and
managed, reference is made to the
2024 Sustainability Report which is
issued as a separate document.
D&O insurance
The directors and officers of Akastor
companies are covered under a
Director & Officer’s Liability Insurance
(D&O). The insurance covers personal
legal liabilities including defence- and
legal costs. The officers and directors
of the parent company and all
subsidiaries globally (owned 50 % or
more) are covered by the insurance.
The cover also includes employees
in managerial positions or employees
who become named in a claim or
investigation.
People and Teams
Akastor is committed to equal
opportunity and non-discrimination,
as outlines in the Code of Conduct
and as described in further detail in
the 2024 Sustainability Report.
At year-end 2024, Akastor ASA’s
board comprised eight directors
inclusive three employee-
elected directors. Two of the five
shareholder-elected directors are
female directors. On a consolidated
basis, Akastor had 9 employees
(FTE) as of December 31, 2024 and
the male/female ratio was 60/40.
Akastor regularly assesses whether
the principle of equal pay for equal
work has been implemented, both in
its own organisation as well as in the
companies it owns. No significant
differences have been identified. Sick
leave in Akastor is less than 1 percent.
ANNUAL REPORT 2024
PAGE 19
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
Corporate Governance
Corporate governance is a
framework of values, responsibilities
and governing documents to control
the business and ensure sustainable
value creation for shareholders
over time. It is the responsibility of
the board of directors of Akastor
to ensure that the company
implements sound corporate
governance. The audit committee
supports the board in safeguarding
that the company has internal
procedures and systems in place to
ensure that corporate governance
processes are effective. Akastor’s
corporate governance principles are
based on the Norwegian Code of
Practice for Corporate Governance
and are designed to secure the
shareholders’ investment through
value creation and to ensure good
control with the portfolio companies.
The corporate governance principles
are included in this annual report and
available on the company’s website
www.akastor.com.
Fornebu, March 25, 2025
Board of Directors of Akastor ASA
Frank O. Reite
Chairperson
Kathryn M. Baker
Director
Lone Fønss Schrøder
Deputy Chairperson
Svein Oskar Stoknes
Director
Luis Antonio G. Araujo
Director
Henning Jensen
Director
Asle Christian Halvorsen
Director
Stian Sjølund
Director
Karl Erik Kjelstad
CEO
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 20
The board and CEO have today considered and approved the annual report and financial statements for the Akastor group and its parent company Akastor
ASA for the year ended on December 31, 2024. The board has based this declaration on reports and statements from the group’s CEO and/or on the results
of the group’s activities, as well as other information that is essential to assess the group’s position which has been provided to the board of directors.
To the best of our knowledge:
• The financial statements for 2024 for Akastor group and its parent company have been prepared in accordance with all applicable accounting standards.
• The information provided in the financial statements gives a true and fair portrayal of the group and its parent company’s assets, liabilities, profit and
overall financial position as of December 31, 2024.
• The annual report provides a true and fair overview of the development, profit and financial position of Akastor group and its parent company, as well as
the most significant risks and uncertainties facing the group and the parent company.
Fornebu, March 25, 2025
Board of Directors of Akastor ASA
Declaration by the Board
of Directors and CEO
Frank O. Reite
Chairperson
Kathryn M. Baker
Director
Lone Fønss Schrøder
Deputy Chairperson
Svein Oskar Stoknes
Director
Luis Antonio G. Araujo
Director
Henning Jensen
Director
Asle Christian Halvorsen
Director
Stian Sjølund
Director
Karl Erik Kjelstad
CEO
PAGE 21
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
Corporate Governance
Statement
Corporate governance is a framework of values,
responsibilities and governing documents to
control the business and ensure sustainable
value creation for shareholders over time.
Sound corporate governance shall ensure that
appropriate goals and strategies are adopted,
that the strategies are implemented in a good
manner and that the results achieved are subject
to measurement and follow-up.
ANNUAL REPORT 2024
PAGE 22
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
1. The Corporate Governance
Report
Basis for this Report
The corporate governance principles
of the group are laid down by the
board of directors of Akastor ASA
(“Akastor” or the “company”).
The principles are based on the
Norwegian Code of Practice for
Corporate Governance dated
14 October 2021 (the «Code of
Practice»), the regulations set out
in the Rulebook II of Oslo Børs (the
stock exchange in Oslo) and the
relevant Norwegian background law
such as the Norwegian Accounting
Act and the Norwegian Public Limited
Liability Companies Act. The Code of
Practice may be found at www.nues.
no and the Oslo Børs Rulebook II
may be found at www.euronext.com.
Norwegian laws and regulations are
available at www.lovdata.no.
This report outlines how Akastor has
implemented the Code of Practice.
Deviations from the Code of Practice
are addressed under the relevant
sections. In general, the Akastor
board only approves deviations that
the board believes contributes to
value creation for its stakeholders.
In addition to the Code of Practice,
the Norwegian Accounting Act
section 2-9 stipulates that companies
must provide a report on their
policies and practices for corporate
governance either in the annual
report or in a document referred to
in the annual report. Such report is
integrated in the below corporate
governance statement.
Governance Structure
Akastor is an oilfield services
investment company with a portfolio
of industrial holdings and other
investments. The company has a
flexible mandate for active ownership
and long-term value creation.
As of December 31, 2024, Akastor’s
portfolio consists of DDW Offshore,
50 percent of the shares in HMH,
50 percent of the shares in AKOFS
Offshore (which was increased to
66.7 percent in the first quarter
of 2025), 15 percent economic
ownership in NES Fircroft, 36 percent
of shares in Føn Energy Services,
in addition to other holdings and
investments, with a total net capital
employed of NOK 5.0 billion.
Other investments mainly include
shareholdings in Odfjell Drilling, ABL
Group, Maha Energy and Awilco
Drilling and an investment in Aker
Pensjonskasse.
It is the responsibility of the board
of directors of Akastor to ensure
that Akastor and its portfolio of
companies implement sound
corporate governance. The
board of directors evaluates this
corporate governance statement
on an annual basis. The board’s
audit committee also evaluates the
corporate governance statement
as well as other key policies and
procedures pertaining to compliance
and governance. Compliance
with, and implementation of these
corporate governance guidelines are
continuously evaluated by the board
and said committee; inter alia by
way of the board being the decisive
body for the company’s defined
management and reporting structure,
which include regular reporting.
Policies and Procedures
Akastor has a total of eleven
corporate policies providing business
practice guidance within a number of
key areas, all of which are reviewed
and updated on an annual basis.
These policy documents express
the overall position of the group with
regard to for instance compliance,
integrity and governance. The
policies provide instructions and
expectations that apply to the
portfolio companies and to individual
employees in order to ensure that the
group’s operations are in compliance
with internal and external regulatory
framework. In addition, the portfolio
companies are independent and
self-sufficient entities that implement
their own governance model and
policies specific to their business.
Values and Code of Conduct
Akastor aims to develop and refine
its portfolio of companies as stand-
alone enterprises, with the goal of
maximizing the value potential of
each entity. The company works to
develop the business models of the
portfolio companies, capitalize on
their market positions and promote
aftersales services for the equipment
and systems delivered. The current
investmenxts are within the oilfield
services sector, but the company has
a flexible mandate for active ownership
and long-term value creation.
ANNUAL REPORT 2024
PAGE 23
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor has an opportunistic approach
and will continue to own the portfolio
companies as long as Akastor creates
more value than alternative owners.
Akastor wishes to contribute to
sustainable social development
through responsible business
practices. The company’s Code of
Conduct is a handbook that applies
to all employees and provides
guiding on what Akastor considers
to be responsible ethical conduct.
The Code of Conduct provides a
framework of core corporate values
which reflects Akastor’s prudent
business practice and shall be
reflected in every aspect of our
operations. The ethical guidelines
and other governing documents of
the group have been drafted on the
basis of these core corporate values.
2. Business
The objectives of the company, as
defined in its articles of association,
are «to own or carry out industrial
and other associated businesses,
management of capital, and other
functions for the group, and to
participate in or acquire other
businesses». The articles of association
are available at www.akastor.com.
The principal strategies of the
group are presented in the annual
report. To ensure value creation
for its shareholders, the board
of directors annually performs a
designated strategy process where
it sets objectives and targets for the
company, assesses risk, evaluates
the existing strategy and approves
any significant changes. Information
concerning the financial position and
principal strategies of the company,
and any changes thereto is disclosed
to the market in the context of the
company’s quarterly reporting and in
designated market presentations as
well as at www.akastor.com.
Corporate Responsibility
Akastor takes an active approach to
corporate responsibility. Corporate
responsibility in Akastor is about
making prudent business decisions,
with minimum risk to reputation,
brand and the future sustainability
of our business. The main focus of
corporate responsibility activities in
Akastor, defined in our group-wide
integrity policy, is to work against
corruption, to respect human rights
and to care for health, safety and
the environment. In the Akastor
Sustainability Policy it is described
how Akastor aims to integrate
sustainability in its investment
processes and engages with the
portfolio companies. Akastor’s
primary stakeholders are the
shareholders (existing and potential),
customers of its portfolio companies
and employees of the Akastor group.
Akastor has an ongoing stakeholder
dialogue, media analysis and investor
presentations, which provide
important input to Akastor’s work on
corporate responsibility topics. All our
portfolio companies are expected
to ensure integration of stakeholder
engagement and a strong corporate
responsibility in their operations.
Akastor recognizes and respects
the United Nations’ 17 Sustainable
Development Goals (SDGs),and has
identified four SDGs that Akastor
positively impacts. A self-assessment
is used to identify where Akastor has
the most opportunity to contribute
to the SDGs. Akastor identified 7,
8, 12, and 13 as priority SDGs and
encourages the portfolio companies
to identify and work towards relevant
SDGs in their work and strategy.
Akastor is a member of the UN Global
Compact, and also aligns with the
principles of the United Nations
Convention against Corruption, the
Universal Declaration of Human
Rights, the UN Guiding Principles
for Business and Human Rights and
the ILO Declaration on Fundamental
Principles and Rights at Work. These
international principles guide our
Code of Conduct and Integrity Policy
and provide the overall framework for
the corporate responsibility efforts in
the Akastor group.
Further information in respect of
the corporate social responsibility
work of Akastor and its portfolio
of companies can be found in the
separate Akastor Sustainability
Report published simultaneously as
the company’s annual report for 2024.
3. Equity and Dividends
Equity
The management and the board
regularly monitor that the group’s
equity and liquidity are appropriate
for its objectives, strategy and risk
profile. The equity of the group as
per December 31, 2024 is NOK 5 859
million, which represents an equity
ratio of 87 percent. The management
of financial risk is further described in
the annual report.
ANNUAL REPORT 2024
PAGE 24
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Dividend Policy
The general meeting is the decisive corporate
body for dividend decisions. At the annual
general meeting, there is a practice of granting
a standing authority to the board of directors
to approve payment of dividends based on
the latest approved annual accounts, cf. Public
Limited Liability Companies Act section 8-2,
second paragraph.
Over time, the aim is that Akastor’s
shareholders shall receive a competitive
return on their investment either through
cash dividends or increase in the share
price, or both. The company does not intend
to distribute regular or annual dividends but
will consider dividends on an ongoing basis
taking into consideration the company’s
M&A activities, expected cash flow, capital
expenditure plans, financing requirements
and appropriate financial flexibility.
Authorizations for the Board of Directors
Proposals from the board of directors
for future authorizations for share capital
increases, share buy-backs or similar shall
be for defined purposes, such as share
purchase programs and acquisitions of
companies, and shall remain in effect until
the next annual general meeting.
The company’s annual general meeting
on 16 April 2024 resolved to authorize the
board to purchase treasury shares for
three purposes for utilization, all of which
were subject to separate voting under the
general meeting: (i) purchase of treasury
shares to be used as transaction currency
in connection with acquisitions, mergers,
demergers and other transactions, (ii)
purchase of treasury shares to be sold and/
or transferred to employees and directors
under share purchase programs and (iii)
purchase of treasury shares for the purpose
of investment or for subsequent sale or
deletion of such shares. The authorizations
were all limited to ten percent of the share
capital. The board’s authorizations to
purchase treasury shares are valid for the
period until the date of the annual general
meeting in 2025. No shares were bought
by the company in 2024 pursuant to the
authorizations to the board of directors. As
of December 31, 2024, the company holds
1 813 974 own shares.
In addition, the annual general meeting in
2024 granted the board of directors the
mandate to approve the distribution of
dividends based on the company’s annual
accounts for 2023 as set out in the Public
Limited Liability Companies Act section 8-2,
second paragraph. The mandate is valid
for the period until the date of the annual
general meeting in 2025.
There are no current provisions in the
articles of association of the company or
power of attorney from the general meeting
which grant the board of directors the
mandate to issue or buy back of shares in
the company for the purposes of capital
increases.
Share Purchase Programs
There are currently no active share
purchase programs in place in Akastor.
4. Equal Treatment of Shareholders
and Transactions with Related Parties
The company has only one class of shares,
and all shares carry equal rights. Existing
shareholders shall have pre-emptive rights
to subscribe for shares in the event of
share capital increases, unless otherwise
indicated by special circumstances. If the
pre-emptive rights of existing shareholders
are waived in respect of a share capital
increase, the reasons for such waiver shall
be explained by the board of directors.
Transactions in own shares are effected via
Oslo Børs.
The largest shareholder of Akastor, Aker
Holding AS, is wholly-owned by Aker ASA,
which in turn is controlled by Kjell Inge
Røkke through TRG Holding AS and The
Resource Group TRG AS. As of December
31, 2024, Aker Holding AS owns 36.7% of
the shares in Akastor ASA, which is an
associated company of Aker ASA.
The board of directors is of the view that
it is positive for Akastor that Aker ASA
assumes the role of an active owner and is
actively involved in matters of importance
to Akastor and to all shareholders.
The cooperation with Aker ASA offers
Akastor access to special know-how and
resources within strategy, transactions
and funding. Moreover, Aker ASA offers
network and negotiation resources from
which Akastor benefits in various contexts.
This complements and strengthens
Akastor without curtailing the autonomy
of the group. It may be necessary to offer
Aker ASA special access to commercial
information in connection with such
cooperation. Any information disclosed
to Aker ASA’s representatives in such
a context is subject to confidentiality
undertakings and disclosure regulations in
compliance with applicable laws.
Aker ASA (or its subsidiaries) are not
deemed, within the meaning of the Public
Limited Liability Companies Act, to be a
ANNUAL REPORT 2024
PAGE 25
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
related party of Akastor. The board
of directors and the executive
management team of Akastor are
nevertheless conscious that all
relations with Aker ASA shall be
premised on commercial terms and
structured in line with arm’s length
principles.
In the event of any material
transactions between the company
and shareholders, directors, senior
executives, or related parties thereof,
which do not form part of the
ordinary course of the company’s
business, the board of directors
shall arrange for an independent
assessment. The same shall,
generally speaking, apply to the
relationship between Akastor and
Aker ASA related companies.
In respect of the above, the «Related
parties» note to the consolidated
financial statements contains
information on the most significant
transactions between Akastor and
companies within the Aker ASA
group.
5. Freely Negotiable Shares
The shares are listed on the Oslo
Børs and are freely transferable. No
transferability restrictions are laid
down in the articles of association.
There are no restrictions on the
party’s ability to own, trade or vote for
shares in the company.
6. General Meetings
Attendance, Agenda and Voting
The general meetings in Akastor will
be conducted electronically. The
decision to hold virtual meetings
without the possibility to attend a
physical meeting, is partly due to the
requirements in the Public Limited
Liability Companies Act section
5-8, third paragraph, letter b, and
partly for practical considerations.
The shareholders will be invited to
participate online via PC, phone or
tablet, and a description of how to
participate is included in the notice
of general meeting that will be
announced. By participating online,
shareholders will receive a live
webcast from the general meeting,
the opportunity to ask written
questions, and vote on each of the
items. The company encourages
shareholders to attend the general
meetings.
It will also, like previous years, be
possible to vote in advance or
give a proxy before the meetings.
Notices convening general
meetings, including comprehensive
documentation relating to the
items on the agenda, including the
recommendation of the nomination
committee, will be made available on
the company’s website no later than
21 days prior to the general meeting.
The articles of association of the
company stipulate that documents
pertaining to matters to be deliberated
by the general meeting shall only be
made available on the company’s
website, and not normally be sent
physically by post to the shareholders
unless required by statute.
The following matters are typically
decided at the annual general
meeting, in accordance with the
articles of association of Akastor ASA
and Norwegian background law:
• Election of the nomination
committee and stipulation of the
nomination committee’s fees;
• election of shareholder
representatives to the board of
directors as well as stipulation of
fees to the board of directors;
• election of the external auditor and
approval of the auditor’s fee;
• approval of any amendments
to the board of directors’ policy
regarding stipulation of salary and
other remuneration to the executive
management, if any;
• advisory vote on the board of
directors’ report on remuneration to
the executive management;
• approval of the annual accounts
and the board of directors’ report,
including distribution of dividend;
and
• other matters which, by law or
under the articles of association,
are the business of the annual
general meeting.
The deadline for registering intended
attendance is as close to the general
meeting as possible. Information
concerning both the registration
procedure, online participation and
the filing of proxies is included in the
notice convening the general meeting
and on the registration form. The
company also aims to structure, to
the extent practicable, the proxy form
such as to enable the shareholders
to vote on each individual item on the
agenda.
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Chairperson
The articles of association stipulate
that the general meetings shall
be chaired by the chairperson of
the board of directors or a person
appointed by said chairperson.
According to the Code of Practice
the board should however «make
arrangements to ensure an
independent chairperson for the
general meeting». Thus, the articles
of Akastor ASA deviate from the
Code of Practice in this respect.
This has its background in a long-
lasting tradition in Akastor. Having
the chairperson of the board chairing
the general meeting also simplifies
the preparations for the general
meetings significantly.
Election of Directors
It is a priority for the nomination
committee that the board of directors
shall work in the best possible
manner as a team, and that the
background and competence of
the directors shall complement
each other. As a consequence, the
nomination committee will propose
that the shareholders are invited to
vote on the full board composition
proposed by the nomination
committee as a group, and not on
each director separately. Hence,
Akastor deviates from the Code of
Practice stipulating that one should
make «appropriate arrangements
for the general meeting to vote
separately on each candidate
nominated for election to the
company’s corporate bodies».
Minutes
Minutes of general meetings will be
published as soon as practicable
on the announcement system of
Oslo Børs, www.newsweb.no (ticker:
AKAST), and at www.akastor.com.
7. Nomination Committee
The articles of association stipulate
that the company shall have
a nomination committee. The
nomination committee shall have
no less than three members, who
shall normally serve for a term of two
years. The current members of the
nomination committee are Ingebret
G. Hisdal (chairperson), Charlotte
Håkonsen, Kjetil E. Stensland and
Hilde K. Ramsdal (deputy member).
Hisdal, Håkonsen and Stensland were
re-elected in 2024 for a new term of
two years, whilst Ramsdal will be up
for re-election this year. Charlotte
Håkonsen and Hilde K. Ramsdal are
employed by Aker ASA. No members
of the nomination committee are
employed by, or directors of, Akastor.
The majority of the members of
the nomination committee are
independent of both Akastor’s
board of directors and the executive
management of the company.
The committee’s recommendations
(relating to particularly the board of
directors and their remuneration)
shall address how the new board
candidates will attend to the interests
of the shareholders in general
and fill the requirements of the
company, including with respect
to competence, capacity and
independence.
The composition of the nomination
committee shall reflect the interests
of all shareholders and ensure
independence from the board
of directors and the executive
management. The members and
the chairperson of the nomination
committee are appointed by the general
meeting, which also determines the
remuneration of the committee.
The annual general meeting in 2024
approved updated instructions for
the nomination committee governing
the duties of the nomination
committee. According to these
instructions, the committee shall
emphasize that candidates for
the board have the necessary
experience, competence, and
capacity to perform their duties in a
satisfactory manner. A reasonable
representation with regard to gender
and background should also be
emphasized.
The chairperson of the nomination
committee has the overall
responsibility for the work of the
committee. In the exercise of its
duties, the nomination committee may
contact, among others, shareholders,
the board, management, and
external advisors. The nomination
committee shall also ensure that its
recommendations are endorsed by
the largest shareholders.
Information concerning the
nomination committee and deadlines
for making suggestions or proposing
candidates for directorships will be
made available on the company’s
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
website, www.akastor.com when
there are candidates up for election.
8. Composition and
Independence of the Board of
Directors
Composition
The general meeting appoints the
board based on the proposal from
the nomination committee, cf. the
Public Limited Liability Companies
Act section 6-3, first paragraph.
The proposal of the nomination
committee will normally include a
proposed candidate for appointment
as chairperson of the board of
directors. The board of directors
appoints its own deputy chairperson.
According to the Public Limited
Liability Companies Act, the directors
are appointed for a term of two years
at a time unless otherwise stated in
the company’s articles of association.
The articles of association of Akastor
stipulate that directors may be elected
for a period of one to three years.
Akastor’s articles of association
stipulate that the board of directors
shall comprise five to ten persons.
In addition, up to three deputy
members may be appointed. As per
December 31, 2024, the board of
directors comprised eight directors,
five of whom were elected by the
shareholders and three of whom
were elected by and amongst the
employees.
Akastor has a long-standing tradition
of having employee representatives
on its board. However, given the
company’s recent developments
and its current status as a holding
company with 10 employees on a
consolidated basis, the board has
decided to discontinue the practice
of appointing employees from its
portfolio companies to the Akastor
board. Therefore, with effect from 25
March 2025 the company’s board
will only consist of five shareholder
elected directors. Despite this
change, the company continues to
support the right of employees to
be represented and participate in
decision-making within the boards of
directors of its portfolio companies
or other appropriate forums where
employees can actively engage in the
company’s decision-making process.
The company encourages the
directors to hold shares in the
company. The shareholdings of the
directors as of December 31, 2024 will
be set out in the 2024 remuneration
report. The chairperson Frank O.
Reite and the directors Lone Fønss
Schrøder, Kathryn M. Baker and
Svein Oskar Stoknes are currently
shareholders in Akastor. The board
composition, including information
about the directors’ background and
expertise, is detailed in the annual
report for 2024.
Independence
A majority of the directors elected by
the shareholders are independent
of the executive personnel and
important business associates
of Akastor. None of the executive
personnel of the company are
members of the board of directors.
The composition of the board of
directors aims to ensure that the
interests of all shareholders are
attended to, and that the company
has the know-how, resources, and
diversity it needs at its disposal.
Among the five shareholder-elected
directors, the majority are deemed
independent from the company’s
largest indirect shareholder, Aker ASA.
9. The Work of the Board of
Directors
Procedures
For each calendar year, the board
plans for its work and meetings.
Furthermore, there are rules of
procedure for the board of directors
and Chief Executive Officer, which
govern areas of responsibility,
duties and the distribution of roles
between the board of directors, the
chairperson of the board of directors
and the Chief Executive Officer. The
rules of procedure for the board of
directors also include provisions
on convening and chairing board
meetings, decision making, the duty
and right of the Chief Executive
Officer to disclose information to
the board of directors, the duty of
confidentiality, etc. According to the
company’s articles of association,
each of the directors elected by the
shareholders will serve for a period of
one to three years pursuant to further
decision by the general meeting. This
to provide the nomination committee
with the flexibility to propose varying
terms of service for the candidates.
Akastor has prepared guidelines as
part of its rules of procedure for the
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Chief Executive Officer and board of
directors ensuring that directors and
the Chief Executive Officer notify the
board of directors if they have any
material direct or indirect personal
interest in any agreement concluded
by the group. The guidelines stipulate
that the directors and the Chief
Executive Officer shall not participate
in the preparation, deliberation,
or resolution of any matters that
are of such special importance to
themselves, or any of their related
parties, so that the person in
question must be deemed to have
a prominent personal or financial
interest in such matters. The relevant
board member or the Chief Executive
Officer shall raise the issue of his or
her competence whenever there may
be cause to question it, and each
director is the primary responsible for
adopting the correct decision as to
whether he or she should step down
from participating in the discussion of
the matter at hand.
In general, as further stipulated
in Akastor’s principles for related
party transactions, directors of
Akastor should be cautious in
participating in the consideration of
issues where a potential conflict of
interest or conflict of role may arise,
undermining the confidence in the
decision process. Such person may
not participate in board discussions
of more than one company that is
part of the same agreement, unless
the companies have common
interests. These assessments
will be carried out on a case-by-
case basis; in most events, and
as a starting point, by the relevant
directors themselves, but often also
in cooperation with internal and/or
external legal counsel.
The above principles will normally
also be applied if Akastor contracts
with other companies in which
said board members hold direct
or indirect ownership interests
that exceed, in relative terms, their
ownership interests in Akastor.
If grounds for legal incapacity are
established, the relevant board
member will, as a ground rule,
not be granted access to any
documentation prepared to the
board of directors for the deliberation
of the agenda item in question.
In general, Akastor applies a
strict norm as far as competence
assessments are concerned. In cases
where the chairperson of the board
of directors does not participate
in the deliberations, the deputy
chairperson of the board of directors
chairs the meeting.
As far as the other officers and
employees of Akastor are concerned,
transactions with related parties
and conflicts of interest are
comprehensively addressed and
regulated in the group’s Code of
Conduct.
Meetings
The board of directors will hold board
meetings whenever needed, but
normally six to twelve times a year.
The need for extraordinary board
meetings may typically arise because
the internal authorization structure of
the company requires the board of
directors to deliberate and approve
material tenders to be submitted by
the company or in relation to M&A
transactions. Whilst the deadlines for
such submission often change, it is
difficult to fit this into the calendar of
ordinary board meetings.
The board of directors held eight
board meetings in 2024. The
aggregate attendance rate at the
board meetings was close to 100
percent.
The Matters Discussed by the Board
of Directors
The Chief Executive Officer prepares
cases for deliberation by the board
of directors in cooperation with
the chairperson of the board.
Endeavours are made to prepare
and present matters in such a
way that the board of directors is
provided with an adequate basis
for its deliberations. The board of
directors has overall responsibility
for the management of Akastor and
shall, through the Chief Executive
Officer, ensure that its activities are
organized in a sound manner. The
board of directors shall adopt plans
and budgets for the business, and
keep itself informed of the financial
position of, and development within,
the company. This encompasses the
annual planning process of Akastor,
with the adoption of overall goals
and strategic choices for the group,
as well as financial plans, budgets,
and forecasts for the group and the
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
portfolio companies. The board of
directors performs annual evaluations
of its work and its know-how.
Audit Committee
Akastor will have an audit committee
comprising two to four of the directors.
The audit committee currently
comprises the directors Lone Fønss
Schrøder (chair), Kathryn M. Baker and
Henning Jensen. The audit committee
is independent from the management.
At least one of the members of the
audit committee shall have either
formal qualification within accounting
or auditing, or relevant experience
and skills within the same. Both
members Fønss Schrøder and Baker
have such relevant experience and
skills. The audit committee has a
mandate and a working method
that complies with statutory
requirements. The audit committee
mandate forms an integrated part
of the rules of procedures for the
board of directors. The committee
will participate, on behalf of the board
of directors, in the quality assurance
of guidelines, policies, and other
governing instruments in Akastor.
The audit committee performs a
qualitative review of the quarterly
and annual reports of Akastor,
including Akastor’s reporting on
sustainability and other non-financial
matters. Significant judgment calls
(uncertain estimates) made in the
financial statements in the quarter
are reviewed by the audit committee.
The audit committee further
supports the board of directors
in safeguarding the company’s
enterprise risk management, which
includes overseeing financial risks,
compliance risks as well as risks
related to sustainability and cyber
security. The audit committee reviews
the status on internal controls
on an annual basis. In order to
safeguard appropriate processes
and assessments, the board’s audit
committee shall also review major
M&A transactions as well as related
party transactions which are not part
of the company’s ordinary course of
business, unless such related party
transactions are immaterial.
Akastor currently has no
remuneration committee as the
experiences from having such
showed more merit in discussing
matters comprised by this
committee’s mandate with all
directors present. As of December
31, 2024, there are no other
board committees than the audit
committee. The board does not
envisage appointing any further
board committees in 2025.
The board evaluates its performance
and qualification annually. A summary
of the evaluation was made available
to the nomination committee.
10. Risk Management and
Internal Control
Governing Principles
The board of directors shall ensure
that Akastor has sound internal
control and systems for risk
management that are appropriate
in relation to the extent and nature
of the company’s activities. The
audit committee supports the
board of directors in safeguarding
that the company has internal
procedures and systems that
ensure good corporate governance,
stakeholder engagement, effective
internal controls and proper risk
management, particularly in relation
to financial reporting. The Chief
Financial Officer reports directly
to the audit committee on matters
relating to financial reporting,
financial risks and internal controls.
Akastor has implemented an
internal system for reporting serious
matters such as breaches of ethical
guidelines and violations of the law,
which is also available to external
parties at www.akastor.com.
Risk Management
Akastor and its portfolio companies
are exposed to a variety of market,
operational and financial risks. The
board of directors carries out an
annual review of the company’s most
important areas of exposure to risk
and its internal control arrangements.
Being an investment company, the
main objective of Akastor is to create
value for its shareholders. Potential
impacts on the net asset value, share
price or predictability of earnings
are therefore key parameters in
the board’s risk evaluation. Sound
risk management throughout
the organization, including by its
portfolio companies and industrial
holdings, is recognized by Akastor
as an invaluable tool in the process
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
of achieving strategic, financial
and operational goals while at the
same time ensuring compliance
with regulatory requirements and
adherence to high integrity standards.
Risk evaluation is an integral part of
all business activities and Akastor
employs a decentralized model for
allocating managerial responsibility
under which the portfolio companies
are required to establish their own
risk management and internal control
systems. Akastor’s representatives
on boards of directors in the portfolio
companies seek to ensure that
the portfolio companies follow
the principles of sound corporate
governance.
Akastor manages risk through
an internal framework both on a
corporate and portfolio company
level comprising guidelines, policies
and procedures intended to ensure
good business operations and provide
unified and reliable financial reporting.
The board of directors has adopted
an authorization matrix that forms part
of its governing documents where
authority is delegated to the Akastor
Chief Executive Officer.
The board receives and reviews
risk reports prepared by the
management, in respect of regular
operational/business risk as well as
risk related to ESG matters and cyber
security. The management’s risk
reporting is based on the total level
of insight obtained through regular
reporting and the close cooperation
that Akastor has with the portfolio
companies, including from Akastor’s
investment directors and board
representatives. Management of
operational risk and risk related to
ESG and cyber security rests with
the underlying portfolio companies,
although Akastor acts as an active
driver through its involvement on
the boards and through support and
follow-up by the various Akastor
corporate functions towards relevant
functions in the portfolio companies.
Akastor’s management holds review
meetings with the management of
the different portfolio companies.
The purpose of the meetings is
to conduct an in-depth review of
the development of each portfolio
company, focusing on operations,
risk management, market conditions,
the competitive situation and
strategic issues. These meetings
provide an important foundation for
Akastor’s assessment of its overall
financial and operational risk.
A key risk in one of the smaller
portfolio companies may still be
negligible on the group level, whereas
important risks in the largest portfolio
companies may have a serious
impact on the group as a whole.
Akastor’s decentralized approach
to operational risk management,
as described above, raises a need
for management to process and
calibrate the insight obtained through
various interfaces with the portfolio
companies prior to the board’s
annual risk review. The objective of
such exercise is to ensure that risks
are reported in a format that allows
the board to acquire a true and fair
view of the overall risk environment
of the Akastor group in an efficient
manner and to focus its attention
on risks that are material on an
aggregated group level.
Prior to the board’s review of risk
reporting, the audit committee
reviews the reported risks and
associated risk-reducing measures.
The audit committee also reviews
the company’s in-house reporting
systems and internal control and
risk management and prepares the
board’s review of financial reporting.
Financial Reporting
The Akastor financial reporting
division reports to the Chief Financial
Officer and is responsible for the
external reporting process and
the internal management financial
reporting process. This also includes
assessing financial reporting risks
and internal controls over financial
reporting in the group.
The consolidated external financial
statements are prepared in
accordance with IFRS® Accounting
Standards as approved by the EU.
The existing policies and standards
governing the annual and quarterly
financial reporting in the group,
including the Akastor accounting
principles, are available for Akastor
employees.
Financial reports are received from
the portfolio companies at a regular
basis. The Akastor financial reporting
division has review of financial results
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
together with the external auditor
at a quarterly basis, with focus on
important items involving estimate
and judgement, accounting for
significant transactions and other
topics relevant to the financial
reporting.
Non-Financial Reporting
The General Counsel is responsible
for the company’s reporting on non-
financial items. Non-financial matters
are reported to the Audit Committee
on a quarterly basis, which includes
data sourced from Akastor’s
industrial holdings.
Non-Financial items relevant for
Akastor are reported in the annual
Sustainability Report, which is issued
as a separate report and made
available on Akastor’s website.
Following recent regulatory updates
to the EU CSRD directive (Omnibus
adjustments 2024/2025), Akastor
ASA, as a non-operating holding
company, is expected to remain
out of scope for CSRD reporting
obligations. Accordingly, the group
will most likely not be required to
apply the European Sustainability
Reporting Standards (ESRS) on a
consolidated basis. Nonetheless,
Akastor maintains a structured
sustainability governance approach
and will continue to monitor reporting
obligations applicable to its portfolio
companies.
Other Reporting
In addition to the abovementioned
financial reporting, there are
regular business review and board
meetings in the portfolio companies
which ensure timely and high-
quality reporting from the portfolio
companies to the corporate
management.
Regular reports for Akastor and the
portfolio companies are submitted to
the board of directors. The quarterly
business update contains key
financial numbers, M&A updates,
financing, status of value creation
plans, compliance, risk management
and share price information for the
Akastor group. Further, it contains key
financial numbers, key operational
topics, status on value drivers as
well as key market information for
the main portfolio companies. The
monthly business update contains
high level financial and operational
information for the Akastor group,
as well as key highlights for the main
portfolio companies.
11. Remuneration of the Board of
Directors
The remuneration of the board
of directors will reflect its
responsibilities, know-how and
time commitment, as well as the
complexity of the business. The
remuneration will be proposed by
the nomination committee and is
not performance-related or linked
to options in Akastor. More detailed
information about the remuneration
of individual directors is provided in
the remuneration report for 2024, as
further described in section 12 below.
Neither the directors, nor companies
with whom they are affiliated, should
accept specific paid duties for
Akastor beyond their directorships.
If they nevertheless do so, the
board of directors shall be informed
and the remuneration shall be
approved by the board of directors.
No remuneration shall be accepted
from anyone other than the company
or the relevant group company in
connection with such duties.
12. Remuneration of Executive
Personnel
The board of directors has
adopted designated guidelines
for the remuneration of executive
management pursuant to the
provisions of section 6-16a of the
Public Limited Liability Companies
Act. The general meeting adopted
the current guidelines on April
20, 2022. This year, the board will
propose updates to also include
principles for board remuneration to
meet 2024 regulatory changes.
In accordance with section 6-16b
of the Public Limited Liability
Companies Act, the board of
directors has also prepared a
report on the remuneration to the
executive management, detailing the
remuneration received by members
of the executive management in
2024. The report is available at
www.akastor.com and subject to an
advisory vote at the annual general
meeting 2025.
13. Information and
Communication
Akastor has no option schemes or
option programs for the allotment
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
of shares to employees. The Chief
Executive Officer determines
the remuneration of executive
management on the basis of the
guidelines laid down by the board of
directors. All performance-related
remuneration within the group will
be made subject to a cap. Further
information about the remuneration
of each executive manager
is provided in the mentioned
remuneration report for 2024.
The company has adopted a
designated communications and
investor relations policy which covers,
among other things, guidelines
for the company’s contact with
shareholders other than through
general meetings.
The company’s reporting of financial
and other information is based on
openness and the equal treatment
of all securities market players. The
long-term purpose of the investor
relations function is to ensure
access for the company to capital
on competitive terms, whilst at
the same time ensuring that the
shareholders are provided with the
most correct pricing of the shares
that can be achieved. This shall
take place through correct and
timely distribution of price-sensitive
information, whilst ensuring, at the
same time, that the company is in
compliance with applicable rules
and market practices. Reference is
also made to the above discussion
concerning the flow of information
between Akastor and Aker ASA in
connection with their cooperation
within, inter alia, strategy,
transactions, and funding.
All stock exchange announcements
and press releases are made
available on the company’s website,
and stock exchange announcements
are also available at www.newsweb.
no. The company holds open
presentations in connection with the
reporting of financial performance,
either by a physical meeting or by a
conference call and webcast, and
these presentations are broadcasted
on the internet. The financial calendar
of the company is available at www.
akastor.com.
14. Take-overs
The overriding principle for Akastor
is equal treatment of shareholders.
In a bid situation, the board of
directors and management have
an independent responsibility to
help ensure that shareholders
are treated equally, and that the
company’s business activities are not
disrupted unnecessarily. In a take-
over situation, the board will have a
particular responsibility to ensure
that shareholders are given sufficient
information and time to form a view
of the offer.
The board of directors has not
deemed it appropriate to adopt
specific guidelines for take-over
situations as long as Aker Holding
AS continues to be the dominant
shareholder of Akastor. This
represents a deviation from the Code
of Practice.
15. Auditors
The external auditor presents a plan
for the performance of the audit work
to the audit committee annually. In
addition, the auditor provides the
audit committee with an annual
written confirmation to the effect
that the independence requirement
is met. The auditor attends all audit
committee meetings, and the auditor
has reviewed any material changes
to the accounting principles of the
company, or to the internal controls
of the company, with the audit
committee. The external auditor also
attends the board meeting where
the annual financial statements are
reviewed and approved, normally in
March. The board of directors holds a
minimum of one annual meeting with
the auditor without any executive
personnel being in attendance.
The board’s audit committee
stipulates guidelines on the
scope for using the auditor for
services other than auditing and
makes recommendations to the
board of directors concerning the
appointment of the external auditor
and the approval of the auditor’s
fees. Fees payable to the auditor,
separated into those relating to
auditing and those relating to other
services, are specified in the «Other
operating expenses» note to the
consolidated financial statements
for the group and are also reported
to the general meeting. The auditor’s
fees relating to auditing are subject to
approval by the general meeting.
ANNUAL REPORT 2024
PAGE 33
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Financials and Notes
Akastor Group
Consolidated income statement
34
Consolidated statement of comprehensive income 35
Consolidated statement of financial position
36
Consolidated statement of changes in equity
37
Consolidated statement of cash flow
38
General
Note 1 Corporate information
39
Note 2 Basis for preparation
40
Note 3 Significant accounting policies
41
Note 4 Significant accounting estimates
and judgements
46
Performance of the year
Note 5 Operating segments
47
Note 6 Revenue and other income
51
Note 7 Other operating expenses
53
Note 8 Finance income and costs
53
Note 9 Income tax
54
Note 10 Earnings per share
55
Assets
Note 11 Property, plant and equipment
56
Note 12 Equity-accounted investments
57
Note 13 Other investments
59
Note 14 Interest-bearing receivables
60
Note 15 Trade and other receivables
60
Note 16 Liquidity fund investment
61
Equity and liabilities
Note 17 Capital and reserves
62
Note 18 Borrowings
63
Note 19 Employee benefits – pension
65
Note 20 Other liabilities
67
Note 21 Trade and other payables incl. provisions
67
Financial risk management
Note 22 Capital management
68
Note 23 Financial risk management and exposures 69
Note 24 Financial instruments
72
Other
Note 25 Leases
75
Note 26 Discontinued operations
and disposal of subsidiaries
76
Note 27 Group companies
77
Note 28 Related parties
77
Note 29 Events after the reporting period
79
ANNUAL REPORT 2024
PAGE 34
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor Group | Consolidated income statement
For the year ended December 31
Amounts in NOK million
Note
2024
2023
Revenue and other income
5, 6
922
282
Cost of goods and services
(196)
(163)
Other operating expenses
7
(78)
(121)
Operating expenses
(274)
(284)
Operating profit before depreciation, amortization and impairment
648
(2)
Depreciation and impairment loss
11, 25
(27)
(28)
Operating profit (loss)
621
(31)
Finance income
1 200
259
Finance expenses
(114)
(209)
Impairment loss on debt instruments
(80)
(40)
Net finance income and costs
8
1 006
10
Share of net profit (loss) from equity-accounted investments
12
(1)
(363)
Profit (loss) before tax
1 626
(384)
Income tax benefit (expense)
9
(3)
-
Profit (loss) from continuing operations
1 623
(384)
Profit (loss) from discontinued operations (net of income tax)
26
30
122
Profit (loss) for the period
1 653
(262)
Profit (loss) for the period attributable to:
Equity holders of the parent company
1 653
(264)
Non-controlling interests
-
3
Basic / diluted earnings (loss) per share (NOK)
10
6.08
(0.97)
Basic / diluted earnings (loss) per share continuing operations (NOK)
10
5.96
(1.42)
Basic / diluted earnings (loss) per share discontinued operations (NOK)
10
0.11
0.45
ANNUAL REPORT 2024
PAGE 35
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor Group | Consolidated statement of comprehensive income
For the year ended December 31
Amounts in NOK million
Note
2024
2023
Profit (loss) for the period
1 653
(262)
Other comprehensive income
Currency translation differences - foreign operations
315
97
Currency translation differences, reclassification to income statement upon disposal
-
(2)
Share of OCI from equity-accounted investments
12
(160)
37
Total items that may be reclassified subsequently to profit or loss, net of tax
154
131
Remeasurement gain (loss) net defined benefit liability
19
(3)
(8)
Share of OCI from equity-accounted investments
12
3
1
Total items that will not be reclassified to profit or loss, net of tax
(1)
(7)
Total other comprehensive income, net of tax
154
124
Total comprehensive income (loss) for the period, net of tax
1 807
(137)
Attributable to:
Equity holders of the parent company
1 807
(140)
Non-controlling interests
-
3
ANNUAL REPORT 2024
PAGE 36
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor Group | Consolidated statement of financial position
As of December 31
Amounts in NOK million
Note
2024
2023
Property, plant and equipment
11
390
231
Right-of-use assets
25
9
7
Equity-accounted investments
12
3 733
3 439
Other investments
13
1 251
1 051
Non-current interest-bearing receivables
14
485
550
Other non-current assets
1
1
Total non-current assets
5 868
5 279
Inventories
12
5
Trade and other receivables
15
95
601
Current finance lease receivables
25
-
19
Current interest-bearing receivables
14
304
-
Liquidity fund investment
16
376
-
Cash and cash equivalents
47
144
Total current assets
835
769
Total assets
6 704
6 048
Amounts in NOK million
Note
2024
2023
Issued capital incl. treasury shares
17
161
161
Other capital paid in
1 541
1 541
Reserves and retained earnings
4 156
2 267
Equity attributable to equity holders of the parent company
5 859
3 970
Total equity
5 859
3 970
Non-current borrowings
18
292
236
Non-current lease liabilities
25
5
2
Employee benefit obligations
19
76
82
Other non-current liabilities
20
195
255
Total non-current liabilities
568
575
Current borrowings
18
82
1 133
Current lease liabilities
25
4
32
Trade and other payables incl. provisions
21
191
339
Total current liabilities
277
1 504
Total liabilities
845
2 078
Total equity and liabilities
6 704
6 048
Fornebu, March 25, 2025 I Board of Directors of Akastor ASA
Frank O. Reite
Chairperson
Asle Christian Halvorsen
Director
Lone Fønss Schrøder
Deputy Chairperson
Stian Sjølund
Director
Svein Oskar Stoknes
Director
Karl Erik Kjelstad
CEO
Kathryn M. Baker
Director
Luis Antonio G. Araujo
Director
Henning Jensen
Director
ANNUAL REPORT 2024
PAGE 37
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor Group | Consolidated statement of changes in equity
Amounts in NOK million
Share
capital
Treasury
shares
Other capital
paid in
Hedging
reserve1)
Fair value
reserve1)
Currency
translation
reserve1)
Retained
earnings
Equity attributable
to equity holders of
the parent company
Non-controlling
interests (NCI)
Total equity
2023
Equity as of January 1, 2023
162
(1)
1 540
(8)
(72)
(16)
2 453
4 056
36
4 092
Profit (loss) for the period
-
-
-
-
-
-
(264)
(264)
3
(262)
Other comprehensive income
-
-
-
15
-
116
(7)
124
-
124
Total comprehensive income
-
-
-
15
-
116
(271)
(140)
3
(137)
Treasury share transactions
-
-
2
-
-
-
-
2
-
2
Share-based payments in joint ventures
-
-
-
-
-
-
52
52
-
52
Disposal of subsidiaries
-
-
-
-
-
-
-
-
(39)
(39)
Equity as of December 31, 2023
162
(1)
1 541
7
(72)
100
2 234
3 970
-
3 970
2024
Profit (loss) for the period
-
-
-
-
-
-
1 653
1 653
-
1 653
Other comprehensive income
-
-
-
(18)
-
172
(1)
154
-
154
Total comprehensive income
-
-
-
(18)
-
172
1 652
1 807
-
1 807
Equity-settled share-based payments
-
-
-
-
-
-
5
5
-
5
Other equity changes in joint ventures
-
-
-
-
-
-
78
78
-
78
Equity as of December 31, 2024
162
(1)
1 541
(11)
(72)
272
3 969
5 859
-
5 859
1) See Note 17 Capital and reserves
ANNUAL REPORT 2024
PAGE 38
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor Group | Consolidated statement of cash flow
For the year ended December 31
Amounts in NOK million
Note
2024
2023
Cash flow from operating activities
Profit (loss) for the period - continuing operations
1 623
(384)
Profit (loss) for the period - discontinued operations
30
122
Profit (loss) for the period
1 653
(262)
Adjustments for:
Income tax expense (benefit)
3
-
Net interest cost and unrealized currency (income) loss
(26)
99
Depreciation and impairment loss
11, 25
27
33
(Gain) loss on disposal of subsidiaries
(30)
(126)
(Gain) loss on disposal of assets
-
2
(Profit) loss from equity-accounted investments
12
1
363
Other non-cash effects
(218)
(106)
Changes in net working capital
(279)
(191)
Cash generated from operating activities
1 132
(188)
Dividend received
9
4
Interest paid
(176)
(237)
Interest paid for leases
(1)
(3)
Interest received
817
118
Interest received for leases
1
12
Income taxes paid
(3)
(2)
Net cash from operating activities
1 779
(296)
Amounts in NOK million
Note
2024
2023
Cash flow from investing activities
Acquisition of property, plant and equipment
11
(149)
(9)
Payments for capitalized development
-
(4)
Payments related to sale of subsidiaries from prior years
(183)
(54)
Funding to equity-accounted investments
(81)
(119)
Net changes in liquidity fund investments
(366)
-
Proceeds from other investments
-
216
Proceeds from finance lease receivables
19
211
Net cash flow from other investing activities
(1)
(5)
Net cash from investing activities
(761)
236
Cash flow from financing activities
Proceeds from borrowings
18
249
507
Repayment of borrowings
18
(1 350)
(382)
Payment of lease liabilities
(31)
(41)
Net cash used in financing activities
(1 132)
85
Effect of exchange rate changes on cash and bank deposits
16
-
Net increase (decrease) in cash and bank deposits
(98)
25
Cash and cash equivalents at the beginning of the period
144
119
Cash and cash equivalents at the end of the period
47
144
Of which is restricted cash
-
-
The statement included cash flows from discontinued operations prior to the disposal.
ANNUAL REPORT 2024
PAGE 39
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 1 | Corporate information
Akastor ASA is a limited liability company incorporated and domiciled in Norway and whose
shares are publicly traded. The registered office is located at Oksenøyveien 10, Bærum,
Norway. The largest shareholder is Aker Holding AS which is wholly owned by Aker ASA as
of December 31, 2024.
The consolidated financial statements of Akastor ASA and its subsidiaries (collectively
referred as Akastor or the group, and separately as group companies) for the year ended
December 31, 2024 were approved by the board of directors and CEO on March 25, 2025.
The consolidated financial statements will be authorized by the Annual General Meeting on
April 24, 2025.
The group is an oilfield services investment company with a portfolio of industrial holdings
and other investments. Akastor is listed on the Oslo Stock Exchange under the ticker AKAST.
Information on the group’s structure is provided in Note 27 Group companies. Information on
other related party relationships of the group is provided in Note 28 Related parties.
ANNUAL REPORT 2024
PAGE 40
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 2 | Basis for preparation
Basis of accounting
The consolidated financial statements have been prepared in accordance with IFRS®
Accounting Standards as adopted by the EU, their interpretations adopted by the
International Accounting Standards Board (IASB) and the additional requirements of the
Norwegian Accounting Act as of December 31, 2024.
Going concern basis of accounting
The consolidated financial statements have been prepared on a going concern basis, which
assumes that the group will be able to meet the mandatory terms and conditions of the
banking facilities as disclosed in Note 22 Capital management. Please refer to Board of
Directors’ report for more information about going concern assessment.
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis
except for the following material items, which are measured on an alternative basis on each
reporting date:
• Non-derivative financial instruments at Fair Value through Profit or Loss (FVTPL) are
measured at fair value.
• Debt instruments at Fair Value through Other Comprehensive Income (FVOCI) are
measured at fair value.
• Contingent considerations assumed in business disposals are measured at fair value.
• Net defined benefit (asset) liability is recognized at fair value of plan assets less the
present value of the defined benefit obligation.
Functional and presentation currency
The consolidated financial statements are presented in NOK, which is Akastor ASA’s functional
currency. All financial information presented in NOK has been rounded to the nearest million (NOK
million), except when otherwise stated. The subtotals and totals in some of the tables in these
consolidated financial statements may not equal the sum of the amounts shown due to rounding.
When the functional currency in a reporting unit is changed, the effect of the change is accounted
for prospectively.
Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make
judgements, estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. Although management believes these
assumptions to be reasonable, given historical experience, actual amounts and results could
differ from these estimates. The items involving a higher degree of judgement or complexity, and
items where assumptions and estimates are material to the consolidated financial statements, are
disclosed in Note 4 Significant accounting estimates and judgements.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and in any
future periods affected.
ANNUAL REPORT 2024
PAGE 41
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 3 | Significant accounting policies
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial
statements are set out below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the group. The group controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity. The financial statements of
subsidiaries are included in the consolidated financial statements from the date on which
control commences until the date of which control ceases.
Loss of control
On the loss of control, the group derecognizes the assets and liabilities of the subsidiary,
any non-controlling interests and the other components of equity. Any resulting gain or
loss is recognized in the income statement. Any interest retained in the former subsidiary
is measured at fair value when control is lost. Subsequently it is accounted for as an equity-
accounted investee or as a financial asset depending on the level of influence retained.
Any contingent consideration receivable is measured at fair value at the disposal date.
Changes in the fair value of the contingent consideration from divestment of a subsidiary for
transactions will be recognized in Other income as gain or loss.
Investments in joint ventures
The group’s interests in equity-accounted investments comprise interests in joint ventures.
A joint venture is an arrangement in which the group has joint control, whereby the group
has rights to the net assets of the arrangement, rather to its assets and obligations for its
liabilities. Joint control is established by contractual agreement requiring unanimous consent
of the ventures for strategic, financial and operating decisions.
Interests in joint ventures are accounted for using the equity method. They are initially
recognized at cost, which includes transaction costs. Subsequent to initial recognition, the
consolidated financial statements include the group’s share of the profit and loss and other
comprehensive income of the equity-accounted investments. When the group’s share of
losses exceeds its interest in an equity-accounted investee, the carrying amount of that
interest, including any long-term investments, is reduced to zero, and further losses are not
recognized except to the extent that the group incurs legal or constructive obligations or
has made payments on behalf of the investee.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealized gains and losses or income and
expenses arising from intra-group transactions, are eliminated in preparing the consolidated
financial statements. Unrealized gains arising from transactions with joint ventures are
eliminated to the extent of the group’s interest in the entity. Unrealized losses are eliminated
in the same way as unrealized gains, but only to the extent that there is no evidence of
impairment.
Discontinued operations
A discontinued operation is a component of the group’s business that represents a separate
major line of business or geographical area of operations that has been disposed of or is
held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a
discontinued operation occurs upon disposal or when the operation meets the criteria to be
classified as held for sale, if earlier.
In the consolidated income statement, income and expenses from discontinued operations
are reported separately from income and expenses from continuing operations, down to the
level of profit after taxes. When an operation is classified as a discontinued operation, the
comparative income statement is restated as if the operation had been discontinued from
the start of the comparative year.
ANNUAL REPORT 2024
PAGE 42
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
The statement of cash flow includes the cash flow from discontinued operations prior to
the disposal. Cash flows attributable to the operating, investing and financing activities of
discontinued operations are presented in the notes to the extent these represent cash flows
with third parties.
Foreign currency
Foreign currency transactions and balances
Transactions in foreign currencies are translated at the exchange rate at the date of
the transaction. Monetary assets and liabilities denominated in foreign currencies at the
reporting date are translated to the functional currency at the exchange rate on that date.
Foreign exchange differences arising on translation are recognized in the income statement.
Non-monetary assets and liabilities measured in terms of historical cost in a foreign currency
are translated using the exchange rate on the date of the transaction. Non-monetary
assets and liabilities denominated in foreign currencies that are measured at fair value are
translated to the functional currency at the exchange rates on the date the fair value is
determined.
Investments in foreign operations
Items included in the financial statements of each of the group’s entities are measured using
the currency of the primary economic environment in which the entity operates. The results
and financial positions of all the group entities that have a functional currency different from
the group’s presentation currency are translated into the presentation currency as follows:
• Assets and liabilities, including goodwill and fair value adjustments, are translated at the
closing exchange rate at the reporting date.
• Income statements are translated at average exchange rate for the year, calculated on
the basis of 12 monthly end rates.
Exchange differences arising from the translation of the net investment in foreign operations,
and of related hedges, are included in other comprehensive income as currency translation
reserve. These translation differences are reclassified to the income statement upon
disposal of the related operations or when settlement is likely to occur in the near future.
Monetary items that are receivable from or payable to a foreign operation are considered as
part of the net investment in that foreign operation, when the settlement is neither planned
nor likely to occur in the foreseeable future. Exchange differences arising from these
monetary items are recognized in other comprehensive income.
Current/non-current classification
An asset is classified as current when it is expected to be realized or is intended for sale
or consumption in the group’s normal operating cycle, it is held primarily for the purpose of
being traded, or it is expected/due to be realized or settled within twelve months after the
reporting date. Other assets are classified as non-current.
A liability is classified as current when it is expected to be settled in the group’s normal
operating cycle, is held primarily for the purpose of being traded, the liability is due to be
settled within twelve months after the reporting period, or if the group does not have an
unconditional right to defer settlement of the liability for at least twelve months after the
reporting period. All other liabilities are classified as non-current.
Financial assets, financial liabilities and equity
On initial recognition, a financial asset is classified as measured at amortized costs, FVOCI or
FVTPL. The classification depends on the group’s business model for managing the financial
assets and the contractual terms of the cash flows.
• A financial asset is measured at amortized costs if the business model is to hold the
asset to collect contractual cash flows, and the contractual cash flows are solely
payments of principal and interests (SPPI criterion).
• A debt instrument is classified at FVOCI if the business model is both collecting
contractual cash flows and selling the financial asset, and it meets the SPPI criterion.
• All financial assets not classified as measured at amortized cost or FVOCI are measured
at FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the group
changes its business model for managing financial assets.
ANNUAL REPORT 2024
PAGE 43
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Other investments
Other investments include equity and debt investments in companies where the group has
neither control nor significant influence, usually represented by less than 20 percent of the
voting power. The investments are categorized as financial assets measured at FVTPL or
FVOCI and recognized at fair value at the reporting date. Subsequent to initial recognition,
changes in financial assets measured at FVTPL are recognized in profit and loss.
When a debt instrument is classified as financial asset measured at FVOCI, interest
income calculated using the effective interest method, foreign exchange gains and losses
and impairment losses are recognized in profit and loss. Other changes in fair value are
recognized in other comprehensive income and presented as part of fair value reserve.
When financial asset measured at FVOCI is derecognized, the gain or loss accumulated in
other comprehensive income is reclassified to profit and loss.
Trade and other receivables
Trade and other receivables are generally classified as financial assets measured at
amortized costs. They are recognized at the original invoiced amount, less loss allowance
made for credit losses. The interest rate element is disregarded if insignificant, which is the
case for the majority of the group’s trade receivables.
Interest-bearing receivables
Interest-bearing receivables include loans to related parties and are generally classified as
financial assets measured at amortized costs. Such financial assets are recognized initially
at fair value and subsequent measurement at amortized cost using the effective interest
method, less any impairment losses.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits held at banks and other
short-term highly liquid investments with original maturity of three months or less.
Trade and other payables
Trade payables are recognized at the original invoiced amount. Other payables are
recognized initially at fair value. Trade and other payables are valued at amortized cost
using the effective interest rate method. The interest rate element is disregarded if it is
insignificant, which is the case for the majority of the group’s trade payables.
Interest-bearing borrowings
Interest-bearing borrowings are recognized initially at fair value less attributable transaction
costs. Subsequent to initial recognition, interest-bearing borrowings are measured at
amortized cost with any difference between cost and redemption value being recognized in
the income statement over the period of the borrowings on an effective interest basis.
Share capital
Ordinary shares are classified as equity. Repurchase of share capital is recognized as a
reduction in equity and is classified as treasury shares.
Finance income and expense
Finance income and expense include interest income and expense, foreign exchange gains
and losses, dividend income, as well as change in fair value of financial assets measured at
FVTPL. Interest expenses include discounting effects from liabilities measured at fair value.
Revenue from contract with customers
Majority of the group’s revenue from contract with customers is service revenue generated
from rendering of services to customers. The customers simultaneously receive and
consume the benefits provided by these services. The group has assessed that these
performance obligations are satisfied over time. Under some service contracts, the invoices
are based on hours or days performed at agreed rates. The revenue is recognized according
to progress, or using the invoiced amounts when the invoiced amounts directly correspond
with the value of the services that are transferred to the customers.
Under day rate chartering contract, the group is remunerated by the customer by an agreed
daily rate for each day of use of the vessel, equipment, crew and other resources. The
charterer determines, within the contractual limits, how a vessel is utilized. The right to use
the vessel falls un under the scope of IFRS 16 “Leases”. The portion of lease revenue of the
contract value is estimated at an overall level.
ANNUAL REPORT 2024
PAGE 44
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Income tax
Deferred tax assets are recognized for unused tax losses and deductible temporary
differences, to the extent that it is probable that future taxable profits will be available
against which they can be utilized. Measurement of deferred tax assets are reviewed at
each reporting date.
Impairment of financial assets
Trade receivables and contract assets
Loss allowance is recognized in profit or loss and measured at lifetime ECLs. ECLs are a
probability-weighted estimate of credit losses. When estimating ECLs, the group considers
reasonable and supportable information that is relevant and available without undue cost or
effort, based on the group’s historical experience including forward-looking information. The
gross carrying amount of trade receivable is written off when the group has no reasonable
expectations of recovering a trade receivable in its entirety or a portion thereof.
Debt instruments measured at amortized cost or at FVOCI
The group assesses on a forward-looking basis the expected credit losses associated with
its debt instruments carried at amortized cost and FVOCI. The impairment methodology
applied depends on whether there has been a significant increase in credit risk. The loss
allowance is charged to profit and loss.
Leases
Lease liabilities
At the lease commencement date, the group recognizes lease liability measured at the
present value of the lease payments over the lease term, discounted using the group’s
incremental interest rate. Generally, the lease payments include fixed payments and variable
lease payments that depend on an index or rate.
The lease liability is subsequently increased by the interest cost on the lease liability and
decreased by lease payment made. It is remeasured when there is a change in future
lease payments arising from a change in an index or rate, or as appropriate, changes in
the assessment of whether an extension option is reasonably certain to be exercised or a
termination option is reasonably certain not to be exercised.
As a lessor
When the group acts as a lessor, it determines at lease inception whether each lease is a
finance lease or an operating lease.
To classify each lease, the group makes an overall assessment of whether the lease
transfers substantially all of the risks and rewards incidental to ownership of the underlying
asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease.
As part of this assessment, the group considers certain indicators such as whether the
lease is for the major part of the economic life of the asset.
The group recognizes lease payments received under operating leases as income on a
straight line basis over the lease term as part of “Lease revenue”.
Property, plant and equipment
Property, plant and equipment are measured at cost less accumulated depreciation and
impairment losses. If the components of property, plant and equipment have different useful
lives, they are accounted for as separate components. Depreciation is normally recognized
on a straight-line basis over the estimated useful lives of property, plant and equipment.
Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognized as an
expense in the income statement as incurred.
ANNUAL REPORT 2024
PAGE 45
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Defined benefit plans
The group’s net obligation in respect of defined benefit pension plans is calculated
separately for each plan by estimating the amount of future benefit that employees have
earned in the current and prior periods; discounting that amount and deducting the fair
value of any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary
using the projected unit credit method. The discount rate is the yield at the reporting date
on government bonds or high-quality corporate bonds with maturities consistent with the
terms of the obligations.
Remeasurement of the net defined benefit liability, which comprises actuarial gains and
losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if
any, excluding interest), are recognized immediately in other comprehensive income. The
group determines the net interest expense (income) on the net defined benefit liability
(asset) for the period by applying the discount rate used to measure the defined benefit
obligation at the beginning of the annual period to the then-net defined benefit liability
(asset), taking into account any changes in the net defined benefit liability (asset) during the
period as a result of contributions and benefit payments. Net interest expense and other
expenses related to defined benefit plans are recognized in the income statement.
Fair value measurement
When available, the group measures the fair value of a financial instrument using the quoted
price in an active market for that instrument. If there is no quoted price in an active market,
then the group uses valuation techniques that maximize the use of relevant observable inputs
and minimize the use of unobservable inputs. The chosen valuation technique incorporates
all of the factors that market participants would take into account in pricing a transaction.
The best evidence of the fair value of a financial instrument on initial recognition is normally
the transaction price. If the group determines that the fair value on initial recognition differs
from the transaction price and the fair value is evidenced neither by a quoted price in an
active market for an identical asset or liability nor based on a valuation technique that uses
only data from observable markets, the financial instrument is initially measured at fair value,
and the difference between the fair value on initial recognition and the transaction price is
recognized as a deferred gain or loss. Subsequently, the deferred gain or loss is recognized in
profit or loss on an appropriate basis over the life of the instrument.
ANNUAL REPORT 2024
PAGE 46
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 4 | Significant accounting estimates and judgements
Estimates and judgements are continually reviewed and are based on historical experiences
and expectations of future events. The resulting accounting estimates will, by definition,
seldom accurately match actual results, but are based on the best estimate at the time.
Estimates and assumptions that have a significant risk of causing material adjustments to
the carrying amounts of assets and liabilities within the next financial year are discussed
below.
Fair value measurement
The group has invested in significant financial assets that require the measurement of fair
value. If there is no quoted price in an active market, then the group uses valuation techniques
that maximize the use of relevant observable inputs and minimize the use of unobservable
inputs. The chosen valuation technique incorporates all of the factors that market participants
would take into account in pricing a transaction. The fair value measurement requires a
high degree of judgment. Judgements include considerations of inputs such as cash flow
projection, discount rate and volatility. Further information about the fair value measurement
using level 3 inputs is included in Note 24 Financial Instruments.
Impairment of financial assets
The group has invested in significant debt instruments measured at fair value through other
comprehensive income (FVOCI). The impairment of these financial assets is subject to
expected credit loss. The loss allowance is recognized in profit and loss and reduces the
fair value loss otherwise recognized in OCI. The loss allowance is based on assumptions
of expected cash flows from the debt instruments. When making these assumptions, the
group uses judgements selecting the similar inputs as used in the fair value measurement
since the valuation model also considers the present value of expected cash flows from
such investments. Key assumptions include the expected disposal value of the investments
and discount factor.
Deferred and contingent considerations
Deferred and contingent considerations resulting from disposals are measured at fair value
at transaction date. When a deferred and contingent consideration meets the definition of
a financial asset or liability, it is subsequently remeasured at fair value at the reporting date.
The determination of fair value is based on discounted cash flows. Key assumptions made
by the management include the probability of meeting each performance target and the
discount factor.
Income taxes
Valuation of deferred tax assets is dependent on management’s assessment of future
recoverability of the deferred tax benefit. Expected recoverability may result from expected
taxable income in the near future, planned transactions or planned tax optimizing measures.
Economic conditions may change and lead to a different conclusion regarding recoverability,
and such change may affect the results for each future reporting period.
Tax authorities may challenge calculation of income taxes from prior periods. Such
processes may lead to changes to prior periods’ taxable income, resulting in changes to
income tax expense. When tax authorities challenge income tax calculations, management
is required to make estimates of the probability and amount of possible tax adjustments.
Such estimates may change as additional information becomes known. Further details
about income taxes are included in Note 9 Income tax.
Pension benefits
The present value of the pension obligations depends on a number of factors determined
on the basis of actuarial assumptions. These assumptions include financial factors such
as the discount rate, expected salary growth, inflation and return on assets as well as
demographical factors concerning mortality, employee turnover, disability and early
retirement. Assumptions about all these factors are based on the situation at the time
the assessment is made. However, it is reasonably certain that such factors will change
over the very long periods for which pension calculations are made. Any changes in these
assumptions will affect the calculated pension obligations with immediate recognition in
other comprehensive income. Further information about the pension obligations and the
assumptions used are included in Note 19 Employee benefits - pension.
ANNUAL REPORT 2024
PAGE 47
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 5 | Operating segments
Basis for segmentation
Akastor has identified the following operating segments as described below.
• HMH is a premier drilling solutions provider, which was formed as an independent
company in October 2021 through the merger of Baker Hughes’ Subsea Drilling Systems
business and Akastor’s wholly owned subsidiary, MHWirth AS. HMH combines integrated
delivery capabilities, capital, renowned industry expertise and delivers the full range of
offshore drilling equipment products and packages at scale.
• AKOFS Offshore is a global provider of vessel-based subsea well construction and
intervention services to the oil and gas industry, covering all phases from conceptual
development to project execution and offshore operations.
• DDW Offshore owns three Anchor Handling Tug Supply (AHTS) vessels with capability to
operate and support clients on a world-wide basis. The vessels are specially designed to
perform anchor-handling, towing, and supply services at offshore oil and gas fields.
• Other holdings mainly include approximately 15 percent economic interest in NES
Fircroft, 1.3 percent shareholdings in Odfjell Drilling, 4.7 percent shareholdings in ABL
Group, 36 percent of the joint venture Føn Energy Services, equity instruments in Maha
Energy and Awilco Drilling. In addition, this segment includes corporate functions and
certain office lease commitments. The financial interest in four drilling equipment
contracts with Jurong Shipyard (the DRU contracts) were settled during 2024.
HMH and AKOFS Offshore are classified as joint ventures and accounted for using the
equity method, see Note 12 Equity-accounted investments. The segment information of the
two joint ventures is presented at 100% basis.
Measurement of segment performance
Segment performance is measured by operating profit before depreciation, amortization
and impairment (EBITDA) which is reviewed by the group’s Executive Management Group
(the chief operating decision maker). Segment profit, together with key financial information
as described below, gives the Executive Management Group relevant information in
evaluating the results of the operating segments and is relevant in evaluating the results of
the segments relative to other entities operating within these industries.
ANNUAL REPORT 2024
PAGE 48
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Equity-accounted investments 1)
Consolidated entities
Amounts in NOK million
Note
HMH (JV)
AKOFS
Offshore (JV)
DDW
Offshore
Other
holdings
Total operating
segments
Adjustment
of JVs
Total
Akastor
2024
Income statement
External revenue and other income
6
9 056
1 495
278
644
11 473
(10 551)
922
Total revenue and other income
9 056
1 495
278
644
11 473
(10 551)
922
Operating profit before depreciation, amortization and impairment (EBITDA)
1 741
419
91
558
2 809
(2 161)
648
Depreciation and impairment loss
11, 25
(497)
(436)
(22)
(5)
(960)
933
(27)
Operating profit (loss) (EBIT)
1 244
(16)
68
553
1 849
(1 228)
621
Assets
Current operating assets
6 882
401
88
28
7 399
(7 292)
108
Non-current operating assets
7 828
4 150
390
1 280
13 648
(8 264)
5 384
Segment assets
14 710
4 551
478
1 308
21 047
(15 556)
5 491
Liabilities
Current operating liabilities
3 559
287
64
136
4 046
(3 855)
191
Non-current operating liabilities
557
5
-
271
833
(562)
271
Lease liabilities
446
1 182
-
9
1 637
(1 628)
9
Segment liabilities
4 562
1 474
64
416
6 516
(6 045)
471
Net current operating assets2)
-
-
25
(109)
(84)
-
(84)
Net capital employed2)
3 576
138
415
891
5 020
-
5 020
1) Segment information presented at 100% basis
2) Refers to figures included in Akastor’s consolidated statement of financial position.
Information about reportable segments
ANNUAL REPORT 2024
PAGE 49
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Equity-accounted investments 1)
Consolidated entities
Amounts in NOK million
Note
HMH (JV)
AKOFS
Offshore (JV)
DDW
Offshore
Other
holdings
Total operating
segments
Adjustment
of JVs
Total
Akastor
2023
Income statement
External revenue and other income
6
8 264
1 369
231
51
9 914
(9 632)
282
Total revenue and other income
8 264
1 369
231
51
9 914
(9 632)
282
Operating profit before depreciation, amortization and impairment (EBITDA)
1 262
345
84
(87)
1 605
(1 607)
(2)
Depreciation and impairment loss
11, 25
(659)
(415)
(17)
(11)
(1 102)
1 074
(28)
Operating profit (loss) (EBIT)
603
(70)
67
(98)
503
(533)
(31)
Assets
Current operating assets
5 787
586
77
530
6 979
(6 373)
606
Non-current operating assets
7 249
4 239
231
1 076
12 795
(8 066)
4 729
Finance lease receivables
-
-
-
19
19
-
19
Segment assets
13 036
4 825
308
1 625
19 793
(14 439)
5 354
Liabilities
Current operating liabilities
3 586
421
45
294
4 347
(4 008)
339
Non-current operating liabilities
446
6
-
337
788
(451)
337
Lease liabilities
387
994
-
34
1 415
(1 381)
34
Segment liabilities
4 419
1 421
45
665
6 550
(5 840)
709
Net current operating assets2)
-
-
32
236
267
-
267
Net capital employed2)
3 015
407
263
960
4 645
-
4 645
1) Segment information presented at 100% basis
2) Refers to figures included in Akastor’s consolidated statement of financial position.
Information about reportable segments
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Reconciliations of information on reportable segments to IFRS measures
Amounts in NOK million
Note
2024
2023
Assets
Total segment assets
5 491
5 354
Cash and cash equivalents
47
144
Liquidity fund investment
16
376
-
Non-current interest-bearing receivables
14
485
550
Current interest-bearing receivables
14
304
-
Consolidated assets
6 704
6 048
Liabilities
Total segment liabilities
471
709
Current borrowings
18
82
1 133
Non-current borrowings
18
292
236
Consolidated liabilities
845
2 078
Geographical information
Geographical revenue is presented on the basis of geographical location of the group
companies selling to the customers. Non-current segment assets and capital expenditures
are based on the geographical location of the assets.
Revenue and other
income
Non-current assets excluding deferred
tax assets and financial instruments
Amounts in NOK million
2024
2023
2024
2023
Norway
922
282
557
664
Netherlands
-
-
3 576
3 015
Total
922
282
4 133
3 678
Major customer
Revenues from one customer of DDW Offshore represent approximately NOK 162 million
(NOK 120 million in 2023) of the group’s total operating revenue.
ANNUAL REPORT 2024
PAGE 51
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Disaggregation of revenue from contracts with customers
Revenue from contracts with customer is disaggregated in the following table by major contract
and revenue types and timing of revenue recognition. The table also includes a reconciliation of
the disaggregated revenue with revenue information as shown in Note 5 Operating segments.
Amounts in NOK million
DDW
Offshore
Other
holdings
Total
Akastor
2024
Revenue types
Service revenue
111
13
124
Total Revenue from contracts with customers
111
13
124
Timing of revenue recognition
Transferred over time
111
13
124
Total Revenue from contracts with customers
111
13
124
Lease revenue
167
1
168
Other income
-
630
630
Total external revenue and other income in segment reporting
278
644
922
Note 6 | Revenue and other income
The group generates revenue primarily from day rate contracts in DDW Offshore, which
owns three Anchor Handling Tug Supply (AHTS) vessels. A day rate contract is a contract
where DDW Offshore is remunerated by the customer at an agreed daily rate for each day
of use of the vessel, equipment, crew and other resources. It is estimated that 40% of the
contract value is service revenue while the remaining is lease portion of the revenue.
Amounts in NOK million
Note
2024
2023
Revenue from contracts with customers
124
121
Other revenue and income
Lease revenue
25
168
147
Other income
630
-
Gain (loss) on disposal of subsidiaries
-
16
Gain on disposals of assets
-
(2)
Total revenue and other income
922
282
Other income in 2024 relates to arbitration award for four drilling equipment contracts
(DRU contracts) with Jurong Shipyard Pte Ltd (Jurong). Akastor’s economic interest in DRU
contracts was carved out from MHWirth in connection with the merger with Baker Hughes’
SDS business. The contracts were terminated by Jurong and dispute over termination
fees were resolved through arbitration process. In 2024, Akastor received final arbitration
award and settlement whereby Akastor received a total amount of USD 176 million in cash
as payment of termination fees, reimbursement of costs and interest compensation. The
DRU contracts were thus fully and finally settled. As a result of the settlement, other income
of NOK 630 million and interest income of NOK 717 million were recognized in the income
statement in 2024, see also Note 8 Finance income and costs.
ANNUAL REPORT 2024
PAGE 52
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Amounts in NOK million
DDW
Offshore
Other
holdings
Total
Akastor
2023
Revenue types
Service revenue
93
28
121
Total Revenue from contracts with customers
93
28
121
Timing of revenue recognition
Transferred over time
93
28
121
Total Revenue from contracts with customers
93
28
121
Lease revenue
140
7
147
Other income
(2)
16
14
Total external revenue and other income in segment reporting
231
51
282
Contract balances
Amounts in NOK million
Note
2024
2023
Receivables, which are included in “trade and other receivables”
31
22
Contract assets
15
11
11
Contract liabilities
21
-
7
Contract assets relate to the group’s rights to consideration for work completed, but not yet
invoiced at the reporting date. The contract assets are transferred to receivables when the
rights to payment become unconditional, which usually occurs when invoices are issued to
the customers. No impairment on contract assets was recognized in 2024 or 2023.
Contract liabilities relate to advance consideration received from customer for work not
yet performed. Revenue recognized in 2024 that was included in contract liabilities in the
beginning of the year was NOK 7 million (NOK 16 million in 2023).
ANNUAL REPORT 2024
PAGE 53
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 7 | Other operating expenses
Amounts in NOK million
2024
2023
Salaries and other employee benefit costs
57
58
External consultants inclusive legal costs
13
52
Other
7
11
Total other operating expenses
78
121
Fees to the auditors
Audit fees (exclusive VAT) incurred by the group during 2024 were NOK 1.7 million (NOK 1.6
million in 2023). Fees incurred for other assurance services were NOK 0.2 million in 2024
(NOK 0.5 million in 2023).
Note 8 | Finance income and costs
Amounts in NOK million
2024
2023
Interest income on bank deposits and investments measured at amortized cost
68
59
Interest income on debt instruments at FVOCI
105
97
Interest income on finance lease receivables
1
12
Interest income related to DRU contracts 1)
717
-
Net foreign exchange gain
190
48
Dividend income from equity instruments
9
4
Net changes in fair value of financial assets at FVTPL
108
30
Other finance income
2
9
Finance income
1 200
259
Interest expense on financial liabilities measured at amortized cost
(103)
(160)
Unwind of discounting effect
(6)
(16)
Interest expense on lease liabilities
(1)
(3)
Impairment loss on debt instruments 2)
(80)
(40)
Other financial expenses
(3)
(30)
Financial expenses
(194)
(249)
Net finance income
1 006
10
1) Relates to interest compensation received from the arbitration award for DRU contracts, see Note 6 and Note 15 for
more information.
2) Impairment related to loss allowance on debt instruments measured at FVOCI
See Note 24 Financial instruments for information of the finance income and expense
generating items.
ANNUAL REPORT 2024
PAGE 54
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 9 | Income tax
Effective tax rate
The table below reconciles the reported income tax expense to the expected income tax
expense according to the corporate income tax rate in Norway.
Amounts in NOK million
2024
2023
Profit (loss) before tax, continuing operations
1 626
(384)
Tax income (expense) using the company's domestic tax rate
(358)
22.0%
84
22.0%
Tax effects of:
Difference between local tax rate and Norwegian tax rate
(1)
0.0%
(1)
(0.2%)
Permanent differences 1)
(9)
0.6%
(72)
(18.7%)
Recognition of previously unrecognized deferred tax assets 2)
377
(23.2%)
14
3.6%
Write down of tax loss or deferred tax assets 3)
(9)
0.6%
(26)
(6.8%)
Other (withholding tax)
(3)
0.2%
-
-
Total tax income (expenses)
(3)
0.2%
-
-
1) Relates mainly to net profit and loss after tax from equity-accounted investments and profit and loss recognized on
various tax-exempted investments.
2) Relates to previously not recognized tax loss carry-forward in Norway.
3) The impairment relates mainly to unrecognized tax loss and deductible temporary differences in Akastor Corporate
entities.
Tax loss carry-forwards and deductible temporary differences for which no
deferred tax assets are recognized
Deferred tax assets have not been recognized in respect of tax loss carry-forwards or
deductible temporary differences when the group evaluates that it is not probable that
future taxable profit will be available against which the group can utilize these benefits
based on forecasts and realistic expectations.
Expiry date of unrecognized tax loss carry-forwards
Amounts in NOK million
2024
2023
Expiry in more than one year or later
387
411
Indefinite
2 028
3 140
Total
2 415
3 551
Unrecognized other deductible temporary differences are NOK 621 million in 2024 (NOK 1 112
million in 2023).
ANNUAL REPORT 2024
PAGE 55
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 10 | Earnings per share
Akastor ASA holds 1 813 974 treasury shares at year end 2024 (1 813 974 in 2023). Treasury
shares are not included in the weighted average number of ordinary shares.
Amounts in NOK million
2024
2023
Profit (loss) from continuing operations
1 623
(384)
Non-controlling interests
-
(3)
Profit (loss) attributable to ordinary shares from continuing operations
1 623
(386)
Profit (loss) from discontinued operations
30
122
Profit (loss) attributable to ordinary shares
1 653
(264)
Basic/ diluted earnings per share
The calculation of basic/diluted earnings per share is based on the profit (loss) attributable to
ordinary shareholders and a weighted average number of ordinary shares outstanding.
2024
2023
Issued ordinary shares as of January 1
274 000 000
274 000 000
Weighted average number of issued ordinary shares for the year adjusted for
treasury shares
272 182 026
272 180 398
Basic/ diluted earnings (loss) per share (NOK)
6.08
(0.97)
Basic/ diluted earnings (loss) per share for continuing operations (NOK)
5.96
(1.42)
Basic/ diluted earnings (loss) per share for discontinued operations (NOK)
0.11
0.45
ANNUAL REPORT 2024
PAGE 56
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Reversal of impairment loss
In 2024, reversal of impairment loss of NOK 20 million was recognized related to the “Skandi
Peregrino” vessel in DDW Offshore. The recoverable amount was estimated based on fair
value less cost of disposal. In March 2025, it was entered into a binding agreement to sell
the vessel which is expected to be completed in the second quarter in 2025, subject to
charterer’s consent, see also Note 29 Events after the reporting period.
Depreciation
Estimates for useful life, depreciation method and residual values are reviewed annually. The
vessels are depreciated on a straight-line basis over their expected economic lives of 25-30
years. The group has not identified assets expected to have a significant shorter useful life
due to climate-related risks.
Note 11 | Property, plant and equipment
The table below includes discontinued operations until these met the criteria to be classified
as held for sale.
Amounts in NOK million
Vessels
Machinery,
equipment,
software
Total
Historical cost
Balance as of January 1, 2023
315
93
408
Additions
9
-
9
Disposals and scrapping
-
(85)
(85)
Disposal of subsidiaries
-
(8)
(8)
Currency translation differences
10
-
10
Balance as of December 31, 2023
334
-
334
Additions
149
-
149
Currency translation differences
45
-
45
Balance as of December 31, 2024
527
-
527
Accumulated depreciation
Balance as of January 1, 2023
(83)
(88)
(171)
Depreciation for the year 1)
(17)
(2)
(20)
Disposals and scrapping
-
85
85
Disposal of subsidiaries
-
6
6
Currency translation differences
(2)
-
(2)
Balance as of December 31, 2023
(103)
-
(103)
Depreciation for the year
(43)
-
(43)
Reversal of impairment loss
20
-
20
Currency translation differences
(11)
-
(11)
Balance as of December 31, 2024
(138)
-
(138)
Book value as of December 31, 2023
231
-
231
Book value as of December 31, 2024
390
-
390
1) Includes depreciation of NOK 2 million from discontinued operations in 2023
ANNUAL REPORT 2024
PAGE 57
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 12 | Equity-accounted investments
Equity-accounted investments include joint ventures that are accounted for using the equity
method. Such investments are defined as related parties to Akastor. See Note 28 Related
parties for significant agreements and transactions with joint ventures and any guarantees
provided on behalf of such entities.
Amounts in NOK million
HMH
AKOFS
Offshore
Føn Energy
Services
Total equity-
accounted
investments
Country
Netherlands
Norway
Norway
Ownership and voting rights
50%
50%
36%
Balance as of January 1, 2024
3 015
407
17
3 439
Dilution gain from change in ownership
-
-
7
7
Share of net profit (loss)
269
(272)
(5)
(8)
Share of other comprehensive income
(131)
(27)
-
(158)
Share of changes directly in equity
78
-
-
78
Currency translation differences
346
29
-
375
Balance as of December 31, 2024
3 576
138
19
3 733
HMH
HMH is a premier provider of drilling systems, equipment and aftermarket services. Akastor and
Baker Hughes each holds 50% of the shares in HMH Holding B.V., and have joint control over the
company.
AKOFS Offshore
AKOFS Offshore is a subsea well installation and intervention services provider. AS of December
31, 2024, Akastor, MITSUI & CO., Ltd. (“Mitsui”) and Mitsui O.S.K. Lines, Ltd. (“MOL”) held 50%,
25% and 25% of the shares in AKOFS Offshore AS, respectively, and had joint control over the
company. During the first quarter of 2025, Akastor’s ownership was increased to 66.7% (see Note
29 Events after the reporting period), while MOL holds the remaining 33.3% of the shares. AKOFS
Offshore remains classified as a joint venture after the transaction and is accounted for using the
equity method in the consolidated financial statements.
Føn Energy Services
Føn Energy Services offers integrated Operations and Maintenance (O&M) solutions to
developers, operators, suppliers and owners of offshore renewables infrastructure, and in
particular offshore wind farms. In 2024, Akastor’s shareholding in Føn Energy Services AS was
diluted to 36% as a result of Føn Energy Services’ acquisition of C-Ventus. As of December 31,
2024, Akastor, IKM Group and DISA International holds 36%, 35% and 21% of the company,
respectively.
ANNUAL REPORT 2024
PAGE 58
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Summary of financial information for significant equity-accounted investments
(100 percent basis)
HMH
AKOFS Offshore
Amounts in NOK million
2024
2023
2024
2023
Current assets
7 480
6 468
665
832
- Cash and cash equivalents
556
638
265
247
Non-current assets
8 188
7 539
4 150
4 239
Current liabilities
(3 873)
(3 923)
(2 248)
(985)
- Current financial liabilities
(excluding trade and other payables and provisions)
(262)
(323)
(1 961)
(564)
Non-current liabilities
(4 629)
(4 054)
(2 292)
(3 272)
- Non-current financial liabilities
(excluding trade and other payables and provisions)
(4 072)
(3 609)
(2 287)
(3 266)
Non-controlling interests
(13)
-
-
-
Net assets (100%)
7 153
6 029
276
814
Akastor's share of net assets (50%)
3 576
3 015
138
407
Akastor's carrying amount of the investment
3 576
3 015
138
407
Revenue
9 056
8 264
1 495
1 369
Depreciation, amortization and impairment
(447)
(659)
(436)
(415)
Interest income
30
27
20
14
Interest expense
(400)
(377)
(388)
(380)
Income tax expense
(266)
(167)
23
(62)
Profit (loss) for the year
538
(82)
(543)
(629)
Other comprehensive income (loss)
(263)
106
(53)
(31)
Total comprehensive income (loss) (100%)
275
24
(596)
(661)
Akastor's share of total comprehensive income (loss) (50%)
137
12
(298)
(330)
ANNUAL REPORT 2024
PAGE 59
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 13 | Other investments
Amounts in NOK million
Note
2024
2023
Investment in NES Fircroft
821
711
Aker Pensjonskasse
28
158
158
Shares in listed companies:
- Odfjell Drilling
155
56
- ABL Group
58
79
- Awilco Drilling
38
17
- Maha Energy
20
30
Total other investments
24
1 251
1 051
Other investments are measured at fair value.
NES Fircroft
Akastor holds around 15% economic ownership interest in NES Fircroft, a global technical
and engineering staffing provider. The investment, consisting mainly of debt instruments, is
measured at fair value. See Note 24 Financial instruments for more information about the fair
value measurement of debt instruments in NES Fircroft.
Aker Pensjonskasse
Aker Pensjonskasse was established by Aker ASA to manage the retirement plan for
employees and retirees in Akastor as well as related Aker companies. Akastor holds 93.4
percent of the paid-in capital in Aker Pensjonskasse. The ownership does not constitute
control since Akastor does not have the power to govern the financial and operating policies
so as to obtain benefits from the activities in this entity.
Odfjell Drilling
In 2024, Akastor received about 3 million shares in Odfjell Drilling Ltd, pursuant to a warrant
investment agreement entered into in 2018. Akastor holds 1.3 % of the common shares in Odfjell
Drilling, which is listed on the Oslo Stock Exchange.
ABL Group
Akastor holds 4.7% of the common shares in ABL Group ASA, which is listed on the Oslo Stock
Exchange.
Awilco Drilling
Akastor holds 6.8% of the common shares in Awilco Drilling PLC, which is listed on the Oslo
Euronext Growth.
Maha Energy
Akastor holds 1.7% of the common shares in Maha Energy AB, which is listed on NASDAQ First
North Growth Market in Stockholm.
ANNUAL REPORT 2024
PAGE 60
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 14 | Interest-bearing receivables
Amounts in NOK million
Note
2024
2023
Receivables from AKOFS Offshore
28
123
262
Receivables from HMH
28
319
244
Receivables from Aker Pensjonskasse
28
24
23
Receivable from Føn Energy Services
28
19
9
Seller’s credit to Diamond Key International
-
12
Total non-current
485
550
Receivables from AKOFS Offshore
28
292
-
Seller’s credit to Diamond Key International
13
-
Total current
304
-
Note 15 | Trade and other receivables
Amounts in NOK million
Note
2024
2023
Trade receivables
57
76
Less provision for impairment
-
(1)
Trade receivables, net of provision
56
75
Other receivables
2
512
Trade and other receivables
24
58
586
Contract assets
6
11
11
Prepaid expenses
22
4
Deferred and contingent considerations
24
3
-
Total
95
601
Other receivables as of December 31, 2023 related mainly to Akastor’s economic interest
in four drilling equipment contracts with Jurong Shipyard (DRU contracts). This position
was carved out from MHWirth in connection with the merger with Baker Hughes’ SDS
business. The contracts were terminated by Jurong and dispute over termination fees were
resolved through arbitration process. In 2024, Akastor received final arbitration award and
settlement whereby Akastor received a total amount of USD 176 million in cash as payment
of termination fees, reimbursement of costs and interest compensation. The DRU contracts
were thus fully and finally settled. As a result of the settlement, other income of NOK 630
million and interest income of NOK 717 million were recognized in the income statement in
2024.
Book value of trade and other receivables is approximately equal to fair value.
ANNUAL REPORT 2024
PAGE 61
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Aging of trade receivables
Amounts in NOK million
2024
2023
Not overdue
44
48
Past due 0-30 days
2
15
Past due 31-90 days
-
12
Past due more than 90 days
10
-
Total trade receivables
57
76
The past due receivables are monitored regularly and impairment analysis is performed on
an individual basis for major customers. See below for the movements in the provision for
impairment of receivables.
Amounts in NOK million
2024
2023
Balance as of January 1
1
64
Write down/utilized
(1)
(65)
Currency translation differences
-
2
Balance as of December 31
-
1
Note 16 | Liquidity fund investment
Amounts in NOK million
Note
2024
2023
Liquidity fund investment
24
376
-
As of December 31, 2024, Akastor has invested NOK 376 million in a liquidity fund. The fund
invests in short-term interest-bearing securities in NOK, i.e., certificates and bonds issued
by companies with investment grade rating and the public sector. The liquidity fund cannot
invest in securities with fixed interest rates longer than one year. The credit risk is deemed
to range from low to very low. The investment in liquidity fund is highly liquid and convertible
to cash on short notice. The rationale of the investment is to enhance the return from
surplus cash, compared to the interest rate in the cash pool. The liquidity fund investment is
classified as financial asset measured at fair value to profit and loss.
Additional undrawn committed bank revolving credit facilities amount to NOK 340 million,
that together with cash, cash equivalents and liquidity fund investment, gives a total liquidity
reserve of NOK 763 million as of December 31, 2024. See also Note 18 Borrowings.
ANNUAL REPORT 2024
PAGE 62
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 17 | Capital and reserves
Share capital
Akastor ASA has one class of shares, ordinary shares, with equal rights for all shares. The
holders of ordinary shares are entitled to receive dividends and are entitled to one vote per
share at General Meetings. Total outstanding shares are 274 000 000 at par value NOK
0.592 per share (NOK 0.592 in 2023). All issued shares are fully paid.
Treasury shares
As of December 31, 2024, Akastor ASA holds 1 813 974 treasury shares (1 813 974 treasury
shares in 2023), representing 0.66 percent of total outstanding shares. No sale of treasury
shares was carried out in 2024, while transfer of 171 190 treasury shares to employees was
carried out in 2023 in connection with the company’s variable pay program.
The Board of Directors has not proposed dividend for 2024 or 2023.
Hedging reserve
As of December 31, 2024, the group had no cash flow hedges. The hedging reserve is
related to share of other comprehensive income in equity accounted investments.
Fair value reserve
The fair value reserve comprises the cumulative net changes in the fair value of financial
assets classified as Fair Value through OCI (FVOCI) until these assets are impaired or
derecognized.
Currency translation reserve
The currency translation reserve includes exchange differences arising from the translation
of the net investments in foreign operations, foreign exchange gain or loss on loans defined
as part of net investments in foreign operations, as well as the group’s share of currency
translation differences in equity accounted investments. Upon the disposal of investments
in foreign operations during 2023, the accumulated currency translation differences of NOK
2 million related to the disposed entities were reclassified from the currency translation
reserve to the income statement.
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 18 | Borrowings
Below are contractual terms of the group’s interest-bearing loans and borrowings which are measured at amortized cost. For more information about the group’s exposure to interest rates,
foreign currency and liquidity risk, see Note 23 Financial risk management and exposures.
Amounts in million
Currency
Nominal currency value
Carrying amount (NOK)
Maturity
Interest terms 2)
2024
Revolving credit facility (USD 30 million) 1)
USD
-
(3)
Jun 2026
USD LIBOR + margin 4.0 %
Term loan DDW Offshore
USD
29
328
Sep 2026
Fixed rate 10.85 %
HMH Loan Note
USD
4
49
Oct 2027
Fixed rate 8.0 %
Total borrowings
373
Current borrowings
82
Non-current borrowings
292
Total borrowings
373
2023
Revolving credit facility (USD 60 million)
USD
60
616
Jun 2024
USD LIBOR + margin 5.5 %
Revolving credit facility (NOK 241 million)
NOK
241
241
Jun 2024
NIBOR + margin 5.5 %
Subordinated Aker facility (NOK 375 million)
NOK
82
82
Jul 2024
NIBOR + margin 12%
Term loan DDW Offshore
USD
31
309
Sep 2026
Fixed rate 10.85 %
Share financing facility
NOK
57
57
Uncommited
NIBOR + margin 1.5 %
HMH Loan Note
USD
4
41
Oct 2024
Fixed rate 8.0 %
Overdraft
NOK
24
Total borrowings
1 369
Current borrowings
1 133
Non-current borrowings
236
Total borrowings
1 369
1) As of December 31, 2024, there was no draw on the revolving credit facilities and the carrying amount comprised capitalized borrowing costs and accrued commitment fees.
2) Commitment fee is 40 percent of the margin for revolving credit facilities and Aker facility
For information about contractual maturities of borrowings including interest payments and the period in which they mature, see Note 23 Financial risk management and exposures.
ANNUAL REPORT 2024
PAGE 64
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Bank debt
In June 2024, the subordinated Aker facility was fully repaid and cancelled. In addition, the agreement of bank revolving credit facilities was amended and extended upon receipt of proceeds from DRU
arbitration award. The revolving credit facility are provided by a bank syndicate consisting of high-quality Nordic and international banks, with DNB acting as agent. The terms and conditions include
restrictions which are customary for these kinds of facilities, including inter alia negative pledge provisions and restrictions on acquisitions, disposals and mergers, dividend distribution and change of control
provisions. For information about financial covenants, see Note 22 Capital management.
In September 2023, DDW Offshore completed a refinancing provided by EnTrust Global’s Blue Ocean Funds as lenders. The new term loan matures in September 2026. The facility is guaranteed by Akastor
ASA and the lenders benefit from first priority mortgages in the vessels. This facility includes restrictions which are customary for these kinds of secured financing.
Reconciliation of liabilities arising from financing activities
Amounts in NOK million
Revolving
credit facilities
Subordinated
Aker facility
Term loan
AGR
Term loan
DDW Offshore
Other, including
overdraft
Total
borrowings
Balance as of January 1, 2023
854
16
198
272
-
1 340
Proceeds from borrowings
50
60
-
316
81
507
Repayment of borrowings
(74)
(20)
(9)
(279)
-
(382)
Changes from financing cash flows
(24)
40
(9)
36
81
125
Settlement with ABL shares
-
-
(188)
-
-
(188)
Reclassification
-
-
-
-
37
37
Changes in capitalized borrowing costs
2
-
-
-
-
2
Accrued interest (incl. commitment fees)
(1)
26
(1)
(8)
3
20
Foreign exchange movements
23
-
-
8
1
32
Balance as of December 31, 2023
856
82
-
309
121
1 369
Proceeds from borrowings
131
118
-
-
-
249
Repayment of borrowings
(1 043)
(206)
-
(19)
(81)
(1 350)
Changes from financing cash flows
(913)
(88)
-
(19)
(81)
(1 101)
Changes in capitalized borrowing costs
3
-
-
4
-
7
Accrued interest (incl.commitment fees)
(3)
7
-
-
4
8
Foreign exchange movements
54
-
-
33
4
91
Balance as of December 31, 2024
(3)
-
-
328
49
373
See Note 25 Leases for reconciliation of liabilities arising from leasing activities.
ANNUAL REPORT 2024
PAGE 65
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 19 | Employee benefits – pension
Akastor’s pension costs represent the future pension entitlement earned by employees
in the financial year. In a defined contribution plan the company is responsible for paying
an agreed contribution to the employee’s pension assets. In such a plan, this annual
contribution is also the cost. In a defined benefit plan, it is the company’s responsibility
to provide a certain pension. The measurement of the cost and the pension liability
for such arrangements is subject to actuarial valuations. Akastor has over a long time
period gradually moved from defined benefit arrangements to defined contribution plans.
Consequently, the impact of the remaining defined benefit plans is gradually reduced.
Pension plans in Norway
The main pension arrangement in Norway is a general pension plan organized by the
Norwegian Government. This arrangement provides the main general pension entitlement
of all Norwegians. All pension arrangements by employers consequently represent limited
additional pension entitlements.
Norwegian employers are obliged to provide an employment pension plan, which can
be organized as a defined benefit plan or as a defined contribution plan. The Norwegian
companies in Akastor have closed the earlier defined benefit plans in 2008 and are now
providing defined contribution plans for all employees.
Defined benefit plan
Employees who were 58 years or older in 2008, when the change took place, are still in the
defined benefit plan, which is a funded plan. There are no longer any active employees in this
plan. The group has also unfunded executive pension plans that are closed for new members.
The estimated contributions expected to be paid during 2025 amount to NOK 13 million.
Pension cost
Amounts in NOK million
2024
2023
Defined contribution plans including AFP
2
2
Total pension cost
2
2
Movement in net defined benefit (asset) liability
Pension
obligation
Pension asset
Net pension
obligation
Amounts in NOK million
2024
2023
2024
2023
2024
2023
Balance as of January 1
279
301
(197)
(205)
82
96
Disposal of subsidiaries as of January 1
-
(12)
-
4
-
(8)
Included in profit or loss
Interest cost (income)
6
6
(3)
(3)
3
3
Total
6
6
(3)
(3)
3
3
Included in OCI
Remeasurements (loss) gain:
Actuarial loss (gain)
(2)
11
(5)
(5)
(6)
6
Return on plan assets excluding interest income
-
-
7
1
7
1
Effect of movements in exchange rates
11
3
(7)
(2)
3
1
Total
9
14
(5)
(6)
3
8
Other
Benefits paid by the plan
(29)
(30)
24
24
(5)
(6)
Contributions paid into the plan
-
-
(7)
(11)
(7)
(11)
Total
(29)
(30)
16
(13)
(12)
(17)
Balance as of December 31
265
279
(189)
(197)
76
82
ANNUAL REPORT 2024
PAGE 66
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Plan assets
Amounts in NOK million
2024
2023
Bonds
29
40
Fund/private equity
57
57
Debt securities
102
100
Total plan assets at fair value
189
197
The equity portfolio is invested globally. The fair value of the equities is based on their
quoted prices at the reporting date without any deduction for estimated future selling cost.
The investments in bonds are done in the Norwegian market and most of the bonds are not
listed on any exchange. The market value as at year end is based on official prices provided
by the Norwegian Securities Dealers Association. The Bond investments have on average
a high credit rating. Most of the investments are in Norwegian municipalities with a credit
rating of AA.
The investment in fund/private equity is mainly funds that invests in listed securities and
where the fund value is based on quoted prices.
Defined benefit obligation – actuarial assumptions
The group’s significant defined benefit plans are in Norway. The followings are the principal
actuarial assumptions at the reporting date for the plans in Norway.
Norway
2024
2023
Discount rate
3.30%
3.10%
Asset return
2.25%
2.25%
Salary progression
3.50%
3.50%
Pension indexation
2.4 -3.75%
1.8 -3.3%
Mortality table
K2013
K2013
Life expectancy of male pensioners (in years)
22.9
22.8
Life expectancy of female pensioners (in years)
26.2
26.1
The discount rates and other assumptions in 2024 and 2023 are based on the Norwegian
high quality corporate bond rate and recommendations from the Norwegian Accounting
Standards Board. It should be expected that fluctuations in the discount rates would also
lead to fluctuations in the pension indexations. The total effect of fluctuations in economic
assumptions is consequently unlikely to be very significant.
Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial
assumptions, holding other assumptions constant, would have affected the defined benefit
obligation as of December 31, 2024 by the amounts shown below.
Amounts in NOK million
Increase
Decrease
Discount rate (1% movement)
(13)
15
Future pension growth (1% movement)
12
(9)
The change in discount rate assumptions would affect plan assets in the income statement
in next period as it would change the estimated asset return but have no effect on pension
assets as of year-end.
ANNUAL REPORT 2024
PAGE 67
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 20 | Other liabilities
Amounts in NOK million
Note
2024
2023
Deferred settlement obligations
24
195
246
Deferred gain
-
9
Total other non-current liabilities
195
255
Deferred settlement obligations
Deferred settlement obligations represent contingent considerations resulting from disposal
of subsidiaries. The obligations are mainly related to provision for indemnity liabilities for
pension plans in connection with MHWirth divestment as well as guaranteed preferred
return to Mitsui and MOL in connection with AKOFS Offshore divestment.
Deferred gain
In May 2018, Akastor invested in preferred equity and warrants in Odfjell Drilling. On initial
recognition, the investment in warrants was recognized at fair value and the difference
between the fair value and the transaction price was recognized as “Deferred gain”, which
was subsequently amortized and recognized to profit and loss at straight-line basis over six
years. The warrant agreement was settled in 2024, resulting in Akastor receiving about
3 million shares in Odfjell Drilling Ltd, see also Note 13 Other investment.
Note 21 | Trade and other payables incl. provisions
Amounts in NOK million
Note
2024
2023
Trade creditors
54
17
Accrued expenses
44
96
Trade and other payables
24
98
113
Public duty and tax payables
5
8
Contract liabilities
6
-
7
Deferred settlement obligations 1)
24
80
176
Provisions
9
34
Total
191
339
1) Relates to current portion of deferred settlement obligations, see Note 20 for more information
Book value of trade creditors and other current liabilities is approximately equal to fair value.
ANNUAL REPORT 2024
PAGE 68
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 22 | Capital management
Akastor’s capital management is designed to ensure that the group has sufficient financial
flexibility to carry out its strategic targets, both short-term and long-term. Akastor is
targeting to maintain a financial structure that, through solidity and cash flow, secures
the group’s strong long-term creditworthiness, as well as maximize value creation for its
shareholders through:
• Investing in projects and business areas which will increase the company’s Return On
Capital Employed (ROCE) over time.
• Optimizing the company’s capital structure to ensure both sufficient and timely funding
over time to finance its activities at the lowest cost.
Investment policy
Akastor’s capital management is based on a rigorous investment selection process which
considers not only Akastor’s weighted average cost of capital and strategic orientation but
also external factors such as market expectations.
Funding policy
Liquidity planning
Akastor has a strong focus on its liquidity situation to meet its capital needs and ensure
solvency for its financial obligations. Akastor had a liquidity reserve per year end 2024 of
NOK 763 million, composed of an undrawn committed credit facility of NOK 340 million,
cash and cash equivalents of NOK 47 million and investment in liquidity fund of NOK 376
million.
Funding of operations
Akastor’s group funding policy is that subsidiaries should finance their operations with the
treasury department (Akastor Treasury). This ensures optimal availability and transfer of
cash within the group and better control of the company’s overall debt as well as cheaper
funding for its operations. However, DDW Offshore is financed directly through a USD 29
million Term loan maturing in 2026.
Funding duration
Akastor emphasizes financial flexibility and steers its capital structure accordingly to limit its
liquidity and refinancing risks. In this perspective, loans and other external borrowings are to
be renegotiated well in advance of their due date and generally for periods of 2 to 3 years.
Funding cost
Akastor aims to have diversified funding sources in order to reach the lowest possible cost
of capital. These funding sources might include:
• The use of banks based on syndicated credit facilities.
• The issue of debt instruments in the Norwegian capital market.
• The issue of debt instruments in foreign capital markets.
Monitoring of financial covenants
Akastor coporate debt
In 2024, the agreement of Akastor’s corporate revolving credit facilities was amended and
extended upon receipt of proceeds from DRU arbitration award. There are no significant
amendments in the terms and conditions and financial covenants. The covenants defined
in the loan agreement are shown below. See Note 18 Borrowings for details about the
corporate credit facility.
• The company’s gearing ratio shall not exceed 0.5 times and is calculated from the
consolidated total borrowings to the consolidated Equity.
• Equity ratio shall not be lower than 32.5%, calculated from the consolidated total equity to
consolidated total assets
• Minimum liquidity amount shall exceed NOK 50 million on consolidated level.
The ratios are calculated based on net debt including cash and borrowings, consolidated
equity and consolidated total assets, however adjusted for certain items as defined in the loan
agreement. Covenants ratios are based on accounting principles as of December 31, 2024.
ANNUAL REPORT 2024
PAGE 69
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 23 | Financial risk management and exposures
The group is exposed to a variety of financial risks: currency risk, interest rate risk, price risk,
credit risk, liquidity risk and capital risk. The capital market risk affects the value of financial
instruments held. The objective of financial risk management is to manage and control
financial risk exposures and thereby increase the predictability of earnings and minimize
potential adverse effects on the group’s financial performance.
Risk management is present in every project. It is the responsibility of the project managers,
with the support of Akastor Treasury, to identify, evaluate and hedge financial risks under
policies approved by the Board of Directors. The group has well-established principles
for overall risk management, as well as policies for the use of derivatives and financial
investments. There have not been any changes in these policies during the year.
Currency risk
The group’s exposure to currency risk is primarily against USD. In addition, The group has
significant investments in portfolio companies that operate internationally and are exposed
to currency risk on commercial transactions, recognized assets and liabilities and net
investments in foreign operations.
Exposure to currency risk
Changes in currency rates change the values of borrowings, receivables and cash balances.
Amounts in million
2024
2023
USD
USD
Cash and cash equivalents
-
(3)
Intercompany loans
66
60
Loans and receivables
120
89
Deferred settlement obligations
(6)
(41)
Balance sheet exposure
180
104
Net exposure (NOK million)
2 044
1 063
The covenants are monitored on a regular basis by the Akastor Treasury department to
ensure compliance with the loan agreements which are tested and reported on a quarterly
basis. Akastor was in compliance with its covenants as of December 31, 2024.
DDW Offshore term loan
DDW Offshore’s term loan has two financial covenants; i) a minimum liquidity of USD 1.425
million and ii) a minimum asset cover ratio of 120% (Market Value of the vessels / Secured
Loan Amount).
ANNUAL REPORT 2024
PAGE 70
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
An increase of 100 basis points in interest rates during 2024 would have increased
(decreased) profit and loss by the amounts shown on the table below. This analysis
assumes that all other variables, in particular foreign currency rates, remain constant. The
analysis is performed on the same basis as for 2023.
Effect of increase of 100 basis points in interest rates on profit (loss) before tax
Amounts in NOK million
2024
2023
Cash and cash equivalents
2
1
Investment in liquidity fund
1
-
Interest-bearing receivables
6
6
Borrowings
(8)
(13)
Net
2
(6)
A decrease of 100 basis points in interest rates during 2024 would have had the equal but
opposite effect on the above amounts, on the basis that all other variables remain constant.
Guarantee obligations
The group has provided the following guarantees on behalf of subsidiaries and related parties
as of December 31, 2024 (estimated remaining exposure as of December 31, 2024):
• Parent company indemnity guarantees for fulfillment of lease obligations and finance
obligations of NOK 1.8 billion (NOK 2.1 billion in 2023)
• Financial guarantees including counter guarantees for bank/surety bonds and guarantees for
pension obligations to employees of NOK 0.1 billion (NOK 0.2 billion in 2023)
In addition, Akastor has provided performance guarantees on behalf of related parties, mainly
related to the performance of AKOFS Offshore (for operating AKOFS Seafarer) under the
agreement with Equinor, which was originally entered into in 2018 when AKOFS Offshore was
wholly owned by Akastor. The contract value of this agreement was NOK 4.1 billion as of December
31, 2024. See more information about guarantees for related parties in Note 28 Related parties.
Although guarantees are financial instruments, they are considered contingent obligations
and the notional amounts are not included in the financial statements.
Sensitivity analysis
A strengthening of USD against NOK as of December 31 would have affected the measurement
of financial instruments denominated in a foreign currency and increased (decreased)
income statement by the amounts shown below. This analysis is based on foreign currency
exchange rate variances that the group considered to be reasonably possible at the end of
the reporting period. The analysis assumes that all other variables, in particular interest rates,
remain constant and ignores any impact of forecast sales and purchases. Figures in the
table below only include the effect in income statement for change in currency regarding
financial instruments and do not include effect from operating cost and revenue.
Effect of weakening of NOK against USD:
Profit (loss) after tax
Amounts in NOK million
2024
2023
USD (10%)
204
106
A strengthening of the NOK against USD as of December 31 would have had the equal but
opposite effect on the above amounts, on the basis that all other variables remain constant.
The sensitivity analysis does not include effects on the consolidated result and equity from
changed exchange rates used for consolidation of foreign subsidiaries.
The primary currency-related risk is the risk of reduced competitiveness abroad in the case
of a strengthened NOK. This risk relates to future commercial contracts and is not included
in the sensitivity analysis above.
Interest rate risk
The group’s interest rate risk arises from cash balances, interest-bearing borrowings and
interest-bearing receivables. Borrowings and receivables issued at variable rates as well as
cash expose the group to cash flow interest rate risk. Borrowings and receivables issued at
fixed rates expose the group to fair value interest rate risk. However, as these borrowings are
measured at amortized cost, interest rate variations do not affect profit and loss when held
to maturity.
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
focusing on realization of holdings. During 2024, liquidity risk has been mitigated through the
extension of the corporate financing facilities to June 2026 upon receipt of proceeds from
DRU arbitration award.
The group policy for the purpose of optimizing availability and flexibility of cash within the
group is to operate a centrally managed cash pooling arrangement. Management monitors
rolling quarterly forecasts of the group’s liquidity reserve on the basis of expected cash flow.
Climate risk
Akastor, as an investment company, is exposed to climate related risks, mainly transition
risks and physical risks which are closely linked to the risks identified by the portfolio
companies it has ownership interests in. The group’s most significant group of assets,
equity-accounted investments, consists primarily of investments in HMH and AKOFS
Offshore. The largest climate-related risks are related to the transition to a low-emission
economy, with an associated risk of decreased investments in the oil and gas sector, as well
as other likely challenges for the oil service sector such as access to and cost of capital.
In addition, large oil companies are shifting towards low-carbon production, leading to
changes in customer requirements that may require new investments in technology. Overall,
this may lead to negative impact on the equity of these investments and thus reduction of
the value of Akastor’s investments.
With regards to the physical assets in the group, mainly attributed to the vessels held by
DDW Offshore, the group is mainly exposed to physical risks such as extreme weather
changes. The group has not identified significant changes when assessing useful life or
impairment testing of the vessels due to climate related risks.
For the 2024 financial statements, the group has not identified any material impacts on
judgement and estimates due to climate-related risks. Akastor and its portfolio companies
preform climate related risk and opportunity assessment based on the methodology
described in the Task Force on Climate-Related Financial Disclosures (TCFD) on a regular
basis. Assessment of risks is carried out in preparation of the group’s financial statements.
Price risk
The group is exposed to fluctuations in market prices in the operational areas related
to contracts, including changes in market prices for raw materials, equipment and
development in wages. These risks are to the extent possible managed in bid processes
by locking in committed prices from vendors as a basis for offers to customer or through
escalation clauses with customers.
Credit risk
Credit risk is the risk of financial losses to the group if customer or counterparty to financial
investments/instruments fails to meet contractual obligations and arise principally from
investment securities and receivables.
The group evaluates that significant credit risk concentrations are related to external
receivables. The maximum exposure to credit risk at the reporting date equals the carrying
amounts of financial assets (see Note 24 Financial instruments) and contract assets (see
Note 6 Revenue and other income). The group does not hold collateral as security. The group
reviews the creditworthiness of counterparty when entering into significant or long-term
contract and actively monitors its credit exposure to each counterparty.
Liquidity risk
Liquidity risk is the risk that the group will encounter difficulty in meeting the obligations
associated with its financial liabilities. The group manages its liquidity to ensure that it will
always have sufficient liquidity reserves to meet its liabilities when due.
Prudent liquidity risk management includes maintaining sufficient cash, the availability of
funding from an adequate amount of committed credit facilities and the ability to close out
market positions. Due to the dynamic nature of the underlying businesses, Akastor Treasury
maintains flexibility in funding by maintaining availability under committed credit lines.
Akastor is an investment company with limited upstream cash flow from its portfolio
companies and therefore to a large degree depends on realization of assets to reduce debt
and improve liquidity. In order to mitigate refinancing risk when the corporate financing
facilities mature and secure available liquidity, the group is in accordance with its strategy
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Financial liabilities and the period in which they mature
The following is the remaining contractual maturities of financial liabilities at the reporting
date. The amounts are gross and undiscounted and include contractual interest payments
and exclude the impact of netting agreements.
Amounts in NOK million
Note
Book
value
Total
cash
flow 1)
6
months
and less
6-12
months
1-2
years
2-5
years
More
than 5
years
2024
Borrowings 2)
18
373
424
58
57
248
60
-
Lease liabilities
25
9
10
2
2
4
3
-
Deferred settlement obligations
20, 21
276
276
81
8
15
45
128
Trade and other payables
21
102
102
102
-
-
-
-
Total financial liabilities
761
813
243
67
267
108
128
Financial guarantees 3)
1 917
1
-
628
930
358
2023
Borrowings 2)
18
1 369
1 511
1 042
183
95
190
-
Lease liabilities
25
34
34
18
14
2
-
-
Deferred settlement obligations
20, 21
422
426
173
8
74
45
127
Trade and other payables
21
121
121
121
-
-
-
-
Total financial liabilities
1 946
2 092
1 354
204
171
235
127
Financial guarantees 3)
2 450
31
265
100
1 665
390
1) Nominal currency value including interest.
2) The interest costs are calculated using the last fixing rate known by year end (plus applicable margin).
3) Financial guarantees are not recognized on the consolidated balance sheet. The undiscounted cash flows
potentially payable under financial guarantees are classified on the basis of expiry date.
Note 24 | Financial instruments
Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and
financial liabilities, including their levels in the fair value hierarchy. It does not include fair
value information for financial assets and financial liabilities not measured at fair value if
the carrying amount is a reasonable approximation of fair value. For financial instruments
measured at fair value, the levels in the fair value hierarchy are as shown below.
Level 1 - fair values are based on prices quoted in an active market for identical assets or
liabilities.
Level 2 - fair values are based on inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly or indirectly
Level 3 - fair values are based on unobservable inputs, mainly based on internal
assumptions used in the absence of quoted prices from an active market or other
observable price inputs.
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
2024
2023
Amounts in NOK million
Note
Carrying
amount
Financial instruments
measured at fair value
Carrying
amount
Financial instruments
measured at fair value
Fair value
hierarchy
Financial assets measured at fair value
Fair value through P&L (mandatorily at FVTPL)
Equity securities
13
271
271
125
125
Level 1
Liquidity fund investment
16
376
376
Level 1
Equity securities 1)
13
158
158
158
158
Level 3
Warrants 2)
13
-
-
56
56
Level 3
Contingent and deferred consideration
15
3
3
-
-
Level 3
Fair value through Other comprehensive income
Debt instruments 1)
13
821
821
711
711
Level 3
Financial assets not measured at fair value
Financial assets at amortized cost
Cash and cash equivalents
47
144
Interest-bearing receivables
14
789
550
Trade and other receivables
15
58
586
Financial assets
2 524
2 332
Financial liabilities measured at fair value
Fair value through profit & loss
Deferred settlement obligations
20, 21
(276)
(276)
(422)
(422)
Level 3
Financial liabilities not measured at fair value
Financial liabilities at amortized cost
Borrowings 3)
18
(373)
(378)
(1 369)
(1 371)
Level 2
Trade and other payables
21
(98)
(113)
Financial liabilities
(747)
(1 904)
1) Investments in level 3 in the hierarchy relate to equity securities and debt securities with no active market. These investments are measured at the best estimate of fair value.
2) Warrant agreement was settled in 2024 and shares in Odfjell Drilling (listed on the Oslo Stock Exchange under ticker ODL) were received pursuant to the warrant agreement.
3) For credit facilities and other loans with floating interest, notional amounts are used as approximation of fair values.
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Reconciliation of Level 3 financial assets and financial liabilities
Amounts in NOK million
Assets
Liabilities
Balance as of January 1, 2023
991
(579)
Additions
-
(3)
Settlements
(18)
24
Net gain (loss) in the income statement
(48)
136
Balance as of December 31, 2023
926
(422)
Settlements
(20)
182
Net gain (loss) in the income statement
247
(36)
Transfer to fair value hierarchy level 1
(169)
-
Balance as of December 31, 2024
983
(276)
Measurement of fair values at level 3
Debt instruments at FVOCI
Financial assets measured at FVOCI are related to debt instruments in NES Fircroft. The
valuation model considers the present value of the expected cash flows from the ultimate
disposal of the investments weighted with different probabilities. The expected disposal
value is determined by forecast EBITDA at the time of disposal and market multiples,
adjusted by forecast net debt of the investee. The estimated fair value would increase
(decrease) if:
• The forecast EBITDA were higher (lower);
• The market multiples applied were higher (lower); or
• The net debt of the investees at the date of disposal were lower (higher).
Deferred settlement obligations
These liabilities relate to contingent considerations and obligations from business disposals.
Final amounts to be paid depend on future earnings in the disposed companies or outcome
of indemnity claims and price adjustment mechanisms.
• Liabilities depending on future earnings: The recognized amounts are determined based
on recent forecasts and strategy figures for the entity, thus the final realized values are
sensitive to the above inputs as driven by market conditions.
• Liabilities depending on outcome of indemnity claims and price adjustment mechanisms:
Provisions are made based on all available evidence as at the reporting date.
The credit exposure on the Level 3 asset is limited to the amount recognized and the credit
risk is not considered to be significant due to the nature of the arrangement.
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 25 | Leases
Group as lessee
The right-of-use assets and lease liabilities are related to leases of office buildings.
The group applies the short-term lease recognition exemptions for leases of property
or machinery with lease term of 12 months or less. Leases of IT equipment and office
equipment are considered as leases of low-value assets. The right-of-use assets and lease
liabilities are not recognized for short-term leases or leases of low-value assets.
The lease agreements do not impose any covenants or restrictions.
Right-of-use assets
Amounts in NOK million
2024
2023
Balance as of January 1
7
27
Depreciation 1)
(5)
(10)
Disposal of subsidiaries
-
(12)
Remeasurement
6
2
Balance as of December 31
9
7
1) Includes depreciation related to discontinued operations of NOK 1 million in 2023
Lease liabilities
Amounts in NOK million
2024
2023
Balance as of January 1
34
85
Cash payments
(31)
(41)
Remeasurement
6
2
Disposal of subsidiaries
-
(12)
Balance as of December 31
9
34
Current lease liabilities
4
32
Non-current lease liabilities
5
2
Group as lessor
The group leases out the vessels in DDW Offshore and subleases out some of the property
leases.
Finance leases
Some of the subleases of right-of-use assets were classified as finance lease, with
reference to the right-of-use assets arising from the head leases. All such finance leases
were completed as of December 31, 2024.
Operating leases
The lease income from subleasing right-of-use assets in 2024 was NOK 1 million (NOK 7
million in 2023).
The following table sets out future undiscounted operating lease income under the non-
cancellable lease periods.
Amounts in NOK million
2024
2023
Due within one year
241
10
Due in one to two years
19
-
Total
259
10
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 26 | Discontinued operations and disposal of subsidiaries
Discontinued operations AGR in 2023
On April 18, 2023, Akastor completed the transaction with ABL Group ASA (ABL Group)
for the sale of all shares in AGR AS (“AGR”) against a combination of shares in ABL Group
and cash. Through this sale, Akastor becomes a shareholder in ABL Group, which offers
independent energy and marine consultancy to the global renewables, maritime and oil and
gas sectors. Further, shareholdings in Føn Energy Services and Maha Energy were carved
out of the transaction and remain with Akastor.
Upon completion of the transaction, a total of 18 166 667 Consideration Shares in ABL Group
was issued to Akastor’s wholly owned subsidiary RGA Energy Holdings AS in addition to
Closing Cash Amount of NOK 5 million. 2/3 of ABL shares were transferred to Nordea and
DNB as settlement of the loans they previously had against AGR. Akastor retains 1/3 of the
ABL shares (6 055 556). Following the transaction, AGR was deconsolidated and classified
as discontinued operations in the income statements for 2023.
Results of discontinued operations
Amounts in NOK million
2024
2023
Revenue
-
257
Expenses
-
(243)
Net financial items
-
(2)
Profit (loss) before tax
-
13
Income tax
-
-
Profit (loss) from operating activities, net of tax
-
12
Gain on sale of discontinued operations
30
110
Net profit from discontinued operations
30
122
Basic/diluted earnings per share from discontinued operations (NOK)
0.11
0.45
Gain on sale from the disposal in 2024 related to re-measurement of contingent
considerations in connection with divestments from prior years.
Gain on sale from the disposal in 2023 included gain of NOK 104 million from the AGR
divestment. The remaining gain of NOK 6 million in 2023 were related to re-measurement of
contingent considerations in connection with divestments from prior years.
Cash flows from (used in) discontinued operations
Amounts in NOK million
2024
2023
Net cash from operating activities
-
57
Net cash from investing activities (incl. net cash proceeds from sale of the operations)
(183)
(67)
Net cash from financing activities
-
(1)
Net cash flow from discontinued operations
(183)
(11)
The net cash flow in 2024 relates to payments for deferred considerations associated with
divestments from prior years.
Disposal of Cool Sorption in 2023
In February 2023, Akastor completed the transaction with Diamond Key International Pty.
Ltd. for the sale of all shares in Cool Sorption A/S (“Cool Sorption”) for DKK 20.4 million on
a cash and debt free basis. Cool Sorption is a specialist supplier of Vapour Recovery Units
(VRU) and systems. The disposal of Cool Sorption resulted in an accounting gain of NOK 16
million, included as “Other income” in the income statement for 2023.
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 27 | Group companies
This note gives an overview of subsidiaries of Akastor ASA. For information about other
investments in the group, refer to Note 12 Equity-accounted investments and Note 13 Other
investments. If not stated otherwise, ownership equals share of voting rights.
Subsidiaries as of December 31
Ownership (%)
Company
Country
2024
2023
Akastor AS
Norway
100
100
DDW Offshore AS
Norway
100
100
Mercury HoldCo AS
Norway
100
100
Akastor Real Estate AS
Norway
100
100
RGA Energy Holdings AS
Norway
100
100
AKA SPH AS
Norway
100
100
Mercury HoldCo Inc
USA
100
100
AK Willfab Inc 1)
USA
100
100
KOP Surface Products Singapore Pte Ltd 1)
Singapore
100
100
Well Systems Servicing Ltd 1)
Nigeria
100
100
1) Dormant company
Note 28 | Related parties
Related party relationships are those involving control (either direct or indirect), joint control or
significant influence. Related parties are in a position to enter into transactions with the company
that would not be undertaken between unrelated parties.
The subsidiaries of Akastor ASA are listed in Note 27 Group companies. Any transactions between
the parent company and the subsidiaries are shown line by line in the separate financial statements
of the parent company, and are eliminated in the consolidated financial statements.
Joint ventures are accounted for using the equity method, see Note 12 Equity-accounted
investments.
The largest shareholder of Akastor, Aker Holding AS, is wholly-owned by Aker ASA, which in turn is
controlled by Kjell Inge Røkke through TRG Holding AS and The Resource Group TRG AS. Akastor is
an associate to Aker ASA as per year end 2024 and 2023. The entities controlled by Aker ASA and
entities which Kjell Inge Røkke controls through The Resource Group TRG AS are considered related
parties to Akastor and referred as “Aker entities” in this note.
Summary of significant transactions and balances with related parties
2024
2023
Amounts in NOK million
Aker
entities
Joint
ventures
Other
Aker
entities
Joint
ventures
Other
Income statement
Net financial items
(16)
57
1
(26)
49
1
Assets (liabilities)
Trade receivables
-
14
-
-
11
-
Interest-bearing receivables
-
753
24
-
515
23
Interest-bearing liabilities
-
(49)
-
(82)
(41)
-
Other liabilities
(210)
-
(209)
-
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Below are descriptions of significant related party agreements.
Significant agreements with Aker entities
Aker Holding AS
As of December 31, 2024, the subordinated loan agreement with Aker Holding AS, a wholly
owned subsidiary to Aker ASA, was fully settled and canceled. The carrying amount of the
Aker credit facility was NOK 82 million (NIBOR + margin 12.0 percent) as of December 31,
2023.
The Resource Group TRG AS
AK Wilfab Inc, a wholly owned subsidiary of Akastor, is together with Aker Solutions Inc
and The Resource Group TRG AS sponsoring the US pension plan named the Kvaerner
Consolidated Retirement Plan. Akastor holds one third of the liability of the sponsors for the
underfunded element of the plan and The Resource Group TRG AS holds two thirds of the
ultimate liability. Akastor’s share of net pension assets related to the plan amounted to NOK
3 million as of December 31, 2024. Aker ASA guarantees for The Resource Group TRG AS’
liability and covers for all its expenses related to the pension plan.
Related party transactions with joint ventures
AKOFS Offshore
As of December 31, 2024, Akastor has interest-bearing receivables of NOK 415 million
against AKOFS Offshore, including term loan of NOK 271 million (LIBOR + margin 2.5/5.5
percent), convertible loan of NOK 91 million (LIBOR + margin 17 percent) as well as drawn
working capital facility of NOK 53 million (NIBOR + margin 5.5 percent). Akastor has made
available a NOK 100 million working capital revolving facility to AKOFS Seafarer AS from
contract commencement with Equinor.
As of December 31, 2024, Akastor issued a financial guarantee of NOK 175 million as part of
the security package in connection to the USD 83 million senior loan facility relating to Avium
Subsea AS (AKOFS Santos). This guarantee was reduced to NOK 88 million following the
transaction of ownership increase in AKOFS Offshore completed in January 2025 (see Note
29 Events after the reporting period). In addition, Akastor has issued a financial guarantee of
NOK 0.9 billion in favour of OCY Wayfarer Limited for fulfilment of lease payment obligations
related to AKOFS 3 AS. Furthermore, Akastor is guaranteeing the performance of AKOFS
Norway Operations AS (operating AKOFS Seafarer) under the agreement with Equinor, which
was originally entered into in 2018 when AKOFS Offshore was wholly owned by Akastor.
The remaining contract value of this agreement has been increased to NOK 4.1 billion,
after Equinor has exercised the option to extend the contract with three additional years
whereby it will expire in December 2028. Avium Subsea AS, AKOFS 3 AS and AKOFS Norway
Operations AS are wholly owned subsidiaries of AKOFS Offshore.
HMH
As of December 31, 2024, Akastor has interest-bearing receivables of NOK 319 million
against HMH (fixed interest rate 8.0 percent), see also Note 14 Interest-bearing receivables.
Further, Akastor has interest-bearing liability of NOK 49 million towards HMH (fixed interest
rate 8.0 percent), see also Note 18 Borrowings for more information. Akator has recognized
deferred settlement obligations of NOK 210 million towards HMH related to indemnity
liabilities for pension plans in connection with MHWirth divestment completed in 2021.
As of December 31, 2024, Akastor has issued financial guarantees of NOK 400 million for
MHWirth AS, a wholly owned subsidiary of HMH, for fulfilment of lease obligations and
performance under certain operational support frame agreements.
Føn Energy Services
As of December 31, 2024, Akastor has interest-bearing receivables of NOK 19 million against
Føn Energy Services (NIBOR + weighted average margin 4.9 percent), see also Note 14
Interest-bearing receivables.
Other related parties
Aker Pensjonskasse
Aker Pensjonskasse was established by Aker ASA to manage the retirement plan for
employees and retirees in Akastor as well as related Aker companies. Akastor holds 93.4
percent of the paid-in capital in Aker Pensjonskasse. Akastor’s premium paid to Aker
Pensjonskasse amounts to NOK 6 million in 2024 (NOK 6 million in 2023). Akastor also
has an interest-bearing receivable against Aker Pensjonskasse of NOK 24 million and an
additional financing commitment NOK 10 million (3% interest of drawn amount and 1%
interest of committed amount).
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Even though Akastor owns 93.4 percent in Aker Pensjonskasse, the ownership does not
constitute control since Akastor does not have the power to govern the financial and
operating policies so as to obtain benefits from the activities in this entity.
Grants to employee representative’s collective fund
Aker ASA has signed an agreement with employee representatives that regulate use of
grants from Akastor ASA for activities related to professional development. The grant in
2024 was NOK 574 500 (NOK 547 500 in 2023).
Compensation to key management
The key management personnel of Akastor includes the Board of Directors and the
executive management team. The figures below represent remuneration expenses
recognized in the year. Detailed remuneration disclosures are provided in Remuneration
Report 2024.
Amounts in NOK million
2024
2023
Base salary
8
7
Variable pay and other benefits
18
7
Post-employment benefits (pension expenses to company)
1
1
Remuneration to Board of Directors
4
4
Total
30
18
The balance of accrued expenses related to key management remuneration amounted to
NOK 20 million as of December 31, 2024, of which NOK 8 million is contingent on continuous
employment after a three-year period.
Executive management’s and directors’ shareholding
The following number of shares is owned by the members of the executive management and
the directors (and their related parties) as of December 31:
Title
2024
2023
Karl Erik Kjelstad
CEO
700 000
700 000
Øyvind Paaske
CFO
135 083
135 083
Frank Ove Reite
Chairperson
200 000
200 000
Lone Fønss Schrøder
Deputy chair
4 400
4 400
Svein Oskar Stoknes
Director
1 297
1 297
Kathryn Baker
Director
45 683
45 683
Luis Antonio G. Araujo
Director
-
-
Asle Christian Halvorsen
Director, elected by employees
10 000
10 000
Stian Sjølund
Director, elected by employees
10 000
10 000
Henning Jensen
Director, elected by employees
-
-
Note 29 | Events after the reporting period
In the first quarter of 2025, Akastor and Mitsui O.S.K. Lines, Ltd. (MOL) completed the acquisition of
Mitsui & Co., Ltd.’s (Mitsui) entire interest in AKOFS Offshore, including both equity and shareholder
loans. As a result, Akastor increased its ownership stake in AKOFS Offshore from 50% to 66.7%,
while MOL now holds the remaining 33.3%. AKOFS Offshore remains classified as a joint venture
and will continue to be accounted for using the equity method in Akastor’s consolidated financial
statements.
In March 2025, DDW Offshore, a subsidiary of Akastor ASA, entered into a binding agreement to
sell Skandi Peregrino for USD 25 million. The transaction is expected to be completed in Q2 2025,
subject to charterer’s consent. Upon completion, Akastor intends to distribute a substantial portion
of the net proceeds, around USD 15 million, as a cash dividend to shareholders.
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Financials and Notes
Akastor ASA
Akastor ASA | Income statement
80
Akastor ASA | Statement of financial position
81
Akastor ASA | Statement of cash flow
82
Note 1 Accounting principles
83
Note 2 Operating revenue and expenses
84
Note 3 Net financial items
85
Note 4 Income tax
85
Note 5 Investments in group companies
86
Note 6 Receivables and borrowings, group companies
86
Note 7 Liquidity fund investment
87
Note 8 Shareholders’ equity
87
Note 9 Borrowings
88
Note 10 Guarantees
89
Note 11 Financial risk management
90
Note 12 Related parties
91
Note 13 Shareholders
91
Akastor ASA | Income statement
For the year ended December 31
Amounts in NOK million
Note
2024
2023
Operating revenue
2
2
9
Operating expenses
2
(39)
(41)
Operating profit (loss)
(37)
(32)
Net financial items
3
968
(256)
Profit (loss) before tax
930
(288)
Income tax benefit (expense)
4
324
4
Profit (loss) for the period
1 254
(285)
Profit (loss) for the period distributed as follows
Other equity
1 254
(285)
Profit (loss) for the period
1 254
(285)
ANNUAL REPORT 2024
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CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor ASA | Statement of financial position
As of December 31
Amounts in NOK million
Note
2024
2023
Assets
Deferred tax assets
4
31
16
Investments in group companies
5
4 298
3 990
Non-current interest-bearing receivables on group companies
6
500
500
Other non-current interest-bearing receivables
1
1
Total non-current assets
4 830
4 506
Current interest-bearing receivables on group companies
6
6
143
Other receivables
13
9
Liquidity fund investment
7
376
-
Cash in cash pool system
6
2
-
Total current assets
397
152
Total assets
5 227
4 658
Amounts in NOK million
Note
2024
2023
Equity and liabilities
Issued capital
162
162
Treasury shares
(1)
(1)
Share premium
2 000
2 000
Other paid in capital
2 007
2 007
Other equity
742
(512)
Total equity
8
4 910
3 656
Borrowings, external
9
(3)
-
Total non-current liabilities
(3)
-
Borrowings, external
9
-
962
Current borrowings from group companies
6
280
-
Other liabilities to group companies
6
37
39
Other current liabilities
2
2
Total current liabilities
320
1 003
Total liabilities
317
1 003
Total equity and liabilities
5 227
4 658
Fornebu, March 25, 2025 I Board of Directors of Akastor ASA
Frank O. Reite
Chairperson
Asle Christian Halvorsen
Director
Lone Fønss Schrøder
Deputy Chairperson
Stian Sjølund
Director
Svein Oskar Stoknes
Director
Karl Erik Kjelstad
CEO
Kathryn M. Baker
Director
Luis Antonio G. Araujo
Director
Henning Jensen
Director
ANNUAL REPORT 2024
PAGE 82
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Akastor ASA | Statement of cash flow
For the year ended December 31
Amounts in NOK million
Note
2024
2023
Profit (loss) before tax
930
(288)
Adjustments:
Dividend from group companies
3
(1 003)
-
Non-cash impairment
3
-
204
Net interest cost and unrealized currency (income) loss
97
106
Profit (loss), net of adjustments
25
21
Changes in net operating assets
(4)
(3)
Net external interest paid
(37)
(65)
Net cash from operating activities
(16)
(46)
Net change in liquidity fund investment
(366)
-
Dividend received from group companies
1 003
-
Net cash from investing activities
637
-
Amounts in NOK million
Note
2024
2023
Proceeds from borrowings
249
110
Repayment of borrowings
(1 250)
(94)
Changes in borrowings from group companies
417
-
Change in overdraft cash pool
(24)
8
Net cash from financing activities
(608)
25
Effect of exchange rate changes on cash and cash deposits
(11)
11
Net increase (decrease) in cash and bank deposits
2
(11)
Cash in cash pool system at the beginning of the period
-
11
Cash in cash pool system at the end of the period 1)
6
2
-
1) Unused committed credit facilities amounted to NOK 340 million as of December 31, 2024 (NOK 335 million in 2023).
ANNUAL REPORT 2024
PAGE 83
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 1 | Accounting principles
Akastor ASA (the parent company) is a company domiciled in Norway. The financial
statements are presented in conformity with Norwegian Accounting Act and Norwegian
generally accepted accounting principles (NGAAP).
Revenue recognition
Operating revenue mainly comprise parent company guarantees (PCG) recharged to entities
within the group. The revenue is recognized over the guarantee period.
Investments in subsidiaries
Investments in subsidiaries are measured at cost in the parent company accounts, less
any impairment losses. The investments are impaired to fair value if the impairment is not
considered temporary. Impairment losses are reversed if the basis for the impairment loss is
no longer present. Investments in subsidiaries and associates are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may
exceed the fair value of the investment.
Dividends, group contributions and other distributions from subsidiaries are recognized as
income the same year as they are recognized in the financial statement of the provider. If
the dividends or group contributions exceed withheld profits after the acquisition date, the
excess amount represents repayment of invested capital, and is recognized as a reduction
of carrying value of the investment.
Classification
Current assets and current liabilities include items due within one year or items that are
part of the operating cycle. Other balance sheet items are classified as non-current assets/
debts.
Non-current borrowings are presented as current if a loan covenant breach exists at
balance date. If a covenant waiver is approved subsequent to year-end and before the
approval of the financial statements, the liability is presented as non-current debt to the
extent maturity date is beyond one year.
Measurement of financial assets and liabilities
Financial assets and liabilities consist of interest-bearing receivables, trade and other
receivables, cash and cash equivalents, investment in liquidity fund, interest-bearing
borrowing and trade and other payables.
Investment in liquidity fund is measured at fair value based on quoted price.
Trade receivables and other receivables are recognized in the balance sheet at nominal
value less provision for expected losses.
Interest-bearing borrowings are initially recorded at transaction value less transaction costs.
Subsequent to initial recognition, these borrowings are measured at amortized cost with any
difference between cost and redemption value being recognized in the income statement
over the period of the borrowings on an effective interest basis.
Cash in cash pool system
Akastor ASA has a cash pool that includes the parent company’s cash as well as net
deposits from subsidiaries in the group cash pooling system owned by the parent company.
Correspondingly, Akastor ASA’s current debt to group companies will include their net
deposit in the group’s cash pool system.
Share capital
Costs for purchase of own shares including transaction costs are accounted for directly
against equity. Sales of own shares are performed according to stock-exchange quotations
at the time of award and accounted for as increase in equity.
Cash flow statement
The statement of cash flow is prepared according to the indirect method. Cash and cash
equivalents include cash, bank deposits and other short-term liquid investments.
ANNUAL REPORT 2024
PAGE 84
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Functional currency and presentation currency
The parent company’s financial statements are presented in NOK, which is Akastor ASA’s
functional currency. All financial information presented in NOK has been rounded to the
nearest million (NOK million), except when otherwise stated. The subtotals and totals in
some of the tables in these financial statements may not equal the sum of the amounts
shown due to rounding.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate applicable at the date
of the transaction. Monetary items in a foreign currency are translated to NOK using the
exchange rate applicable on the balance sheet date. Foreign exchange differences arising
on translation are recognized in the income statement as they occur.
Tax
Tax income (expense) in the income statement comprises changes in deferred tax. Deferred
tax is calculated as 22 percent of temporary differences between accounting and tax
values as well as any tax losses carry-forward at the year end. Net deferred tax assets are
recognized only to the extent it is probable that they will be utilized against future taxable
profits.
Note 2 | Operating revenue and expenses
Operating revenue comprises NOK 2 million in income from parent company guarantees
(NOK 9 million in 2023).
There are no employees in Akastor ASA and hence no salary or pension related costs and
also no loan or guarantees related to the executive management team. Group management
and corporate staff are employed by other Akastor companies and costs for their services
as well as other parent company costs are recharged to Akastor ASA.
NOK 3.7 million has been allocated to payable fees to the Board of Directors for 2024 (2023:
NOK 3.3 million). Shareholding of the Board of directors and CEO is described in Note 28
Related Parties in Akastor consolidated financial statements 2024. Remuneration to the
Board of directors and CEO is described in Remuneration Report 2024.
Fees to the auditors
Fees to the auditors for statutory audit amounted to NOK 1.2 million exclusive VAT (2023:
NOK 1.2 million).
ANNUAL REPORT 2024
PAGE 85
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 3 | Net financial items
Amounts in NOK million
2024
2023
Interest income from group companies
60
56
Interest income, external
73
76
Dividends from group companies
1 003
-
Interest expense, external
(100)
(143)
Interest expense, related parties
(16)
(26)
Impairment of shares in group companies
-
(204)
Net foreign exchange gain (loss)
(65)
(14)
Other financial income (expenses)
12
(1)
Net financial items
968
(256)
Note 4 | Income tax
Amounts in NOK million
2024
2023
Calculation of taxable income
Profit (loss) before tax
930
(288)
Dividends from group companies
(1 003)
-
Impairment of shares in group companies
-
204
Changes in timing differences
(15)
5
Group contribution with tax effect
1 400
-
Generated (utilized) tax loss
(1 312)
80
Taxable income
-
-
Taxable (deductible) temporary differences
Revaluation of investment measured at fair value
10
-
Capitalized borrowing costs
5
-
Interest deduction carry-forward
(5)
(5)
Tax loss carry-forward
(261)
(1 574)
Net temporary differences
(251)
(1 578)
Tax rate
22%
22%
Tax effects of temporary differences
55
347
Not recognized deferred tax assets 1)
(24)
(332)
Deferred tax assets (liability)
31
16
Tax expense
Change in deferred tax
324
4
Income tax benefit (expense)
324
4
1) Deferred tax assets are not recognized when the management assesses that it is not probable that future taxable
profit will be available, against which the deductible temporary difference can be utilized.
ANNUAL REPORT 2024
PAGE 86
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 5 | Investments in group companies
Amounts in NOK million
Registered
office
Share
capital
Number of
shares held
Percentage
owner- /
voting share
2024
2023
Akastor AS
Fornebu, Norway
1 004
1
100%
2 986
2 678
Mercury Holdco AS
Fornebu, Norway
-
1 000
100%
1 312
1 312
Total
4 298
3 990
Financial information in group companies 2024 (unaudited)
Amounts in NOK million
Akastor AS Mercury Holdco AS
Profit (loss) for the period
(1)
106
Equity as of December 31
3 009
1 598
Note 6 | Receivables and borrowings, group companies
Amounts in NOK million
2024
2023
Group companies (borrowings) deposits in the cash pool system
282
(136)
Akastor ASA's net deposit (borrowings) in the cash pool system
(280)
136
Cash in cash pool system
2
-
Non-current interest-bearing receivables on group companies
500
500
Current interest-bearing receivables on group companies 1)
6
143
Current borrowings from group companies 2)
(280)
-
Net interest-bearing receivables on group companies
226
643
Other liabilities to group companies
(37)
(39)
Net non-interest bearing items on group companies
(37)
(39)
1) Includes group companies’ borrowings in the cash pool system
2) Relates to Akastor ASA’s net borrowings in the cash pool system
Interest-bearing receivables on and borrowings from group companies
Akastor ASA is the group’s central treasury function (Akastor Treasury) and enters into
borrowings and deposit agreements with group companies. Deposits and borrowings are
done at market terms and are dependent of the group companies’ credit rating and the
duration of the borrowings.
Cash pool arrangement
Akastor ASA is the owner of the cash pool system arrangements with DNB. The cash pool
systems cover a majority of the group geographically and assure good control and access
to the group’s cash. Participation in the cash pool is vested in the group’s policy and decided
by each company’s board of directors and confirmed by a statement of participation.
The participants in the cash pool system are jointly and severally liable and it is therefore
important that Akastor as a group is financially viable and can repay deposits and carry out
transactions. Any debit balance on a sub account can be set-off against any credit balance.
Hence, a debit balance represents a claim on Akastor ASA and a credit balance a borrowing
from Akastor ASA.
The cash pool system has a net cash of NOK 2 million as of December 31, 2024
(net overdraft of NOK 24 million in 2023).
ANNUAL REPORT 2024
PAGE 87
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 7 | Liquidity fund investment
Amounts in NOK million
2024
2023
Liquidity fund investment
376
-
As of December 31, 2024, Akastor ASA has invested NOK 376 million in a liquidity fund. The
fund invests in short-term interest-bearing securities in NOK, i.e., certificates and bonds
issued by companies with investment grade rating and the public sector. The liquidity fund
cannot invest in securities with fixed interest rates longer than one year. The credit risk
is deemed to range from low to very low. The investment in liquidity fund is highly liquid
and convertible to cash on short notice. The rationale of the investment is to enhance the
return from surplus cash, compared to the interest rate in the cash pool. The investment is
measured at fair value.
Note 8 | Shareholders’ equity
Amounts in NOK million
Share
capital
Treasury
shares
Share
premium
Other paid
in capital
Retained
earnings
Total
Equity as of January 1, 2023
162
(1)
2 000
2 005
(227)
3 939
Treasury shares transaction
-
-
-
2
-
2
Profit (loss) for the period
-
-
-
-
(285)
(285)
Equity as of December 31, 2023
162
(1)
2 000
2 007
(512)
3 656
Profit (loss) for the period
-
-
-
-
1 254
1 254
Equity as of December 31, 2024
162
(1)
2 000
2 007
742
4 910
The share capital of Akastor ASA is divided into 274 000 000 shares with a nominal value
of NOK 0.592. The shares can be freely traded. See Note 13 Shareholders for an overview of
the company’s largest shareholders.
The number of treasury shares held by the end of 2024 was 1 813 974 (2023: 1 813 974). The
treasury shares are held for the purpose of being used for future awards under any share
purchase program for employees, as settlement in future corporate acquisitions or for other
purpose as decided by the board of directors.
ANNUAL REPORT 2024
PAGE 88
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 9 | Borrowings
Amounts in NOK million
Currency
Nominal
currency
value
Carrying
amount
(NOK)
Maturity
Interest
terms 2)
2024
Revolving credit facility
(USD 30 million) 1)
USD
-
(3) June 2026
USD LIBOR +
margin 4.0 %
Total borrowings
(3)
Non-current borrowings
(3)
Total
(3)
2023
Revolving credit facility
(USD 66 million)
USD
60
616 June 2024
USD LIBOR +
margin 5.5 %
Revolving credit facility
(NOK 241 million)
NOK
241
241 June 2024
NIBOR +
margin 5.5 %
Subordinated Aker facility
(NOK 375 million)
NOK
82
82
July 2024
NIBOR +
margin 12%
Overdraft facility
NOK
-
24
Total borrowings
962
Current borrowings
962
Total
962
1) As of December 31, 2024, there was no draw on the revolving credit facilities and the carrying amount comprised
capitalized borrowing costs and accrued commitment fees.
2) Commitment fee is 40 percent of the margin.
Revolving credit facilities are provided by a bank syndicate consisting of high-quality
Nordic and international banks and DNB is acting as the agent. The terms and conditions
include restrictions which are customary for these kinds of facilities, including inter alia
negative pledge provisions and restrictions on acquisitions, disposals and mergers, dividend
distribution and change of control provisions.
In June 2024, the subordinated Aker facility was fully repaid and cancelled. In addition, the
agreement of bank revolving credit facilities was amended and extended upon receipt of
proceeds from DRU arbitration award. There are no significant amendments in the terms
and conditions and financial covenants. Under the loan agreements, the financial covenants
are a gearing ratio based on net debt/equity, an equity ratio based on equity/total assets
and a minimum liquidity amount.
• The company’s gearing ratio shall not exceed 0.5 times, calculated from the consolidated
total borrowings to the consolidated Equity.
• Equity ratio shall not be lower than 32.5%, calculated from the consolidated total equity to
consolidated total assets.
• Minimum liquidity amount shall exceed NOK 50 million on consolidated level.
The covenants are monitored on a regular basis by the Akastor Treasury department to
ensure compliance with the loan agreements which are tested and reported on a quarterly
basis. Akastor was in compliance with its covenants as of December 31, 2024.
Financial liabilities and the period in which they mature
Amounts in NOK million
Carrying
amount
Total
undiscounted
cash flow1)
6 months
and less
6-12
months
2024
Revolving credit facility (USD 30 million)
(3)
1
1
-
Total borrowings
(3)
1
1
-
2023
Revolving credit facility (USD 60 million)
616
654
654
-
Revolving credit facility (NOK 241 million)
241
253
253
-
Subordinated Aker facility (NOK 375 million)
82
89
-
89
Overdraft facility
24
24
24
-
Total borrowings
962
1 020
931
89
1) The interest costs are calculated using the last fixing rate known by year end (plus applicable margin).
2) Repayment of the loan in the table is according to maturity date of the facility in the loan agreement.
ANNUAL REPORT 2024
PAGE 89
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 10 | Guarantees
Akastor has provided the following guarantees on behalf of wholly owned subsidiaries and
related parties as of December 31 (all obligations are per date of issue):
Amounts in NOK million
2024
2023
Parent Company Guarantees to group companies1)
331
468
Parent Company Guarantees to related parties2)
1 331
1 608
Counter guarantees for bank/surety bonds3)
80
217
Total guarantee liabilities
1 742
2 293
Maturity of guarantee liabilities:
6 months and less
1
31
6-12 months
-
265
1-2 years
453
100
2-5 years
930
1 508
5 years and more
358
390
1) Parent Company Guarantees to support subsidiaries in contractual obligations.
2) Parent Company Guarantees to support related parties in contractual obligations, mainly AKOFS 1 AS, AKOFS 3 AS
and MHWirth AS.
3) Bank guarantees and surety bonds are issued on behalf of Akastor subsidiaries and related parties, and counter
indemnified by Akastor ASA.
In addition, Akastor has provided performance guarantees on behalf of related parties,
mainly related to the performance of AKOFS Offshore (for operating AKOFS Seafarer) under
the agreement with Equinor, which was originally entered into in 2018 when AKOFS Offshore
was wholly owned by Akastor. The contract value of this agreement was NOK 4.1 billion as of
December 31, 2024.
Although guarantees are financial instruments, they are considered contingent obligations
and the notional amounts are not included in the financial statements.
US pension plan
AK Wilfab Inc, a wholly owned subsidiary of Akastor, is together with The Resource Group
TRG AS and Akastor ASA sponsoring the US pension plan named the Kvaerner Consolidated
Retirement Plan. Akastor Group holds one third of the liability of the sponsors for the
underfunded element of the plan and The Resource Group TRG AS holds two thirds of the
ultimate liability. Akastor Group’s share of net pension assets related to the plan amounted to
NOK 3 million as of December 31, 2024. Aker ASA guarantees for The Resource Group TRG
AS’ liability and covers for all its expenses related to the pension plan.
ANNUAL REPORT 2024
PAGE 90
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 11 | Financial risk management
Currency risk
The company’s exposure to currency risk is primarily against USD as the company has
external borrowings denominated in USD. As of December 31, 2024 or 2023, Akastor ASA
had not entered into any forward exchange contracts.
Interest rate risk
The company is exposed to changes in interest rates because of floating interest rate on
loan receivables and loan payables. The company does not hedge transactions exposure
in financial markets and does not have any fixed interest rate loan receivables nor loan
payables. The company is therefore not exposed to fair value risk on its outstanding loan
receivables or loan payables. Interest bearing loan receivables and loan payables expose the
company to income statement and cash flow interest risk.
Interest-bearing borrowings to group companies reflect the cost of external borrowing,
reducing the interest risk exposure for Akastor ASA.
Credit risk
Credit risk is the risk of financial losses to the company if a customer or counterparty fails to
meet contractual obligations. Credit risk relates to loans to subsidiaries and related parties,
guarantees to subsidiaries and related parties and deposits with external banks. External
deposits are done according to a list of approved banks and primarily with banks where the
company also have a borrowing relationship.
Loss provisions for interest-bearing receivables are made in situations of negative equity if
the company is not expected to be able to fulfill its loan obligations from future earnings. No
impairment related to receivables from group companies was recognized in 2024 or 2023.
See Note 6 Receivables and borrowings from group companies for more information about
receivables.
Liquidity risk
Liquidity risk relates to the risk that the company will not be able to meet its debt and
guarantee obligations and is managed through maintaining sufficient cash and available
credit facilities. Due to the dynamic nature of the underlying businesses, Akastor Treasury
maintains flexibility in funding by maintaining availability under committed credit lines.
Development in the group’s and thereby Akastor ASA’s available liquidity is continuously
monitored through monthly cash flow forecasts, annual budgets and long term planning.
ANNUAL REPORT 2024
PAGE 91
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
Note 12 | Related parties
Transactions and balances with subsidiaries and related parties
are described in the following notes:
Transactions
Note
Other services
Note 2
Financial items
Note 3
Investments
Note 5
Cash pool, receivables and borrowings
Note 6
Guarantees
Note 10
All transactions with related parties are carried out at market
terms and in accordance with the arm’s lengths principle.
Note 13 | Shareholders
Shareholders with more than 1 percent shareholding as per December 31
Company
Number of
shares held
Ownership
2024
Aker Holding AS
100 565 292
36.70%
Goldman Sachs & Co
Nominee
38 122 489
13.91%
Ministry of Trade, Industry and Fisheries, Norway
33 100 085
12.08%
Apollo Asset Limited
17 622 229
6.43%
Morgan Stanley & Co. LLC
Nominee
16 693 989
6.09%
Pirol AS
4 167 485
1.52%
F2 Funds AS
3 944 341
1.44%
F1 Funds AS
3 005 784
1.10%
Tigerstaden AS
3 000 000
1.09%
Hortulan AS
2 784 583
1.02%
2023
Aker Holding AS
100 565 292
36.70%
Goldman Sachs & Co
Nominee
42 339 755
15.45%
Ministry of Trade, Industry and Fisheries, Norway
33 100 085
12.08%
Morgan Stanley & Co. LLC
Nominee
18 025 544
6.58%
Apollo Asset Limited
17 441 290
6.37%
Mh Capital AS
4 000 000
1.46%
F2 Funds AS
3 300 000
1.20%
ANNUAL REPORT 2024
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 92
Independent Auditor’s Report
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Akastor ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Akastor ASA, which comprise:
●
the financial statements of the parent company Akastor ASA (the Company), which comprise the
statement of financial position as at 31 December 2024, the income statement and statement of
cash flow for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and
●
the consolidated financial statements of Akastor ASA and its subsidiaries (the Group), which
comprise the statement of financial position as at 31 December 2024, income statement, statement
of comprehensive income, statement of changes in equity and statement of cash flow for the year
then ended, and notes to the financial statements, including material accounting policy information.
In our opinion
●
the financial statements comply with applicable statutory requirements,
●
the financial statements give a true and fair view of the financial position of the Company as at 31
December 2024, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
●
the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2024, and its financial performance and its cash flows for the year then ended
in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required by
relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for three years from the election by the general meeting of the
shareholders on 20 April 2022 for the accounting year 2022.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
The Group’s business activities are largely unchanged compared to last year. We have not identified
regulatory changes, transactions or other events that qualified as new key audit matters this year. Accuracy
2 / 5
of Equity-accounted Investees and Valuation of Other Investments have the same characteristics during
2024, and consequently have been areas of focus also for this year’s audit.
Key Audit Matters
How our audit addressed the Key Audit Matter
Accuracy of Equity-accounted Investees
Investments in the Joint Ventures, (JV) HMH
Holding B.V. (HMH) and AKOFS Offshore AS
(AKOFS), amounts to approximately 55% of
the Group’s total assets. Any year-on-year
fluctuations in Akastor’s share of the JVs
booked results may amount to a significant
part of the Group’s total results. As such,
accuracy in reporting Group management
receives from JVs is of significance to the
Group’s financial statements.
See note 3 “Significant accounting policies”,
section “Basis of consolidation” for significant
accounting policies applied for investments in
joint ventures. Information on the recognition
and measurement of the JVs are disclosed in
note 12 “Equity-accounted investments”.
We tested the shares of equity-accounted investees
recognised by management in the statement of financial
position and the corresponding financial statement line
items in the income statement and statement of
comprehensive income, against financial reports of the
JVs. The JVs’ financial reports were communicated to us
by component audit teams who, as instructed by us,
performed audit work related to the JVs for purposes of
the Group audit.
To evaluate the reliability of the JVs financial reports, we
obtained an understanding of the JVs, held discussions
with Akastor’s management and collaborated with the
component audit teams. We were involved in the
component audit teams’ risk assessment, including the
susceptibility of material misstatement due to fraud or
error. We also reviewed their audit plan with regards to
identified significant risks, and challenged their audit
response to areas subject application of judgment. We
agreed with the component auditors on the materiality
levels for their audit. Our involvement and
communication, both written and otherwise, was
extensive.
We obtained a sufficient understanding of the component
audit firm and the engagement teams through meetings
with them, prior experience with the component team,
and frequent communication. They confirmed to us that
they were independent.
To evaluate the sufficiency and appropriateness of audit
evidence obtained by the component audit teams, we
reviewed the received audit reporting, held meetings with
the component audit teams and reviewed their audit
documentation. Our procedures were focused on the
audit of significant risks and the audit of the consolidation
process and -journals.
Through our involvement with the component auditors,
we were able to obtain sufficient appropriate audit
evidence regarding the financial information of the
components and the consolidation process of the JVs to
express an opinion on the Group’s financial statements.
Finally, we considered the adequacy of disclosures in
notes related to equity-accounted investees and found
them to be appropriate.
3 / 5
Valuation of Other Investments
Other Investments amount to approximately
19% of the Group’s total assets. Management
uses valuation techniques to estimate the fair
value of Other Investments. This line item is
significant to the financial statements, and the
carrying value is sensitive to management’s
use of judgment.
The substantial part of Other Investments is
measured at fair value through other
comprehensive income and is classified as
level 3 in the fair value hierarchy.
See note 4 “Significant accounting estimates
and judgements” for disclosures on
Management’s fair value measurement and
Impairment of financial assets. The carrying
value of Other Investments is specified in note
13 “Other Investments”.
We obtained the valuation model from management,
evaluated the valuation method applied and tested the
mathematical accuracy of the model. We agreed with
management that the valuation model used was
appropriate.
We challenged the key assumptions applied by
management in the valuation model. Specifically, we
discussed with management to challenge their view on
ebitda, growth, net working capital and net interest-
bearing debt, peer groups, ev/ebitda valuation multiples
and discount rate. We compared applied assumptions to
budgets approved by management and to obtainable
market information such as relevant benchmarks for
enterprise value multiples and discount rates. We also
tested data used in the model against relevant
agreements. We found management's key assumptions
to be reasonable.
Finally, we considered the adequacy of disclosures in
notes for Other Investments and found them to be
appropriate.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the
Board of Directors’ report and the other information accompanying the financial statements. The other
information comprises information in the annual report, but does not include the financial statements and
our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the
Board of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’
report and the other information accompanying the financial statements. The purpose is to consider if there
is material inconsistency between the Board of Directors’ report and the other information accompanying
the financial statements and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report and the other information accompanying the financial statements otherwise
appears to be materially misstated. We are required to report if there is a material misstatement in the
Board of Directors’ report or the other information accompanying the financial statements. We have nothing
to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
●
is consistent with the financial statements and
●
contains the information required by applicable statutory requirements.
Our opinion on the Board of Directors' report applies correspondingly to the statement on Corporate
Governance.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and
fair view in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU.
Management is responsible for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
ANNUAL REPORT 2024
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 93
4 / 5
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is not likely
that the enterprise will cease operations. The consolidated financial statements of the Group use the going
concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
●
identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
●
obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's and the Group's internal control.
●
evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
●
conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company's and the Group's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company and the Group to cease to continue as a going concern.
●
evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves a true and fair view.
●
obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
5 / 5
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Akastor ASA, we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the annual
report, with the file name AKASTORASA-2024-12-31-en, have been prepared, in all material respects, in
compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the
European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format, and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as management determines is
necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF
reporting, see: https://revisorforeningen.no/revisjonsberetninger
Oslo, 25 March 2025
PricewaterhouseCoopers AS
Anders Ellefsen
State Authorised Public Accountant (Norway)
ANNUAL REPORT 2024
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 94
Alternative Performance Measures
Akastor discloses alternative performance measures as a supplement to the
consolidated financial statements prepared in accordance with IFRS. Such
performance measures are used to provide an enhanced insight into the
operating performance, financing abilities and future prospects of the group.
These measures are calculated in a consistent and transparent manner and are
intended to provide enhanced comparability of the performance from period to
period. It is Akastor’s experience that these measures are frequently used by
securities analysts, investors and other interested parties.
The definitions of these measures are as follows:
EBITDA - earnings before interest, tax, depreciation and amortization, corresponding to
“Operating profit before depreciation, amortization and impairment” in the consolidated
income statement.
EBIT - earnings before interest and tax, corresponding to “Operating profit (loss)” in the
consolidated income statement.
Net current operating assets (NCOA) - a measure of working capital. It is calculated by
current operating assets minus current operating liabilities.
Net capital employed - a measure of all assets employed in the operation of a business.
It is calculated by non-current assets and finance lease receivables (excluding non-
current interest-bearing receivables) added by net current operating assets minus non-
current operating liabilities (deferred tax liabilities, employee benefit obligations, other
non-current liabilities and lease liabilities).
Gross debt - sum of current and non-current borrowings, excluding lease liabilities
Net debt - gross debt minus cash and cash equivalents and highly liquid investments
held in liquidity fund
Net interest-bearing debt (NIBD) – net debt minus non-current and current interest-
bearing receivables.
Equity ratio - a measure of investment leverage, calculated as total equity divided by
total assets at the reporting date.
Liquidity reserve - comprises cash and cash equivalents, highly liquid investments held in
liquidity fund and undrawn committed credit facilities.
ANNUAL REPORT 2024
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 95
The tables below show reconciliation of alternative performance measures to the line
items in the financial statements according to IFRS.
Net current operating assets (NCOA)
Amounts in NOK million
2024
2023
Inventories
12
5
Trade and other receivables
95
601
Trade and other payables
(191)
(339)
Net current operating assets (NCOA)
(84)
267
Net capital employed (NCE)
Amounts in NOK million
2024
2023
Total non-current assets
5 868
5 279
Net current operating assets (NCOA)
(84)
267
Current finance lease receivables
-
19
Non-current interest-bearing receivables
(485)
(550)
Employee benefit obligations
(76)
(82)
Other non-current liabilities
(195)
(255)
Total lease liabilities
(9)
(34)
Net capital employed (NCE)
5 020
4 645
Gross debt/Net debt/NIBD
Amounts in NOK million
2024
2023
Non-current borrowings
292
236
Current borrowings
82
1 133
Gross debt
373
1 369
Cash and cash equivalents
(47)
(144)
Liquidity fund investment
(376)
-
Net debt
(49)
1 225
Non-current interest-bearing receivables
(485)
(550)
Current interest-bearing receivables
(304)
-
Net interest-bearing debt (NIBD)
(839)
675
Equity ratio
Amounts in NOK million
2024
2023
Total equity
5 859
3 970
Divided by Total assets
6 704
6 048
Equity ratio
87%
66%
Liquidity reserve
Amounts in NOK million
2024
2023
Cash and cash equivalents
47
144
Liquidity fund investment
376
-
Undrawn committed credit facilities
340
335
Liquidity reserve
763
479
ANNUAL REPORT 2024
PAGE 96
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 96
Board of Directors
Frank O. Reite
Chairperson of the
Board
Frank O. Reite joined
Aker in 1995 and
served as CFO in Aker
ASA from 2015 until
2019. He is currently
working as an advisor.
He holds a B.A. in business administration from
BI Norwegian Business School in Oslo. Prior to his
role as Aker’s CFO, Mr. Reite held the position as
President & CEO of Akastor, and has previously
also held a variety of executive positions in the Aker
group, including overseeing and developing Aker’s
investments in Converto Capital Fund AS, Havfisk
ASA, Norway Seafoods AS and Aker Yards ASA.
Mr. Reite also has experience from banking and
served as Operating Director at Paine & Partners,
a New York-based private equity firm. Mr. Reite
has been the Aker ASA’s deputy chair and head
of the Audit Committee since April 2021. Mr. Reite
is also currently chair of Solstad Maritime Holding
AS, Converto AS, Norron AB, and, among others,
director of AMSC ASA, Solstad Offshore ASA and
Aker BioMarine ASA.
As of March 25, 2025, Mr. Reite holds, through
a privately owned company, 200,000 shares in
Akastor ASA and has no stock options. He is a
Norwegian citizen and has been elected for the
period 2024-2026.
Lone Fønss Schrøder
Deputy Chair
Lone Fønss Schrøder
is vice-chair of Volvo
Cars AB and chair of
its audit committee,
as well as a director
and audit committee
chair at Aker Horizons
ASA. She also serves on the boards and audit
committees of Aker Solutions ASA, Geely Sweden
Holdings AB and Ingka Holding B.V. (Ikea Group).
She is a global advisor of ServiceNow. Previously,
she held senior management and CEO roles
at A.P. Møller-Maersk, Wallenius Lines AB, and
Concordium AG. She has significant digital and
international board experience, including fintech
development and advisory roles. Fønss Schrøder
holds an MSc in law and economics from
Copenhagen University and CBS, with further
education at MIT.
Ms. Fønss Schrøder serves as an independent
director. As of March 25, 2025, she holds 4,400
shares in Akastor ASA and has no stock options.
She is a Danish citizen and has been elected for
the period 2024-2026.
Svein Oskar Stoknes
Director
Svein Oskar Stoknes
has been the Chief
Financial Officer (CFO)
of Aker ASA since
2019. Prior to this, he
served as CFO of Aker
Solutions ASA, where
he joined in 2007 and was named CFO in 2014.
Stoknes has also held a range of senior positions
within finance and advisory for organizations like
Tandberg, Citigroup, Norwegian Trade Council and
ABB. He graduated from the Norwegian School of
Management with a master’s degree in business
and economics, and has an MBA from Columbia
Business School in New York. Stoknes is a director
of Aker Capital AS and several other companies
where Aker is the largest shareholder.
As of March 25, 2025, Mr. Stoknes owns 1,297
shares in Akastor ASA and has no stock options. He
is a Norwegian citizen and has been elected for the
period 2024-2026.
Kathryn M. Baker
Director
Kathryn M. Baker
has over 30 years of
experience in a broad
range of industries and
roles. She is currently
Chairwoman of Terra
Mater Investment
Management and is a Board member of MPC
Energy Solutions and InoBat. In addition, Ms. Baker
serves on the investment committee of the DFI
Norfund. Ms. Baker was previously a member of
the Executive Board of the Central Bank of Norway
(Norges Bank), the European Advisory Board of
the Tuck School of Business and she led the Ethics
Committee of the Norwegian Private Equity and
Venture Capital Association (NVCA) where she
was also Chairwoman. Ms. Baker was a partner
at the Norwegian private equity firm Reiten & Co
for 15 years. Prior to that she was a management
consultant with McKinsey & Co in Oslo and a
financial analyst at Morgan Stanley in New York.
Ms. Baker holds a bachelor’s degree in economics
from Wellesley College and an MBA from the Tuck
School of Business at Dartmouth College.
Ms. Baker serves as an independent director. As
of March 25, 2025, Ms. Baker holds 45,683 shares
in Akastor ASA and has no stock options. She is
an American and Norwegian citizen and has been
elected for the period 2023-2025.
ANNUAL REPORT 2024
PAGE 97
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 97
Board of Directors
Luis Antonio G. Araujo
Director
Luis Antonio G. Araujo
has over 38 years
of experience in the
energy and oil & gas
industries. He was
CEO of Aker Solutions
from July 2014 to
August 2020. Prior to his appointment as CEO, Mr.
Araujo held the position as Regional President and
Executive Vice-President for Aker Solutions in Brazil
since November 2011 where he led a major turn-
around of the local operations. Prior to his period
with Aker Solutions, he was CEO of Wellstream
in Brazil (currently part of Baker Hughes GE), and
held several senior positions within ABB, FMC
Technologies, Vetco Gray and Technip Coflexip.
Mr. Araujo is currently an independent director
and member of the board of Magseis Fairfield ASA
listed on the Oslo Stock Exchange, and Chairman
of the board of OceanPact, a Brazilian company.
Mr. Araujo holds a bachelor degree in Mechanical
Engineering from Gama Filho University and an MBA
from Edinburgh University.
Mr. Araujo serves as an independent director. As of
March 25, 2025, Mr. Araujo holds no shares and no
stock options in the company. Mr. Araujo has triple
citizenship; Brazilian, British and Portuguese and
has been elected for the period 2023-2025.
Henning Jensen
Director, Elected by
the employees
Henning Jensen
currently works as a
specialist engineer
in project control
department at HMH.
Mr. Jensen joined
MHWirth in 2005. He has since then held various
positions in the company. Mr. Jensen holds a
bachelor degree in Marine Technology and a Master
in Industrial Economy and Technology from Agder
University College in Grimstad.
As of March 25, 2025, Mr. Jensen holds no shares
or stock options in the company. Mr. Jensen is a
Norwegian citizen and has been elected for the
period 2023-2025.
Asle Christian
Halvorsen
Director, Elected by
the employees
Asle Christian
Halvorsen currently
works as Sales
Manager in the
Global Sales dept at
HMH. He began his career with the Aker group in
2011 when he joined STEP Offshore. Mr. Halvorsen
holds an Executive Master of Management from BI
Norwegian Business School.
As of March 25, 2025, he holds 10,000 shares
in Akastor ASA and has no stock options. Mr.
Halvorsen is a Norwegian citizen and he has been
elected for the period 2023-2025.
Stian Sjølund
Director, Elected by the
employees
Stian Sjølund currently
works as Performance
Optimization Engineer
at HMH. Mr. Sjølund
joined the Company
in 1998 as an Engineer
in Drilling Lifecycle Services department. He has
since then held various positions in the company in
Norway and abroad. Mr. Sjølund holds a technical
college degree in electrical engineering from
Grimstad Technical College.
As of March 25, 2025, he holds 10,000 shares in
Akastor ASA and has no stock options. Mr. Sjølund
is a Norwegian citizen and has been elected for the
period 2023-2025.
ANNUAL REPORT 2024
PAGE 98
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
ANNUAL REPORT 2024
PAGE 98
Karl Erik Kjelstad
CEO
Karl Erik joined
Akastor in 2014 and
has been part of the
Aker group since 1998
with numerous key
positions including
various CEO positions.
Karl Erik has held several board positions in different
industries, including oil service, engineering,
renewable energy, offshore drilling, offshore and
merchant shipping, shipbuilding, IT services, real
estate and construction industry. Karl Erik holds
an MSc in Marine Engineering from the Norwegian
University of Science and Technology (NTNU) and
an AMP from Harvard Business School.
As of March 25, 2025, Mr. Kjelstad holds, through his
company Byesvollen AS, 862,285 shares in Akastor
ASA and has no stock options .
Øyvind Paaske
CFO
Øyvind joined the
investment team in
Akastor as Investment
Manager in 2014
and has held the
position as CFO of
Akastor from March
2020. Prior to this he was Investment Manager
at Converto (Aker ASA). Øyvind holds an MSc in
Financial Economics from the Norwegian School of
Economics and Business Administration (NHH) and
UNC Kenan-Flagler Business School.
As of March 25, 2025, Mr. Paaske holds 205,109
shares in Akastor ASA and has no stock options.
Management
ANNUAL REPORT 2024
CONTENTS BOARD OF DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT FINANCIAL STATEMENTS
PAGE 99
Company Information
Reports on the Internet
The quarterly and annual reports of
Akastor are available on the internet.
Akastor encourages its shareholders
to subscribe to the company’s
annual reports via the electronic
delivery system of the Norwegian
Central securities Depository (VPS).
Please note that VPS services (VPS
Investortjenester) are designed
primarily for Norwegian shareholders.
Subscribers to this service receive
annual reports in PDF format by email.
VPS distribution takes place at the
same time as distribution of the printed
version of Akastor’s annual report to
shareholders who have requested it.
Quarterly reports, which are generally
only distributed electronically, are
available on the company’s website and
other sources. Shareholders who are
unable to receive the electronic version
of interim reports may subscribe to the
printed version by contacting Akastor’s
investor relations staff.
Copyright and Legal Notice
Copyright in all published material
including photographs, drawings and
images in this publication remains
vested in Akastor and third party
contributors to this publication as
appropriate. Accordingly, neither the
whole nor any part of this publication
can be reproduced in any form without
express prior permission. Articles and
opinions appearing in this publication
do not necessarily represent the views
of Akastor. While all steps have been
taken to ensure the accuracy of the
published contents, Akastor does
not accept any responsibility for any
errors or resulting loss or damage
whatsoever caused and readers have
the responsibility to thoroughly check
these aspects for themselves. Enquiries
about reproduction of content from
this publication should be directed to
Akastor ASA.
Contact details
Akastor ASA
Oksenøyveien 10,
1366 Lysaker,
Norway
PO Box 124,
1325 Lysaker,
Norway
akastor.com
HMH
Norway
Butangen 20,
4639 Kristiansand,
Norway
PO Box 413 Lundsiden,
4604 Kristiansand,
Norway
+47 38 05 70 00
Houston
3300 North Sam
Houston Parkway East
77032 Houston,
Texas,
United States
+1 281 449 2000
hmhw.com
AKOFS Offshore
Karenslyst Allé 57,
0277 Oslo,
Norway
PO Box 244,
0213 Oslo, Norway
+47 23 08 44 00
akofsoffshore.com
CONTACT DETAILS
Akastor ASA
Oksenøyveien 10,
1366 Lysaker,
Norway
PO Box 124,
1325 Lysaker,
Norway
©2025 Akastor AS
akastor.com
CREDITS:
Icons front cover: flaticon.com
Images: AKOFS, FØN, HMH, Ilja C. Hendel, pexels.com