Photo: Rolf Estensen

MHWirth employee. Photo: Rolf Estensen

MHWirth reports a significant drop in revenues in the third quarter, but is able to maintain its profit margin.

MHWirth reports revenues of NOK 735 million in the third quarter, a decrease of 37 percent year-on-year. EBITDA for the quarter was NOK 71 million, giving an EBITDA margin of 9.7 percent.

Revenues from Projects & Products decreased 59 percent compared with last year, driven by lower revenue recognition from ongoing projects as these are in the last phase with lower progress. Uncertainty related to the market outlook and continued rig overcapacity is still a concern regarding future order intake potential for this segment.

Akastor CEO Karl Erik Kjelstad comments: “We are happy to see that MHWirth maintained its EBITDA margin at around 10 percent, despite a drop in revenues following lower activity within Projects and Products, demonstrating again the importance and robustness of the service business. Going forward, focus for MHWirth is on aligning its cost base with market activity level.”

Drilling Lifecycle Services (DLS) & Digital Technologies revenues were NOK 510 million in the quarter, a decrease of 18 percent compared to last year. Number of active rigs decreased by three units during the quarter, but is expected to stabilize going forward based on current contract schedule of the fleet. The DLS business continues to create a solid basis for MHWirth with good medium to long term growth opportunities subjected to an increased utilization of fleet. Digital Technologies continues to receive good traction in the market for its digital solutions, focusing on automating and increasing efficiency of rig operations.