Photo: Rolf Estensen

MHWirth employee. Photo: Rolf Estensen

MHWirth reported revenues of NOK 818 million in the fourth quarter, a decrease of 33 percent year-on-year.

EBITDA for the quarter was NOK 85 million, representing an EBITDA margin of 10.4 percent.

“We expect the markets to remain challenging over the near future but remain cautiously optimistic that the gradual recovery of the global economy and the oil service sector will increase demand for our portfolio companies’ products and services over the next 12 to 18 months,” says Akastor CEO Karl Erik Kjelstad, according to a press release.

On Friday he reported the fourth quarter results for the Akastor group, which is also the owner of MHWirth.

Drilling Lifecycle Services & Digital Technologies revenues were NOK 549 million in the quarter, a decrease of 21 percent compared to last year, however increased by 8 percent compared to last quarter.

Number of active rigs increased by one unit during the quarter, with potential for further increase over the next quarters based on current contract schedule of the fleet.

The Drilling Lifecycle Service business continues to create a solid basis for MHWirth with good medium to long term growth opportunities through increased utilization of fleet. Digital Technologies received good traction also in the fourth quarter, with several leads for full DEAL upgrades.

Revenues from Projects & Products decreased 49 percent compared with last year, driven by lower revenue recognition from ongoing projects as these are in the last phase with lower progress, as well as lower activity within single equipment. Relatively low order backlog within this segment per end of quarter still causes uncertainty related to performance in the near to medium term.

“We are pleased with our fourth quarter financial results which included a strong operational cash flow and solid EBITDA margin in MHWirth, despite continued challenges brought on by the global pandemic. 2020 has been strongly affected by COVID-19 and following turmoil in the oil markets, however our portfolio companies have demonstrated robust business models through the year,” says Kjelstad.