Hi, welcome to this quarter presentation by Frøy ASA. My name is Tonje Foss, and I'm here with the CFO, Sondre Vevstad. Looking at the highlights, the Q3 in 2022 was a busy quarter for Frøy. Revenues continued to increase driven by new vessels on time charter contracts, and we secured multiple new agreements and increased our backlog. However, the quarterly profitability was impacted by high fuel cost and unscheduled off-hire and maintenance costs on two of our wellboats. We continue to grow, and we placed an order for a new wellboat in this quarter, delivering in 2024 from Sefine in Turkey. We also have been working with a new combination method for removal of sea lice, and we communicated this in the Q1. In the Q3, we have been rolling out this method on five wellboats with good and documented results also by a third party. We paid dividend as communicated and according to plan in June. Looking at the high-level numbers, we have a double-digit growth in revenue compared to the same quarter last year. The EBITDA and the backlog is approximately at the same level, and due to the special conditions in this quarter, as I mentioned in the beginning, but the backlog is up from the two last quarters. Looking at the revenues, we see a 21% increase in revenues from contracts and frameworks. As I mentioned, we have more boats on the time charter contracts this year compared to last year. Of course, we see a seasonal change in sea temperatures result in increased activity and demand for our services going from Q1 into Q2. The backlog is at the time on NOK 6.2 billion, and NOK 3.7 billion of those are firm contracts with NOK 2.5 billion on the options. It's important to say that our framework agreements with no minimum purchase is of course not included in this backlog, so that's in addition. We saw, as I said, a NOK 2 million increase in the backlog from the two last quarters. I mentioned the new treatment on the sea lice, treatment method, and we are happy to see that, the good results from our testing during the last year is now formalized and verified through our daily operations, but also by a third party. This combination method is good both for the efficiency of the actual treatment, but also on the results of the treatment. The treatment lasts for a shorter time. The combination method use less time than traditional methods. That is good for the fish, less stress, better fish welfare, and we see a good effect on reducing the sea lice. We have been rolling out as is now for on our five wellboats, and we're looking forward to continue to develop these type of solutions for our customers going forward. Now I give the word to Sondre, who will take you through some details and financial information. Thank you, Tonje. We'll start with the Wellboat segment, which had total revenues of NOK 270 million in the quarter versus NOK 196 million last year. That increase is predominantly driven by increase in contract revenues with the new wellboats that came in during 2021 that is working on long-term charter contracts. EBITDA in the quarter ended at NOK 91 million versus NOK 85 million in Q2 last year, which results in a EBITDA margin of 34% versus 43% last year. That margin picture is somewhat or it is impacted by the increased fuel prices that we see during the last twelve months. The fuel that we use on the time charter vessels is reinvoiced to clients, which obviously is a zero-margin revenue for us, but it reduces the comparable EBITDA margin to last year. In addition, like Tonje mentioned, we had unscheduled repair and maintenance on two wellboats in the quarter, resulting in a negative effect on both the revenue side but also on the cost side on these wellboats in the quarter. The total negative effect is approximately NOK 9 million in the quarter with lost revenue days. The days that the vessel was supposed to operate on time charter contract amounts to approximately NOK 4 million, while we had an increase in the maintenance cost in the quarter of approximately NOK 5 million. This is obviously something that we are working every day to avoid. We had the five-year classing on these vessels and it is a risk that we get these type of extra costs when we do more thorough investigations and doing this type of maintenance work. At the same time, we are working every day to work proactively to reduce the risk and to reduce the impact of these type of maintenance events. Going over to the Service segment, we had total revenues of NOK 212 million in the quarter versus NOK 185 million. That's a 10% increase in the revenues from contracts and framework agreements versus Q3 last year. We had an EBITDA of NOK 65 million versus NOK 70 million last year, which gives us an EBITDA margin this year of 31% versus 38% last year. Also here, we have the effect of increased re-invoiced costs to customers with zero margin that pulls down the EBITDA margin. But here we carry more of the fuel costs ourselves, especially in the framework agreements and spot work that we're doing. We see that the direct extra fuel costs in Q3 this year is approximately NOK 6 million versus Q3 last year. We saw somewhat lower activity in net cleaning and diving in the quarter and then especially in the north of Norway. In the Sea Transport segment, we had total revenues of NOK 24 million versus NOK 31 million last year. The EBITDA is down to NOK 5 million versus NOK 7.5 million, and this basically relates to the rebuilding, the planned rebuilding of MS Volla, which we acquired last year. We had at the yard during Q3 to rebuild it to multipurpose vessels being able to carry both frozen seafood and fish feed. The rebuilding was successfully completed during the quarter after approximately 10 weeks. We have done several new investments that we believe will increase the efficiency and improve the carbon footprint of the vessel. We have installed a DP system, Dynamic Positioning system. We have installed the ballast water treatment system, SCR system, reducing the NOx emissions. We have added an antifouling paint on the surface of the vessel to reduce the fuel consumption for the vessel. This basically reduces growth on the vessel. Going over to the total financials. Summary on the bridge from revenues from the Q3 last year to this year is basically the NOK 75 million increased revenues in the Wellboat segment, driven by two more vessels and an increase in fuel costs, which we reinvoiced to clients. In the service segment, Frøy Challenger entered into operation in the Q1, which explains the. Is the main explanation for the NOK 27 million increase in revenues versus Q3 last year. The drop in revenues in the Sea Transport segment relates to the rebuilding of MS Volla in the quarter. Looking at the EBITDA, we had NOK 159 million of EBITDA in Q3 last year. We have two more vessels in the Wellboat segment that contribute positively to the EBITDA generation in the quarter. As mentioned, we had a fire on two vessels which had an impact of approximately NOK 9 million. This NOK 6 million should without these events be more in the NOK 15 million area. Sorry. Looking at the change in the Service segment, we have increased fuel costs that pull up the cost level. We also saw the somewhat lower activity level in the north, especially in the north of Norway, which leads to a reduction in the EBITDA in this segment versus last year. The change in the Sea Transport segment relates to MS Volla at the yard. The other post here is cost related to the ongoing digitalization efforts that we are doing and consolidation of the different Frøy companies into one unit. Going over to the profit and loss. In total, we had revenues of NOK 507 million, which is significantly up versus last year. EBITDA of NOK 154 is slightly down versus last year, driven by the effects that we went through in the last quarter. Which gives us EBITDA margin in the quarter of 30% versus 39% last year in comparable period. The net finance number that you see here includes a positive P&L impact from interest rate swaps that we have. The payable interest expenses is higher, and you can find the number in the quarterly report. Looking at the balance sheet, we have increased assets on our balance sheet versus last year driven by investments in new vessels. We have also increased the debt level. The gross debt level is up, driven also by the same that we invest in new vessels. Net interest-bearing debt of slightly below NOK 3.7 billion versus NOK 3 billion last year and NOK 3.5 billion at year-end 2021. The equity ratio is fairly stable at 41% versus 42% at year-end and 43% last year, in the Q3 last year. On the cash flow side, we have a positive cash flow from operations of NOK 37 million, which is significantly lower than the EBITDA and this effect is basically a seasonal increase in receivables. The activity level increased during the Q3 and then we get paid typically at 14-30 days after. The cash flow investments in the quarter was approximately NOK 150 million, which relates to the new builds that we have under construction. Here, we have paid substantial amounts on the equity part on these vessels in the quarter, which explains the net drawdown of debt in the quarter. The total net cash flow from financing activities of NOK 231 million relates to the net drawdown of debt and also the payment of dividend in the quarter. Which leaves us with a cash balance of slightly below NOK 400 million at the end of Q3. The investment program is almost identical to last quarter. No changes in the costs or delivery dates on the wellboats. We expected two service vessels to be delivered during the Q3. They were slightly delayed into the Q3, and they have been delivered now. For the remaining service vessels under construction, there are no changes compared to last quarter. After the end of Q2, we have placed an order for two more small service vessels that we expect to take delivery during wintertime in 2022-2023. These are now included in the investment schedule that you see in the graph. Financing. We finance our fleet with bank debt and leasing. The large wellboats are financed with bank debt. All the new builds are secured financing on. The large service vessels are financed with bank debt and the smaller service vessels are financed with leasing. With that, I leave the word to you again, Tonje. Thank you. Yes. Looking at the outlook, we see still strong positive underlying market trends driven by farming in more exposed areas, larger farming sites and of course new regulation on ESG requirements. We believe that these increased regulations both from the government side and the ESG underline the importance of Frøy's professional services. We service the farmers every day with specialized aqua services and it's a business that is kind of logical to outsource for all the farmers. We do see still high fuel cost in the next half year. We are of course working with the clients to get more and higher cover for these costs, but that's an ongoing discussion and we are working on it. We do see an increased activity into Q3 in line with normal seasonal changes. Somehow a little bit lower activity observed in the North compared to last year. On the strategic sides, we maintain our communication on the return on equity. We will continue to have a target for this of 10%-18% and, of course, given higher cost and higher prices in the industry, this means that our pricing, the pricing of our resources will go up. Of course, we need to maintain a good cost control in this respect also from Frøy's side and we will continue to work to be a more efficient and use our resources in an efficient way along the whole company. We will also continue to invest in digitalization and data. This gives us both analysis to improve our services today, but it also gives us a verification towards our customers, so we can use the data and analyze it and verify the effect on our business. Of course, on the ESG part, the reporting on the ESG will increase in the years to come and we will be well prepared for this new regime. With that, I say thank you for your attention.
Loading workspace